Bank Term Financing Plan

On March 17th, Arthur Hayes, the founder of BitMEX, wrote that the Federal Reserve’s Bank Term Financing Plan (BTFP) had undertaken quantitative easing of $4.4 trillion in another way, even exceeding the $4.189 trillion printed in response to the COVID crisis. Although the BTFP plan is mandated to last only one year, it will almost certainly be extended preventively. The Federal Reserve is expected to either start cutting interest rates at its upcoming March meeting or a severe recession in a few months will force it to turn. Since the outbreak of the banking crisis, the yield on two-year Treasury bills has fallen by more than 100 basis points. The market is crying out for deflation supported by the banking system, and the Federal Reserve will eventually listen to the market. In this banking crisis, cryptocurrency has once again proven to be a stinky, wasteful, smoke alarm for the legal tender driven Western financial system. Founder of BitMEX: BTFP plans…

It is reported that the Federal Reserve said that the new financing plan will be provided through the creation of a new Bank Term Financing Plan (BTFP), which will provide banks, savings associations, credit cooperatives and other qualified depository institutions with loans of up to one year, with US treasury bond bonds, institutional debt and mortgage-backed securities and other qualified assets as collateral. These assets will be valued at face value. BTFP will become an additional source of liquidity for high-quality securities, eliminating the need for institutions to sell these securities quickly in times of pressure. Federal Reserve: provide loans to banks, savings associations, credit cooperatives and other qualified depository institutions for up to one year Analysis based on this information:The Federal Reserve has announced a new financing plan called the Bank Term Financing Plan (BTFP) that will provide qualified depository institutions with loans of up to one year. The BTFP will use US treasury bond bonds, institutional debt, mortgage-backed…