ok but seriously. scenario: AIG announces they are undercapitalized. [if i sound stupid i'm new at this] so then morgan stanley wants to diversify and buy all of AIG's insurance assets and that division and company Flawless derivatives buys all their derivatives.
how far fetched is this scenario? how far fetched is it that we don't need the feds or sec or treasury at all to help privately held companies and let the market take care of it.
it is a possibility, the way I see it the fed must increase liquidity to keep the financial system afloat, but when they do that foreigners who hold americas debt are going to want to sell their bonds otherwise inflation is going to wipe out their savings, so then the fed has to increase liquidity again to buy back those bonds, after that the people who hold US dollars are going to dump them on the market, and when that happens the US dollar is worthless AKA no more federal reserve.
ok but seriously. scenario: AIG announces they are undercapitalized. [if i sound stupid i'm new at this] so then morgan stanley wants to diversify and buy all of AIG's insurance assets and that division and company Flawless derivatives buys all their derivatives.
how far fetched is this scenario? how far fetched is it that we don't need the feds or sec or treasury at all to help privately held companies and let the market take care of it.
shakaama 3 years ago
it is a possibility, the way I see it the fed must increase liquidity to keep the financial system afloat, but when they do that foreigners who hold americas debt are going to want to sell their bonds otherwise inflation is going to wipe out their savings, so then the fed has to increase liquidity again to buy back those bonds, after that the people who hold US dollars are going to dump them on the market, and when that happens the US dollar is worthless AKA no more federal reserve.
luke666808g 3 years ago
are you saying the fed could fail?
shakaama 3 years ago
rofl.
usaveral insurance bitches!!
automaticAEV 3 years ago