It is QE, just go and Google QE so we can put this to bed.

Stocks have been relatively green over the past week. Given how much catastrophically terrible news we’ve received it shows something ain’t kosher in the system.

Yes these aren’t supposed to roll over but we see time and time again the second the Fed goes to unwind it’s balance sheet something in the economy breaks and they reverse course, exactly like what we’re seeing once again with BTFP.

What’s not clicking for you? You can’t just say it’s not then contradict yourself.

QE is an asset swap. It’s a swap of cash (asset) for government/corporate bonds (asset).

There is an argument that it’s not “money printing” since it has to be “repaid” but since the Fed just rolls over the debt forever it’s essentially as if the money were printed and injected into the economy.

It’s QE now because they are exchanging an illiquid asset for a liquid one. In a year if they repay it you can say it’s not QE.

I have no idea what you’re talking about QE always carries an interest rate with it, are you confused with government bailouts or the repo market?

Equities have been mixed but not down considering what a shit show of a week it’s been. It’s also possible this fresh liquidity will just blunt the effects of the rate increases.

You’re literally describing QE.

> Quantitative easing (QE) is a monetary policy action where a central bank purchases predetermined amounts of government bonds or other financial assets in order to stimulate economic activity.

The central bank is buying bank securities to stimulate economic activity by ensuring liquidity keeps flowing.

What gives you any indication that in a year when the Fed asks for their $400b+ back the banks will be in any shape to repay?

The Fed hasn’t ever been able to string together 12 months of QT but surely this time it will be different.

BTFP in the short term is definitely inflationary it converts bad/long term debts into cash monies. It only becomes deflationary when all those bonds are repaid to the Fed in a year removing the “temporarily” added liquidity from the economy. Which, I mean, come on.

Also your sauce was last updated Feb 28

The Fed is still slowly allowing government bonds to lapse while simultaneously buying new bonds from banks to the tune of a net gain of +400b over the past 2 weeks, that’s QE not QT.

And here I thought you understood that this isn’t going to be temporary. Banks will be in no better position a year from now when these bonds start to lapse and the Fed begins some new “temporary and definitely not money printing” program.

They will absolutely come up with some more bullshit to kick the can with things already unaffordable.

QT isn’t in play any more, they’ve undone the last 5 months in a matter of 2 weeks. This endless monetization of debt instead of allowing it to bankrupt out naturally just increases the money supply causing inflation. The Fed is simultaneously raising rates to slow inflation while injecting cash to permanently monetize bad debts that can never be repaid.

Do you honestly believe banks will magically be liquid in a year?

The second the Fed goes to unwind this program it will put us right back in the same boat. This happens every single time the Fed attempts to unwind it’s “temporary” liquidity programs.

The only way to unwind debt is to bankrupt it or monetize it, borrowing from Visa to Amex is a stall tactic not a solution.

50 is bold. 25 is likely. 0 is possible

Oh my sweet summer child, these dudes own the assets they don’t want them to come down, the dollar you work for could be worth less then toilet paper and they wouldn’t bat an eye. Printer is coming.