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Started By
Message
Fed is Taking an Absolute Beating on QE Bond Purchases
Posted on 3/1/23 at 9:17 am
Posted on 3/1/23 at 9:17 am
Why is this not discussed more?
Are they going to eventually fold like a cheap tent right into the arms of the World Bank, IMF, WEF, etc.??
Discuss.
Are they going to eventually fold like a cheap tent right into the arms of the World Bank, IMF, WEF, etc.??
Discuss.
6
Posted on 3/1/23 at 9:23 am to Hussss
quote:
Are they going to eventually fold like a cheap tent right into the arms of the World Bank, IMF, WEF, etc.??
Everyone does eventually. Gold and Bitcoin is the only way out.
Posted on 3/1/23 at 11:07 am to Hussss
quote:Detail out how you'd anticipate that fold-up would occur, if you don't mind.
Fed is Taking an Absolute Beating on QE Bond Purchases ... Are they going to eventually fold like a cheap tent
Posted on 3/1/23 at 11:41 am to Hussss
The Fed has been selling billions of dollars' worth of bonds every month for a while now. QT not QE
Unless you're talking about losing money on the investment.
Unless you're talking about losing money on the investment.
This post was edited on 3/1/23 at 11:45 am
Posted on 3/1/23 at 11:57 am to I Love Bama
quote:
Bitcoin
Posted on 3/1/23 at 12:08 pm to Hussss
quote:bc they arent doing that anymore? That was QE
Why is this not discussed more?
Posted on 3/1/23 at 12:53 pm to Tigers4life
quote:The Fed is actually not selling off bond holdings (as far as I'm aware). They're just not purchasing new securities to replace those reaching maturity. That is effectively paring their holdings back by about $95 billion (or about 1%) per month.
The Fed has been selling billions of dollars' worth of bonds
He may be talking about the differential between maturing bonds and current rates (which QT is deliberately driving). But with the DXY up >8% since QT initiation last year, I don't really understand where he's coming from.
Even w/ the ST-LT inversion, ST bonds are still substantially underperforming inflation, something which would also seem to favor the Fed. So I didn't get his bent.
When I'm conceptually that far off on this board, I figure there may be something I'm missing.
Posted on 3/1/23 at 3:46 pm to Tigers4life
quote:
Unless you're talking about losing money on the investment.
Exactly what I was referring to.
Unless they sold their entire bond portfolio in March 2020, they have been walloped.
Posted on 3/1/23 at 3:51 pm to NC_Tigah
quote:
Detail out how you'd anticipate that fold-up would occur, if you don't mind.
They completely lose control which is what I have been shouting from the rooftops.
The Fed is the Emperor with absolutely no clothes and will be shown as such.
The bond market dwarfs them and leads them around by the nose.
They lead NOTHING as the media would have us believe.
They follow the 2Y Treasury Note.
Full stop.
This post was edited on 3/1/23 at 4:05 pm
Posted on 3/1/23 at 4:45 pm to Hussss
quote:I have to say, that is a really, really disappointing response.
They completely lose control which is what I have been shouting from the rooftops.
The Fed is the Emperor with absolutely no clothes and will be shown as such.
I was hoping for insight as to how the WEF might absorb a US economic collapse, not because the WEF could (they obviously can't), but because any legit theories as to how it might happen would be eye openers for me.
Instead your response was complete nonsense.
Posted on 3/1/23 at 5:04 pm to Hussss
quote:
I have been shouting from the rooftops.
Posted on 3/1/23 at 5:07 pm to LSUcam7
Posted on 3/1/23 at 5:13 pm to I Love Bama
quote:
Gold and Bitcoin is the only way out.
Etherium, Loopring and Immutable X
Posted on 3/1/23 at 7:50 pm to Hussss
Fed hasn’t lost a penny on QE purchases. Their yield to maturity when they bought them is exactly what they’ll make on the purchases.
Their opportunity cost is a different story, but not sure that’s really relevant for the Fed.
Their opportunity cost is a different story, but not sure that’s really relevant for the Fed.
Posted on 3/1/23 at 8:34 pm to Tigers4life
quote:
Unless you're talking about losing money on the investment.
But do you really lose if you created the money in the first place?
Posted on 3/1/23 at 9:39 pm to TigerDeBaiter
quote:The entire financial system is a human construct. Humanity needs the financial system, humanity designed the financial system, humanity makes the rules of the financial system. When the system struggles, humanity fixes it.
But do you really lose if you created the money in the first place?
Yes, It's a Manipulated Market. So What?
Posted on 3/1/23 at 10:48 pm to RoyalWe
Excellent. 
For anyone who hasn’t watched or heard of the movie Margin Call, I can’t recommend it highly enough. Only financially minded people will really “get it”, but I think many here will both enjoy it… and have something to think about (from an historical perspective).
For anyone who hasn’t watched or heard of the movie Margin Call, I can’t recommend it highly enough. Only financially minded people will really “get it”, but I think many here will both enjoy it… and have something to think about (from an historical perspective).
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