[Toddsterpatriot]

And no, the Fed does not print money, rather it lends money with the intent that once the banks get it they too will lend it.

The Fed isn't lending money to the banks. They haven't done that in years and years.

Right now the banks are lending money to the Fed. Currently, $2.4 trillion in excess reserves.

[Sawdring]

Isn’t the Fed buying $85 billion a month in assets from the banks? I’m assuming these assets are loans that are underperforming.

[RainMan]

Excess reserves are when banks choose to hold greater reserves than the law requires. In other words, if the law said ABC Bank had to hold 3% of their depositors $100M in reserve, legally they are only required to hold $3M in reserve. If they choose to hold $5M in reserve, that is excess reserves.

What praytell do you think QE is if not lending to banks?