Discover and read the best of Twitter Threads about #CreditSuisseBankruptcy
Most recents (2)
1/17-💭What we're facing is a #TRUST crisis rather than a #BalanceSheet crisis. There’s been a lot of amalgamation between #BTFP and #QE, but they are different, and their consequences will be different as well. My thoughts 👇
#CreditSuisseBankruptcy #BankingCrisis #AllianceBlock
#CreditSuisseBankruptcy #BankingCrisis #AllianceBlock
2/17- 🏦 #BTFP (1):
- Involves banks depositing HTM bonds and AFS securities at the Fed as collateral against borrowing the At Par Value for 1 year
- Funds are likely to be used for immediate liquidity needs, backstopping bank runs and making depositors whole
- Involves banks depositing HTM bonds and AFS securities at the Fed as collateral against borrowing the At Par Value for 1 year
- Funds are likely to be used for immediate liquidity needs, backstopping bank runs and making depositors whole
3/17- 🏦 #BTFP (2) : Unlikely to result in new credit being extended, and banks are likely to tighten lending standards until the dust settles
- Velocity of money in the banking system should instead decrease, offsetting any increase in reserves
- Velocity of money in the banking system should instead decrease, offsetting any increase in reserves
I asked ChatGPT (GPT-4) about implications of Credit Suisse. Here's the possible consequences:
Loss of confidence: The collapse of SVB, Signature Bank, and the significant decline of Credit Suisse stock could lead to a loss of confidence in the broader financial system.
Loss of confidence: The collapse of SVB, Signature Bank, and the significant decline of Credit Suisse stock could lead to a loss of confidence in the broader financial system.
This could prompt investors to withdraw their investments from other financial institutions, leading to further instability.
Credit tightening: The collapse of these banks might result in a credit crunch, as other banks may become more cautious in their lending practices. Negative impact on the overall economy, as businesses may struggle to access the credit they need for growth and expansion
