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Re: QE3 ... game on. eom

By: DigSpace in ALEA | Recommend this post (0)
Thu, 13 Sep 12 9:38 PM | 104 view(s)
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Msg. 10026 of 54959
(This msg. is a reply to 10025 by Cactus Flower)

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Were real demand to actually occur (real growth and inflation), the Fed would be in a real pinch to unwind, at least it seems that way to me.

3.5t is quite a balance sheet. Inflation kicks in, the fed moves to dampen the money supply (trading its balance sheet for cash) and given the size, gets a pretty awful return.

Can the Fed get wiped out? I don't know much about how these things work.


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The above is a reply to the following message:
Re: QE3 ... game on. eom
By: Cactus Flower
in ALEA
Thu, 13 Sep 12 9:31 PM
Msg. 10025 of 54959

Buying mortgages. Makes sense. Ease the burden on actual people rather than waiting for the damn banks to start lending. Reduced debt burdens on home owners should lead to higher house prices and greater equity should result in more consumption.

http://www.cnbc.com/id/49018964


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