Comments on: Mortgage Rates Plunge – Sarasota Real Estate Is More Affordable http://www.thesarasotadeed.com/2008/12/mortgage-rates-plunge-sarasota-real-estate-is-more-affordable/ Mon, 07 Jun 2010 02:56:35 -0700 hourly 1 http://wordpress.org/?v=3.0 By: Jason http://www.thesarasotadeed.com/2008/12/mortgage-rates-plunge-sarasota-real-estate-is-more-affordable/comment-page-1/#comment-1307 Jason Sat, 06 Dec 2008 02:17:35 +0000 http://www.thesarasotadeed.com/2008/12/mortgage-rates-plunge-sarasota-real-estate-is-more-affordable/#comment-1307 Assume that there were no legal restrictions that required banks to hold deposits at Federal Reserve Banks. Would the ability of the Federal Reserve Banks to generate their own earnings be affected? The answer is no. To implement its monetary policy objectives, the Federal Reserve would still buy and sell Government securities. Its holdings of Government securities would still represent the primary source of the “base” under bank deposits. The Federal Reserve would pay for the securities just as it does now, with a check written on itself. Commercial banks would then be “paid.” http://nomedals.blogspot.com Assume that there were no legal restrictions that required banks to hold deposits at Federal Reserve Banks. Would the ability of the Federal Reserve Banks to generate their own earnings be affected? The answer is no. To implement its monetary policy objectives, the Federal Reserve would still buy and sell Government securities. Its holdings of Government securities would still represent the primary source of the “base” under bank deposits. The Federal Reserve would pay for the securities just as it does now, with a check written on itself. Commercial banks would then be “paid.”

http://nomedals.blogspot.com

]]> By: Stacey Derbinshire http://www.thesarasotadeed.com/2008/12/mortgage-rates-plunge-sarasota-real-estate-is-more-affordable/comment-page-1/#comment-1306 Stacey Derbinshire Sat, 06 Dec 2008 00:00:20 +0000 http://www.thesarasotadeed.com/2008/12/mortgage-rates-plunge-sarasota-real-estate-is-more-affordable/#comment-1306 I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road! I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!

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