Quote:
Originally Posted by Acting Like Godot  Would you say that the government printed that money for you? If you insist. All money is printed by the government anyway. |
Right, the government that's called a Central Bank, but ... not really a bank, like ... a bank.
Point is, the Fed (i.e., the U.S. Central Bank) raised the capital reserve level, if I recall, in 2008, after the housing bubble burst, and all the banks would have gone bankrupt had those banks not been loaned all this money that, of course, had to be printed by the Bank that's not a real bank. Regular folks I know call it the "big bank bailout" (much of which, as you have noted in other threads, has been paid back, though I'm wondering now where that money went?--back into reserves?).
Anyway, I haven't been following Europe closely until recently, and am wondering if this is the equivalent of their housing bubble/bank crisis, or is it a harbinger of something that could easily happen in the U.S.? We have our own debt issues here, too, see, and the Fed here keeps coming up with ever cleverer ways to monetize it.