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by roymurdock
3933 days ago
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HN is a strange and wonderful place full of all kinds of people with all kinds of opinions on startups. And yes, easy money can help unlock demand, but it can't generate it in a sustainable manner. > "Actually printing money" - and then what? Dropping it to the eager consumers out of helicopters? [1] They've given banks all the money they need, and then some. Banks act as the gate keepers of loans and investments within the economy, vetting those who are likely to pay back. That is their business. They are not finding enough demand within the economy to push out more money, even with short-term interest rates near 0 for the past 6 years. So they sit on it, earning 0.75% on their reserves. The Fed does not have the power to solve this problem, in my opinion. [1] http://www.investopedia.com/terms/h/helicopter-drop.asp |
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