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A comment on What Happens to Stocks and Cryptocurrencies When the Fed Stops Raining Money?. Parent comment

Re:What Happens to Stocks and Cryptocurrencies When the Fed ... by CyberRabbi on Sunday May 09, 2021 @03:31AM (#27094006)
To take back the money they would need to sell the assets they bought to inject money into the economy in the first place, then they would need to pretend the money gained in that sale never existed. Usually those assets are bonds so it’s unlikely they can call in those bonds before they are due and hopefully when they are due the bond debtors are able to pay.
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Re:What Happens to Stocks and Cryptocurrencies When the Fed ... by ArtTimeInvestor on Sunday May 09, 2021 @03:34AM (#27094016)
The debtor is the government, right? So unless the government collects more taxes, it is probably not able to pay.
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Re:What Happens to Stocks and Cryptocurrencies When the Fed ... by CyberRabbi on Sunday May 09, 2021 @03:34AM (#27094020)
The debtor is not always the government. The fed buys bonds in smaller banks, among other assets.
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Re:What Happens to Stocks and Cryptocurrencies When the Fed ... by ArtTimeInvestor on Sunday May 09, 2021 @03:41AM (#27094050)
I thought banks don't want anymore money and even charge negative interest when you give them some against their will.

Why would a bank take FED money in?

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Re:What Happens to Stocks and Cryptocurrencies When the Fed ... by CyberRabbi on Sunday May 09, 2021 @12:37PM (#27097366)
The same reason any business takes on investment/debt.
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Re:What Happens to Stocks and Cryptocurrencies When the Fed ... by QuesnayJr on Sunday May 09, 2021 @04:17AM (#27094233)
They don't call in the bonds. They either hold them to maturity, or sell them in the open market.
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