The Fed is absorbing just a fraction of this week’s massive Treasury issuance, but stock futures continue to levitate and have broken through a key resistance level. Smoke and mirrors, or just smoke from burning cash.
That’s because the dealers and their institutional customers need to absorb $241 billion in Treasury issuance this week. How the hell are they paying for that? The Fed is only covering a fraction of that this week.
Fed QE $3.000B Coupon Purchase 2020-04-28 NY Fed treasury securities operations
Fed QE $8.000B Coupon Purchase 2020-04-28 NY Fed treasury securities operations
I never said it wasn’t powerful. What I continue to show is that it doesn’t work. Ben Bernanke kept his job because despite the carnage, in times of turmoil people are willing to give anyone a second chance. And if the turmoil never ends, so much the luckier – for him. Anyone who promises it’s […]
Everything about the current period smacks of the Great FInancial Crisis, right down to the stupid monetary policies central bankers are using to claim this is not a GFC. In oil markets, it’s even worse,
The Fed is really tightening the screws on Primary Dealers this week. So far, stock futures traders are laughing and farting in the bears’ general direction.
The Fed has spent a couple gazillion over the past two weeks and the stock and bond markets have only been flat. Is that a good thing? I doubt it. Looking ahead, the Fed won’t be pumping enough to keep the dealers afloat.
It may be. Here’s what to look for, and a few mining stocks to ride along the way.
Fed QE $1.802B TIPSPurchase 2020-04-27 NYFed treasury securities operations