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Fed is buying treasuries
- Thread starter RiceRocket
- Start date
Random. What is your solution to this mess? I'm interested in what you have to say.
I think it also has to do with the weak TIC data recently. There simply wasn't enough foreign demand for longer term paper to soak up the massive amount of new borrowing in the pipeline, at least without weakness/higher rates. This idea of marketing it under improving liquidity and lowering the yield curve could just be a cover for "we don't have enough foreign buyers at these levels, so we have no other choice than to self-fund/print to maintain current rates."
Mortgage rates are down BECAUSE the Fed has been buying treasuries. They have been buying them for quite a while now. The other programs working??? Are you kidding?
Had they let the big, crappy, criminal banks (fraud used to be illegal) go bankrupt we would be out of this whole mess already. The only solution is to Nationalize them or let them go under. I'm not sure which of these would be worse. But what they have done so far is the worst possible action they could have taken.
Had they let the big, crappy, criminal banks (fraud used to be illegal) go bankrupt we would be out of this whole mess already. The only solution is to Nationalize them or let them go under. I'm not sure which of these would be worse. But what they have done so far is the worst possible action they could have taken.
TALF hasn't actually started yet, so it can't be working yet. Looks like it's gonna be a bit more difficult than it seemed also.Quote from RiceRocket:
Asset backed lending facility, Mortgage backed securities purchases. The commercial paper market was successfully backstoped. Mortgage rates have come down substantially since November.
Sounding as a good solution. The third world war won't be using destructive weapon but rather using financial weapon as arm forces.
Quote from Pa(b)st Prime:
Weakening the dollar and making American manufacturing competitive IS a viable solution. EVERYONE is trying to drive down their exchange rate. Stocks will dig a little dollar weakness....
Quote from Pilotboy:
Mortgage rates are down BECAUSE the Fed has been buying treasuries. They have been buying them for quite a while now.
where do you see that fed was buying treasuries? last time i checked (1 month ago) they were buying exactly "nada".
do you even know where to look it up?
so what to do? buy CHF/USD?
I feel like the fed & treaury are purposefully screwing my savings account.
Seriously, what do you do with your savings???
I feel like the fed & treaury are purposefully screwing my savings account.
Seriously, what do you do with your savings???
Quote from Trader KGB:
I think it also has to do with the weak TIC data recently. There simply wasn't enough foreign demand for longer term paper to soak up the massive amount of new borrowing in the pipeline, at least without weakness/higher rates. This idea of marketing it under improving liquidity and lowering the yield curve could just be a cover for "we don't have enough foreign buyers at these levels, so we have no other choice than to self-fund/print to maintain current rates."
The Cayman Islands is a huge buyer of these. crikey...
http://www.ustreas.gov/tic/snetus.txt