> The $2.93 trillion that the New York Fed will funnel to Wall Street over the next month consists of up to $120 billion each weekday in overnight loans through January 14 and $440 billion in term loans ranging from 3-days to 32 days.
We're talking about an overnight loan of $120 billion (that is, a loan that is paid back the next morning, lent again the next night, paid back in the morning, etc. This article is treating it as a cumulative loan - that is, the second day, it's now $240 billion (never mind that the first $120 billion has been paid back by then), and the third day it's $360 billion (never mind that the first $240 billion has been paid back by then).
That's either incredibly stupid, or propaganda. My money is on propaganda.
We're talking about an overnight loan of $120 billion (that is, a loan that is paid back the next morning, lent again the next night, paid back in the morning, etc. This article is treating it as a cumulative loan - that is, the second day, it's now $240 billion (never mind that the first $120 billion has been paid back by then), and the third day it's $360 billion (never mind that the first $240 billion has been paid back by then).
That's either incredibly stupid, or propaganda. My money is on propaganda.