4 ms·
The Fed pumped almost $6 trillion into the money supply. That is 3 times more than was done for the 2008 crash. I do not think it is hysterical (which is loaded
by macinjosh 5y ago
The Fed pumped almost $6 trillion into the money supply. That is 3 times more than was done for the 2008 crash. I do not think it is hysterical (which is loaded and gendered term, btw) to worry about the impact that could have on the value of my hard earned savings.
- tomComb 5y agoBut they are not using it in a gendered way, and doesn't that actually help us recover a term that has legitimate uses?
- howmayiannoyyou 5y agoDeposits are liabilities for banks and much of the injected money has found its way back into the Fed's balance sheet, exchanged for Treasuries the banks need(ed) to maintain collateral requirements (offset deposit liabilities). It may have made passes through the 'normal' economy, but is now caught in a repo loop that has little to a negative impact on velocity, but is inflation negative.