JPMorgan Says Fed’s Loans Will Provide $2 Trillion of Liquidity To Banks


Yahoo News (Bloomberg): The Federal Reserve’s emergency loan program may inject as much as $2 trillion of funds into the US banking system and ease the liquidity crunch, according to JPMorgan Chase & Co.

“The usage of the Fed’s Bank Term Funding Program is likely to be big,” strategists led by Nikolaos Panigirtzoglou in London wrote in a client note Wednesday. While the largest banks are unlikely to tap the program, the maximum usage envisaged for the facility is close to $2 trillion, which is the par amount of bonds held by US banks outside the five biggest, they said.

The US authorities set up the program earlier this month following a collapse of three lenders with the aim of preventing a firesale of sovereign debt to obtain funding. Treasury two-year yields have tumbled more than 60 basis points this week amid speculation the Fed will skip an interest-rate hike next week as it seeks to stabilize the banking sector.

While there are still $3 trillion of reserves in the US banking system, a significant proportion of that is held by the largest banks, the JPMorgan strategists wrote. Tighter liquidity has been caused both by the Fed’s quantitative tightening and also the rate hikes that have induced a shift to money-market funds from bank deposits, they said.

The Bank Term Funding Program should be able to inject enough reserves into the banking system to reduce reserve scarcity and reverse the tightening that has taken place over the past year, the JPMorgan strategists wrote.

The Fed will report the use of the program on an aggregate basis every week when releasing data on its balance sheet, the central bank said in a statement this week. Read More …

Opinion: March 13, 2023 Twitter: Jeffrey Gundlach, one of the world’s biggest bond fund manager posted this tweet on comments from bank analyst Dick Bove:

Jeffrey Gundlach on Twitter: “Dick Bove did an interview on CNBC Asia today. He pointed out that the “net worth” of the US Federal Reserve is -1.1 Trillion dollars due to essentially the same funding/investing mismatch that took down SVB. So the only way for the Fed to backstop the system is to print money.”

I have a rhetorical question. How will the Federal Reserve provide $2 trillion in real money if more banks default?

Print baby print:

Quantitative Easing (QE – money printing ) started during the 2008-9 financial crisis as a temporary solution to bail out the “Too big to Fail banks”. The Fed printed $4 trillion between 2009 and 2013, giving Barack Obama bragging rights to having saved the global economy “so that a crisis like this never happens again” (1 minute mark)

I sincerely doubt whether the president had any idea what was going on. QE money never got paid back and by March 2020, in the thick of the Covid crisis, President Donald Trump and Federal Reserve Chairman Jay Powell printed another $6.8 trillion that the Federal Reserve has been trying to recover by raising interest rates to curb inflation.

In his first 2 years in office President Biden has approved another $4.8 trillion in new (QE) borrowing.

“For the LORD your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.” Deuteronomy 15:6

Progressive leftists in government have embraced the modern monetary theory (MMT) believing that printing new money would not cause inflation so the printing press moved into overdrive.

Right wing politicians have fooled themselves into thinking that calling QE by another name like the Federal Reserve’s emergency loan program will also be temporary, but Bible believing Jews and Christians know better:

“The rich rules over the poor, and the borrower is slave of the lender.’ Proverbs 22:7

The current banking crisis is an extension of mistakes made in 2009 and ironically the lender is ourselves.

Revelation 6:5-6 foretells hyperinflation will engulf the world after the Church is removed (1 Thess. 4:16-17), and Antichrist takes control of the global economy.

You can read more about it in our paper: “The 1% and Revelation: Do Not Harm the Oil and Wine” HERE

Edit by VS


  1. The holy Spirit keeps revealing scriptures to me today concerning this story, besides Proverbs 22:7 and Revelation 6 versus 5 and 6 and Thessalonians 4:16 and 17 I’m picking up on this, Luke 21:28 in the NIV which says: when these things begin to take place, stand up and lift up your heads, because your redemption is drawing near.

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