Why not?
and the banks & GSEs are clamoring for more & more money.
I wonder if the Fed bought securities from the banks and GSEs if that would give the banks and GSEs more money?
I've read reports that the fed is basically already a hedge fund leveraged up themselves 40-50:1.
Who did the Fed borrow money from?
For starters...Printing press issues..to print $750 billion would require them to print 7.5 billion $100 bills which they don't have the capability to do-in a normal year with full on printing they may get $30-$40 billion in new money (net isn't that high as old bils are withdrawn). If they actually started to print larger bills, the risk of massive inflation and US bond market dislocation is too great. So the banks may stay solvent in that situation but it would kill the rest of the economy.
I wonder if the Fed bought securities from the banks and GSEs if that would give the banks and GSEs more money?
If Roubini is even close to right, the banks have about another $2 trillion to right off--and his model only assumes 9% unemployment (I think it will go higher).
Who did the Fed borrow money from?
Ahem--fractional reserve system. Deposits from member banks.