How the banks make the big bucks
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All Comments (133)
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I love the Bernanke drawing, these videos are great.
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@millball the fed can loan money to other BANKS, which the treasury is not; hence the term interbank loans. What can happen though is that the fed decides to buy t-notes, bonds, assets, etc through quantitative easing which they have done 3 times in the past few years.
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@sodafromyoda OOOoooOOHhh.. somebody got out of the wrong side of the bed.
Just for the record; I DONT CARE ANYMORE... stop thankyou for all your wonderful, yet still unhelpful, comments. BUT STOP REPLYING TO MY MESSAGE! DX
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@millball For reasons that will be explained to you when you take an economics class.
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@farceadentus it took us only about 80 years to realize it ...
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@stephenddblyth it gets money from taxes, hence why everything is taxed.
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bonds risk free??? what a lie
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BS.
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Ron Paul 2012! End the Fed!
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HANG ON!!! you are missing one very important point as to why we are in the trouble we are in! money isnt given away by the fed. IT IS LOANED with interest. where does the treasury get the money to pay the interest back?! it doesnt exist. so more money has to be printed and loaned out to cover the interest. This is then repeated forever. getting worse and worse!! until disaster. which is right now
Why doesn't the Treasury not just buy from the Fed?
millball 7 months ago 12
In other words it is:
ONE BIG SCAM.
farceadentus 3 months ago 10