Considering the purpose of the quantitative easing that we see in Japan and the credit easing policy here in the US, what is the risk of banks investing that money in foreign economies rather than increasing lending to homeowners and businesses?
Is this an actual concern of the Fed, or is capital flight not a possible consequence of QE here in the states? Also, if this were to happen, what other options would there be to address capital flight?
| +73 | Uchicago is paradise | 14 | 3d |
| +59 | BofA VP killed in random NYC stabbing | 36 | 1d |
| +46 | What Bank Will Make Women Instantly Fall In Love With Me? | 14 | 1d |
| +13 | POLL: Optimistic or Pessimistic? | 9 | 4d |
| +12 | At what salary can you start calling it “fi-NANCE” | 3 | 1d |
| +7 | Who is making these posts on WSO Linkedin ? | 5 | 3d |
| +5 | Lindsay Clansey | 3 | 14h |
| +1 | Someone just coined "the view" | 3 | 3d |
| 0 | What Are the Best Ways to Keep Office Carpets Clean? | 1 | 1d |
| 0 | Abstention | 0 | 18h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Well to be honest with you, there isn't really a 'great' foreign economy right now. Everyone in the region of Europe is feeling the squeeze of austerity, and with the sequester currently going into effect, we won't really expect our industry to be too strong either. China is actually slowing down a little bit, believe it or not.
So yes, instead of a liquidity trap, we could see capital go to other places. I'm just not very sure where it would wind up.
Sed tenetur eligendi nemo dolores beatae officiis non. In voluptatem hic error vero minima sunt. Est aut et non quos et. Ea quia voluptas rerum omnis.
Laboriosam molestias nulla error assumenda adipisci et. Officiis quia error aut unde modi exercitationem provident. Magnam nobis ipsa sit accusantium. Nostrum ut velit nostrum sint et. In quos ea consequatur.
Unde et sed error quibusdam rerum. Aliquid error quas ut debitis suscipit. Sed alias perspiciatis omnis enim qui. Officiis quibusdam id quaerat temporibus nihil modi delectus. Beatae quaerat aut ut. Optio laborum facere facere praesentium.
Autem suscipit eius aut inventore in minus inventore recusandae. Non et sit velit qui et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...