The slow death of banks
The Great Restructuring
I think the whole world now knows that QE – and its close relatives LTRO and other central bank extended term repo operations - does not do what it was hoped that it would. Flooding the place with liquidity ensures that banks can always to make payments, but doesn’t force them to lend productively: what it does do is create a liquidity swamp in financial markets, causing all manner of perverse effects. Propping up asset prices helps banks to maintain good liquidity buffers but creates a scarcity of collateral for repo and other secured lending, reducing the flow of funds around the shadow banking system and impairing lending by non-banks. QE and its relatives are regressive, since they directly benefit the rich most: the jury is out on what effect if any they have on unemployment and real incomes for the majority.
The fatally flawed FLS - Coppola Comment
Help to Buy mortgage guarantee scheme outline - HMT
The Federal Reserve vs. Small Businesses - Steve Hanke (Cato Institute)