161: Mike Agne – When There’s Blood in the Water, Sharks Will Come
Chat With Traders
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The Fed Can't Rake Interest Rights, but They're Going to Do It Anyway
If they want to really stall the economy, if they really think it's getting overheated, they'll need to get that Fed funds up above the tenure rate. What they're doing is it's almost like a stealth QE because every 25 basis point hike that they do, they're giving the banks another $5 billion a year for nothing. It's when they say they're shrinking their balance sheet, well, on the flip side, they're also QEing close to $50 billion a year to the banks. That's a lot of money. I keep talking about this, but I remember LTCM blowing up and it was $2.5 billion or $3 billion
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