Row 75577
Content Data
This page contains data entry 75577 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.
SVB didn't get the bailout, they went kaput. there were many other banks on the edge of solvency that did get bailouts. The shareholders of say First Republic Bank perhaps. At first larger banks deposited tens of billions, then The Fed said they would buy bonds at par value, taking assets the banks held at low market value and artificially raising the market value of those assets so The Fed could manufacture Reserves in the banks reserve account. This meant investors in First Republic or similar banks who would have lost a lot didn't.
When the government manufactures money and gives it to bondholders at prices higher than market, that's a bailout. If I was having a hard time paying my car loan on a new luxury car and the government swooped in and bought my old Toyota Corolla for a million dollars that'd be a nakedly obvious bailout. Same basic idea when they buy bonds for much more than anyone else would buy them for.
| Field | Value |
|---|---|
| text | SVB didn't get the bailout, they went kaput. there were many other banks on the edge of solvency that did get bailouts. The shareholders of say First Republic Bank perhaps. At first larger banks deposited tens of billions, then The Fed said they would buy bonds at par value, taking assets the banks held at low market value and artificially raising the market value of those assets so The Fed could manufacture Reserves in the banks reserve account. This meant investors in First Republic or similar… |
| label | r/economics |
| dataType | comment |
| communityName | r/Economics |
| datetime | 2024-05-24 |
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Raw Record
{
"text": "SVB didn't get the bailout, they went kaput. there were many other banks on the edge of solvency that did get bailouts. The shareholders of say First Republic Bank perhaps. At first larger banks deposited tens of billions, then The Fed said they would buy bonds at par value, taking assets the banks held at low market value and artificially raising the market value of those assets so The Fed could manufacture Reserves in the banks reserve account. This meant investors in First Republic or similar banks who would have lost a lot didn't.\n\n\nWhen the government manufactures money and gives it to bondholders at prices higher than market, that's a bailout. If I was having a hard time paying my car loan on a new luxury car and the government swooped in and bought my old Toyota Corolla for a million dollars that'd be a nakedly obvious bailout. Same basic idea when they buy bonds for much more than anyone else would buy them for.",
"label": "r/economics",
"dataType": "comment",
"communityName": "r/Economics",
"datetime": "2024-05-24",
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}
Entry Information
- Entry ID: 75577
- Repository: Axioma AXP
- Dataset: arrmlet/reddit_dataset_36
- Total Entries: 100,000