Contrary to Mr. Melloan in Wednesday's WSJ: ``Think about it. Where would the excess reserves come from that banks held with the Federal Reserve, if the Fed hadn't originally made the emergency loans or subsequently purchased assets? Data show that while bank loans have declined by about $600 billion, securities holdings have increased by about $600 billion. Therefore, the so-called borrowing from commercial banks could not have come from declines in their securities and loans.'' -- Oh and the author might know a thing or two; he was the former eVP and Director of Research at the Atlanta Fed.

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