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Kyle Bass Believes Fed Will Be Forced To Abandon Hiking Rates As Stocks Crash
Zubu Brothers ^ | 1-14-2022

Posted on 01/13/2022 5:10:48 PM PST by blam

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To: politicket
$2.6 trillion in MBS

Doesn't look like government debt to me.

Way back in post #37, I said....

"It's US Treasury debt and guaranteed MBS. Why is it toxic?"

Here's your chance, again. Why is guaranteed MBS toxic.

61 posted on 01/13/2022 8:01:58 PM PST by Toddsterpatriot (TANSTAAFL)
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To: Pelham

Yes. And some Ginnie Mae.


62 posted on 01/13/2022 8:04:59 PM PST by Toddsterpatriot (TANSTAAFL)
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To: Toddsterpatriot

So would that count as “corporate”? Or are those still GSEs and considered quasi-government?


63 posted on 01/13/2022 8:09:34 PM PST by Pelham (Q is short for quack )
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To: Pelham
They're all guaranteed by the Treasury. Like I said, it looks like all the corporate COVID purchases are gone.

https://www.federalreserve.gov/publications/files/pdcf-mmlf-cpff-pmccf-smccf-talf-mlf-ppplf-msnlf-mself-msplf-nonlf-noelf-10-13-21.pdf

Page two says they were all gone by Sep 20, 2021.

64 posted on 01/13/2022 8:21:37 PM PST by Toddsterpatriot (TANSTAAFL)
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To: Toddsterpatriot
*** gone by Sep 30, 2021 ***
65 posted on 01/13/2022 8:23:06 PM PST by Toddsterpatriot (TANSTAAFL)
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To: unclebankster

could be

i assume that “income security” means welfare?

there’s so much ripoff fraud and abuse in that program, they should limit it to the genuinely disabled and be done with all the rest of that spending


66 posted on 01/13/2022 8:25:41 PM PST by faithhopecharity (“Politicians are not born. They’re excreted.” Marcus Tillius Cicero (106 to 43 BCE))
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To: Toddsterpatriot; politicket

So that guarantee essentially makes them Treasuries. I was just trying to decide if politicket had a point.


67 posted on 01/13/2022 8:26:46 PM PST by Pelham (Q is short for quack )
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To: Pelham
So that guarantee essentially makes them Treasuries.

Yes.

He could have had a point, if he was talking about anything but the Treasuries and MBS.

I knew the Fed had talked about selling the corporate bonds, but I didn't know they were already gone 3 months ago, until just now.

68 posted on 01/13/2022 8:47:17 PM PST by Toddsterpatriot (TANSTAAFL)
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To: politicket

“ If you unravel all debt to where it’s all paid off, then there would be no money.”

But there would be assets which would be exchanged for something. That something would be money in one form or another.

L


69 posted on 01/13/2022 8:56:01 PM PST by Lurker (Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: politicket

Typo.....

I meant to type that interest rates should be determined by the bank a person goes to, not a central bank.


70 posted on 01/14/2022 2:11:16 AM PST by qaz123
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To: qaz123

These are the rates the Fed charges banks.


71 posted on 01/14/2022 2:22:50 AM PST by 9YearLurker
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To: politicket

“Oil didn’t skyrocket in 2008.”

So what do you call it going to $140, earthrocketing?


72 posted on 01/14/2022 5:15:14 AM PST by BiglyCommentary
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To: blam

He’s right about China crashing like Japan did at the end of the 80’s due to an insane real estate bubble.


73 posted on 01/14/2022 5:22:06 AM PST by BiglyCommentary
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To: politicket
Oil didn't skyrocket in 2008. In fact, in the economic newsletter I was writing back then I forecast oil to drop to $30.

I guess you have forgotten. I haven't.

https://www.macrotrends.net/1369/crude-oil-price-history-chart

The all-time high was in June of 2008. It was spiking out of control and OPEC couldn't due a THING about it. I think it was one of the catalyst for the financial collapse.

If you predicted $30 a barrel, you must have sold a LOT of newsletters. Because, NO ONE I ever knew was predicting that in the first half of 2008.

74 posted on 01/14/2022 6:46:48 AM PST by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them!it)
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To: politicket

Almost sounds like Modern Monetary Theory.

As I understand MMT, disregard debt (you owe it to yourselves) print money until there’s inflation, then raise taxes to curb inflation. That’s kind of simplified. It’s what Bernie, AOC and others follow. Nearly every country is in debt, and their debt is growing. In that sense money is debt.


75 posted on 01/14/2022 7:25:54 AM PST by dynoman (Objectivity is the essence of intelligence. - Marilyn vos Savant)
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To: 9YearLurker

I’m aware.

I’m one of those that believes there should be no Federal Reserve. No central bank.

The banks have the money. Let them loan it.

Let them be responsible for their own actions.


76 posted on 01/14/2022 8:34:27 AM PST by qaz123
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To: SomeCallMeTim
If you predicted $30 a barrel, you must have sold a LOT of newsletters. Because, NO ONE I ever knew was predicting that in the first half of 2008.

Actually lost a lot of good friends - since I also wrote about how gold and silver would tank.

I found out that people get very angry when one has the audacity to make a prediction about precious metals that differs from the one that would tickle their ears.

77 posted on 01/14/2022 8:46:58 AM PST by politicket
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To: politicket

“the money supply”

V of money is down. Period. Prices⬆ Costs of living⬆ D-Employment.


78 posted on 01/14/2022 8:47:43 AM PST by Varsity Flight ( "War by the prophesies set before you." I Timothy 1:18)
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To: dynoman
As I understand MMT, disregard debt (you owe it to yourselves) print money until there’s inflation, then raise taxes to curb inflation.

What I teach has nothing to do with that.

Money is not "printed" - it is created when new bank loans are created. It is also created when people make purchases with their bank credit cards, etc.

Money is destroyed every time debt is paid off.

79 posted on 01/14/2022 8:50:51 AM PST by politicket
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To: politicket

How has the FED invested in equities?
How does the FED buy MBSs?

Does the FED itself have debt?


80 posted on 01/14/2022 9:21:09 AM PST by dynoman (Objectivity is the essence of intelligence. - Marilyn vos Savant)
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