Wednesday, April 14, 2010

Quote of the Day from Ben Bernanke

Found here in footnote 9, at the bottom of the page:
The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.
Bernanke sees "costs and distortions" trying to maintain minimum reserves, which have shrunk to almost nothing, but fails to see any distortions caused by massive injections of that famous Fed "liquidity."