Bart, this has been surely happening for some time, and it is
causing some confusion for me personally. What is SOMA?
What is printing? How much does the Fed really print? You
are right, these securities are showing up in SOMA,
or at least they should be. Are
all of them showing up there? Or not.
So:
If the Fed buys from dealers, then it's called a coupon
pass, and we believe it is "printing". But... if they
drained SOMA, replacing some maturing securities, then is it?
If the Fed buys from the treasury, then it is printing,
obviously, if the Fed created money out of thin air.
However, if it is just replacing stuff in SOMA, then it
is not.
I am confused -g-
In any event, there is obviously a mechanism for the
Fed to print WITHOUT it showing up in coupon passes,
and, if some securities are not showing up in SOMA,
then we've got a major issue. -ggg- |
