by confoundedinterest17 Now that the midterm elections are over (except for counting of million of mail-in ballots, a massive moral hazard risk), President Biden has proclaimed that he isn’t changing any of his horrid policies. And apparently, neither is The Federal …
Guest Post by Alasdair MacLeod from his blog on Goldmoney.com: There is a growing feeling in markets that a financial crisis of some sort is now on the cards. Credit Suisse’s very public struggles to refinance itself is proving to …
If you took out a mortgage over the last couple of years, there’s a good chance the holder of that loan is America’s central bank — a consequence of its monetary stimulus efforts throughout the pandemic. Why it matters: The Fed …
*Commodities beginning to unwind as growth erodes IMO this is why I’ve been short commodities – w/o China’s credit-driven property development sector, global growth + demand will fade Not to mention global liquidity’s plunged YTD But still – supply issues …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Then there’s the sinkhole of $1.5 trillion in MBS and $617 billion in Treasuries that mature in over 10 years. In March, the Fed shed $34 billion in assets, according to the Fed’s balance sheet for …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter A plan is forming with a slow-motion component, and everyone wants to get rid of MBS In the minutes of the January 29-30 FOMC meeting, published yesterday, the Fed added some tidbits about how it wants to deal …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Getting rid of MBS faster and shifting to short-term Treasury bills will be on the list. The Fed shed $32 billion in assets in January, according to the Fed’s balance sheet for the week ended February …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter For the past two months, the sound of wailing and gnashing of teeth about the Fed’s QE unwind has been deafening. The Fed started the QE unwind in October 2017. As I covered it on a monthly …
via businessinsider: In the life of a decade-long credit cycle, the global economy’s current condition shows it’s firmly heading toward a downturn, according to a new analysis from Nomura. A single cycle is historically a decade long. The beginning is marked …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The Federal Reserve shed $54 billion in assets over the five weekly balance sheet periods that encompass the calendar month of November. This reduced the assets on its balance sheet to $4,086 billion, the lowest since …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Their “Everything Bubble” is being pricked “gradually,” and they don’t like it. Wall Street has been moaning, groaning, and crying out loud about the Fed’s current monetary policies – raising rates and unwinding QE. They fear …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The “up to” exacts its pound of flesh. Over the four-week period from October 3 through October 31, the Federal Reserve shed $35 billion in assets, according to the Fed’s weekly balance sheet released Thursday afternoon. This brought …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The “up to” begins to matter for the first time. The Fed released its weekly balance sheet Thursday afternoon. Over the four-week period from September 6 through October 3, total assets on the Fed’s balance sheet dropped by …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Here’s my math when this “balance sheet normalization” will end. In August, the Federal Reserve was supposed to shed up to $24 billion in Treasury securities and up to $16 billion in Mortgage Backed Securities (MBS), …
From Birch Gold Group The only other time the Fed did an “unwind” of quantitative easing similar to today’s market conditions was back in 1937. And that didn’t work out so well. The credit markets froze, and the market would not …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The Fed’s QE Unwind – “balance sheet normalization,” as it calls this – is accelerating toward cruising speed. The first 12 months of the QE unwind, which started in October 2017, are the ramp-up period – …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter With QE, the Fed created money to buy securities and pump up asset prices; now it sheds securities to destroy this money. Here’s what the Fed’s QE unwind – or the balance sheet normalization, as it …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The end of an era spreads. Markets were surprised today when the Bank of England took a “hawkish” turn and announced that three out of nine members of its Monetary Policy Committee – including influential Chief …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Just as the Fed created money to buy Treasuries and MBS during QE, it now destroys money as these securities “roll off” the balance sheet. It took the Fed five-and-a-half years to amass $3.4 trillion in …
EXPLAIN MONETARY POLICY TO A CHILD https://twitter.com/OccupyWisdom/status/993609657024475136 Fed balance sheet pic.twitter.com/lJopxYhyny — zerohedge (@zerohedge) May 7, 2018 International High Yield sounds warning… pic.twitter.com/WhujksVRpA — Alastair (@StockBoardAsset) May 6, 2018 pic.twitter.com/x2mTLIazwa — Alastair (@StockBoardAsset) May 7, 2018 https://twitter.com/OccupyWisdom/status/993592674199490562 https://twitter.com/GregMannarino/status/993523547313094656 https://twitter.com/GregMannarino/status/993523547313094656 Fed’s …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter These are getting to be serious amounts. The QE Unwind is ramping up toward cruising speed. The Fed’s balance sheetfor the week ending May 2, released this afternoon, shows a total drop of $104 billion since the beginning …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter That would be a first, but it might be happening. Everything in slow motion, even market declines? There is nothing like a good shot of leverage to fire up the stock market. How much leverage …
via Wolf Richter The sixth month of the QE-Unwind ended on March 31, which is reflected in the Fed’s balance sheet, released this afternoon, for the week ending April 4. The QE-Unwind appears to be on automatic pilot, clicking along at the pace …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter “The very slow pace may still be contributing to a buildup of various financial imbalances.” So we have the first Fed Governor and member of the policy-setting FOMC who came out and said that the QE …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter During the sell-off, it ignored the whiners on Wall Street. The fifth month of the QE-Unwind came to a completion with the release this afternoon of the Fed’s balance sheet for the week ending February 28. The QE-Unwind …
by David Haggith The Federal Reserve is now hacking its own zombie recovery to death and eating it by reversing the actions it employed to create this artificially supported recovery. Each time the Fed unwinds its balance sheet, 10-year bond rates …
WTF is happening to US Real Estate?? pic.twitter.com/d4rukOjbK1 — Alastair (@StockBoardAsset) February 9, 2018 Higher interest rates are not good for financials. Higher interest rates mean more loans go into default, and lower prices for the assets collateralizing the …
by David Haggith Is the Federal Reserve’s Great Unwind already coming unwound? I thought it would be good to check up on Federal Reserve balance sheet reduction since the Fed is supposed to be up and running on the move out …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The two-day meeting of the FOMC ended on Wednesday with a momentous announcement that has been telegraphed for months: the QE unwind begins October 1. It marks the end of an era. The unwind will proceed at the …