reduction conundrum
I lurked this from the net. Fed balance sheet unwinding of + 4 trillion ! Any ideas on what this will do to the metals???? I understand that a big chunk of it is the mortgages that they bought back in 2008 to save the banks. Now that home prices are up they have picked a superb time to unload a mountain high # of homes to sell into the market. Flood the market with more homes for sale = real estate drop perhaps? As for the rest of the cashola, I dunno,but is it not like money laundering and now all these trillions of printed dollars are finding their way into the general public now. Gold up? gold down? Will it even matter as the stock market party continues and therefore a good time for reduction also, was a big event before to print so should be a big event in the other direction.