Doesn't make a difference, the fed keeps bailing out a broken system....it will only be ignored for so long before the next crisis comes. Just keep propping it up and make pretend everything is fine and dandy
A crack just emerged in the financial markets: The NY Fed spends $53 billion to rescue the overnight
- Thread starter ETJ
- Start date
Doesn't make a difference, the fed keeps bailing out a broken system....it will only be ignored for so long before the next crisis comes. Just keep propping it up and make pretend everything is fine and dandy
The Fed pumps another $75 billion into markets — its 3rd straight daily injection
Gina Heeb
Sep. 19, 2019, 09:12 AM
Reuters / Chris Wattie
https://markets.businessinsider.com...ther-75-billion-into-market-2019-9-1028537926
Gina Heeb
Sep. 19, 2019, 09:12 AM
- The Federal Reserve jumped into financial markets for a third straight day on Thursday in another attempt to keep interest rates from moving higher.
- The central bank has injected a total of $203 billion into markets this week — $75 billion on both Wednesday and Thursday, and $53 billion on Tuesday.
- This week marked the first time the central bank has taken such steps since the global financial crisis 10 years ago.
https://markets.businessinsider.com...ther-75-billion-into-market-2019-9-1028537926
in post #18 above I wrote something that is incorrect when I wrote, "Where is all that excess money going if not into private savings and treasury purchases which again swells reserves that the Fed may have to drain?" When the Fed purchases Treasuries reserve accounts are increased [not decreased] . When the private sector purchases Treasuries, however, it decreases reserves. The latter is a important mechanism by which excess dollars get tied up. These dollars would otherwise circulate in the economy and cause inflation. Currently there is a "tremendous"-- to use a Trump word -- amount of excess dollars being pumped into the economy. If that excess money wasn't side-tracked by, for example, being locked up in treasuries, it would result in serious inflation.
What is your evidence the "system is broken". From my vantage point is seems to be working exceptionally well so far.
E
Eventually, they will thread the needle. Pumping the the economic system as needed will keep the balloon in the air long enough to make it. Back in NY a commercial banker told me it would take 20 years plus to fix the problem back in 2008. Looks like he was correct.
yeah... but ask yourself why the banks no longer want to lend to each other even overnight? could it be Deutsche? could it be something else?
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Should be good for stocks. But sooner or later that full page WSJ ad will prove true; Wage War on Waste, Cut[ gov] 10%. DB maybe part of it, too much gov spending will have to be dealt with. The gov shutdown seemed over all bullish, so that could help also.
[2] Two dollar bills help a little also, but collectors grabbed plenty of those LOL%%
NEVER;
but like the billionaire Ken F noted bonds can be risky. LOL I remember when i was younger; i lost a small % in a bond fund+ that doesnt even count a little inflation+ even more opportunity costs.
, NOW we see ''free'' trading/investing/commissions; that can be an oVertrading trap-but i'm not complaining..........................................................