where is the money going?

Discussion in 'Economics' started by prc117f, Mar 1, 2009.

  1. prc117f

    prc117f

    If the FED is injecting trillions into banks etc.. how come the money is not appearing on the streets as circulating money?

    Where does all the money disappear?
     
  2. Sitting in the boxes , wrapped in plastic.
     
  3. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2327761>
     
  4. FED is injecting money into the banks but the banks are not lending it out to other banks/companies so there's your answer. Once they do that again, that will be the day inflation replaces deflation.
     
  5. dinoman

    dinoman

    2nd
     
  6. If anyone has a picture of tubes or a drain, that might be appropriate. George Carlin did a show sometime ago about where lost money goes, lots of talk about the tubes and the drain. Very appropriate for today's environment.
     
  7. FED is injecting money into the banks but the banks are not lending it out to other banks/companies so there's your answer. Once they do that again, that will be the day inflation replaces deflation.
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    The primary reason banks are not loaning funds to other banks is that bank A does not know what kind and amount of toxic assets bank B is carrying on their books. Until there is a total revealing of toxic bank assets, the credit market will remain frozen. I agree that when loaning returns the economy will have super hyper inflation. The Carter inflation would not be a comparison.




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  8. Money is being destroyed faster then it is being replenished by the Fed.

    The money is given to them to maintain their capital structure not to loan out. There is plenty of money for that.
     
  9. ess1096

    ess1096

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