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Napanee, Ontario | Outstanding post again Iowegian, and john as well.
It is again refreshing to hear that the remarks from a bonefide banking industry representative reflect some of the similar concerns that the rest of us on the other side of the counter recognize.
I have a couple questions for you that I think many of us struggle with, and I know it's been discussed previously between myself cfdr and some others.
How do you forsee central banks unwinding their QE positions, and the effects this might have? Is it even possible (I am quite doubtful).
And how will it relate to the record reserves that many large commercial fed chartered entities are now sitting on?
It is my understanding that a good portion of these reserves were brought into existence from QE providing them in exchange for under performing bonds and us government long dated treasuries in Q1 through Qe3... Which has now expanded the fed's balance sheet (likewise with any central banking participating in a similar program), to close to 5 trillion dollars.
How do you see this situation playing out. Thanks again for your time! | |
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Loans make deposits II
