money locked up in banking never hits consumers

no your fine.. I'm glad you have posted... I'm just wondering.. what would make the bank want to liquefy their excess reserves instead of holding them and earning interest from the fed. wouldn't that value hitting the market cause alot of inflation.. What form of money are the reserves held by the bank? are they treasuries?
 
take this statement for example "it is important to keep in mind that total reserves in the banking system are determined almost entirely by the central bank’s actions. An individual bank can reduce its reserves by lending them out or using them to purchase other assets, but these actions do not change the total level of reserves in the banking system. A discussion of this somewhat counterintuitive point can be found in most textbooks on money and banking, but its importance in the current environment leads us to offer a brief treatment here as well."

from this paper http://www.newyorkfed.org/research/staff_reports/sr380.pdf
 
and here "No matter how many times the funds are lent out by the banks, used for purchases, etc., total reserves in the banking system do not change. The quantity of reserves is determined almost entirely by the central bank’s actions, and in no way reflect the lending behavior of banks."
 
cdcaveman said:
and here "No matter how many times the funds are lent out by the banks, used for purchases, etc., total reserves in the banking system do not change. The quantity of reserves is determined almost entirely by the central bank’s actions, and in no way reflect the lending behavior of banks."
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ok, we don't need anymore of your shit. Behave yourself or we can make your life really miserable. Just do it our way and nobody will get hurt.
 
That statement your right really does feel like they are taking an absolute position on control of short term rates, and the amount of excess reserves. We have control with no chance of blowing up... Bottomline they believe in printing their way out of debt passing off this hidden tax as "stimulus"
 
They are in other words stating they have nationalized the banking system... This is economic socialism... Which is just a stage to collapse... Obviously I realize this malinvestment scheme can go on for years and years
 
just was reading the fed meeting press release.. "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term."

basically this to me signals a continuation of money printing.. they have several parameters that need to be met all at once in order to stop printing.. I can't see them tapering .. they are going to throw like a 10 basis point move.. which is literally nill and test the market ... then probably hold it there for 2 years..

I'm expecting vola around the next fed meeting of
September 16-17*.. which is right at sept vix expiration.. "

SEP 16 '15 07:00 CST ... is the expiration time for sept vix contract.. the announcement is usually the second day of the meeting right??? so am i right in thinking sept futures expire before the event?
 
"anticipates that it will be appropriate"

Such non-action words. Literally, anticipate, at a later point based on future external data, that *then* it will, not necessarily raise, but be appropriate to raise at that point.
 
i960 said:
"anticipates that it will be appropriate"

Such non-action words. Literally, anticipate, at a later point based on future external data, that *then* it will, not necessarily raise, but be appropriate to raise at that point.
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They speak like lawyers answering a yes or no question with a long dependant response on infinitum ambiguous.. Blah. You put it so right.... The banks just follow their example with pure financial socialism
 
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