check out t-notes this morning. qe2-what was that again?
Ummm...Did you notice how they went from circa 4% to round about 2.4% in anticipation of QE2?
This "it didn't work" response that is coming from so many places is driving me nuts. The 10yr is still well off it's mid-year highs and the Dollar Index is only trading at about 80 after dropping from above 88 to below 76 in anticipation of the Fed move. I'm not saying I necessarily agree with QE2, but if Bernanke was after lower rates and a weaker dollar, he got them.
So, what happens when the banks start lending again?
That's increase in money supply AND the Fed printed all the money beforehand?
So, what happens when the banks start lending again?
That's increase in money supply AND the Fed printed all the money beforehand?
Ummm...Did you notice how they went from circa 4% to round about 2.4% in anticipation of QE2?
This "it didn't work" response that is coming from so many places is driving me nuts. The 10yr is still well off it's mid-year highs and the Dollar Index is only trading at about 80 after dropping from above 88 to below 76 in anticipation of the Fed move. I'm not saying I necessarily agree with QE2, but if Bernanke was after lower rates and a weaker dollar, he got them.
What would happen if the fed waived the principle?
In a manner of speaking they do. The Fed pays the Treasury the bulk of its profits each year.
the recent flattening at the long end.
It pays the costs of running the Fed. You can find the Fed's financial statements here: http://www.federalreserve.gov/monetarypolicy/bst_fedfinancials.htmDo you have some data for this? I've seen P/L reports for the BoE (that SLS was a real earner!) but not for the Fed.
If the bulk goes to the government, what about the rest?
It pays the costs of running the Fed. You can find the Fed's financial statements here: http://www.federalreserve.gov/monetarypolicy/bst_fedfinancials.htm
It suggests that the Dutch are in deep dooodooo, partially as a result of the recent EUR periph malarkey...what do you think that suggests? When it comes to curves I'm tapped out on anything more complicated than superficial inflation outlook and rate hike expectation![]()