ES Journal - 2014

TskTsk said:
MBS is still being swapped for reserves that never find their way into the real economy, so no effect on M2. There's what, $1.5-2tn locked up in the banks? Not sure what eventual losses on MBS will be, I've yet to see any charts of MBS mkt value before and after the fed entered the market. Nontheless, there will be losses I am sure, sponsored by the american taxpayer.
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http://www.bloomberg.com/news/2013-...edented-losses-by-holding-mortgage-bonds.html

according to the paper cited in the article looks to be about 400 billion, that is probably similar to the final cost of tarp. Privatized gains, socialized losses; in other words business as usual...:)
 
TskTsk said:
MBS is still being swapped for reserves that never find their way into the real economy, so no effect on M2. There's what, $1.5-2tn locked up in the banks? Not sure what eventual losses on MBS will be, I've yet to see any charts of MBS mkt value before and after the fed entered the market. Nontheless, there will be losses I am sure, sponsored by the american taxpayer.
More...


Yeah, on the balance sheet of the banks. And you know how much into the economy? And you know the price above mark that the Fed is paying? I think you mean well but you don't know what you're talking about. Ask Obama how much money was made on GM. Regardless, this is a discussion for another thread.
 
just a guess and this type of trade is pissing upstream. not saying it will happen tomorrow but maybe next week if you believe last few days showed distribution.
 

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