5 users closed If banks don't repay their repos to Fed, then how will Fed react?. "This question needs details or clarity." What "details or clarity" do they mean?

Anyways I edited it. But this reason feels disingenuous, because one user understood my question

A bank that defaults on the Fed, which is that institution’s supervisor, will not be a bank the following day. It will be out of business. It will not exist. It will be liquidated. It will be an ex-bank. – dismalscience 2 hours ago

If these 5 users closed it just because I'm posting often, then I'll stop for a week. OK? But if you don't like me, then tell me and I'll just lurk. Thanks.


1 Answer 1


So again, like your last question, I cannot answer for the other posters. But like I said in my previous answer on your meta post, it's not enough for people to know part of what you are asking currently. Your question has to be well-defined for this site.

In this case, you are not just asking what happens if banks do not pay the Federal Reserve back on overnight loans. It seems you are asking for us to interpret and contextualize what a bunch of Reddit users are commenting about with respect to the Federal Reserve and the repurchasing agreements market. The way StackExchange sites work is that instead of asking discussion based questions, users are meant to ask concrete questions with hard answers to them.

As is, if your question is just about what happens to banks that don't pay the Federal Reserve, it seems the question is a little trivial (and is answered already). If your question is about what happens to the market for certain securities (e.g. Treasury bonds), then what about the market are you wanting to know about? Price movements, quantity movements? A way of distinguishing between shifts in the supply curve vs. shifts in the demand curve when only price and quantity are observed? It is a little hard to understand what you want to know about, especially now since you are opening the question with a Slate article on just what the Federal Reserve is doing. I am not sure how it contributes to any of the questions you may be trying to ask here.

And then the question on "corporate murder" is safely off topic. We're not here to interpret other forum users. Again, do not take any of this personally. We all have our growing pains of figuring out what is good or bad to ask on SE's, myself having gone through that included. :)


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