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FED buys MBSes and bonds. FED does not buy neither lettuce nor stocks.
by SonOfThePlower 6y ago
FED buys MBSes and bonds. FED does not buy neither lettuce nor stocks.
- claudeganon 6y agoThe Fed has already been buying ETFs, which is about a hair’s breadth away from buying stocks. I don’t doubt that they’ll buy stocks to prop up investors if the current stimulus proves ineffective.
- nkurz 6y agoConfirming story: https://www.marketwatch.com/story/the-fed-has-been-buying-etfs-what-does-it-mean-11600704182 https://www.marketwatch.com/story/the-fed-has-been-buying-et... The possibly essential caveat being that the ETF's being purchased are (as far as publicly known) all bond ETF's.
- mrep 6y agoBarely. They are only buying corporate bonds and the sum total of "Includes non-marketable U.S. Treasury securities, supranationals, corporate bonds, asset-backed securities, and commercial paper at face value" is 85.274 billion or a max of 1.2% of their asset sheet [0]. [0]: https://www.federalreserve.gov/releases/h41/current/h41.htm https://www.federalreserve.gov/releases/h41/current/h41.htm
- neffy 6y agoI'm sure their canteen buys lettuce, and as it happens they've been getting quite adventurous with what else they're prepared to buy recently.
- SonOfThePlower 6y agoWell, lettuce has not been inflated by FED (yet), why would stocks have been?
- dogman144 6y agoThere are some rumors this happened at the bottom of the '07/'08 crashes. A few traders swear something held the bottom.