Love the idea on the TQE- however, I take a slightly different tack - money does not need to come out of RRP - in fact, can come from anywhere to buy the new debt. The question is, how much net VAR did Treasury add to the market on a net basis. Buying a 20yr security, and financing that purchase with overnight TBills will provide the market with the VAR associated with a 20yr UST - that can redeployed in something like 20yr corporate bonds, or a smaller face amount of US equities.
I love the detail you present, even if I do not share your faith in capitalism's Rube Goldberg hide-the-pea schemes. Ground truths are dispelling this mad magic even as we invent new yoga poses.
Finally an indepth, and we'll done description of how we are seeing tech hit highs after March's bank failures. Aka bank failures are bullish.
Love the idea on the TQE- however, I take a slightly different tack - money does not need to come out of RRP - in fact, can come from anywhere to buy the new debt. The question is, how much net VAR did Treasury add to the market on a net basis. Buying a 20yr security, and financing that purchase with overnight TBills will provide the market with the VAR associated with a 20yr UST - that can redeployed in something like 20yr corporate bonds, or a smaller face amount of US equities.
I love the detail you present, even if I do not share your faith in capitalism's Rube Goldberg hide-the-pea schemes. Ground truths are dispelling this mad magic even as we invent new yoga poses.
Thanks.