That's all I'm asking.

somewhere between that and having 100% in treasuries would be nice.

Yes and that amount, less liabilities, is their profit margin. In total last year, that amount was $5 billion. But they now have $70 billion less in assets! That is what deposits are to a bank: liabilities. Otherwise, where do they get the money to give them their deposits back?

And instead of selling those assets for a massive loss, they borrowed against them! From the Fed. At 5%. So now they have 40% less assets to pay an extra $5 billion dollars in interest payments.

The question then, and the point of this post, is WHERE ARE THEY GETTING THAT MONEY?

That $30 billion was just a token vote of confidence and only has a lifespan of 3 months. But maybe JPM et al will loan them $30 billion at rock bottom rates indefinitely, but I doubt it. Then it's back to the discount window for them.

So they are going to blow through all their cash and sell their loans at a loss when they can just borrow the damn money and use that to make money instead? I don't hear about anybody liquidating assets to pay back the Fed, do you?

My man, in order to not pay interest they need to pay back the principal. So where are they getting this $70 billion to pay back those loans in two months?! Sell their treasuries at a loss that is a lot greater than 5%? You need to learn how balance sheets work.

Yeah where'd they get that $70 billion that was withdrawn? They just had it lying around? Or they borrowed it at 5% from the Fed against their underwater treasuries?

5% is what they would have to pay depositors to lure them away from mma's. Plus they still owe five percent on the $70 billion in deposits that are gone. So where would they get that money?

It's my understanding that reserve requirements relate only to a a percentage of the deposits a bank has. Borrowing money from Fed doesn't increase the amount of deposits a bank has. What I believe you are thinking of is capital requirements.

Oh yeah?

No regional bank is paying that, but they need to be. That's the point.

You attract deposits by offering higher interest rates on savings/deposit accounts. Since banks are able to borrow from the Fed at 5%, if they lend that same money out at 10%+, they can offer rates that are competitive with money markets.

Damn, that's that shady shit that causes financial crises. Otoh, more credit into the market should mean even lower unemployment. Yay leverage!

Lol

Yeah, the next few weeks are probably gonna be great.

I use "trader user group" on YouTube. Very obscure channel, but great weekly analysis that gives a pretty sharp assessment of the prior week.

idk why you're being an asshole to the person replying. Seems like they are giving solid advice along your preferred "price-action" modality. they don't have to be an expert to give good advice, you have to be good enough to sift through what is good advice and what is not. And humble enough not to be a prick about it.

That's why ppl do 0dte options. Can't have theta if there's no time left before expiration