Fed Is Seizing Control of the Entire U.S. Bond Market
submitted 4 years ago by useless_aether from (finance.yahoo.com)
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[–]The_Lear_Bluce_Ree 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 0 fun2 insightful - 1 fun - 4 years ago (1 child)
Wtf does this mean? Is this in response to the Chinese gubment buying up bonds I'm assuming?
[–]la_cues 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 0 fun2 insightful - 1 fun - 4 years ago* (0 children)
I have limited knowledge. I think it might have something to do with the recent talk of negative interest rates coming to treasury bills
Here is an article on what it means when govt purchases it's own Treasury bills, bonds, and notes.
https://www.thebalance.com/how-is-the-fed-monetizing-debt-3306126
*edit;
So it looks like this maybe?:
Govt buys BACK the bonds (previously purchased by banks), so now the bank has "cash", and now it can lend that cash out to the public (businesses, big business, and individuals) and helps everyone stay afloat in the bad economy times.
Essentially, flood the market with a little cash because everyone is tightening the belt here guys jeez lighten er' up
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[–]The_Lear_Bluce_Ree 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 0 fun2 insightful - 1 fun - (1 child)
[–]la_cues 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 0 fun2 insightful - 1 fun - (0 children)