are we heading for another housing market crash ? how many people that are new home owners will continue to pay for a home that has dropped in value i wonder ?There is not enough buyers to support the FED dumping $100bil in Treasuries and mortgages. China is already QT'ing by dumping $1Trillion in treasuries in the last 4 months. The whole world is trying to dump treasuries since they are massively losing value due to inflation and rising interest rates.
China bought the souls of our political leaders like Biden and his son Hunter and now have American corporations lobbying Congress for China.
I know a doctor that had to back out of a home sale because with interest rates going up his payment expectation went from $8500 per month to $9800....
seekingalpha.com
Bought? I think it is more like our elected "leaders" went running to them offering to sell out the country.
Probably because China now owns much of our media!
The bigger problem is that investment REITs like Innovation Homes buy homes on variable rates expecting to sell them in 3-5 years.
That's right....
The party is over for the corporate fat cats.
The crystal balls are all so clear on the internet.
They're not selling bonds. They're doing the smart and obvious thing, letting bonds mature out without replacing them with new purchases.
Bottom line: No one can tell you with any certainty how this will play out. As always, there are far too many conflicting economic currents.
Where are Treasury yields headed as the Fed embarks on quantitative tightening?
The beginning of so-called quantitative tightening commences on Wednesday as the Fed lets bonds mature off its $9T balance sheet without replacement
Snapshot: Yields should technically move higher in response to QT, while the curve should steepen, due to a tightening of financial conditions and money supply. However, the direction of yields is also highly dependent on other economic factors, like expectations of Fed interest rate hikes, the U.S. economic outlook or greater regulatory constraints. Other feel that any outsized impacts will rather show up in money markets or financial market plumbing, or that effects on liquidity are at least a few quarters away.
"It's going to be very gradual... It's just too soon to know what if anything the impact is going to be from QT," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. "I don’t think we know the impacts of QT just yet, especially since we haven't done this slimming down of the balance sheet much in history," added Dan Eye, chief investment officer at Fort Pitt Capital Group. "But it's a safe bet to say that it pulls liquidity out of the market, and it's reasonable to think that as liquidity is pulled out, it affects multiples in valuations to some degree."
You're so stupid. The FED doesn't have enough bonds maturing to avoid selling.
The crystal balls are all so clear on the internet.
They're not selling bonds. They're doing the smart and obvious thing, letting bonds mature out without replacing them with new purchases.
Bottom line: No one can tell you with any certainty how this will play out. As always, there are far too many conflicting economic currents.
Where are Treasury yields headed as the Fed embarks on quantitative tightening?
The beginning of so-called quantitative tightening commences on Wednesday as the Fed lets bonds mature off its $9T balance sheet without replacement
Snapshot: Yields should technically move higher in response to QT, while the curve should steepen, due to a tightening of financial conditions and money supply. However, the direction of yields is also highly dependent on other economic factors, like expectations of Fed interest rate hikes, the U.S. economic outlook or greater regulatory constraints. Other feel that any outsized impacts will rather show up in money markets or financial market plumbing, or that effects on liquidity are at least a few quarters away.
"It's going to be very gradual... It's just too soon to know what if anything the impact is going to be from QT," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. "I don’t think we know the impacts of QT just yet, especially since we haven't done this slimming down of the balance sheet much in history," added Dan Eye, chief investment officer at Fort Pitt Capital Group. "But it's a safe bet to say that it pulls liquidity out of the market, and it's reasonable to think that as liquidity is pulled out, it affects multiples in valuations to some degree."
Bingo! Our elected so called leaders ran for office to line their own pockets period. Even if that means selling out the American people and industries.
So sell it and then lie to us about the new bargain you didn't get.
How's life in that shelter, Trump asslicker?
I have some used socks. You innerested?
