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Wednesday, December 16, 2009

There is now over a trillion dollars sitting in bank excess reserves. As James Hamilton called it, that is a "live bullet"!


ArmChairEconomist said...

So what are your thoughts on Time's person of the year??

I particularly enjoyed this part of the interview:

So, when you're playing in that gym by yourself, why don't you invite the President to shoot 21 with you, or around the world, or something like that?

Well, you know, if I were one of his advisers, maybe I — I think this is the independence of the Federal Reserve being exhibited here.

nursebee said...

Again, what do excess reserves represent? Does this mean banks have a lot of money to profit from through investing?