Apparently the Federal Reserve is considering changing a long standing policy they have of paying interest to Banks that store money with them. My understanding is Banks are required by law to store a percentage of their money with the FEderal Reserve, but until yesterday I had no idea that the Fed actually paid interest on that money. On NPR they were discussing how the FEd is considering changing that policy to no longer pay interest on that money and they may go so far as to charge a fee for storage. They may be doing this because there is a major concern that a double dip recession is underway. I find this to be hysterical – just grasping at straws now.

The other piece that NPR covered was what the Fed actually did to help with the economy two years ago – they created 1.25 trillion dollars our of thin air. Apparently to buy the home backed securities they literally created money – and the best part to that is they have no idea if that is a good or a bad thing. Pure awesome.