Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Dealers ended up taking in all of $78.4 billion, or about 16% of what was possible.
Nothing speaks of panic more than a gamble doubling down after a losing trade. And that’s what the Fe dis doing here. After seeing their emergency rate cut of 50bp going over […]
Rather than being confident about the effectiveness of their programs the central banks just don’t know what else to do. And it’s because they really don’t know what they are doing.
The eurodollar curve’s latest twist exposes what’s behind the long end. To recap: big down day in stocks which, for the first time in a while, wasn’t accompanied by massive buying in longer maturity UST’s. Instead, these were sold, too. Rumors of parity funds liquidating were all over the place, which is consistent with this […]
Can we please dispense with all notions that monetary policy works?
Basic recession economics says that when you end up with too much of some commodity, too much inventory that you can’t otherwise sell, you have to cut the price in order to move it. Discounting is a feature of those times. What about a monetary panic? This might sound weird, but same thing. In other […]
I sense there is a tendency right now to say that this correction is just similar to the Q4 2018 correction.
This is the upside of hyper-litigiousness: prevention is prioritized as the most effective means of limiting future liability.Never mind prevention or vaccines; the big question is “who can we sue after this blows over to rake in millions of dollars?”&…