this post was submitted on 20 Oct 2025
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The Fed kinda used up all of their ammunition to get out of the GFC and keep this facade afloat.
Not to say they can't make up some new mechanism but I suspect the next crash is going to dwarf the GFC. Too many cascading events. A lot of regular people's money is tied up in this shit.
they have infinite money and valuations can be faked
but that would devalue investments and holdings globally which could accelerate the abandonment of the dollar as the reserve currency
This actually isn't that true. The Fed has largely rebuilt their position via interest rates, so there's lot of room to cut. And as far as their assets, they're down to a little above $6 trillion, down from a peak of $9 trillion, so again they have a lot of room there to absorb bad assets.