Bank Reserves and Yucca Mountain
Jan 27, 2011
/
By Tony Crescenzi
Bond Market Strategist
Bank reserves in enormous quantities are toxic, but like nuclear waste, they pose no danger as long as they're tucked away, in the bank reserves' case, at the Fed. When banks begin utilizing excess reserves in the form of lending, the Fed must then remove the toxins, or tighten the reins.