The Fed started POMO today. But TOMO went up too. Stresses continue to build.
LIndsay Williams interviews Lee on Strictly Business. Recorded Tuesday, October 15. Click headline to hear the interview.
Wall Street and the Fed tell us there’s no crisis. Come on. Get real! They don’t pump $200 billion in cash into the market in a month, with a promise to do more for months to come, unless there’s a crisis.
The story of the Fed’s QE New is a day by day chronical of madness. I’ve written about it extensively even before it started. Here’s…
Call it what you will, the Fed has started the new QE. It’s coming fast and furious with POMO on top of TOMO that will grow the Fed’s balance sheet as fast as it did under old QE. It’s a sign that the house is on fire.
In the Fed’s daily overnight repo operations for October 4 it offered $75 billion in overnight repurchase agreements to Primary Dealers. The dealers took $38.55 billion at an interest rate of 1.8%, to fund the carry of their securities holdings. Here’s what this means.
Lindsay Williams asked me about today’s market break, and about Donald Trump. As usual, I did not hold back. Content hosted by iono.fm Get more…
In today’s POMO, the Fed bought $1.6 billion in coupons, to offset shrinkage of its MBS portfolio in the normal process of mortgage prepayments.
Lest we forget, the Fed is still doing regular small POMO to replace MBS paydowns. But as we saw this week. It’s not enough.
The phrase. “It’s the economy, Stupid,” became famous in first Clinton campaign. And Wall Street has always wanted you to believe that indeed, it is the economy, Stupid.
But the game has changed radically in the past two weeks
