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Which is in a foreign bank, many of which have U.S. subsidiaries. What's your point?
by ojbyrne 10y ago
Which is in a foreign bank, many of which have U.S. subsidiaries. What's your point?
- tobltobs 10y agoThat they are hoarding money, not loaning it.
- prostoalex 10y agoMost US-traded companies prefer to limit their foreign currency exposure and keep their offshore assets in USD by buying short-term US government debt, so in effect they are loaning it.
- sharemywin 10y agoexcept since 2008 business loans have only go up 400b and consumer loans are flat or have gone down some. The problem with the idea that banks loan out what isn't spent is wrong because they have underwriting and can't just loan it to credit unworthy borrowers. don't get me wrong it would have caused inflation and a bigger stock bubble if more money flowed into the US. But it's my theory why we haven't seen the massive inflation predicted from quantitative easing.