If the focus is on building up banks income stream while engaging in lending, the direct route is for the Fed to shift from doing repo loans against finance sector crap to doing repo loans against consumer finance, car loans, and loans to small business.

But then, doing repo loans with finance sector crap was the big idea that Bernanke had that got him the chairmanship of the Fed ... helping out the productive and household sectors of the economy is not something he's shown any interest in doing.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.