tag:blogger.com,1999:blog-2761684730989137546.post1050521648328432546..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Fed move NOT bearish for dollarmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2761684730989137546.post-50947852162826440772009-03-18T20:40:00.000-04:002009-03-18T20:40:00.000-04:00Mike,Agree with your USD point.Debasing the Curren...Mike,<BR/>Agree with your USD point.<BR/><BR/>Debasing the Currency Crowd question of the evening: "How is the Fed eventually going to shrink it's balance sheet once they bring these securities on? It's going to be very difficult!" (In their best prospector voice)<BR/><BR/>Could you help with the reserve accounting:<BR/>1.The forex swaps will just not be renewed and go away right? (Foreign CB reserve account debited and Fed asset deleted?)<BR/>2.The MBS will eventually just run off when the homeowners re-fi or sell the house in a few years? (new home buyers reserve account will be debited and Fed MBS asset will be deleted?) <BR/>3.For Treasuries, in 5 years, a 5-year Treasury will be refunded as normal(the Treasury account at the Fed will be debited and the Fed will just return the bonds to the Treasury?)<BR/>I think these 3 items will constitute the majority of the balance sheet.<BR/>Id appreciate your help in trying to work this through...<BR/>Thanks!Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com