“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.
But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”
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Personally I’ve seen a shrinking of credit available. Card companies are canceling zero balance cards I’ve had for 10 years. BofAssholes raised the rate on one with a balance to 18.73%. Had the card since 1991 never a late pay. I called them as they ussually lower the rate when asked, but this time they told me to suck an egg and then reduced my limit to drive the point home. They do not want to lend money.
