Comments on: Fed Exit Strategy = Another Bank Handout http://www.bearishnews.com/post/1449 Tue, 07 Sep 2010 12:41:09 +0000 hourly 1 By: Limiting Banker Pay and Compensation Packages http://www.bearishnews.com/post/1449/comment-page-1#comment-1034 Limiting Banker Pay and Compensation Packages Sun, 27 Sep 2009 20:14:51 +0000 http://www.bearishnews.com/?p=1449#comment-1034 [...] at 0%, using the capital to buy treasuries earning 2-4%. Risk-free profits. And guess what the Fed’s exit strategy involves? Paying banks more riskless interest, encouraging them not to lend money. Starting to see [...] [...] at 0%, using the capital to buy treasuries earning 2-4%. Risk-free profits. And guess what the Fed’s exit strategy involves? Paying banks more riskless interest, encouraging them not to lend money. Starting to see [...]

]]> By: Fin/Inv » Blog Archive » In Case You Missed Them - Some Links of Interest (8/12/09) http://www.bearishnews.com/post/1449/comment-page-1#comment-909 Fin/Inv » Blog Archive » In Case You Missed Them - Some Links of Interest (8/12/09) Thu, 17 Sep 2009 21:16:39 +0000 http://www.bearishnews.com/?p=1449#comment-909 [...] Fed exit strategy will amount to paying interest on balances held by banks at the Fed (Bearish News). Essentially, when it comes time to tighten policy, the Fed can raise the rate paid on reserve [...] [...] Fed exit strategy will amount to paying interest on balances held by banks at the Fed (Bearish News). Essentially, when it comes time to tighten policy, the Fed can raise the rate paid on reserve [...]

]]> By: Strat http://www.bearishnews.com/post/1449/comment-page-1#comment-603 Strat Wed, 12 Aug 2009 07:45:42 +0000 http://www.bearishnews.com/?p=1449#comment-603 I dont think the feds plan will reduce inflation. Austrian theory states an increase in the money supply. any profits banks get from there holdings with the FED, will essentialy be monetized. Plus with increased holdings comes lower interbank lending rates. My thesis, the supply of money will not diminish because of this, banks will just profit from a fed expanded balance sheet. But ayy, im no expert I dont think the feds plan will reduce inflation. Austrian theory states an increase in the money supply. any profits banks get from there holdings with the FED, will essentialy be monetized. Plus with increased holdings comes lower interbank lending rates. My thesis, the supply of money will not diminish because of this, banks will just profit from a fed expanded balance sheet.

But ayy, im no expert

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