Friday, September 28, 2012
QE3: The Fed's Handouts for Big Banks
QE3 is upon us. Ben Bernanke, the head of the Federal Reserve, announced that he is giving away billions of dollars to the Big Banks. But what will the banks be doing with the money? During QE2, Big Banks placed bets on foreign currencies and made billions loaning out money to South American and BRIC countries. QE3 will give low-interest loans to Big Banks, who will use that money to gamble on interest rate arbitrage with the BRIC and buy stocks to prop up the stock market, so Americans don't think anything is wrong with the failing economy.