tag:blogger.com,1999:blog-3758330678390419129.post7877271226298378190..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: Is Clueless Ben about to Crash the Economy, Big Time?Robert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3758330678390419129.post-74270082633402778372010-02-08T23:40:32.880-05:002010-02-08T23:40:32.880-05:00Matt,
The answer is the huge supply of excess res...Matt,<br /><br />The answer is the huge supply of excess reserves. The only reason banks are holding funds there is because A. They need to pay the money back to the Fed when the credit facilities wind down. So the entire money printing is phony. The fed prints the money, the banks deposit it with the Fed and when the Fed calls it back, the banks just move it from one Fed account to another. The Robert Wenzelhttps://www.blogger.com/profile/12653378186315529211noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-25341518823117510372010-02-08T14:14:17.127-05:002010-02-08T14:14:17.127-05:00I just can't get on board with your certainty ...I just can't get on board with your certainty that rates are below where they would be without the Fed. You blame the demand to hold cash and short-term bills for safety as the reason rates are pushed so low, but how can you justify this will the Fed buying all sorts of debt? (announced and possibly unannounced throught the Household sector story you had a month or so ago.) <br /><br />If Matt Mnoreply@blogger.com