6 ms·
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 treas
by 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.