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Stonks for the Long Hole 2/25/21


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39 minutes ago, sandy beach said:

OK - you are appointed Gov. of the Federal Reserve. What would you do?

No correct answers please.

Sell treasuries and buy up choo-choo trains.

Then, lease access to the most substantial rail intersection I could.

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39 minutes ago, sandy beach said:

OK - you are appointed Gov. of the Federal Reserve. What would you do?

No correct answers please.

Sell treasuries and buy up choo-choo trains.

Then, lease access to the most substantial rail intersection I could.

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15 minutes ago, Jorma said:

They don't know whatthey are doing. Nobody does. The numbers are too big.

RIght. They are simply letting the paper that's coming due expire. That's really all they can do, short of announcing buybacks. Haven't seen those in eons. They still have nearly $1.5 trillion in cash to play with, but they the new stimmy gets passed and they gotta raise that money. 

All covered in depth at https://liquiditytrader.com/

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17 minutes ago, DrStool said:

RIght. They are simply letting the paper that's coming due expire. That's really all they can do, short of announcing buybacks. Haven't seen those in eons. They still have nearly $1.5 trillion in cash to play with, but they the new stimmy gets passed and they gotta raise that money. 

All covered in depth at https://liquiditytrader.com/

Normally they roll over all of the paper and sell new debt on top of that, but they're sitting on that massive pile of cash that they are mandated to spend by August. Janet was holding it to use for the stimmy spending, but the market intervened and created this emergency, so they had to do this now. 

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I knew that the selling would spread into stocks, but I did not know when. 

I have to believe that if the Treasury keeps this up, cumulatively it will eventually achieve the result they want, but then they face a whole new set of problems when the stimmy is passed in Congress, and they have to raise all that money yet again. With a debt ceiling reimposition this summer. 

These are all things I address in Liquidity Trader. 

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