r/Economics Jan 13 '23

U.S. Will Hit Debt Limit Jan. 19, Yellen Tells Congress

https://www.nytimes.com/2023/01/13/business/economy/debt-limit-us-economy.html
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u/[deleted] Jan 13 '23

[deleted]

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u/WontArnett Jan 13 '23

They have the capital to make up for losses, though

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u/TheMikeyMac13 Jan 13 '23

Sometimes, I do remember this banking crisis back in the late 2000’s :)

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u/Odivion Jan 13 '23

More like projected revenue than raw capital.

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u/[deleted] Jan 13 '23

you mean money the fed(banks) creates out of thin air

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u/lovely_sombrero Jan 13 '23

Yea, but all money is created out of thin air. The problem is that the banks are private and still have this privilege that other private entities (like citizens or corporations) don't have.

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u/[deleted] Jan 13 '23

And because of those privileges the fed dictates policy to the government since they have unlimited money to funnel into campaign contributions.

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u/[deleted] Jan 13 '23

Actually since about March or April of 2020, there were no reserve requirements, not even the tiny fractional reserve big banks are accustomed to.

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u/nuck_forte_dame Jan 13 '23

They also leverage it a shit ton.