Hey, what's that sound?
Everybody look what's going down
--Buffalo Springfield
The FOMC announced yesterday that its bond buying program known as QE3 would indeed end this month. Who has benefited most from this program? The big banks--both domestic and foreign.
Since the onset of QE3, bank reserves have increased by $1.3 trillion. This is money printing, pure and simple.
Most of this has flowed to the big banks.
There was no room at the inn, it seems, for smaller banks. Their competitive position has been weakened w.r.t. the big guys as a result of QE3.
How this form of corporatism remains invisible to the general public continues to amaze.
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1 comment:
But it hasn't been as successful in the demand side for one fundamental reason, namely that as of now, if you look at the Federal Reserve, Bank of England, ECB, what you basically see is an explosion of assets, an explosion of reserve balances, and that's the only two statistics that are moving.
~Alan Greenspan
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