Welp, that practically guarantees a bailout then, doesn't it?
Not too bad now, but just wait until First Republic and Credit Suisse go under.
What Yellen did was smoke screen this morning and they threw together a package this afternoon to skirt regulation and screw the taxpayers instead of the bank eating the difference between the current rate (4.5%) and their garbage bonds (maybe 1.5%). So if you have a 1.5% mortgage backed security maturing in 10 years for $20 billion, the fed will give you $20 billion cash today you don't have to repay for a year, effectively zero percent interest rate. It will become policy tomorrow morning when brandon makes his speech.
Yes, the second they lose power they'll admit we're in a recession and it's all Trump's fault.
Wait if those two go under. Isn't that just going to cause a giant domino effect of smaller banks effectively going under as well?
Wouldn't be the first time. Buckle up, buckaroos.
most won't retrofit. there's no point in spending 5-6 digits on a house over a certain age. depending how hard the fines are (and given germany has a green government which is still running on MUH GREEN opposition agenda) I assume most will just evict to get around out it (no one cares about energy index for an empty house), then either let it sit empty or demolish and rebuilt from scratch. the only other option is raising rent, which is already incredibly high.
how much carbon emitted for this super-renovation? how many resources mined and transported, all of which cost carbon emission?
You know what is worse about this many of those buildings are century old or older and the laws demand shitton of paperwork and restoration/ renovation by experts that makes it 10 times more expensive it gets so retarded that the brits are not discussing to shove those laws aside to make it cheaper to renovate or risk burying lots of dead due to cold weather. I am just sitting here on the wayside and thinking they will fuck up the market and you will see shanty towns spawning outside of the cities and on abandoned car parks and warehouses. Squatting is so bad in some countries that they rent out on the cheap office/retail/ in process of building/ renovation/ sale spaces to students . Like if you know how to camp nost of these places are perfect for you
So can the federal reserve bail them out legally? Or is it technically illegal but relying on nobody in congress being powerful enough / willing to stop them?
The debt ceiling is a purposefully engineered crisis that Congress wants so it can play chicken with the executive branch. Everyone knows it will be raised, and we have to listen to the same stupid story about the trillion dollar coin being deposited at the Fed every time this comes up. What is of interest is the course Congress will be taking, hard line to handle inflation or quick capitulation to it.
