Submitted by davesmith001 t3_122lkmv in wallstreetbets
We live in some seriously regarded times these days so let us pool our single good brain cells and ponder this question. You ever wonder why the fed funds is approaching 5% but you are still getting dick on your current account? There are near $3 trillion at the fed REPO facility collecting 5% but you are getting ~0.6%? WTF. No wonder the less regarded among you have moved money to money market funds, 2 year treasuries, funky etfs such as OPER and even in physical gold. So far 500bn have left for MM funds and this clearly caused the banking strain since the useless banks are now borrowing from the fed in emergency facilities in size of 500bn at 5%.
But what the actual fuk!!! Why didn’t these regarded banks hike deposit rates at the same time as the fed funds? That would have surely prevented the 500bn deposit flight and they might have not got into this hot mess in the first place.
Seems to me what we have here is a classic case of fighting the fed and losing their shirt. Except this time the ones fighting the fed is the entire banking industry acting as one.
Also how is it they are able to keep deposit rates this low across the entire western world? It is as if we are in a corrupt collusive oligarchy controlling the free market interest rate, surely that can’t be happening right? This is free market capitalism with intelligent regulators who would be onto this kind of manipulation like flies on diarrhea? /s
Now having fuked the depositors for decades, fuked up on their long duration treasury bets and fuked the congress into deregulating, banks are now looking to fuk the tax payers some more by fuking yellen and fed into bailouts after they themselves fuked up causing all of this inflation in the first place. What the actual F???!!!!