Quantitative easing made commercial banks bigger by giving them short-term reserves at the Federal Reserve, but it did not increase their earnings because banks could not profitably deploy those reserves into long-duration lending like mortgages or commercial loans at the rates available.

causalpending

Speaker

Chris Whelan

Evidence Quote

it made them bigger they got a lot of short-term reserves at the fed which is cash but they couldn't do much with it

Source

The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris WhalenForward Guidance
Created: 8/11/2026, 1:23:06 AM

My Notes

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