All these QE1,2,3 infusions just end up as reserve deposits.

Discussion in 'Economics' started by noob_trad3r, Sep 20, 2012.

  1. IF all the money just ends up in reserve deposits by the banks what is the point of them? It is not increasing the Velocity of money.

    Won't it make sense to just print the 85 billion a month and send checks to people instead?
     
  2. velocity of money hasnt had a significant increase since like 97 brah
     
  3. morganist

    morganist Guest

    They just want to push up the asset value of certain things and make sure bank deposits are large enough to cover the bad debt.
     
  4. bonds

    bonds

    I dont know how many more QE's its gonna take to see they are nothing more than printing money and giving it to the banks.

    The fed is a bank for the banks by the banks.
     
  5. piezoe

    piezoe

    The Fed has virtually stopped paying interest on reserves in an attempt to get banks to seek a higher return elsewhere.