In response to Free Money! Banks Paid $22 Billion to Not Lend? I received a comment from economist Professor George Selgin who said I do not know what I am talking about.

Selgin made similar comments about Chris Whalen, Chairman of Whalen Global Advisors LLC,  in two supporting links.

I also received a Tweet from economist Professor Steve Keen who said: “Mish Nails It“.

Both viewpoints cannot be right. Let’s explore competing viewpoints on lending excess reserves, banks hoarding cash, and free money banks receive from the Fed for interest on excess reserves.