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Politics : The Obama - Clinton Disaster
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To: Wayners who wrote (55014)8/9/2011 9:08:33 PM
From: DuckTapeSunroof  Read Replies (1) of 103300
 
Re: "It's pretty simple, economy is in the shitter and the Feds offer endless bonds, notes and bills for sale every other week it seems. Banks choose to do it. I blame the Feds mostly, not the banks. The Feds are soaking up ALL the friggin money!"

But it's the United States Treasury that sells the bonds (not Fed).

And the Treasury only sells bonds to finance the chronic deficits we have been running for decades.

So long as we take in less revenue then we spend (right now I think it's about $4 spending for every $3 in revenue) than they will keep selling bonds to finance the difference.

You have a point though... I believe the big banks are 'sitting' on about $3 Trillion in cash right now. not really lending much into the real economy. Instead it seems they currently prefer putting in on deposit at the Fed, and 'earning' somewhere between a tenth of a percent and zero in interest the fed pays....

Not much sense in that but, hey, don't ask me, ask BAC, C, GS, JPM, etc., why they do that instead of lending....
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