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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: MythMan who wrote (414576)4/18/2011 5:32:24 PM
From: Real Man  Read Replies (2) of 436258
 
It seems ZH has confused the sign, just as I did in 2008. -g-
These are reserve balances
for banks with the Fed, a component of monetary base. It
means banks take Fed's money and put them in reserves back
at the Fed, so they don't flow into the economy. There must
be something wrong with the banks again, a second wave?
Reserve balances with the Fed should be taken with a
negative sign, while Fed printing with a positive sign.
In other words, the Fed is printing, but the banks are
not lending the printed money, they just put them back
into the Fed. Pretty much all of it. -g-

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