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130 sats \ 0 replies \ @kingzing131 4 Jun \ parent \ on: US banks sitting on $517 billion in Unrealized Losses per FDIC econ
Reserve being zero doesn't have much to do with this. It's because banks weren't lending anyways and have way more than the reserve requirements.
For a few years many have been saying that the US, like Japan, is having a liquidity trap. Meaning gov policy isn't very effective in boosting money supply.
It's why Japan pumped so much for so long and still barely any inflation