First, this video is not with the intention to scare anyone. I also and not making a recommendation to do anything with your financial assets. We have been through multiple, massive quantitative easing programs over the last decade and it appears there’s a good chance we could be headed for another one soon. Practically, it could be argued the Fed is participating in one already, but they refuse to call it that.
The market was largely caught off guard in September when liquidity issues caused the Fed to intervene in the overnight Repo Market. This was discussed as a temporary measure to keep banks solvent.
Fast forward a few months later and the Fed is not only still having to intervene, they have increased their participation by hundreds of billions of dollars.
This is expected to continue through early 2020.
My attempt in this video is to inform those interested in what’s going on a basis with which to begin further research. These are very complicated issues and most of the analysis I’ve seen has begun with a premise that the reader is well versed in macroeconomics.
By no means was I attempting to encapsulate the full scope of the issues and all nuances in a 5 plus minute video. This is only meant to be a very high level introduction as I expect it will be in the news more soon.
Instagram – @logicalfinance
Some of my favorite books:
Freakonomics – Levitt & Dubier https://amzn.to/2MDKJU4
Applied Economics: Thinking Beyond Stage One – Thomas Sowell https://amzn.to/2VDVl9u
Capitalism and Freedom – Milton Friedman – https://amzn.to/33vMZU8
The Intelligent Investor – Benjamin Graham https://amzn.to/2Bbrn37
Liar’s Poker – Michael Lewis – https://amzn.to/2IP4IxS
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The information discussed on this channel is for educational and entertainment purposes only. It should not be considered advice. Please do your own research and I encourage you to seek professional tax, legal, and financial advisors, before taking any actions or making decisions.
#quantitativeeasing #repomarket #fed