Fed May Buy $300 Billion in Treasuries After QE2

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#1 Mon, Jun 27, 2011 - 10:19am
Shill
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Fed May Buy $300 Billion in Treasuries After QE2

Edited by: Shill on Nov 8, 2014 - 5:06am
Mon, Jun 27, 2011 - 10:22am
Shill
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Stealth

So now were going @ this in a Stealthy way unannounced. What a joke our financial system has become, and an even bigger joke the people running it.

And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers.
Mon, Jun 27, 2011 - 10:33am (Reply to #2)
agauinvest
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Reinvestment of proceeds

Not that stealthy or unannounced. They already did announce the reinvestment of proceeds, and also stated that they want to keep the balance sheet at the current amount (which would require reinvestment of most proceeds from maturing instruments; otherwise it would shrink as instruments mature). 

What is sort of stealthy (and strangely wise, IMO) is the movement in type of instrument from maturing mortgage and other paper to Treasuries. If you believe in the safety of USTs (lol), this will make the balance sheet look stronger. 

randomness