There are only two ways to survive a decline in income and net worth: slash expenses or default on debt.In post-World War II America, the cultural zeitgeist viewed frugality as a choice: permanent economic growth and federal anti-po…
Every segment of the economy will be impacted – many deeply. Expectations for a quick recovery are wishful thinking.
It’s one of those crisis-level-of-illiquidity things that if you heard about it in normal times it would make you shake your head in disbelief. During a full-blown meltdown maybe it’s not standard stuff, but given the chaotic conditions it doesn’t seem so preposterous, either. Negative convexity is an otherwise benign phenomenon in fixed income that […]
The Fed bought $72 billion in Treasuries and $41 billion in MBS from Primary Dealers today. That’s a month’s worth of old QE in a…
The Fed is paying the Primary Dealers $110 billion a day. It’s hard to wrap your head around that. It’s as much QE as they did in a month under the original QE programs from 2009 to 2014. It better work.
Lots of proclamations and predictions out there. Lots of certitude expressed at a time of the greatest uncertainty.
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.
I would write something snarky about bank reserves, but why bother at this point? It’s already been said. If Jay Powell doesn’t mention collateral, no one else does even though it’s the whole ballgame right now. Note: FRBNY’s updated figures shown below are for last week.
You’ve no doubt heard about the jobless claims number. At an incomprehensible 3.28 million Americans filing for unemployment for the first time, this level far exceeded the wildest expectations as the economic costs of the shutdown continue to come in far more like the worst case. And as bad as 3mm is, the real hidden […]
The Fed bought $74 billion in Treasuries and $36 billion in MBS from Primary Dealers today. That’s a month’s worth of old QE in a…