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Fed’s ever expanding balance sheet. It failed to reduce its size prior to the pandemic.
by dd36 6y ago
Fed’s ever expanding balance sheet. It failed to reduce its size prior to the pandemic.
- dodobirdlord 6y agoSeems like in the long run the Fed will end up owning the whole market. It gets to invest with unlimited money in the most depressed assets every time there’s a downturn, and as an institution it’s horizon is forever. It seems like this ought to be a bizarre funding mechanism for the treasury. Perhaps the federal government should sell downturn insurance on assets. After all, it’s basically like the Fed is pretending it sold puts on much of the market when it in fact did not. Maybe the Fed should actually sell puts?