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by bitcartel 4883 days ago
Most of the money is passed between central banks and technically insolvent[1] banks, helping them repair their balance sheet and dispose of toxic assets.

http://dailybail.com/home/chart-of-the-day-feds-balance-shee...

Some of the money seeps into the economy and may be inflating stocks and other assets. For example, banks are given loans at zero interest[2] and they can use that money for whatever, e.g. proprietary trading, bonds/treasuries, etc.

Perhaps some of that money finds its way into investment funds and eventually tech start-ups?

[1] http://www.ritholtz.com/blog/2012/02/fasb-sells-out-unsurpri...

[2] http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e7... http://www.bloomberg.com/news/2011-12-23/fed-s-once-secret-d...

1 comments

Will this money be removed from the economy at some point? How?