34 replies to this topic

[humble1]

note that the longer end purchases jumped 40%!:

http://online.wsj.co...511-711985.html

so, that tells us that the FED really means it when it says it will keep longer rates tamped down and it will fire bigger ammo if needed. by the way, the FED has an unlimited supply of ammo. it could buy every single treasury and MBS offered for sale if it wanted to.

comments?


worried about the dollar trading lower in currency pits? we WANT the dollar lower: it lowers the cost of our goods to other countries and improves the trade deficit and what we owe other countries.


questions?

Edited by humble1, 11 May 2009 - 11:10 AM.

[TMN]

i am looking fwd to getting expropriated on my gold mining shares!!

[Russ]

If China started to dump, I doubt the fed would be able to buy it all.

[humble1]

they don't give a rat's butt about you or your goldmining shares, LOL.

[TMN]

as long as they pay top dolla, that's fine! i am only after money, not fame

[humble1]

russ: china has $1 trillion, about. the FED could buy every single bond if it wanted to. all the FED has to do is put in a bid and enter the bonds on their balance sheet and punch a button and pay with dollars. china would have dollars, not making any interest, then what? okay, that would hurt the $$$, right? that would hurt the dollar and raise the price of the yuan, right? that's what we have been trying to do FOR YEARS!!!! you really must take an econ101 course if you want to understand what is happening. talk radio is NOT a good source, LOL.

Edited by humble1, 11 May 2009 - 11:16 AM.

[TMN]

relax, h1. ur gonna get a heart attack. u shud have gone on this holiday, dude!

[jjc]

note that the longer end purchases jumped 40%!:

http://online.wsj.co...511-711985.html

so, that tells us that the FED really means it when it says it will keep longer rates tamped down and it will fire bigger ammo if needed. by the way, the FED has an unlimited supply of ammo. it could buy every single treasury and MBS offered for sale if it wanted to.

comments?


worried about the dollar trading lower in currency pits? we WANT the dollar lower: it lowers the cost of our goods to other countries and improves the trade deficit and what we owe other countries.


questions?

Forgive my liberal use of letters; There is no F'n way the FED can hold down prices on the long end by merely buying long bonds w/ QE money. The market is too big. The best they can do is
shake out some weak shorts. We are entering a bear market for treasuries and I don't think it is actually all that bearish for stocks until we have the 10 year trading above 6% (then of course
all hell breaks loose).

[Russ]

russ: china has $1 trillion, about. the FED could buy every single bond if it wanted to. all the FED has to do is put in a bid and enter the bonds on their balance sheet and punch a button and pay with dollars. china would have dollars, not making any interest, then what?

okay, that would hurt the $$$, right? that would hurt the dollar and raise the price of the yuan, right? that's what we have been trying to do FOR YEARS!!!!

you really must take an econ101 course if you want to understand what is happening. talk radio is NOT a good source, LOL.

That would cause interest rates to sky-rocket which would then create massive difficit problems for the government. BTW...there are plenty of MBA's that took econ 101 that led the banks into serious trouble.

[humble1]

no domestic market is bigger than the FED. the only limiting factor is the value of the dollar. we are in a deflationary environment and will be for many moons. ergo, the value of the dollar is not a problem. the FED could buy every single bond issued by the treasury and every single bond offered for sale in the pits. period. there is no bigger gorilla!