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QE doesn't need to be unwound; bonds can roll off into cash.
by hnnewguy 12y ago
QE doesn't need to be unwound; bonds can roll off into cash.
- walshemj 12y agoyou do know that bond prices and the bank rate are linked bank rate goes up bond prices go down - sucks if you lose 20% of your capital that way and that has happened recently
- hnnewguy 12y ago>you do know that bond prices and the bank rate are linked bank rate goes up bond prices go down Yes, that is true. But how is the bond price relevant, from the Fed's perspective, if they aren't selling the bonds?
- walshemj 12y agowell I think the down side is for the holders ie you and me and our pension funds :-(