What are banks doing with Fed money?

Apparently, buying government bonds.  They’re borrowing lots of money from the Federal Reserve, but instead of lending it to risky borrowers, they’re buying (perceptively) safer government bonds.  Effectively, the Fed is pumping money to finance government spending, which is propping up banks, which are borrowing from the Fed to buy government bonds, to finance bailouts…

This seems like a dangerous cycle of creating inflation in order to finance… creating inflation.  I can only guess how the endgame will turn out.

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