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Non-Tech : The Woodshed

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From: Wade	9/20/2017 4:21:31 PM
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marketwatch.com "U.S. stock benchmarks ended a volatile session mostly in the green, with the Dow and the S&P 500 carving out fresh all-time highs, as the Federal Reserve announced that, for the first time in nine years, it would start reducing the size of its $4.5 trillion asset portfolio commencing in October. The U.S. central bank kept interest rates unchanged, as widely expected, but said it would start to shrink its balance sheet by $10 billion a month. The Fed also signaled a December rate increase remains on the table as the central bank embarks on an unprecedented unwind of crisis-era asset purchase that had helped to buoy markets over the past decade." How do they unwind $4.5 trillion by $10 billion a month? Does it mean someone has to buy those junk derivatives from the Fed? Or, someone has to come up the money to pay for it. Where is the money from? How about issuing more black shadow debts and using it to reduce the real debts? Or, issuing more dark derivatives to pay for the debts? Hmmmm... we shall know pretty soon.

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