I'm not sure on the time of that but the Fed press release the evening of the same day has the exception and "all depositors will be made whole" phrasing:
Apologies if I'm missing something, is this discussing the new Bank Term Funding Program or some other guarantee?
(edit: I see the phrasing "fully protected by the FDIC" -- this might be the general idea that depositors won't lose anything, but not literally that FDIC is officially extending insurance, I think?)
Anyway, for the BTFP, I think it is generally available to all banks. Seems to allow borrowing against underwater assets at par value, at roughly 4.6% interest.
While it came together over the weekend[1] there are some guardrails -- including that it only applies to collateral that was already owned at the time of announcement (so far...).
[1] based on zero evidence, I wouldn't be surprised if they have stuff like this war-gamed and sketched out in case
Recognizing these are some unique circumstances, over the last week, expectations for next week's FOMC meeting swung from a near-certain +25bp, to 75% +50bp / 25% +25bp, to 60% +25bp / 40% 0bp. Tomorrow, February's CPI data will be released which might help collapse this wave function.
Disclaimer that I'm a bit of a Tether skeptic, but if I'm wrong and they either were in, or have been able to get to, a fully-collateralized position of mostly treasuries and are earning 5% interest while paying 0% on USDT, good for them and good for regular people who won't be left holding bags.
I'll always consider Tether in the context of their July 2021 CNBC interview with Deirdre Bosa. Timestamps are relative to the copy at https://www.youtube.com/watch?v=ZBEqyiO35cQ
I don't think they've said who the commercial paper counterparties were and claim it was an important trade secret. Traders in the US commercial paper market say they had never heard of the Tether folks which was odd given their attestations would have given them a top 10 global holding (17:20). Explanation, they use intermediaries. Will they give names or details on the intermediaries? Can't, trade secret.
Did they hold Chinese commercial paper? Dodged the question twice (6:30 and re-ask 7:35).
Where are the CEO and CFO of this company that holds $60B of assets? Why don't they talk to media? (24:40)
But hopefully we'll get assurance regarding the reserves soon. They were excited to promise a formal audit in "months not years" during that interview (27:42)... looking forward to this spring so the audit can be released before we hit two years.
Left image: USDC: kitchen cabinet with a glass door; you can see on the inside a stack of dishes has mostly toppled, held up only so long as the door is closed
Right image: USDT: photo of kitchen cabinets with completely opaque wooden doors
I was trying to look up a Tesla special case (where upgrading the infotainment unit removes the radio unless an additional $500 upgrade is purchased) and learned that several EV manufacturers have already removed AM radio because electric motors interfere with that frequency range.
My understanding, anyone is welcome to correct: the 51% attack doesn't apply, but that's because there is a central party with full control from the start.
CBDCs are digital currencies but do not have to be cryptocurrencies with distributed consensus, blockchain, proof of work, etc.
Instead they are likely to be completely centralized; at an (absurd) extreme a global Excel sheet with edit access enabled for the Treasury Secretary and Fed Chair.
mine was set to 500 (not 5000) as well. I'd moved on from lastpass earlier this year but didn't delete my account... though I suppose in that case I'd wonder if I'd deleted in time, or if they really deleted all my info.
Also frustrating that they decided to drop this update on December 22.
with URLs and last-accessed times being plaintext? I suppose "items in your vault" is doing a lot of work there if they don't count urls as "in" the vault.
a bit out of date, missing at least one global financial crisis, but there's a 2004 paper looking at the returns of holding the original S&P500 companies from its start 65 years ago, with some alternative portfolios too.
Some of the particular decisions in the setup may or may not agree with grandpappy, I only skimmed, but it looks like the "survivor's portfolio" has returns in line with S&P500-with-replacement and even outperformed the newcomers slightly.
19 of the largest 20 companies were still around in some form when including mergers and acquisitions... however again this is 2004, and at least Kodak and Sears went out of business since then, IIRC?
not an argument but just an FYI for people reading about that idea for the first time: some NAS enclosures (QNAP, Synology?) and some power supplies can use the drives directly without disabling that 3.3V pin.
Agree with it being a combination of many factors on both supply and demand side, but I feel we can't exclude the unprecedented and massive amounts of financial intervention.
I'm not a wonk here but have heard the argument that QE from 2012-2019 was partially to keep deflation at bay. Meaning, QE and ZIRP _did_ increase inflation, even if the result was reaching the target 2%.
The scale of increasing money supply and QE also was much larger this time. Before 2009 Fed balance sheet was under $1T. Actions taken during and around the GFC increased it to $2.1T. During the last couple years they grew it by $5T, and it maxed out just under $9T.
I might be wrong but don't gifts count against the recipient's annual $10k limit? That is, you could only give $2k to someone who has purchased $8k for themselves, all within the same year?
Though, here is a Bogleheads thread where people suggest buying gift bonds even beyond 10k as you mention, to get higher interest rates now, storing them in the TreasuryDirect "gift box" until a year where the recipient comes in under the limit and they can be transferred.
I remember flying into San Jose airport for the first time and the posters weren't advertising restaurants, hotels, and tourist destinations but enterprise routers and firewalls.
Some bottled water brand had a tagline "no other water hydrates better"
in case anyone does want to use nitrogen in their tires, I think at least US Costcos with tire centers have free self-service nitrogen inflators for members.
I agree they shouldn't have put the 53% marginal claim right next to the social security point, as the max-marginal people will be well past the cap, but the 53% max marginal rate might still be true?
37% federal + 1.45% FICA (medicare) + 0.9% medicare surtax + 10.3% NY state + 3.8% NYC = 53.4+%
I had seen the first round of announcements around receivership certificates https://www.fdic.gov/news/press-releases/2023/pr23016.html
I'm not sure on the time of that but the Fed press release the evening of the same day has the exception and "all depositors will be made whole" phrasing:
https://www.federalreserve.gov/newsevents/pressreleases/mone...