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Quantitative easing swaps bank reserves for high grade bonds. How is that remotely equivalent to the forced liquidation and distribution of equity?
by carnitine 5y ago
Quantitative easing swaps bank reserves for high grade bonds. How is that remotely equivalent to the forced liquidation and distribution of equity?
- csomar 5y agoI'm talking about the hypothetical scenario where swapping $200bn worth of equity will generate $200bn worth of cash without disturbance to the market. Obviously, this couldn't be less true and the market will collapse even before the selling starts.
- carnitine 5y agoHow is that analogous to 200bn of bonds for 200bn of bank reserves?