where is the money going?
- Thread starter prc117f
- Start date
Sitting in the boxes , wrapped in plastic.
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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.
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.
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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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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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.
The money is given to them to maintain their capital structure not to loan out. There is plenty of money for that.
