Thursday, November 28, 2013

Fed Bozo-Think to Crucify Depositors

Currently, the Fed pays banks 1/4 of 1% interest on money deposited with the Fed.  Those moneys are called "excess reserves."

That's money that the Fed has printed up and jammed into the banks under the disguise of "Quantitative Easing", or "QE."

The Fed, now completely lost in its own jungle of QE 1-XX,XXX and "securitized" bundles of crap mortgages, and still unable to "create demand" for loans, plans to reduce the interest paid to banks. 

(Note the Fallacy of Fed-Think:  Bernanke seems to 'think' that creating money from thin air will also create demand for that money.  He's an academic; what did you expect?)

The banks, who like their free lunch, are threatening to "fix" the Fed by charging fees for money on deposit with them.  IOW, they'll snatch $1.00 for every $1,000.00 you have deposited.

1 comment:

Anonymous said...

Well within banks liberty to conduct business how they see fit. Don't like the policy? Don't deposit money in banks.