I respectfully disagree

QE is not just an asset swap. The “banks” also goose the stock market and the economy through the resulting easy money policy

Watch list:

The Big Short Too Big To Fail FRONTLINE- The age of easy money

Fed already has almost 9 trillion on its balance sheet. Where is this money gonna come from?

Yes, around 2.6 Trlllion of it

https://fred.stlouisfed.org/series/WSHOMCB

Remember that the entire QE thing was supposed to be a very short term emergency fix back in 2010.

Ben Bernanke then Janet Yellen and now Jerome Powell have kept this thing going.

And, I interestingly, the GSEs (Fannie Mae & Freddie Mac) have been in “conservatorship” for 14 years!!! When do they just call that a nationalization?

They pumped liquidity into the economy and Blackstone private equity swallowed up all the houses.

Why?

So we are a nation of “have nots” and renters

Watch this

https://www.pbs.org/wgbh/frontline/documentary/age-of-easy-money/

BTFP is just made up nonsense like QE. It’s money printing

Jerome Powell is a conservative republican who was appointed by Trump.

He has deep ties to Wall Street

Fair. Removed it

True

Until the bankers started funneling profits into their reelection campaigns

https://fred.stlouisfed.org/series/RRPONTSYAWARD

Don’t fear the Repo

The point of lighting the dumpster fire in the first place was to “create pain”

Pain = unemployment and inflation decreasing

Saving the day every time a shit bank implodes is counterproductive

TLDR Banks always win

IAT (iShares Regional Bank ETF) or VFH (Vanguard Financials ETF)

The Federal Reserve since 2008 has stuffed an 8.7 Trillion dollar warehouse full of shit they bought from the “Too Big To Fail” banks.

That shit is MBS (mortgages), Bonds and other financial instruments

In exchange, the banks got sweet, sweet cash they they were supposed to lend to everyone so we could buy cars, houses, start businesses and send our kids to college.

They lent some out the back door but also operated a gambling operation out the back door. Shady.

When Covid hit, they pumped so much money into the bloodstream of the economy that weird shit started happening. Companies that should have failed were kept afloat (zombies) People’s houses exploded in value and with zero rates they could refinance and buy a bunch of useless shit. That’s when your fellow Wall Street bets pals were trading GameStop with their magical internet money and using it to buy lamb is and monkey pics.

But, inflation started to accelerate. Basic law of economics is that when you shoot money out of tshirt cannons into the economy, prices for everything goes up.

To fight that, the federal reserve started making it more expensive to borrow money (raising the fed rate or “hiking”) They also started QT (selling shit from their warehouse)

which also has the nasty effect of breaking shit which is why Silicon Valley took the dirt nap.

In a panic, they started the whole QE thing again.

And…here we are

QE or Quantitative Easing was an experiment by Federal Reserve Chairman Ben Bernanke after the 2008 Great Financial Crisis.

Prior to that, they tried dropping the Federal Reserve Rate to 0%. It didn’t work.

So, they decided to give the Too Big To Fail banks an obscene amount of money in hopes they would lend it to people and jumpstart the economy. They did this by buying financial assets FROM the banks.

Did the banks start making loans? Of course not!

They started betting on the assets they they just sold to the Fed. THEY PAID THEMSELVES BONUSES AND bought the financial assets that they knew the Federal Reserve was trying to raise the value of.

There were protests, remember the 99% marches on Wall Street?

so QE is this shitshow and QT is the opposite (Quantitative Tightening) where the Federal Reserve sells or allows assets to run off the balance sheet.

Remember that 2.8 Trillion of the 8.7 Trillion is MBS or Mortgage Backed Securities (the dogshit Jenga tower from “the Big Short”) and that Fannie Mae & Freddie Mac have been nationalized (aka a 14 year “Conservatorship “ ) since then.

So Jay Pow raised the fed rate by .25 (to not spook markets) while SIMULTANEOUSLY pumping $400 billion into banks via this scumbag scheme called QE

What does this mean?

I have no idea, I’m just some dude on Reddit

Edit- removed stuff about the tea party. Not essential

Ha. A $400 Billion helicopter drop is a helluva way to fight Inflation.

Let’s throw some gas on that fire!

Inflation is going to moon!

Effectively a $400 billion dollar money drop

How can that be???

I personally bought an impossible Whopper at Burger King that one time around 2 years ago (I think)

The US Federal Reserve has $8.5 Trillion Dollars worth of assets on its balance sheet.

$2.5 Trillion of that is MBS (Mortgage Backed Securities)

In March 2020, it was only $4 trillion

The federal Funds rate AND the unwinding of this monster will cause a massive drop in the stock market

https://preview.redd.it/j8sbi78f7l8a1.jpeg?width=1179&format=pjpg&auto=webp&s=8a9e2da495385c8d809b524102e925e16d498fcf