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Re: Election 2010: Teabaggin' the Ds & Rs
Quote:
Originally Posted by Tyrone Slothrop
The Fed gives $50 billion to BofA for the bonds, but it doesn't sell anything to raise the funds. It just creates them. Presto: the money supply is increased by $50 billion.
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I get that. My point was not whether the supply was increased, but who has the liquid. BOA gets the liquid to lend, and one of the primary aims is to get it to lend that money to businesses or refi mortgages... or anything else that creates domestic economic activity. But that isn't going to happen for the reasons I noted above. Hence, the money goes abroad: http://www.bloomberg.com/news/2010-1...-stimulus.html http://www.ft.com/cms/s/0/46c65ec8-d...44feabdc0.html
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Last edited by sebastian_dangerfield; 11-07-2010 at 06:28 PM..
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