The Federal Reserve's Backdoor QE Is A Terrible Liability For YOU
What the Federal Reserve has been setting up for years in preparation for ending the expansion of it's own
balance sheet is this. The Federal Reserve has required the big Wall Street banks to keep putting excess cash in reserve-not lending it out. Understand, this "keeping of excess cash in reserve" is counter productive for any bank, and this is because in order for a bank to make a profit on cash it has to lend it out. However in this case what the Fed. Was actually doing was setting up a "backdoor" quantitative easing program which would simply be carried on by the banks themselves.
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