QE4Ever!

g5000

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The New York Fed has been pumping Tens of Billions of dollars into the banking system for several weeks now. And they are re-expanding their balance sheet.

All part of the fallout from trillion dollar deficits. Not enough liquidity in the system.

I hope Deficit Donald has the courage to at least tweet a thank you to the Fed!

New York Fed Injects $104.15 Billion in Short-Term Liquidity

The Federal Reserve Bank of New York injected $104.15 billion in temporary liquidity into financial markets Thursday.

The intervention came in two parts. One was via a term-repurchase-agreement operation that will last for 15 days that added $30.65 billion. The other was via a one-day repo operation that totaled $73.5 billion.

Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a loan of central bank cash, collateralized by dealer-owned bonds. Last month, the Fed ramped up its repo operations for the first time in over a decade to help tame spiking short-term borrowing costs.

<snip>

On Wednesday, the Fed also began buying large amounts of Treasury bills to help expand the size of its balance sheet as part of a longer-term solution for money-market volatility.
 

andaronjim

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The New York Fed has been pumping Tens of Billions of dollars into the banking system for several weeks now. And they are re-expanding their balance sheet.

All part of the fallout from trillion dollar deficits. Not enough liquidity in the system.

I hope Deficit Donald has the courage to at least tweet a thank you to the Fed!

New York Fed Injects $104.15 Billion in Short-Term Liquidity

The Federal Reserve Bank of New York injected $104.15 billion in temporary liquidity into financial markets Thursday.

The intervention came in two parts. One was via a term-repurchase-agreement operation that will last for 15 days that added $30.65 billion. The other was via a one-day repo operation that totaled $73.5 billion.

Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a loan of central bank cash, collateralized by dealer-owned bonds. Last month, the Fed ramped up its repo operations for the first time in over a decade to help tame spiking short-term borrowing costs.

<snip>

On Wednesday, the Fed also began buying large amounts of Treasury bills to help expand the size of its balance sheet as part of a longer-term solution for money-market volatility.
And how much was printed in the last admin? 4.5 trillion? yeah, Trump's is chump change to all that cash that depreciated the dollar.
 
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g5000

g5000

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QE1, 2, and 3 added $2 trillion to the money supply.

As for depreciation of the dollar, nope. In fact, Trump was recently whining about how strong the dollar is and was tantrum demanding the Fed weaken it.

So...he should be tweeting a thank you to the Fed right about now...
 
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g5000

g5000

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Trump rips strong dollar

“As your President, one would think that I would be thrilled with our very strong dollar. I am not!” he tweets.


Now watch the pseudocons do a full Orwell and say a weak dollar is good.
 

Rambunctious

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Federal reserve kept the Kenyan's economy afloat.....they are trying to hinder Trump's but they can't...its too strong...and robust....
 
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g5000

g5000

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Trump's trillion dollar deficits are soaking up so much liquidity, there isn't anything left for the repo market. Even though Trump insults them at every turn, the Fed still stepped in to save his ass.

What? No thank you, Donald??
 

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Yeah that is why the feds and Trump want a hundred year T-bill..
 
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g5000

g5000

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Eventually, all those trillions of dollars the Fed has pumped into the system will start to move around, pick up velocity.

THEN we will see inflation.

I explained it all in my Federal Reserve Bond Bubble Doomsday Machine topic.
 

Moonglow

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Eventually, all those trillions of dollars the Fed has pumped into the system will start to move around, pick up velocity.

THEN we will see inflation.

I explained it all in my Federal Reserve Bond Bubble Doomsday Machine topic.
How else do you get an innocent price and tax increase?
 

pknopp

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We most certainly love our economic socialism.
 
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g5000

g5000

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Eventually, all those trillions of dollars the Fed has pumped into the system will start to move around, pick up velocity.

THEN we will see inflation.

I explained it all in my Federal Reserve Bond Bubble Doomsday Machine topic.
How else do you get an innocent price and tax increase?
Trillion dollar deficits are easier to pay off with a weak dollar.

Here's the brilliant plan our 'stable genius' came up with: Donald Trump: U.S. will never default 'because you print the money'
 

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Here goes pump and dump 2. Maybe this time some heads will roll. Literally.
 

Thunk

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The reason this is happening is banks have stopped giving each other short term "overnight" loans.

The questions is WHY?

The most likely scenario is...there is a BIG bank that's about to fail & anybody with exposure to that bank is going to be harmed (they might fail as well).

Nobody knows who that banks is...so nobody want to increase their exposure to any bank by giving them a loan.

This is a VERY serious situation!
 

Moonglow

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The reason this is happening is banks have stopped giving each other short term "overnight" loans.

The questions is WHY?

The most likely scenario is...there is a BIG bank that's about to fail & anybody with exposure to that bank is going to be harmed (they might fail as well).

Nobody knows who that banks is...so nobody want to increase their exposure to any bank by giving them a loan.

This is a VERY serious situation!
They shouldn't worry the US has their back...
 

pknopp

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The reason this is happening is banks have stopped giving each other short term "overnight" loans.

The questions is WHY?

The most likely scenario is...there is a BIG bank that's about to fail & anybody with exposure to that bank is going to be harmed (they might fail as well).

Nobody knows who that banks is...so nobody want to increase their exposure to any bank by giving them a loan.

This is a VERY serious situation!
No, they didn't loan to get the Fed to pump more dollars into their coffers. Economic socialism.
 

jasonnfree

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I'd say time for trump to swallow his pride and ask Obama for some president lessons on not how to screw things up, but then trump has no pride
 
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g5000

g5000

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The reason this is happening is banks have stopped giving each other short term "overnight" loans.

The questions is WHY?

The most likely scenario is...there is a BIG bank that's about to fail & anybody with exposure to that bank is going to be harmed (they might fail as well).

Nobody knows who that banks is...so nobody want to increase their exposure to any bank by giving them a loan.

This is a VERY serious situation!
This has nothing to do with a crisis of confidence in a bank.

It has to do with a lack of liquidity. There literally is not enough money available to loan out in the repo market.

No one is holding back money. They simply don't have it to loan out because they spent all their cash buying a trillion dollars of US debt.
 
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g5000

g5000

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The Fed started reducing their balance sheet, unwinding QE1, 2, and 3. They sold some of their assets, and burned the cash. So that took some liquidity out of the system.

Second, as a result of the last big economic crash, banks are now required to hold larger chunks of Tier 1 capital. So that took some liquidity out of the system.

Then Deficit Donald took office and started doubling the deficit to a trillion dollars. When the banks bought all that debt, that took a shit ton more of liquidity out of the system.

So now the Fed is reversing course and enacting QE4.

And Deficit Donald doesn't have the decency to even tweet a thank you. It would take, what...ten seconds?
 

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