jps

As Lending Ebbs, Excess Reserves Flow - A Lot

If this is just cushion to absorb write-down losses to get leverages back under control, then why do the officials not say that instead of things like they are going to experiment and it's a floor on the overnight lending rate which is also above it. Why not let it go negative so the banks use it to actually write bad debt down or off?

As Lending Ebbs, Excess Reserves Flow - A Lot

(The Financial Week headline is "Bernanke admits Fed struggling to revive private lending" and Forbes published the full text of his comments under "The Crisis and the Policy Response," both January 13, 2009.)

As Lending Ebbs, Excess Reserves Flow - A Lot

FinancialWeek did a story on Bernanke's discussion of interest on excess reserves.