As if Tabs needs any backing up

[pwd72s]

Offered for what it's worth...

https://www.zerohedge.com/news/2018-01-05/fed-chair-makes-striking-admission-we-have-short-volatility-position

[tabs]

I recently wrote about the difficulty that the Fed will have with the asorbition in the market of the Treasuries that they are going to unload. Essentially it will be sales of new Treasuries to cover deficits plus the amount the FED will be selling in the secondary markets. That amounts to a glut in the market with an attendant spike in interest rates.

Then there is that mountain of Treasuries that the markets see coming their way and fear sets in...

It would be interesting to re-read what I wrote in that time 9/12 period. Don't forget Mother in Tucson is a friend of one former Fed chairman and acquainted with another. I have had feed back about my missives passed onto me from one.

[KFC911]

Originally Posted by tabs

I recently wrote about the difficulty that the Fed will have with the asorbition in the market of the Treasuries that they are going to unload.....

Tabs I don't really keep up with this stuff, but I thought the Feds strategy was gonna be at 10B each month by not repurchasing what was on their books until they reduce the 4T total to a lesser amount....can't recall the goal. Doesn't that approach mitigate the issue?

[Crowbob]

Asorbition can't happen due to the coarctation of the cruency and the rampant clannigation we saw last melgrate.

[KFC911]

Nevermind Tabby....got it

[DanielDudley]

Don't worry, the war will pay for itself. I advise all patriotic Americans to go shopping.

[fintstone]

Originally Posted by DanielDudley

Don't worry, the war will pay for itself. I advise all patriotic Americans to go shopping.

I am more concerned about the last 8 years where we decided to let ISIS win and still created almost $10T debt than the previous 8 years where we defeated both the Iraqi and Afghan nations/governments with half about half that much debt. Maybe sending so much to Iran and Hamas was the worse problem.

[pwd72s]

Ahhh, What's this Jerome Powell know anyway?

[tabs]

Originally Posted by fintstone

I am more concerned about the last 8 years where we decided to let ISIS win and still created almost $10T debt than the previous 8 years where we defeated both the Iraqi and Afghan nations/governments with half about half that much debt. Maybe sending so much to Iran and Hamas was the worse problem.

The FED holds about 2.5T of that 10T in new debt.

The FED holds about 1T in mortgage backed securities. You know all that bad paper Freddy was sitting on from all those foreclosed homes..many of which STILL SIT VACANT at least in this town anyway. As in OFF THE MARKET...

[tabs]

Originally Posted by KC911

Nevermind Tabby....got it

The best course of action would be for the FED to just let them come to maturity all the while collecting what interest there is. They could then reduce the money supply if and when appropriate with the proceeds. That way the markets wouldn't have to absorb the paper causing an undue burden.

[KFC911]

Originally Posted by tabs

The best course of action would be for the FED to just let them come to maturity all the while collecting what interest there is. They could then reduce the money supply if and when appropriate with the proceeds. That way the markets wouldn't have to absorb the paper causing an undue burden.

It's been months back when I read it, but I thought that's exactly how they were gonna reduce their balance sheet....by not reinvesting a given portion as they matured each month. Am I missing something? Seems reasonble to me...I dunno????

[tabs]

Originally Posted by DanielDudley

Don't worry, the war will pay for itself. I advise all patriotic Americans to go shopping.

If you are limiting your criticism to GW Bush then you are a fking idiot. If you mean every GD President since LBJ then right on, you got it right. So which is it?

I keep feeling the need to repeat this over and over and over again.

Before GW came on TV in 2008 Americans thought everything was swell and life would go on peachy keen like it always had for decades. "After all we are exceptional we are Americans"... GW came on and said, "Folks things ain't swell we is MELTING DOWN." The American people said, "SAY WHAT!!!! You mean things ain't swell and peachy keen?" From that moment on the world changed on a fkin dime, you see GW spooked the herd, he wised up the Chumps and the Chumps ain't bin the same since.

NO MATTER WHAT THEY HAVE FKIN DONE THEY HAVE NOT BEEN ABLE TO PUT THE HUMPTY DUMPTY OF DEMAND BACK TOGETHER AGAIN.

With this Tax Reform Bill..good fkin luck....it is the last roll of the dice they have if it don't work..With corporations sittin on some 4T in cash since 08 WHY HAVEN'T THEY INVESTED THAT MONEY INTO NEW FACTORIES ETC THAT CREATE JOBS SO THAT AMERICANS CAN SPEND SPEND SPEND THE WAY THEY USED TO? The envelope please and the answer is corporations do not believe that they can sell the new stuff that they would be making...The Broad Based American MC is TAPPED OUT. No good paying jobs, no savings no cash and credit to the eyeballs is what they have. The fatted calf consumer of the world has been spooked and is now facing reality.

So given THESE facts what conclusion do you come to about the efficacy of the new Tax Reform Act of 2017 reviving the economy?