Submitted by Mega-Lithium t3_120143p in wallstreetbets
Mega-Lithium OP t1_jdfd4ok wrote
QE or Quantitative Easing was an experiment by Federal Reserve Chairman Ben Bernanke after the 2008 Great Financial Crisis.
Prior to that, they tried dropping the Federal Reserve Rate to 0%. It didn’t work.
So, they decided to give the Too Big To Fail banks an obscene amount of money in hopes they would lend it to people and jumpstart the economy. They did this by buying financial assets FROM the banks.
Did the banks start making loans? Of course not!
They started betting on the assets they they just sold to the Fed. THEY PAID THEMSELVES BONUSES AND bought the financial assets that they knew the Federal Reserve was trying to raise the value of.
There were protests, remember the 99% marches on Wall Street?
so QE is this shitshow and QT is the opposite (Quantitative Tightening) where the Federal Reserve sells or allows assets to run off the balance sheet.
Remember that 2.8 Trillion of the 8.7 Trillion is MBS or Mortgage Backed Securities (the dogshit Jenga tower from “the Big Short”) and that Fannie Mae & Freddie Mac have been nationalized (aka a 14 year “Conservatorship “ ) since then.
So Jay Pow raised the fed rate by .25 (to not spook markets) while SIMULTANEOUSLY pumping $400 billion into banks via this scumbag scheme called QE
What does this mean?
I have no idea, I’m just some dude on Reddit
Edit- removed stuff about the tea party. Not essential
AlPCurtis t1_jdfdufd wrote
“Bro that’s nuts” - I say as I impatiently wait for you to pass the bong.
ShepherdofSushi t1_jdfmutv wrote
Best comment I’ve read all day… passes you the bong… as I’ve been on Reddit for nearly 5 hours now
moondawg8432 t1_jdfjtqt wrote
Great post except the tea party part. We were on your side. We wanted the government and the Fed to stop bailing out banks and wallstreet.
BooBeef t1_jdfqtn2 wrote
Tea Party Republicans were the opposite of what you said, they didn’t want the fed to be bailing out banks… unlike the moderate republicans and democrats who have no spines
Longjumping_Yam_5230 t1_jdfugn7 wrote
You can be against regulations and bailouts.
lllllIllIllIll t1_jdfz5s5 wrote
Uh the Tea Party republicans were the ones that were pissed off about the bankers
Mega-Lithium OP t1_jdg2afv wrote
Fair. Removed it
Mega-Lithium OP t1_jdg1u3a wrote
Until the bankers started funneling profits into their reelection campaigns
[deleted] t1_jdftctz wrote
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[deleted] t1_jdgiyfp wrote
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