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What happens if banks systematically are unable to pay these loans back?

• aguyfromnb 7y ago
  >What happens if banks systematically are unable to pay these loans back? And how would that happen exactly? But if it did, the Fed would extend the loan, or loan more. Not very complicated.
  • bendbro 7y ago
    So it's not a loan
• quickthrowman 7y ago
  The lender holds the collateral for the duration of the repo loan...
• powowow 7y ago
  The fed holds US treasury bonds as collateral. Would you be worried about default if you loaned me a million dollars, and I gave you a million dollars of treasuries as collateral? It blows my mind that people are getting all worried about fully collateralized short term interbank lending.
• me_me_me 7y ago
  Middle class can handle that, they already have a lot of experience with this. Better to leave it up to them to clean that mess up.