The Fed bought $15.7 billion in T-bills, notes, and bonds from dealers. That’s higher powered money because the Fed is actually cashing out the dealers. TOMO is just a loan to enable them to carry their fixed income inventories without having to liquidate at a loss.
And boy they took some losses last week.
Stocks are fired up at the prospect of a year-end melt-up. The surprise would be a global bond market beat down.
The Fed is taking up all new Treasury issuance, dollar for dollar. Must be a coincidence.
Just as forestry management’s policy of suppressing forest fires insured uncontrollable conflagrations, so central banks’ attempts to eliminate recessions insure a financial conflagration that will burn down the entire global financial system.The first…
New highs every day or so now. Investors are chasing the new highs, the president celebrates on twitter almost every day. Things are great. Melt-up talk is the rage. Hate to be […]
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.
The Fed has managed to turn markets into a graveyard. Void of any pulse, void of any intra-day price discovery. Ever since the introduction of ‘not QE’
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.
New York | Last week we pondered the fate of Citigroup (C) and several other global banks that have lost their raison d’être
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.