Started By
Message

re: Physical silver

Posted on 3/20/14 at 10:32 pm to
Posted by LSURussian
Member since Feb 2005
126968 posts
Posted on 3/20/14 at 10:32 pm to
Okay, so what do you mean by unwinding liquidity?
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10233 posts
Posted on 3/20/14 at 10:42 pm to
Well. They can sell assets or raise interest rates. Neither are going to be as effective since the private sector delevered, and the Fed actually owns much less assets than most might think.

I'll post more tomorrow, but basically I think the Fed. Is finding out it's not as simple as it used to be. One of the reasons they will likely do FARP. Short term liquidity trap in some ways.
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10233 posts
Posted on 3/21/14 at 1:59 pm to
Except, unless I misunderstand, you think it won't be complicated to unwind. I think it will, and so do a lot of other people smarter than me.

Time will tell. Actually, I think a case can be made that time has already told.

The Fed had a chance to stop buying as many MBS when demand was down with no impact to their net buys. They didn't do this. And refused to answer any questions about it.

Why was that? If the were going to start, why the delay? Especially since demand for mortgages was down and buying less mbs wouldn't have had one bit of impact. Obviously they acted like this with no thought, because it's a pretty simple task that faces them. No balancing act needed by them at all.

As I told the other banker on here, I sit on the board of a community bank. The FOMC asks us all the time for input. They do this by region.

We just disagree here. I don't think what they face is simple.
This post was edited on 3/21/14 at 2:01 pm
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram