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Old 02-12-2018, 12:36 PM
 
8,192 posts, read 3,396,865 times
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Quote:
Originally Posted by jrkliny View Post
90% of the article you posted is just plain nonsense from someone who has no knowledge. Your opinions are about the same.


US central banks are not legally able to invest in the stock market. If you have information that the banks hold US stocks, you should become a whistleblower and retire extremely rich.


About the only truth in this article, is the reference to US stocks owned by the Swiss National Bank. The $80B in holdings is a drop in the $25000B US stock market.
US central banks can buy stocks indirectly.
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Old 02-12-2018, 12:43 PM
 
8,192 posts, read 3,396,865 times
Reputation: 6061
Quote:
Originally Posted by jrkliny View Post
90% of the article you posted is just plain nonsense from someone who has no knowledge. Your opinions are about the same.


US central banks are not legally able to invest in the stock market. If you have information that the banks hold US stocks, you should become a whistleblower and retire extremely rich.


About the only truth in this article, is the reference to US stocks owned by the Swiss National Bank. The $80B in holdings is a drop in the $25000B US stock market.
https://www.forbes.com/sites/investo.../#7f984de74da7

You are naive.
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Old 02-12-2018, 01:21 PM
 
Location: Texas
5,872 posts, read 8,077,758 times
Reputation: 2971
Quote:
Originally Posted by Good4Nothin View Post
You are incorrectly mis-reading that article. The line where it says the money is buying stocks, is NOT from the FED. The U.S. Federal Reserve CAN NOT purchase stocks directly. The money they refer to comes from the FOMC decision and the action of the boards either buying/selling gov't securities, manipulating the discount rate, and raising/lowering reserve requirements for member banks. They did this significantly through QE, which put excess requirements on banks books, in exchange for buying debt & securities (debt/LT/distressed assets).

The FED does not print, nor does it create money.
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Old 02-12-2018, 01:58 PM
 
8,192 posts, read 3,396,865 times
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Quote:
Originally Posted by txgolfer130 View Post
You are incorrectly mis-reading that article. The line where it says the money is buying stocks, is NOT from the FED. The U.S. Federal Reserve CAN NOT purchase stocks directly. The money they refer to comes from the FOMC decision and the action of the boards either buying/selling gov't securities, manipulating the discount rate, and raising/lowering reserve requirements for member banks. They did this significantly through QE, which put excess requirements on banks books, in exchange for buying debt & securities (debt/LT/distressed assets).

The FED does not print, nor does it create money.
But this is just silly.

The Fed doesn't buy stocks directly, but it finds indirect ways to get its QE money into the stock market.

The Fed doesn't print paper money, but QE DOES create money. This is well known, so why you don't know it I can't imagine.
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Old 02-12-2018, 02:16 PM
 
Location: Texas
5,872 posts, read 8,077,758 times
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Quote:
Originally Posted by Good4Nothin View Post
But this is just silly.

The Fed doesn't buy stocks directly, but it finds indirect ways to get its QE money into the stock market.

The Fed doesn't print paper money, but QE DOES create money. This is well known, so why you don't know it I can't imagine.
QE does create increase reserves on who....member banks. Member banks can then go out into the market to participate, lend and/or invest.

THE FED DOES NOT BUY EQUITIES, NOR inject money directly into the stock market. There is a reason it's called MARKET OPERATIONS.
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Old 02-12-2018, 02:31 PM
 
8,192 posts, read 3,396,865 times
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Quote:
Originally Posted by txgolfer130 View Post
QE does create increase reserves on who....member banks. Member banks can then go out into the market to participate, lend and/or invest.

THE FED DOES NOT BUY EQUITIES, NOR inject money directly into the stock market. There is a reason it's called MARKET OPERATIONS.
If the Fed can create money in member banks, with QE, and the member banks can invest in the stock market,

THEN THE FED CAN INDIRECTLY GET MONEY INTO THE STOCK MARKET.
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Old 02-12-2018, 02:39 PM
 
7,898 posts, read 7,093,903 times
Reputation: 18587
Quote:
Originally Posted by Good4Nothin View Post
But this is just silly.

The Fed doesn't buy stocks directly, but it finds indirect ways to get its QE money into the stock market.

The Fed doesn't print paper money, but QE DOES create money. This is well known, so why you don't know it I can't imagine.
Over the years I have seen you stick to your guns and argue with everyone. Typically you consider yourself right and everyone else wrong. You might just once try to understand and realize that what you "imagine" is not correct.


The Fed does not buy stocks directly or indirectly. The Fed can lower interest rates to stimulate borrowing and to make investment in bonds less desirable than investing in stocks. The Fed can also buy or sell government securities to effect rates and money supply.
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Old 02-12-2018, 02:43 PM
 
8,192 posts, read 3,396,865 times
Reputation: 6061
Quote:
Originally Posted by jrkliny View Post
Over the years I have seen you stick to your guns and argue with everyone. Typically you consider yourself right and everyone else wrong. You might just once try to understand and realize that what you "imagine" is not correct.


The Fed does not buy stocks directly or indirectly. The Fed can lower interest rates to stimulate borrowing and to make investment in bonds less desirable than investing in stocks. The Fed can also buy or sell government securities to effect rates and money supply.
Did you read this?
https://www.forbes.com/sites/investo.../#69d949f04da7
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Old 02-12-2018, 02:54 PM
 
7,898 posts, read 7,093,903 times
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Originally Posted by Good4Nothin View Post
Did you even read the date on the article? Do you have any idea when QE tapered off or ended?
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Old 02-12-2018, 03:03 PM
 
8,192 posts, read 3,396,865 times
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Quote:
Originally Posted by jrkliny View Post
Did you even read the date on the article? Do you have any idea when QE tapered off or ended?
It has not ended yet. They started unwinding last fall.

Last edited by Good4Nothin; 02-12-2018 at 03:12 PM..
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