Zero effective policy and stalling QE3 – Why QE3 will have little financial impact if implemented. Deposits at US commercial banks quickly approaches $9 trillion.

http://www.mybudget360.com/qe3-quantitative-easing-3-federal-reserve-total-banking-deposits-zero-interest-policy/

As central bankers meet this week the markets are placing too much faith in what can actually be done. The anticipation for QE3 is nearly an obsession yet the Fed already has tools more effective if it wanted banks to lend. The Fed can cut the interest paid on excess reserves down to zero (similar to the ECB) to encourage some loans to be made. Banks have $9 trillion in deposits to make loans against. They simply rather not bet on the American public