/biz/ - Business & Finance

>>22993405
While I agree with you, I just have to actshually on one point:
banks can't outright buy stocks, just other types of debt securities.
>National Bank Act Sec 24 par7
But they can invest and they do. We can see publicly that they are buying a shit ton of US Treasuries.

US Treasuries that have a guaranteed buyer (the Fed)
US Treasuries that CANNOT ever go down in price (QE)

Banks now make more from their asset appreciation + FedGibs than they do off the net interest in the consoomer loan spreads.

>>22397004
Well >>22396562 already said it. Banks are not lending because its too risky.

Another theory is that they are not lending on purpose to cause more deflation to force the Fed to do more QE. QE guarantees a yuge spike in bond prices, which banks have conveniently been stacking over the past few months.