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"<X> with extra steps" is from a show called "Rick & Morty" [0]. Surprising how you picked up on the phrase without even knowing what the show is. As for your
by Zetice 4y ago
"<X> with extra steps" is from a show called "Rick & Morty" [0]. Surprising how you picked up on the phrase without even knowing what the show is.
As for your comment itself, it seems like you gloss over the similarities and ignore the differences. For example, you say "money is being created" but this is objectively false. As is your claim that this money is "seeping" anywhere; it isn't doing anything other than ensuring bank solvency.
Your comment is what I'd expect from someone who wants to call this action by the Fed "Quantitive Easing" but doesn't want to bother actually considering if it is or not. It is not, as you said, because of the critical and relevant differences. This money isn't going back out into the economy as you claim, which is the meaningful mechanism through which QE has its effects.
Without that mechanism, calling this QE is misleading at best.
[0] https://knowyourmeme.com/memes/well-that-sounds-like-slavery-with-extra-steps https://knowyourmeme.com/memes/well-that-sounds-like-slavery...
- yieldcrv 4y agoMy thoughts are that some money was going to be parked at the banks. Some of that money wasn't going to be redeemed, some of it would have been impossible to redeem because the banks were sitting on losses. Now that everyone is woken up to that reality, they want to move it around now into other banks and other assets, and actually can. It is impossible to stop at just ensuring bank solvency.
- Zetice 4y agoBut that doesn't track; they may want to move it around, but there's no place to move it to. Nothing not-absolutely-insane would return positive yields in the time it would need to before the loan matured. That's the whole point of the borrowing rate it's set to.