About QT, Fed didn’t sell anything, they just let bonds expired by keeping to maturity date.

Uh the Tea Party republicans were the ones that were pissed off about the bankers

Good point. That means the scale of what was to come was likely very similar to 2008. I hope the wind don't blow too hard

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https://fred.stlouisfed.org/series/RRPONTSYAWARD

Don’t fear the Repo

400b so far, and I see there is a support level on 8339, and it looks like Fed's ass is going back above to 9000

Someone needs to tell them this isnt how you do QT

Anyone have the link to the clip itself?

Powell : "it's not the same as QE because QE has a downward effect on long term interest rate while this only serves to improve liquidity"

10 year interest rate in the last 20 days : down 0.7% from 4.1% to 3.4%.

On the other hand, the amount of increase on the Fed balance sheet just proves how many small/mid size regional banks are in deep shit.

The economy has never been "wrecked" in the US since the late 1930s.

All of those things are generally true simultaneously.

Aaaand smoking the reefer?

Oh, damn, thanks for the correction.

Sometimes is better for the economy to let failed companies to die off and let newer and smarter ones to take its place.

Kind of depends, some banks need the liquidity to satisfy withdrawals or anticipated withdrawals. Many that are withdrawing are buying short term treasuries or putting it in money markets and that does have an effect on shorter duration bonds. As you move out the yield curve, look at the unprecedented whipsawing of the 2-year treasuries, the 10 year hasn't been as violent. The 10 year is what impacts the mortgage rates. Business loans are in the middle and that's where the fed wants to extinguish demand to reduce the money supply and quell inflation. It isn't an exact science and throw in the lag effect and you can see how mistakes can be made on the upside and the downside.

It's a cash reserve for bank to survive, and BTFP rate is overnight rate + 10bps, don't make sense using expensive money to buy bonds yield lower cash than that

You can be against regulations and bailouts.

Orginal TARP was 750B and took lots of discussion and a congressional vote. Now they spend 400B on a Sunday and it isn’t even discussed on Monday

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This looks similar to my weight loss journey. One more pizza wouldn't hurt would it.....

This is a pretty good description: What’s wrong with the banks https://www.economist.com/leaders/2023/03/16/whats-wrong-with-the-banks

We will just print forever. Inflation will stay forever. AI will pump the 7 main stocks and indices will be saved.

Tea Party Republicans were the opposite of what you said, they didn’t want the fed to be bailing out banks… unlike the moderate republicans and democrats who have no spines

You haven’t seen anything yet