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The Fed's prodigious bond-buying has pushed its balance sheet to above $3T, with total assets...

The Fed's prodigious bond-buying has pushed its balance sheet to above $3T, with total assets rising $48B in the past week to a record $3.01T as of Wednesday. The balance sheet is now more than triple its size on September 10, 2008, the week before Lehman Brothers collapsed. "We're in uncharted territory," says former Fed economist Julia Coronado.
Comments (6)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Our "markets"...our "stocks"..our "bonds"...or our "GDP"...this explains it all....its all fake....and usually that ends up bad...
    25 Jan 2013, 06:56 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8855) | Send Message
     
    GDP is a fake indicator. GDP measure 'spending'. All you have to do is keep spending and the GDP rises. If the consumers falter, the government spends. Keepting GDP positive means more and more debt. Which means a weaker and weaker currency. Which means more and more invisible inflation.

     

    I can see an indicator that measures 'income' growth as being reflective on an expanding economy. But debt expansion is negative for an economy, not positive. Debt spending increases GDP so debt-to-GDP actually declines up to a certain point by more debt spending...which is insane.
    25 Jan 2013, 07:15 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "'We're in uncharted territory,' says former Fed economist Julia Coronado."

     

    Get with the program Ms. Coronado. Members of the cognoscenti don't use "uncharted territory." They use the new term for the post post-modernists: "new new-normal."

     

    Got got got that?
    25 Jan 2013, 07:42 AM Reply Like
  • mweaver
    , contributor
    Comments (201) | Send Message
     
    headed to 4 trillion
    25 Jan 2013, 07:58 AM Reply Like
  • Mike Burns
    , contributor
    Comments (31) | Send Message
     
    The Fed can never unwind these bonds. Doing so would cause a stampede, a spike in interest rates, and then it's game-over for the US gov't which couldn't meet their interest obligations.

     

    Instead, the Fed must continue to create exponentially more money, month after month, in an effort to keep things looking normal as long as possible.
    25 Jan 2013, 08:17 AM Reply Like
  • recession12
    , contributor
    Comments (170) | Send Message
     
    I bet each bond they buy is worth 20% less than face value, because they are buyingg bonds at the top of the market
    25 Jan 2013, 09:14 AM Reply Like
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