Article on Fed yanking the punchbowl

    Posted by matt on 2nd of Mar 2018 at 05:48 pm

    Here's the article , and here's one of the images from that article:  Again just as an analogy, imagine if you held a 10M position in a very low float stock that you needed to unload, without hopefully tanking the stock.  That's pretty much what the Fed is in with the market

    Very interesting article.  Thanks Matt!

    Posted by cape_rover on 3rd of Mar 2018 at 05:38 pm

    Very interesting article.  Thanks Matt!   How much does the fed plan to unwind - $4.18T?  Is it typical for the Fed to have over $4T in treasuries and mortgage backed securities.  Did the fed 'print' money to buy these securities which seems to me would be an inflationary move?    If the Fed sells $4T in these instruments, does that mean the national debt is reduced by $4T?     Do we have an economist here that can explain what we should expect as selling these instruments pulls liquidity out of the (stock?) market? 

    Between that and a possible

    Posted by pmahoney on 2nd of Mar 2018 at 06:05 pm

    Between that and a possible trade war, it's going to be an interesting year!

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