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re: Fed keeps buying bonds at $85 billion monthly pace

Posted on 6/19/13 at 2:30 pm to
Posted by Bear Is Dead
Monroe
Member since Nov 2007
4696 posts
Posted on 6/19/13 at 2:30 pm to
quote:

I've been thinking 2015 before the candy bowl gets taken away, but could be as early as mid-2014 if the Fed projections come true.

Can you explain the metaphor please?
Posted by LSU0358
Member since Jan 2005
7920 posts
Posted on 6/19/13 at 2:52 pm to
45 billion / month in long term treasuries and 40 billion / month in mortgage backed securties. Also, the fed funds rate is at 0 to 0.25% (this is the rate that the fed "loans" money to depository institutions (aka big banks) loan money to each other.

When the "candy bowl" gets taken away the Fed will slow down/eliminate the Treasury and MBS purchases and start to raise the funds rate.
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 6/19/13 at 3:02 pm to
I dont get the sell off.....he said he was still gonna print....did i miss something? Why is the dow down 200 pts
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