Sunday, February 3, 2013

How The Fed's Latest QE Is Just Another European Bailout

Back in June 2011 Zero Hedge broke a very troubling story: virtually all the reserves that had been created as a result of the Fed's QE2, some $600 billion (which two years ago seemed like a lot of money) which was supposed to force banks to create loans and stimulate the US (not European) economy, ended up becoming cash at what the Fed classifies as "foreign-related institutions in the US" (or "foreign banks" as used in this article) on its weekly update of commercial banks operating in the US, or said simply, European banks.

Read more: http://www.zerohedge.com/news/2013-02-02/how-feds-latest-qe-just-another-european-bailout-vehicle

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