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re: Physical silver
Posted on 3/20/14 at 10:32 pm to Iowa Golfer
Posted on 3/20/14 at 10:32 pm to Iowa Golfer
Okay, so what do you mean by unwinding liquidity?
Posted on 3/20/14 at 10:42 pm to LSURussian
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.
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 on 3/21/14 at 1:59 pm to LSURussian
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.
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
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