will private banks start printing their own money?
will private banks start printing their own money?
#1will private banks start printing their own money?
Posted: 10/7/08 at 5:05pm
As I understand it, commercial paper is a short-term money market security issued by a large bank or corporation requiring no collateral.
The Federal Reserve has agreed to buy up a bunch of commercial paper to unfreeze credit.
Am I off base by suggesting then that Federal Reserve is in effect giving private banks and corps license to print their own money? The securities, which previously were unsecured, would now have a status near that of legal tender.
Someone here must surely be able to enlighten me.
Fed to buy commercial paper
#FactsMatter...your feelings not so much.
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