Are you forgetting the derivatives which major banks hold? JP Morgan has outstanding derivatives in the trillions. Ask the US comptroller general who reported around $78 Trillion just two years ago.
Even if netted out, if just some of those bets go bad, the bank is insolvent. It does not have the capital base to withstand such an event. Not even if it grabbed all the client bank deposits on hand (like in Cyprus), it is bust.
Ordinary people get stuffed with austerity and savers get stiffed with zero percent interest. Meanwhile banks are given endless overt and covert sleight-of-hand bail-outs.
QE is not designed to save the economy or help workers, it is designed to save the banking system and the insolvent banks within it.
Are you forgetting the derivatives which major banks hold? JP Morgan has outstanding derivatives in the trillions. Ask the US comptroller general who reported around $78 Trillion just two years ago.
Even if netted out, if just some of those bets go bad, the bank is insolvent. It does not have the capital base to withstand such an event. Not even if it grabbed all the client bank deposits on hand (like in Cyprus), it is bust.
Ordinary people get stuffed with austerity and savers get stiffed with zero percent interest. Meanwhile banks are given endless overt and covert sleight-of-hand bail-outs.
QE is not designed to save the economy or help workers, it is designed to save the banking system and the insolvent banks within it.