Re:Why I'm Worried About the Repo Market
by princeb on Wednesday September 25, 2019 @09:51PM
(#21077429)
"When Fed Fixes Repo Markets, Don’t Call It QE: Brian Chappatta" https://www.bloomberg.com/opinion/articles/2019-09-23/when-t...
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Re:Why I'm Worried About the Repo Market
by freejulian85 on Wednesday September 25, 2019 @10:17PM
(#21077550)
I'm sure the Fed asked this article be written. They're buying assets from banks and giving them money. What is your definition of QE?
Re:Why I'm Worried About the Repo Market
by elSidCampeador on Wednesday September 25, 2019 @10:44PM
(#21077675)
Did you read the article? They specify the definition of QE (indirectly) there.
Re:Why I'm Worried About the Repo Market
by freejulian85 on Thursday September 26, 2019 @12:14AM
(#21078085)
Per wikipedia (https://en.wikipedia.org/wiki/Quantitative_easing):
Quantitative easing (QE), also known as large-scale asset purchases, is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.
The fed is buying treasuries and MBS's on a nightly and ongoing basis from the banks to the tune of $100B. Is that not large scale? Are those not assets? Is this not injecting liquidity into the economy?
Hell, you can actually see the increasing fed balance sheet from their own data! https://fred.stlouisfed.org/series/WALCL
Re:Why I'm Worried About the Repo Market
by simplecomplex on Thursday September 26, 2019 @12:15AM
(#21078094)
“repo operations”, “quantitative easing”, and “emergency asset relief” are all fancy methods of printing money.
Re:Why I'm Worried About the Repo Market
by coliveira on Thursday September 26, 2019 @01:58AM
(#21078602)
Printing money in itself is not the problem. The problem is where this money goes and what is made of it. Operations such as QE are designed to inject money on the hands on the top of the 1% richest.