Quote:
Originally Posted by dewilson58
Symbolic. Banks are not borrowing. They are liquid.
Fed still has bullets to fire.
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The only bullets they have left to fire will be at the USA taxpayers, especially the younger generations. The Feds last remaining bullet to fire now that Fed Fund rates are zero is injecting liquidity into the markets (referred to as quantitive easing). QA is fed speak to disguise going further into debt, which can only go two ways. Default, or on the backs as a very heavy burden of future generations. The third possible outcome, paying down the debt by running many years of budget surplus, has become an unattainable pipe dream given our countries addiction to spending and the fact that simply paying the interest on the debt will eat up most of the tax revenues. Unfortunately, our Governments lack of fiscal discipline, going back through multiple administrations, have left us in this very precarious situation. Oh well, at least the golf courses are still open, and even without a priority membership I can get a good T-Time these days.