Trump vs Yellen: fed rate hikes should be quicker or slower?

[JakeStarkey]

Let's have a discussion.

Trump is thrilled by the jobs growth and hopes for even faster economic growth, which will shield his other dumb mistakes.

Yellen does not want the economy to over heat so she and the fed are talking a series of rate hikes this year.

You 'no' or 'go' on the hikes?

 

[CrusaderFrank]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

 

[Toddsterpatriot]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

I haven't heard that they plan to sell any bonds.

 

[oldsoul]

Let's have a discussion.

Trump is thrilled by the jobs growth and hopes for even faster economic growth, which will shield his other dumb mistakes.

Yellen does not want the economy to over heat so she and the fed are talking a series of rate hikes this year.

You 'no' or 'go' on the hikes?

Neither. I say, let's go back on the "Gold Standard", or some other meaningful way of backing our money, and be done with this manipulating the economy crap.
Maybe I'm just uninformed, but what is the point of having a fiat currency anyway? How does it benefit the average citizen to have a currency that is backed only by "full faith and credit"?

 

[bendog]

The last thing we need now is rising deficits, and that's Trump's aim.

The rate hikes have been predicted for years. We hit 2% inflation, and that's been the feds' target for years.

United States Inflation Rate | 1914-2017 | Data | Chart | Calendar

 

[CrusaderFrank]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

I haven't heard that they plan to sell any bonds.

They started talking about it. You know, because there's a Republican in the WH

 

[JakeStarkey]

Frank may have a point or nine to consider

Here is a good read on his concerns: It's Time for the Fed to Sell Bonds, Not Hike

 

[Toddsterpatriot]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

I haven't heard that they plan to sell any bonds.

They started talking about it. You know, because there's a Republican in the WH

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

 

[bendog]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

I haven't heard that they plan to sell any bonds.

They started talking about it. You know, because there's a Republican in the WH

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

 

[Toddsterpatriot]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

I haven't heard that they plan to sell any bonds.

They started talking about it. You know, because there's a Republican in the WH

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

 

[bendog]

The Fed is trying to fuck Trump. They're raising interest rates AND will start to sell some of their $4T in Obama Funny Money.

See, if they weren't out to fuck Trump, they'd sell the paper first in a lower rate environment. Instead they're raising rates AND selling their Obama bucks

I haven't heard that they plan to sell any bonds.

They started talking about it. You know, because there's a Republican in the WH

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

 

[Toddsterpatriot]

I haven't heard that they plan to sell any bonds.

They started talking about it. You know, because there's a Republican in the WH

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

 

[owebo]

Let's have a discussion.

Trump is thrilled by the jobs growth and hopes for even faster economic growth, which will shield his other dumb mistakes.

Yellen does not want the economy to over heat so she and the fed are talking a series of rate hikes this year.

You 'no' or 'go' on the hikes?

Quicker...

 

[bendog]

They started talking about it. You know, because there's a Republican in the WH

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

My only point was that it's pretty sweet. QE may not have had an inflationary effect, despite fears. The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet. And that's not inflation, but rather a recovery in the real estate markets.

The inflationary pressure in the economy will come from govt deficit spending (TRUMP) and the slim possibility that Yellen won't raise rates enough.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks. But the people who voted or Trump are dumb shmucks .... or rich and shrewd

 

[owebo]

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

My only point was that it's pretty sweet. QE may not have had an inflationary effect, despite fears. The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet. And that's not inflation, but rather a recovery in the real estate markets.

The inflationary pressure in the economy will come from govt deficit spending (TRUMP) and the slim possibility that Yellen won't raise rates enough.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks. But the people who voted or Trump are dumb shmucks .... or rich and shrewd

Inflation is out of fucking control.....

 

[bendog]

enjoy your inflation and higher interest rates, dwebo.

 

[bendog]

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

My only point was that it's pretty sweet. QE may not have had an inflationary effect, despite fears. The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet. And that's not inflation, but rather a recovery in the real estate markets.

The inflationary pressure in the economy will come from govt deficit spending (TRUMP) and the slim possibility that Yellen won't raise rates enough.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks. But the people who voted or Trump are dumb shmucks .... or rich and shrewd

Inflation is out of fucking control.....

