This article on bloomberg:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5E0pi30W5.s&refer=home
The basic idea being that the banks are just going to buy lots of bonds with the money the fed is throwing at them - never allowing that money to hit the system.
So much I don't understand... doesn't the fed usually increase the money supply by buying bonds - printing the money to do so? In which case, how is this any different if the money passes through the investment banks first?
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- still cant suss inflation vs deflation
still cant suss inflation vs deflation
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