Once in a while the world astonishes itself. Anxious incredulity replaces intellectual torpor and a puzzled public strains its antennae in every possible direction, desperately seeking explanations for the causes and nature of what just hit it. 2008 was such a moment. Not only did the financial system collapse, and send the real economy into …

Its not just tax money. The banks have accounts with the fed, much the same that you have an account in a Commercial bank. So, to lend to a bank, we simply use the computer to mark up the sizeof the account that they have with the fed.