An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
OK ... did anyone bother to ask what the difference between the purchase price the Fed is paying for these assets and their current Market Value? It is likely the Fed is blowing a bubble by paying more than Market for assets which gives their sellers more money than they had before ... so they can blow an asset-price bubble based on ... what? If that is the case, we should feel the price impact of the inflation as the asset-markets force producers to mark up prices based on higher priced raw-materials. One could suspect we're already seeing that in the price of gasoline.
4 comments:
OK ... did anyone bother to ask what the difference between the purchase price the Fed is paying for these assets and their current Market Value? It is likely the Fed is blowing a bubble by paying more than Market for assets which gives their sellers more money than they had before ... so they can blow an asset-price bubble based on ... what? If that is the case, we should feel the price impact of the inflation as the asset-markets force producers to mark up prices based on higher priced raw-materials. One could suspect we're already seeing that in the price of gasoline.
do you mean inflation caused by speculation in commodity markets?
He doesn't know what he means.
Unknown those operations are made public at the FRBNY website.
They DO NOT OVERPAY, THEY UNDERPAY to 'get a good deal for the taxpayers'.
Any 'money they make' at the Fed is returned to the Treasury to help 'lower the deficit' which they proudly assert every chance they get.
They are morons.
RSP,
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