/biz/ - Business & Finance

>>51200588
>it always "leaks" into broad money because that's what its supposed to do
it was specifically not supposed to leak into broad money in 2008 because banks being overleveraged on garbage assets was the primary cause of the financial crisis, and deleveraging them was the entire point of QE then. those reserves only (very slowly) started leaking into broad money when the fed wanted it, starting in 2014-2018, long after the bulk of QE ended. the fed controls when QE leaks into broad money, and it needn't be when QE is performed. banks need to be competitive, they can't just loan out more cash all the time, and the fed ensures that they don't.
it's still unethical, but it was specifically not supposed to leak into broad money.