In short, we now have a Federal Reserve that is an ongoing, active, aggressive, and very influential participant in our economic system.
While some of the lessons from the Meltdown remain unlearned, ONE thing we clearly DID learn was that the Fed can step in, purchase an ENORMOUS amount of assets to bail us out temporarily, and then unwind their balance sheet by selling those assets back off.
But now, with it coming in to buy huge swaths of specific ETFs, we're in all new territory. We now have a MASSIVE, all-new, and incredibly powerful tactic for buoying the economy. The variable regarding its effectiveness of this approach will be whether it has enough time to unwind its assets before it goes back in to save us by buying NEW assets.
I'll let the wingers from each end play their winger games with this, but this fundamental change in capitalism is going to cut across all party lines, so blaming the other guy is bullshit.
The Fed is going to buy ETFs. What does it mean?
The central bank will use some new tools to help stabilize markets.
www.marketwatch.com
While some of the lessons from the Meltdown remain unlearned, ONE thing we clearly DID learn was that the Fed can step in, purchase an ENORMOUS amount of assets to bail us out temporarily, and then unwind their balance sheet by selling those assets back off.
But now, with it coming in to buy huge swaths of specific ETFs, we're in all new territory. We now have a MASSIVE, all-new, and incredibly powerful tactic for buoying the economy. The variable regarding its effectiveness of this approach will be whether it has enough time to unwind its assets before it goes back in to save us by buying NEW assets.
I'll let the wingers from each end play their winger games with this, but this fundamental change in capitalism is going to cut across all party lines, so blaming the other guy is bullshit.