Wrong.
Over $2.2 trillion of the monetary base is printed (and minted) money.
Posted on 01/13/2022 5:10:48 PM PST by blam
Through QE (Quantitative Easing)
How does the FED buy MBSs?
Using banks as the intermediaries, since corporations don't have direct access.
Does the FED itself have debt?
Yes, the FED has a balance sheet.
And I am with you on that!
“How has the FED invested in equities?
Through QE (Quantitative Easing)”
Where do they get that money?
It appears as new money electronically.
I can’t get my head around it.
Wrong.
Over $2.2 trillion of the monetary base is printed (and minted) money.
The Fed buys a bond from a Primary Dealer...
Amherst Pierpont Securities LLC
Bank of Montreal, Chicago Branch
Bank of Nova Scotia, New York Agency
BNP Paribas Securities Corp.
Barclays Capital Inc.
BofA Securities, Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse AG, New York Branch
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Mizuho Securities USA LLC
Morgan Stanley & Co. LLC
NatWest Markets Securities Inc.
Nomura Securities International, Inc.
RBC Capital Markets, LLC
Societe Generale, New York Branch
TD Securities (USA) LLC
UBS Securities LLC.
Wells Fargo Securities, LLC
....and credits their account at the Fed. Presto!! New money from thin air.
They print the money to buy the bond?
.....and credits their account at the Fed.
Like adding numbers to their checking account.
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