Fed to unwind $300 billion in QE over the next year

rin4et · Sep 20, 2017

https://wolfstreet.com/2017/09/20/this-fed-is-on-a-mission/

No more asset price inflation :-)

Wonder what the effects will be on the stock market and real estate.

Visaria · Sep 21, 2017

Well...if QE made things go up....perhaps taking it away will make things go down?

zdreg · Sep 21, 2017

unless you believe it will be a black swan event, it won't happen.

cdcaveman · Sep 21, 2017

Maybe they just cross the holdings off and they don't sell them.. kind of like how they just create money out of thin air. AUDIT THE FED!!!

vanzandt · Sep 21, 2017

Visaria said:
Well...if QE made things go up....perhaps taking it away will make things go down?

I'm pretty much convinced a fucking meteor the size of the moon hurling through space on a direct line to NYC wouldn't make this market go down.

zdreg · Sep 21, 2017

vanzandt said:
I'm pretty much convinced a fucking meteor the size of the moon hurling through space on a direct line to NYC wouldn't make this market go down.

adjusted for inflation?

Eurokopek · Sep 21, 2017

cdcaveman said:
Maybe they just cross the holdings off and they don't sell them.. kind of like how they just create money out of thin air. AUDIT THE FED!!!

The Fed is actually audited to prevent fraud like you just described. Audit the fed has entirely different meaning.

zdreg · Sep 21, 2017

Eurokopek said:
Audit the fed has entirely different meaning

audit fort knox. than imagine a black hole.

Overnight · Sep 21, 2017

vanzandt said:
I'm pretty much convinced a fucking meteor the size of the moon hurling through space on a direct line to NYC wouldn't make this market go down.

I just want to mention here that if it was a meteor the size of a moon hurtling toward us, it wouldn't be a meteor. It would be a moon. And it would be no moon, it would be a space station. There is a Borg cube involved in this somewhere.

All-in-all it is cool. I'd not have to replace my car's wipers when NYC gets destroyed by a Borg meteor.

Visaria · Sep 22, 2017

Looking more into the 'unwinding', it would appear that the effect on liquidity would be very small at first and only have an impact some point next year. With the other central banks still adding liquidity (especially the Chinese)...I can't see any sustained sell offs until maybe next year.

Would advise continuing a btfd strategy for the time being.