And everyone says they didn't learn from 2008

They learned they need to hide everything a little bit more effectively

Gee that "federal" reserve that can act independently of all branches of govt and isn't controlled by capital interests sure is working great! America!! Ahhh the freedom is overwhelmin' me

Thank you! Thank you JesusGod for my liberty!

The Fed chairman has stated that small businesses will suffer while big businesses remain strong due to their cash reserves.

the boater kulaks are not going to like this

A bit longer explanation of the graph. The US Treasury is effectively the owner of the Federal Reserve’s entire balance sheet. Any profit or loss resulting from the Fed’s monetary policy actions flows back to the Treasury.

For a long time, the Fed’s income from holding Treasury debt and fees from financial institutions outweighed its expenses (like interest paid on reserves and operational costs).

However, when the Fed raised interest rates on reserves from near 0% to around 5% in 2021-2022, its expenses surged. This was because the Fed had trillions of dollars in reserve liabilities after years of Quantitative Easing (QE) – buying Treasury bonds and Mortgage-Backed Securities (MBS) to stimulate the economy.

Reserves are liabilities with variable interest rates, so the Fed’s expenses rose immediately. Meanwhile, its assets (mainly Treasury securities and MBS) pay fixed interest, so their income didn’t increase.

Here’s the problem: the value of the Fed’s assets fell when it raised interest rates. This normally wouldn’t be a major issue, as the Fed could just hold those assets until maturity and receive their full value. However, the Fed has been shrinking its balance sheet via Quantitative Tightening (QT) - selling these securities back into the market at a loss.

The overall impact is that the non-government sector now has more claims on the government than before. Essentially, the government spent money into the economy, exchanged that spending for Treasury bonds, the Fed bought those bonds, and is now selling them back at a loss

The key takeaway is that the Fed’s decisions to raise interest rates and conduct QT have increased the government’s overall interest expenses. This leaves less room for non-inflationary public spending on vital areas like healthcare, education, infrastructure, and so on.

shhhh you'll give the game away

The Federal Reserve is implementing a 'soft landing' strategy that prioritizes big businesses and financial interests over the working majority, in contrast to 2008 when the market crashed and bailouts favored large corporations at the expense of taxpayers. The current approach involves protecting these interests upfront, ensuring their stability during this economic downturn.

The Federal Reserve is implementing a 'soft landing' strategy that prioritizes big businesses and financial interests over the working majority, just as it did in 2008 when the market crashed and bailouts prioritized big businesses and financial interests over the working majority.

There, fixed it for em, they said the same sentence twice but added the words in contrast and rephrased it slightly, making it sounds like two different reactions instead of the only thing capital ever does!

The Federal Reserve is implementing a 'soft landing' strategy that prioritizes big businesses and financial interests over the working majority, in contrast to 2008 when the market crashed and bailouts favored large corporations at the expense of taxpayers

'In contrast'? What's the difference?

the data in the link show this value staying at ~0 since 2011. This is even more abnormal that the embedded image shows.

I failed to come up with something pithy, imagine an atonal cry of frustration instead.

$190 billion? Am i missing something? This seems like a small amount to lose considering half of this is given as military aid every few months.