3 ms·
I mean, yeah, as you point out with TINA, can you really blame them? When the Federal Reserve essentially states that it will engage in any amount of QE to keep
by deleuze 6y ago
I mean, yeah, as you point out with TINA, can you really blame them? When the Federal Reserve essentially states that it will engage in any amount of QE to keep equities afloat, how is that not a pyramid scheme?
- mrep 6y agoHow do you get that? The FED is mostly just buying our own governments debt through treasury securities and citizens home debt through mortgage back securities [0]. They haven't touched equities and have barely purchased any corporate bonds. [0]: https://www.federalreserve.gov/releases/h41/current/h41.htm https://www.federalreserve.gov/releases/h41/current/h41.htm
- deleuze 6y agoI never said they were buying equities. Buying bonds and pushing rates to 0 still has an impact on the TINA attitude. of the market. And, in more direct ways, if you buy junk bonds from me, then I go turn around and buy equities, it's just the Fed buying equities with a few more steps in the middle.
- mrep 6y agoOr they could sit on the cash which many people do in a recession. And again, they've barely touched junk bonds. They are mostly just buying our own governments debt through US treasury securities, the same kind that the US government has created and sold 3 trillion dollars worth this year [0], mainly to fund the CARES act. [0]: https://www.treasurydirect.gov/govt/reports/pd/pd_debttothepenny.htm https://www.treasurydirect.gov/govt/reports/pd/pd_debttothep...