The ability to assert the most about what the code cand and cannot do, trumps both, which is why the use of strongly typed (check, even dependently typed) functional languages should be more widespread.
152 karma · joined February 17, 2020
Where did I ever write this? I wrote it would give us an upper and lower bound.
The Fed just expanded repo to $1 trillion per day: https://m.theepochtimes.com/fed-expands-repo-to-1-trillion-p...
From their press release on 3/17: https://www.federalreserve.gov/newsevents/pressreleases/file...
Eligible Collateral•Collateral eligible for pledge under the PDCF includes all collateral eligible for pledge in open market operations (OMO); plus investment grade corporate debt securities, international agency securities, commercial paper, municipal securities, mortgage-backed securities, and asset-backed securities; plus equity securities. Foreign currency-denominated securities are not eligible for pledge under the PDCF at this time.
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equity securities == stocks. I admit I was exaggerating about the subprime auto loans, but they also state that: Additional collateral may become eligible at a later date upon further analysis., so who knows?
I agree with you they have plenty of stuff old stuff to sell from QE 1-4, but this certainly is a new class of assets from them, and is almost certain to lose money.
And now because of the world economy shutting down, those dollars aren't being fed back into the markets outside of the US, meaning that no one can generate the cash to repay their loans.
This is why cash is so high priced right now, even while the Fed is desperately trying to lower it. It's also why gold and silver are taking a beating. In order to raise cash not to default, foreign corporations and governments have no choice but to sell everything they own, including gold and silver (as well as cryptocurrencies).
https://translate.googleusercontent.com/translate_c?depth=1&...
https://www.capitaleconomics.com/wp-content/uploads/2020/03/...
https://www.capitaleconomics.com/wp-content/uploads/2020/03/...
The only companies that are going to be borrowing are those that are out of money and need to try and weather the current crisis. If the banks make a mistake here and the companies they lend to go bankrupt, they go bankrupt too.
That is the issue here. They completely ignored it until people were dying in the hallways of hospitals and then implemented a draconian policy.
And now they're locking up anyone who criticizes them. See this article about "Gratitude education", a term that tops Orwell in its dystopian implications:
https://www.theguardian.com/world/2020/mar/09/gratitude-educ...
They only reversed course when their hospitals became so overloaded that they had to do something.
People seem fixated on this idea that a 1-2% death rate is going to be mean that 1-2% are going to die, but this ignores hospitals being overloaded.
From: http://www.cidrap.umn.edu/news-perspective/2020/02/study-720...
A total of 81% of cases in the JAMA study were classified as mild, meaning they did not result in pneumonia or resulted in only mild pneumonia. Fourteen percent of cases were severe (marked by difficulty breathing), and 5% were critical (respiratory failure, septic shock, and/or multiple organ dysfunction or failure).
So from this study, 19% of the cases were severe and required hospitalization. There are 320 million people in the us, lets say 30% get it at once. That's 320m * .3 * .19 = 18 million people. Of course, some of that 18 million will be taken care of by hospitals, but that would account for only a tiny fraction, there are only about 91k ICU hospital beds in the US
From: http://www.centerforhealthsecurity.org/cbn/2020/cbnreport-02...
46,500 medical ICU beds in the United States and perhaps an equal number of other ICU beds that could be used in a crisis.
https://earthobservatory.nasa.gov/images/146362/airborne-nit...