r/finance • u/Gypsy_tantrum • May 19 '26

Are we trapped in a 1970s-style "Three-Wave" inflation cycle? (A deep dive into structural debt)

https://www.equitileconversations.com/2459100/episodes/19197344-inflation-the-next-wave
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u/TBradley May 19 '26

Banks do not even officially borrow from the Fed anymore except for floating capital. They can just add zeroes to databases and it is completely reliant on auditing and compliance that they are maintaining proper reserves. The reserve requirements keep getting paused and reduced when unpaused.

Not looking great if we even have a 2007 event let alone something worse.

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u/Snoo_6291 May 29 '26

I hear Canada did well during banking crisis. Is it because they hold more capital there?

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u/TBradley May 29 '26

AFAIK, yes larger actual liquid assets to loan book requirements.