Solarbird (solarbird) wrote,
Solarbird
solarbird

This is potentially serious, guys

I don't understand the ramifications of yesterday's Fed's actions well enough here to post a top-level comment about it yet, but if they're diverting holdings to long-term bonds now that implies have to be thinking short-term bond rates are going to spike up past current long-term rates, and that'd be on the order of 8x what you see now in short-term bond interest? So, um, yeah, that's kinda not good. Be aware.
Tags: economics
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