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Ehm, you do know that the Fed's balance sheet has not increased for 3-4 months now? Whatever is happening right now - it is not QE.
by H8crilA 6y ago
Ehm, you do know that the Fed's balance sheet has not increased for 3-4 months now? Whatever is happening right now - it is not QE.
- jedberg 6y agoIt's not like the $700B they inject is instantly accounted for. They bought $500B in bonds, which means that bonds have to be sold off again for that money to appear in the economy. They also bought $200B in mortgages, which means those need to be resold and cashed out of before that money shows up in the market. QE basically artificially raises the value of assets, but those assets still need to be sold/traded for it to have an effect on the economy. It's not instant.
- H8crilA 6y agoFYI: you're off by about $2300B https://news.ycombinator.com/threads?id=H8crilA https://news.ycombinator.com/threads?id=H8crilA