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TSLA240c t1_jdjngne wrote

Reply to comment by nyse125 in Fed Balance Sheet by Mega-Lithium

It’s QE now because they are exchanging an illiquid asset for a liquid one. In a year if they repay it you can say it’s not QE.

I have no idea what you’re talking about QE always carries an interest rate with it, are you confused with government bailouts or the repo market?

Equities have been mixed but not down considering what a shit show of a week it’s been. It’s also possible this fresh liquidity will just blunt the effects of the rate increases.

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nyse125 t1_jdkuk8w wrote

> It’s QE now because they are exchanging an illiquid asset for a liquid one.

How many times bruh, it is NOT. LMAO. Just becaise its an asset swap does not make it QE. It's a temporary backstop from the fed. What's not clicking?

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TSLA240c t1_jdkxos3 wrote

What’s not clicking for you? You can’t just say it’s not then contradict yourself.

QE is an asset swap. It’s a swap of cash (asset) for government/corporate bonds (asset).

There is an argument that it’s not “money printing” since it has to be “repaid” but since the Fed just rolls over the debt forever it’s essentially as if the money were printed and injected into the economy.

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nyse125 t1_jdkziwq wrote

Clearly you still haven't grasped BTFP if you still beleive it's QE. Then how come stocks arent greeen 24/7? Also they dont roll over the debt forever with this, we dont know what they'll do a year from now.

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TSLA240c t1_jdl73z2 wrote

It is QE, just go and Google QE so we can put this to bed.

Stocks have been relatively green over the past week. Given how much catastrophically terrible news we’ve received it shows something ain’t kosher in the system.

Yes these aren’t supposed to roll over but we see time and time again the second the Fed goes to unwind it’s balance sheet something in the economy breaks and they reverse course, exactly like what we’re seeing once again with BTFP.

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nyse125 t1_jdlegip wrote

If you read what I said then you'll literally realize how it's different. Even the btfp definition on Barron's suggests this too.

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