Lending? What Lending? Excess Reserves Really Take Off, Hit New Record Of $1.06 Trillion
Bank excess reserves increased by $71 billion over the past two weeks, and $140 billion in the past month, to $1.06 trillion. Banks adamantly refuse to lend even one cent and continue hoarding cash instead, investing in safe and risky assets alike without prejudice. After all if anything breaks, Uncle Ben will fix it, and Aunt Jemima will make even the toxicest crap taste mmm, mmm good.