3-2-1 Breakout and Liftoff - Liftoff of Space Shuttle COVID

[jp6]

Fed buys assets from investors and sellers decides what to do with newly created money.IMHO

 

https://app.hedgeye.com/insights/84559-webcast-a-real-conversation-with-diego-parrilla?type=macro

[jp6]

 

[Jorma]

This "investors" vs "primary dealers" thing is a semantic mine field.  The primary dealers own many of the assets the Fed buys so that would put them under the term 'investors'. Thus calling the PD's investors is technically correct but functions more as disinformation.

  Then too the Primary Dealers act as an agent for customers in the sales of their paper to the Fed. A more clear-cut but hardly pure example of 'investors' selling to the Fed. Their customers are large to gigantic institutions, usually corporations. Again calling them investors is technically correct but contains more disinformation than information. 

 

[fxfox]

 

[DrStool]

2 hours ago, jp6 said:

Fed buys assets from investors and sellers decides what to do with newly created money.IMHO

 

https://app.hedgeye.com/insights/84559-webcast-a-real-conversation-with-diego-parrilla?type=macro

Not correct. The Fed does not buy assets from investors. It buys Treasuries and MBS from Primary Dealers. The original seller of the Treasuries is the US Government. The original sellers of the MBS are typical the GSEs but my be investors in some cases. The first trade in the execution of monetary policy is the Fed's purchase of the paper from the Primary Dealers. Their business is to accumulate more inventory, mark it up, and distribute it. Investors are the customers of the pump and dump. They are the marks. 

And when we say "investors" we're talking about the whales-- the institutions. Not the guys at the dollar slots, roulette wheels,  and $5 blackjack tables. 

[DrStool]

Well, they couldn't stick the landing, but they get 3 tries. 

[Jorma]

It's your last chance to buy TESLA before it hits 1000, on the way to 100,000. While Tesla isn't quite in the Amazon league yet, able to borrow trillions if they wanted to, it will be soon enough.  Capitalism where capital is infinite, for the few, makes Capitalism unlimited. Colonies on Mars, no sweat. Oh sure, out in the Districts will be hunger decay and anarchy. So what.