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by ww520 2379 days ago
The loans are backed by assets. They will be seized if the loans were not paid back.
1 comments
Red_Leaves_Flyy 2379 days ago
Who pays if those assets are fraudulently overvalued rubbish?
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quickthrowman 2379 days ago
They aren’t, they’re US Treasuries and US Agency Debt. There are no toxic assets used for collateral in the repo market.
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Red_Leaves_Flyy 2378 days ago
Looking at yesterday, there were mortgages used as collateral.

https://apps.newyorkfed.org/markets/autorates/tomo-results-d...

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quickthrowman 2374 days ago
That’s Agency Debt, which I specifically stated can be used as collateral for a repo loan.
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Red_Leaves_Flyy 2372 days ago
And if that mortgage debt is overvalued rubbish who pays?

I'm trying to avoid pedantic arguments and focus our discussion on the safeties and how effective they can be when the unthinkable happens.

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