Loading ...Fed reducing balance sheet
I think everyone should watch the video on the main page with Tom M. being interviewed on Market Watch
Here is the article explaining why the liquidity was sucked out of the market in the last week of January… that kicked off the big bond capitulation and invited VIX to break out of a 2 year wedge:
https://www.mcoscillator.com/learning_center/weekly_chart/big_change_in_bull-bear_spread/
Here is the securities balance (in millions of $), you may want to zoom in using the “1Y” tab:
https://fred.stlouisfed.org/series/TREAST
That bond dump had ripples through the market. Fed pigeonholed? I’m thinking yes. If they cannot dump 20 Billion on the market and expect to get to 50 Billion by next year… they have a major problem if that action drops the stock market by 13%.
Who says the FED was only selling bonds? At least a casino gambler knows the house rules.
How does the FED sell bonds when the SM was showing positive gains? Maybe the SEC can investigate the FED lol.
some of the unloading is the subprime mortgages that they bought and grabbed on the cheap after the crash. Now they are trying to make a profit at the top of housing market before rates rise too fast. TWAS a huge amount of cash that bought homes up back then. Who knows what else is on their list, bank shares???? could be lotsa stuff in the bag ‘o tricks.