...The Fed will now taper the liquidation of its Treasury holdings in May and stop in September. More important, they will also let their mortgage securities portfolio mature and use the proceeds to buy more Treasury securities. That means purchasing a minimum of $300 billion in predominately shorter-term U.S. Treasuries in 2020. Concluding, basically, QE-lite is coming.
... with the aging demographic, is a very, very, very, very low neutral interest rate.
"That's why Japan's at zero, Sweden's negative, the euro zone is at zero, Australia, New Zealand are at 1–2% with their high population rate and all these countries are decelerating [in growth]. There's a massive amount of debt and that may be contributing to an incredibly low neutral level of interest rates."
....We know exactly what they (Fed) will do… seen movie before. 2007, Bank of Japan (“BOJ”) was at 26% of GDP on their balance sheet and said no more QQE, markets fell, QQE resumed and now BOJ has 100% GDP on its balance sheet and they own 46% of Japanese Government Bonds and 75% of ETFs… The ECB and the Fed are just BOJ with 9 to 11-year lag.”
... I’m more in the “OMG, what must be happening that we are not yet seeing” camp. Is a major systemic player in crisis? My father used to say, “Watch what they are doing not what they are saying.” I see doing!
https://www.youtube.com/watch?v=5oTLk8t0nwk&feature=youtu.be
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