More evidence Fed Quantitative Tightening is about to blow-up the economy

DarthTrader

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Mar 29, 2022
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There is not enough buyers to support the FED dumping $100bil in Treasuries and mortgages. China is already QT'ing by dumping $1Trillion in treasuries in the last 4 months. The whole world is trying to dump treasuries since they are massively losing value due to inflation and rising interest rates.

are we heading for another housing market crash ? how many people that are new home owners will continue to pay for a home that has dropped in value i wonder ?
 
Biden is destroying our lives and some morons are cheering him on....
China bought the souls of our political leaders like Biden and his son Hunter and now have American corporations lobbying Congress for China.

Meanwhile, the media is protecting them all because anyone who pisses off China is now a target.

In fact, Putin would not be doing what he is doing without the support of China either.

China is on the verge of taking over the entire world period.
 
are we heading for another housing market crash ? how many people that are new home owners will continue to pay for a home that has dropped in value i wonder ?
I know a doctor that had to back out of a home sale because with interest rates going up his payment expectation went from $8500 per month to $9800....
 
:laugh:

The crystal balls are all so clear on the internet.

They're not selling bonds. They're doing the smart and obvious thing, letting bonds mature out without replacing them with new purchases.

Bottom line: No one can tell you with any certainty how this will play out. As always, there are far too many conflicting economic currents.


Snapshot: Yields should technically move higher in response to QT, while the curve should steepen, due to a tightening of financial conditions and money supply. However, the direction of yields is also highly dependent on other economic factors, like expectations of Fed interest rate hikes, the U.S. economic outlook or greater regulatory constraints. Other feel that any outsized impacts will rather show up in money markets or financial market plumbing, or that effects on liquidity are at least a few quarters away.

"It's going to be very gradual... It's just too soon to know what if anything the impact is going to be from QT," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. "I don’t think we know the impacts of QT just yet, especially since we haven't done this slimming down of the balance sheet much in history," added Dan Eye, chief investment officer at Fort Pitt Capital Group. "But it's a safe bet to say that it pulls liquidity out of the market, and it's reasonable to think that as liquidity is pulled out, it affects multiples in valuations to some degree."
 
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China bought the souls of our political leaders like Biden and his son Hunter and now have American corporations lobbying Congress for China.

Meanwhile, the media is protecting them all because anyone who pisses off China is now a target.

In fact, Putin would not be doing what he is doing without the support of China either.

China is on the verge of taking over the entire world period.

Patient, ain't they??
 
China bought the souls of our political leaders like Biden and his son Hunter and now have American corporations lobbying Congress for China.
Bought? I think it is more like our elected "leaders" went running to them offering to sell out the country.

Meanwhile, the media is protecting them all because anyone who pisses off China is now a target.
Probably because China now owns much of our media!
 
I know a doctor that had to back out of a home sale because with interest rates going up his payment expectation went from $8500 per month to $9800....
The bigger problem is that investment REITs like Innovation Homes buy homes on variable rates expecting to sell them in 3-5 years.

Well their early purchases are used to buy more real estate. And they now have no way to deleverage or refinance without substantial losses.
 
The bigger problem is that investment REITs like Innovation Homes buy homes on variable rates expecting to sell them in 3-5 years.

Well their early purchases are used to buy more real estate. And they now have no way to deleverage or refinance without substantial losses.
That's right....
 
:laugh:

The crystal balls are all so clear on the internet.

They're not selling bonds. They're doing the smart and obvious thing, letting bonds mature out without replacing them with new purchases.

Bottom line: No one can tell you with any certainty how this will play out. As always, there are far too many conflicting economic currents.


Snapshot: Yields should technically move higher in response to QT, while the curve should steepen, due to a tightening of financial conditions and money supply. However, the direction of yields is also highly dependent on other economic factors, like expectations of Fed interest rate hikes, the U.S. economic outlook or greater regulatory constraints. Other feel that any outsized impacts will rather show up in money markets or financial market plumbing, or that effects on liquidity are at least a few quarters away.

"It's going to be very gradual... It's just too soon to know what if anything the impact is going to be from QT," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. "I don’t think we know the impacts of QT just yet, especially since we haven't done this slimming down of the balance sheet much in history," added Dan Eye, chief investment officer at Fort Pitt Capital Group. "But it's a safe bet to say that it pulls liquidity out of the market, and it's reasonable to think that as liquidity is pulled out, it affects multiples in valuations to some degree."
The party is over for the corporate fat cats.
 
:laugh:

The crystal balls are all so clear on the internet.

They're not selling bonds. They're doing the smart and obvious thing, letting bonds mature out without replacing them with new purchases.

Bottom line: No one can tell you with any certainty how this will play out. As always, there are far too many conflicting economic currents.


Snapshot: Yields should technically move higher in response to QT, while the curve should steepen, due to a tightening of financial conditions and money supply. However, the direction of yields is also highly dependent on other economic factors, like expectations of Fed interest rate hikes, the U.S. economic outlook or greater regulatory constraints. Other feel that any outsized impacts will rather show up in money markets or financial market plumbing, or that effects on liquidity are at least a few quarters away.

"It's going to be very gradual... It's just too soon to know what if anything the impact is going to be from QT," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. "I don’t think we know the impacts of QT just yet, especially since we haven't done this slimming down of the balance sheet much in history," added Dan Eye, chief investment officer at Fort Pitt Capital Group. "But it's a safe bet to say that it pulls liquidity out of the market, and it's reasonable to think that as liquidity is pulled out, it affects multiples in valuations to some degree."
You're so stupid. The FED doesn't have enough bonds maturing to avoid selling.

I'm sorry you're such a retard.
 
I bought my house, a Cape Cod 20 years ago & I could sell it today for at least double what I paid for it.

It's insane.
 
Bought? I think it is more like our elected "leaders" went running to them offering to sell out the country.


Probably because China now owns much of our media!
Bingo! Our elected so called leaders ran for office to line their own pockets period. Even if that means selling out the American people and industries.
 
Hey at some point the borrowing and spending party will come to a screeching halt and CRASH. It's not like we fiscal conservatives didn't warn them. You can't go on borrowing and spending like there's no tomorrow forever.
 

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