Once again, I let loose with another complaint about mainstream monetary economics, and once again Scott Sumner casually agrees that there's a dilemma.
... considering that dinosaur banks can borrow at 0% by only putting up toxic MBSes as collateral, ...
Why can’t *I* get secured loans from the Fed at 0%? Why should big banks have all the fun?
And Sumner replies
Silas, Good question.
Then, I get keyboard crease marks in my forehead.