Comments by "k98killer" (@k98killer) on "More Bank COLLAPSES Are On The Way... (AVOID These Banks!)" video.

  1. The $25B backstop for the BTLP is to absorb losses, not to make loans. The Fed will lever it 30x or more, and they'll just take the collateral if a loan defaults and count it at par value, so it won't show up as a loss for them anyway. The $25B is just to have a number there -- they could have funded it with $1. However, it is still a dumb shell game: Treasury borrows $25B from the Fed to fund an LLC that will borrow from the Fed to buy T-bills and T-bonds from illiquid/insolvent banks. But it should work technically.
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