And what would be the current rate of inflation?

 

[owebo]

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

My only point was that it's pretty sweet. QE may not have had an inflationary effect, despite fears. The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet. And that's not inflation, but rather a recovery in the real estate markets.

The inflationary pressure in the economy will come from govt deficit spending (TRUMP) and the slim possibility that Yellen won't raise rates enough.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks. But the people who voted or Trump are dumb shmucks .... or rich and shrewd

Inflation is out of fucking control.....

And what would be the current rate of inflation?

Opps....forget you're a stupid fucktard liberal.....you don't understand inflation....

 

[Toddsterpatriot]

They started talking about it.

I don't think they have.

Yellen was asked about the process of shrinking the central bank's balance sheet, which ballooned to $4.5 trillion from the quantitative easing, or bond-buying programs, that the Fed used to fight the effects of the financial crisis.

The Fed has discussed winding down the balance sheet, which is made up of both Treasurys and mortgage-backed securities. In her comments, she said the future makeup of the balance sheet would be mostly Treasurys, and the Fed would wait to unwind them until after it has raised interest rates to a more normal level.

Yellen also said the Fed would allow the mortgages to roll off when they mature, and would not sell the securities.

Bonds are getting bashed by a hawkish Janet Yellen

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

My only point was that it's pretty sweet. QE may not have had an inflationary effect, despite fears. The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet. And that's not inflation, but rather a recovery in the real estate markets.

The inflationary pressure in the economy will come from govt deficit spending (TRUMP) and the slim possibility that Yellen won't raise rates enough.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks. But the people who voted or Trump are dumb shmucks .... or rich and shrewd

My only point was that it's pretty sweet.

What is sweet? For who?

The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet.

The Fed doesn't benefit from the increased home value, just the owner.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks.

What sucks? Higher rates?

But the people who voted or Trump are dumb shmucks .... or rich and shrewd

What does that have to do with Yellen raising rates?

 

[Toddsterpatriot]

A question. the link says Yellen said the fed would not try to sell at least some of the mortgage backed securities (MBS) it holds when the mature. I realize that with the fed reserve "buys" a MBS, it basically does it by "lending" money to one of the fed reserve banks, and the MBS is purchased. Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured? I think that's what she's saying.

Basically the Fed won't hold the asset, but the value will be retained by the actual properties that the mortgages applied to. Is that right? If so, pretty sweet.

Is she saying that the Fed Reserve will just reduce its balance sheets to reflect it no longer holds these MBS that have matured?

If an MBS matures and they don't buy a new one, the money is extinguished, their sheet shrinks.

I think that's what she's saying. We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation. But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

That seems a pretty sweet way to have weathered the real estate crash. It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't, and in the end that may have doomed the dems as much as Comey and the emails did. But still if the fed hadn't stepped in we may all have lost our asses.

I think that's what she's saying.

She's saying they don't plan to sell bonds.

We worried that the fed was putting too much liquidity in, and eventually we'd have too many dollars chasing "stuff," which means inflation.

No real inflation during QE. None since the end of QE in October 2014.

But if that's what the Fed is doing, there is no real inflation beyond the property secured by the mortgage is no longer encumbered when the mortgage is paid, and the property owner just has an asset that's valued at whatever the real estate market sets the value at.

Not sure what point you're trying to make here.

That seems a pretty sweet way to have weathered the real estate crash.

Or here.

It doesn't alter the fact that a lot of people got foreclosed on and the banks didn't

Yes, lots of people lost their homes. Banks lost hundreds of billions when they did.

But still if the fed hadn't stepped in we may all have lost our asses.

Yes, flooding the system with liquidity was a good thing.

My only point was that it's pretty sweet. QE may not have had an inflationary effect, despite fears. The only increase in monetary value would be a change in the property value from the time the fed took on the MBS and what it's worth when it's removed from the balance sheet. And that's not inflation, but rather a recovery in the real estate markets.

The inflationary pressure in the economy will come from govt deficit spending (TRUMP) and the slim possibility that Yellen won't raise rates enough.

Of course for those of us still paying off debt we accrued when our paychecks took a hit, this sucks. But the people who voted or Trump are dumb shmucks .... or rich and shrewd

Inflation is out of fucking control.....

Not really.