Quote:
Originally Posted by
sonatine
Make no mistake. Easing is already here and more is coming.
Remember Silicon Valley Bank? They got caught holding mucho Treasuries whose value declined as interest rates obviously rose post Covid.
The problem was solved when the Fed promised to buy the Treasuries back at full face value no matter what. Bank Term Funding Program was the moniker used to describe this.
It’s a great way to find a fresh new market for Treasuries and fight rising interest rates. AND allow banks to lend fresh money into existence which will be inflationary.
Let’s make the Bank Term Funding Program permanent
That’s just one program in the wings. Lotta ingenuity is going to be put to work. Easing of Bank capital requirements etc etc. We ain’t rolling over. The fight is gonna be almost as good as the Stanley Cup Finals.
Assets of all, kinds will get a bid with the fresh inflation.
When I was a kid I would find myself in a construction elevator attached to the side of a high rise being built . I’m trying to look cool with the construction workers crowded inside the cab. A grizzled worker looked at me and said as we were descending, “Don’t lock your knees”. The elevator operator was apt to bounce off the spring at the bottom.
Don’t lock your knees Sonatine cause it will indeed come to a sudden stop eventually. But don’t forego the promise of riches until then
