Recent comments in /f/wallstreetbets

TSLA240c t1_jdl73z2 wrote

Reply to comment by nyse125 in Fed Balance Sheet by Mega-Lithium

It is QE, just go and Google QE so we can put this to bed.

Stocks have been relatively green over the past week. Given how much catastrophically terrible news we’ve received it shows something ain’t kosher in the system.

Yes these aren’t supposed to roll over but we see time and time again the second the Fed goes to unwind it’s balance sheet something in the economy breaks and they reverse course, exactly like what we’re seeing once again with BTFP.

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Responsible-Rip4366 t1_jdl27z8 wrote

Reply to Volatility in mortgage rates will lead to further deterioration of the U.S. real estate sector in 2023 by exemplaryprophecy1

Bro, 10 year has taken a nose dive. Mortgage rates are moving down into peak Spring selling season. Also, the vast majority of current homeowners have a 30 year mortgage (with tax deductible interest) that is below 4%. You can buy a T Bill today that pays more than that! Inventory of homes for sale will be paltry, as years and years of Gen Z and Millenials emerge from their parents basements looking to buy their first house.

Conclusion, home prices are at no risk of significant downside.

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nyse125 t1_jdkziwq wrote

Reply to comment by TSLA240c in Fed Balance Sheet by Mega-Lithium

Clearly you still haven't grasped BTFP if you still beleive it's QE. Then how come stocks arent greeen 24/7? Also they dont roll over the debt forever with this, we dont know what they'll do a year from now.

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TSLA240c t1_jdkxos3 wrote

Reply to comment by nyse125 in Fed Balance Sheet by Mega-Lithium

What’s not clicking for you? You can’t just say it’s not then contradict yourself.

QE is an asset swap. It’s a swap of cash (asset) for government/corporate bonds (asset).

There is an argument that it’s not “money printing” since it has to be “repaid” but since the Fed just rolls over the debt forever it’s essentially as if the money were printed and injected into the economy.

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