Remember the Debate abt Taxpayers paying interest on Bank Reserves at the Fed? :mad:

[Cowlesy]

:mad:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aM7XbgCo53mk&refer=home


Congress's $700 billion legislative compromise to revive credit markets would also expand the Federal Reserve's power to manage short-term interest rates.

The draft bill gives Fed authority as of Oct. 1 to pay interest on reserves held at the central bank by financial institutions, according to a copy obtained by Bloomberg News. That would encourage banks to deposit excess funds with the Fed rather than dumping them into the money markets and distorting its overnight federal funds rate.

[Texan4Life]

Besides giving the fed more power to manipulate the market, what exactly does this mean?

whats the point of keep money out of the money markets?

[Cowlesy]

Besides giving the fed more power to manipulate the market, what exactly does this mean?

whats the point of keep money out of the money markets?

Guess who is going to be paying the interest on those reserves?

Take a look in the mirror.

Now you also get paid for having the privilege of being an insured depository institution in this country.

[Sarge]

Great, just great.

They get our money, and then they give them interest, on our money, which costs us more money.

Wake up all.

There is a saying, fish or cut bait. I vote cut bait. The fish stink!!!!