Article discreditng the thesis that Mao "killed millions of people" in The Great Leap

[kandrathe]

Nobody is going to get rich earning a fraction of a %, nominal, on reserves. This is not the behaviour of canny investors looking to rook the taxpayer, but terrified investors, looking for safety. If it isn't, then why were investors not parking their money in such quantities in banks for the 50 years prior? Interest rates were higher, not lower - even real interest rates, for most of the period.

This dog does not hunt, as Occhi would say.

-Jester

Ok, I see. I'm not really blaming the fed, so much as saying the 2008 acceleration of the 2006 law change had the unintended consequence of allowing (removing the disincentive) pooling reserve deposits. The upside is the security of the banking sector, the downside is a dearth of available capital for economic expansion. The law sought to remove the disincentive for banks to keep reserves due to it being "unused capital".