Wall Street hype artists and QE mongers would be deeply disappointed.
Fed sheds $46 Billion, Total QE Unwind Reaches $580 Billion. Assets drop to lowest level since Nov 2013.
There was strong appetite. Only the Fed shed them. Here’s who bought.
What’s the Fed Trying to Say?
Then there’s the sinkhole of $1.5 trillion in MBS and $617 billion in Treasuries that mature in over 10 years.
Is the euro dead yet? And how is the Chinese Renminbi doing?
The next recession, when it finally occurs, may be a different animal altogether.
The Next Big Letdown for Stocks.
In relationship to GDP, the balance sheet will continue to shrink until some magic unknown point is reached.
The albatross of $617 billion in bonds that mature in over 10 years.