Fed buying treasuries.... question

Tru dat.

This is the Fed's LAST BULLET. By this action hey are admitting they have nothing else left.

After 25 years of Fed/Greenspan created debt leveraged bubbles they are creating the last possible bubble they can to get out of a Depression.

They are creating the Fed Balance Sheet Bubble. Does the Fed really have an infinite balance sheet? We're going to find out.

Weimar Republic style.






Quote from Bigpipn:

This is a sign of capitulation by the Fed. Truly, this is the Fed's last bullet .

They are buying illiquid assets and driving down long term rates to try to put a bid under the housing market. It won't work, it can't work. The valuations were bid up on absurd lending standards. Easy credit creates an artificial demand, that demand may not be seen again for another decade.

This is going to ROYALLY piss off China.
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Quote from Banjo:

http://market-ticker.org/

Be warned Ben....

The BOE executed their first "QE" operation today.

The "bid to cover" was an astonishing 7.35.

This means that for every bond purchased 7.35 were tendered, or made available by willing sellers.
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The BOE started gilt purchases as part of the APF LAST WEEK.

Today was NOT the first time they have done it. Please do not post things that are plain WRONG.

Moreover, the bid/cover is not very informative due to the mechanics of the auction process. People put in silly offers in hopes of getting lifted by the BoE. The actual auction cleared pretty much where at market, so the 7.35 number is meaningless.
 
As Bernanke does more and more of this aggressive 'balance sheet expansion' (i.e. printing money and putting U.S. taxpayers further in debt by purchasing more and even worse quality toxic assets), he really is communicating a sense of desperation to all who are paying attention.

p.s. - FedEx has shitty numbers, and is laying people off. Not good, as FedEx is a true barometer of economic activity.
 
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