Malinvestment and Endogenous Money

So much has been written about the endogeneity of money that I thought it was now widely accepted. But recent exchanges have shown me that people STILL aren’t getting it. Most recently, there have been two themes doing the rounds that bother me:

QE: Banks Skim the System, Stealing from Grandma

Enabled By ZIRP and QE, Banksters Continue Looting Instead of Building Capital by Lee Adler, Wall Street Examiner One of the purposes of ZIRP (zero interest rate policy) was ostensibly so that banks could rebuild their balance sheets through suppressed funding costs allowing them to earn a wider spread and increased profits. Theoretically that would …