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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (22770)	12/2/2004 4:42:17 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Kind of a broad tough topic to give a brief synopsis on, but here's where one can start to do homework, numerous links: omo.co.nz The Fed monetized 704 m, and foreign custody holdings were up 5,887b. federalreserve.gov Those are about average. So the question begs, if the average for custody holdings, bought outright (Fed debt monetizing), and OMO repo activity (X9) is about $12 billion a week, jessel.100megsfree3.com why did the Fed do three permanent injections in one week totalling $3,652 billion X 9= $32.868 billion? And that's AFTER extra goosing going into the Election. Instead of pausing, they've hit the accelerator. That's far more than the system needs for "normal" money printing. I just don't have an explanation for this, although one wonders why bonds are selling off despite this massive heavy handed intervention. Who's selling?