The Fed — For Dummies

[Nouseforaname]

1 hour ago, Foxx said:

Or...

 

This is idiotic.  The market opened down for barely a minute and the drop was inconsequential.  Not enough for the shorts to already decide to close off their positions.

 

 

[Foxx]

1 hour ago, Nouseforaname said:

This is idiotic.  The market opened down for barely a minute and the drop was inconsequential.  Not enough for the shorts to already decide to close off their positions.

 

 

I'm seeing more and more takes where this was short-covering.

 

[Nouseforaname]

9 minutes ago, Foxx said:

I'm seeing more and more takes where this was short-covering.

 

Why short cover today when the news was bad?

[Foxx]

US Treasury asks major banks if it should buy back U.S. government bonds

Quote

Oct 14 (Reuters) - The U.S. Treasury Department is asking primary dealers of U.S. Treasuries whether the government should buy back U.S. government bonds in order to improve liquidity in the $24 trillion market.

 

Investors are worried about reduced liquidity in Treasuries as yields rise and volatility increases in line with rapid rate increases by the Federal Reserve, which is struggling to bring down inflation that is running at its highest levels in four decades. ...

 

[SackMan518]

1 minute ago, Foxx said:

US Treasury asks major banks if it should buy back U.S. government bonds

 

 

So they want to buy back the fake Treasury Notes they used to swap for Fake Dollars minted by a private bank? Seems legit.

[Nouseforaname]

3 hours ago, Foxx said:

US Treasury asks major banks if it should buy back U.S. government bonds

 

They must be cheaper to buy back since rates are so high.  
 

What’s the drawback?

[Foxx]

14 hours ago, Nouseforaname said:

They must be cheaper to buy back since rates are so high.  
 

What’s the drawback?

How much of the bond market does the FED already own? Is what is happening right now in Japan teaching us nothing?

[Foxx]

Powell increased rates by 25 basis points.

[Foxx]

How about an independent inspector general to hold Congress and the executive branches accountable for printing money. Which, is ultimately the cause of the problems.

 

[Foxx]

It won't happen with the fractional banking dollar but it is a nice thought.

 

[Foxx]

25BPS Rate Hike

 

[Foxx]

Private because they don't want to further spook an already unsettling situation.

 

[Nouseforaname]

1 hour ago, Foxx said:

25BPS Rate Hike

 

They are signaling a pause.  Better late than never. 

[Foxx]

Ummm...

[Foxx]

Congress instructs Janet Yellen to have the Treasury and Federal Reserve “make preparations” and “be on the ready” for a situation where China dumps all of their US Treasuries overnight: