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Most of the money is passed between central banks and technically insolvent[1] banks, helping them repair their balance sheet and dispose of toxic assets. http
by bitcartel 14y ago
Most of the money is passed between central banks and technically insolvent[1] banks, helping them repair their balance sheet and dispose of toxic assets.
http://dailybail.com/home/chart-of-the-day-feds-balance-sheet-hits-new-record-3-trilli.html http://dailybail.com/home/chart-of-the-day-feds-balance-shee...
Some of the money seeps into the economy and may be inflating stocks and other assets. For example, banks are given loans at zero interest[2] and they can use that money for whatever, e.g. proprietary trading, bonds/treasuries, etc.
Perhaps some of that money finds its way into investment funds and eventually tech start-ups?
[1] http://www.ritholtz.com/blog/2012/02/fasb-sells-out-unsurprising-results-follow/ http://www.ritholtz.com/blog/2012/02/fasb-sells-out-unsurpri...
[2] http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3 http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e7...
http://www.bloomberg.com/news/2011-12-23/fed-s-once-secret-data-compiled-by-bloomberg-released-to-public.html http://www.bloomberg.com/news/2011-12-23/fed-s-once-secret-d...
- marvin 14y agoWill this money be removed from the economy at some point? How?