Welcome to Bookmarker!

This is a personal project by @dellsystem. I built this to help me retain information from the books I'm reading.

Source code on GitHub (MIT license).

When the Fed offered to buy a large number of securities held by banks, both mortgage-backed securities and government bonds, bankers exchanged these bonds – some of which were likely to be non-performing and therefore loss-making – for the equivalent of a bigger ‘overdraft’. This ought to have cleared up bankers’ balance sheets, and encouraged them to lend more into the real economy. But QE did not have that effect. In the UK bank lending actually fell. Instead the Fed and Bank of England (BoE) effectively provided the private finance sector with additional purchasing power with which financiers could go shopping for speculative assets in the FIRE sector: finance, insurance, and real estate. Lending into a weakened real economy, weakened further by austerity, was regarded by financiers as far less profitable and far more risky.

—p.117 Should Society Strip Banks of the Power to Create Money? (93) by Ann Pettifor 7 years, 2 months ago