[vinyl7]

The economy is always inflationary. Money today is worth less than it is tomorrow. Money that the bank has is just rotting away, becoming less valuable over time. Banks need to take the cash they have and invest it in something to offset the inflationary losses. Because bonds weren't paying much interest, it was a better return for the bank to loan out the money for mortgages, investors, etc. Eventually those loans become a part of someone's paycheck or into their bank account (ie home sale that ended up with a 2-300% return). Compared to the bank buying bonds which essentially removes money from the economy.

[zie]

Deflation exists, the US Federal Reserve has a 1 page article about it here, in case you need proof for some reason: https://files.stlouisfed.org/files/htdocs/publications/es/10...

Otherwise, your comment is like grade school levels of understanding of how this all works. Modern banks have the ability to create money.