That's the fed's terminology, check the link. I Take it to mean it's the reduction of assets from the feds balance sheet taken on during qe, what do you think it means? If you don't like the term qe, call it the feds balance sheet expansion - do you think it's sustainable?
That was all from memory. Looking it up again, citizen Trump bashed Yellen for low rates during Obama, meaning he was for higher rates. Trump, as president, was against higher rates. Yellen started raising them in 2015 as the economy showed signs of recovery, so I got them crossed. Either way, Trump's activism and threats to fire Fed chair(wo)man are already beyond norms.
the term QE was never used by the Fed, yet you use it once again, ur parroting disjointed mis-information during times of economic growth, the central bank stepping in to add more liquidity to the market place amounts to currency manipulation, it is not QE
just to add more nuance. Helicopter Ben kept the rates low for all the Presidents under whom he served, W and Obama. When Yellen took over, she cut it a few times and then raised it a couple of times. u do know that the POTUS can't fired the Fed Chair, no ? and Powell knows this, that was why he was willing to go against Trump and raised the rate in Dec 2018
Your inability to post on a topic that may or may not be familiar to you and not sound like an insufferable prick is telling -- try harder.
I was replying to your question about what normalizing the balance sheet means. Yes fed isn't calling the current balance sheet expansion qe, but I'm definitely not alone in calling it qe. Just one of many examples: https://www.google.com/amp/s/www.marketwatch.com/amp/story/guid/7051D21A-0BAA-11EA-A30E-3CC4FAF3EAAD More importantly, my concern isn't over what it's termed, but whether continued asset purchases by the fed is sustainable, and how normal people should be allocating their money.
once again, QE is attendant to a specific and narrow economic circumstance, when the economy is near death, as evidenced by the effective interest rate approaching, at or below zero. QE is the economic morphine used to keep the economy from dying that article is spreading mis-information. the US economy is growing, the opposite of dying. when the economy is growing, and the Fed steps in to add liquidity to the market place, it is currency manipulation.. i can only speak for myself. indications are that Fed will not raise rate in 2020, i plan to make some momentum plays in the stock market until world series time, to have plenty of cash available after the Presidential election should Trump win, buy more defense stocks not named Boeing should a Dem win, buy more healthcare stocks i definitely will not invest in bonds / treasury notes in 2020
This. Look into LEAPS and Super LEAPS. https://budgeting.thenest.com/longest-term-stock-put-can-buy-30073.html
Looking at history.... working out this excess has either gone two ways: A multi decade stagflation like Japan or a Great Depression like endeavor. I’m guessing it will be more of the former.
A normal fed funds rate is about 6%. Bush in excessive stimulation of economy policy dropped it to 1% over time. The point is that leaves little wiggle room. The issue isn't how long QE is sustainable. Its time it will take to normalize the fed funds rate
heed the advise of Abe Lincoln, better to be quiet and be thought of as a fool, than to speak up to remove all doubts bluntly put, you have neither the economic data nor knowledge to make that baseless assertion u r referring to W. the economy was cratering, losing >100k jobs a month. the financial industry was bankrupt an economic morphine, QE, was needed to keep the economic from dying
I dont know what you are arging with other tan to be a prick as stated by someone else. You're right i don't have info on what the average fed funds rate is but i know its higher than 2%
u need to stop spreading false info. actually, under W, it was insufficient. even w QE, there was insufficient liquidity in the market place to help him bail out the insolvent financial industry. W left office w an insolvent financial industry. after Obama took office, came additional rounds of QE injections---affording sufficient liquidity to bail out the insolvent financial industry--- towards economic stability to help reversing the GDP downtrend
The Crypto currency craze is the modern day Tulip mania. Tulip was the best performing investment in the Netherland. from the late 1500s to mid 1600s. some Tulips were more expensive than houses
Sure, but it all depends on the purpose. Looks like a great risk asset class purely based on that tweet you posted, which is useful.
