And while you are here, Mr. Bernanke
Andy Busch of BMO Capital Markets also noticed the money supply question slipped in toward the end of Ben Bernanke’s grilling yesterday:
During the Bernanke testimony yesterday on the BofA/Merrill deal, a curious question popped up about money supply growth. I’m not sure what was more surprising the fact that this question came up or that a House member asked it. Bernanke said that the massive supply of money into the system was mainly being held by banks as reserves. Since banks are not lending much, this growth in money supply wasn’t a problem at this time.