If a bank uses reserve money to base its credit expansion on, and they daily borrow/loan reserves to other banks to make their reserve requirements, then the argument that they have increased reserves now due to Fed bank balance sheet increase and they are not loaning these reserves out is nonsense....
It was Albert Einstein who stated that the definition of insanity is "doing the same thing over and over again and expecting different results." After the FED's cutting of interest rates by three-quarters of a point today , those of us wary toward centralized banking and the socialization...
Posted to
Veritas
by
zsignal
on Tue, Mar 18 2008
Filed under: federal reserve, business cycle, money, banking, credit, fed