The printing of monopoly money is passed to the ECB and the faithful Japanese.
The runoff means that instead of borrowing from the Fed the Treasury will borrow from the market to repay the Fed
The market (pension funds, mutual, wealth funds, non natives) may well have to sell something at the margin (fancy economic term) to make room and that something are the accumulated equity risk claims accumulated because it seemed the thing to do
The savings, investment math is compelling
The runoff of mortgage backed securities gives pause. Moodys recently reaffirmed ratings for fancy MBS's the collateral for which are loans to malls in Florida the principal tenants of which are retailers (sears, macy's, nordstroms)
Yes, really.
So the Fed withdraws as a customer to the circus and then the fun starts
The runoff means that instead of borrowing from the Fed the Treasury will borrow from the market to repay the Fed
The market (pension funds, mutual, wealth funds, non natives) may well have to sell something at the margin (fancy economic term) to make room and that something are the accumulated equity risk claims accumulated because it seemed the thing to do
The savings, investment math is compelling
The runoff of mortgage backed securities gives pause. Moodys recently reaffirmed ratings for fancy MBS's the collateral for which are loans to malls in Florida the principal tenants of which are retailers (sears, macy's, nordstroms)
Yes, really.
So the Fed withdraws as a customer to the circus and then the fun starts
Comments