“I actually asked a very simple question earlier. A simple explanation of what they’re doing with the banks and the $75 billion they pumped in. That’s all.”
They are providing commercial banks with overnight liquidity that the banks need if you’re speaking of the repos.
“But, right now I read the Fed is pumping billions to help out the banks. Not sure how or if that effects you, me or anyone else.”
The Fed’s job is to keep the banking system functioning by adjusting the money supply.
“Is this just another form of Quantitative Easing, which I thought was a very bad thing?”
Quantitative Easing was done to prevent a recurrence of the massive credit deflation that caused the Great Depression. Bernanke is a student of Milton Friedman and Anna Schwartz, and he took his guidance from their long chapter “The Great Contraction” in their magnum opus “A Monetary History of the United States”
Most who know the history that led to creation of the Federal Reserve see it as a necessary thing, not a good or bad thing.
JP Morgan acted as the defacto central bank and lender of last resort prior to 1913. He had immense political power as well as financial power as a result. Presidents took the train to NYC to ask for his help when there was a financial crisis.
But by the time of the Panic of 1907 Morgan knew that this was not sustainable. The American economy was getting far too big for one private bank to backstop.
Morgan himself pushed Congress to create the National Monetary Commission to study banking and monetary reform. The drive to create the Federal Reserve was due to Morgan. And it served to lessen his power and influence rather than increase it.
“Are you of the ilk that thinks the Fed is a good thing? I’m not.”
So what does your own ilk think should replace the Fed as lender of last resort?
So what does your own ilk think should replace the Fed as lender of last resort?
The impossible....a sound fiscal policy with balanced budgets and not giving away every penny to special interests, illegals, refugees, fraudulent disability claims, fraudulent health care claims via Medicaid/Medicare, by Congress which isn’t possible, so I guess I’ve answered my own question/changed my own mind. Given the fact that someone like Waters would be one of those members of Congress that are charged with creating such policies.