No, it is not stupid and useless. Given that it totals more than GDP, it means that the Fed is effectively involved in transactions whose total is the total value of domestic goods and services. This is not just a little thing. We have gotten to the point where monetary/credit transactions executed by the Fed is bigger than real economic transactions. Since total financial transactions are some large multiple of Federal Reserve transactions, it means that the banking system that we are trying to bail out has become a behemoth. While many argue that it is necessary, others might rationally argue that maybe a smaller banking system would be ok.
No it doesn't.
This is not just a little thing. We have gotten to the point where monetary/credit transactions executed by the Fed is bigger than real economic transactions.
Total loans were about $1.2 trillion. At their peak.
While many argue that it is necessary, others might rationally argue that maybe a smaller banking system would be ok.
Banks have been shrinking their balance sheets.
Come on...... I don’t like the Fed but they only loaned out 1.5 trillion not 16 trillion. Not counting the TALF contrivance. 1.5 trillion is the Bloomberg calculation
If you borrow $50,ooo from a bank for one year, the GAO way of calculating it would be you borrowed $50,ooo x 365 days amounting to $18,200,000