Results 1 to 9 of 9

Thread: FIRE inflation vs real economy deflation

Threaded View

  1. #9
    jk's Avatar
    jk is offline Shadow Fed, iTulip Select Member, The Brain
    Join Date
    May 2006

    Default Re: FIRE inflation vs real economy deflation

    Quote Originally Posted by seobook View Post
    Yup. That is why last year the fed floated the idea of exit fees on bond funds & just recently Larry Summers suggested central banks should buy lower quality debt to lower spreads, etc.
    i guess if they could buy mbs, they can buy anything. not directly, though, which i believe would be illegal. but referring back to bernanke's "making sure..." paper, he discussed offering banks guaranteed profits along with loans so that the banks could buy any damned thing the fed wanted them to. but just as the subprime market had to crash before the fed stepped in, i would suspect some lag in fed action- some piece of the corporates market has to crash first. they probably won't wait as long as the last time, but i very much doubt they would act pre-emptively - otherwise the fed's intervention would likely trigger the very sell-off they're hoping won't happen.
    Last edited by jk; 10-22-15 at 10:45 AM.

Similar Threads

  1. Replies: 1
    Last Post: 02-16-12, 10:11 PM
  2. Replies: 48
    Last Post: 03-24-10, 05:01 PM
  3. Replies: 16
    Last Post: 01-28-10, 03:12 PM



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.