Skip to main content
No. of Recommendations: 0
And, of course, no one has to buy something just because it's up for sale.

Which is what brought us to the pants engaging moment in 2008. No-one was willing to take enough of a haircut on their holdings to price them so they would sell, so the Treasury and Fed stepped in to sop up the mess.

When that lad a the PBOC starts to wonder about their holdings. the Goldman people in the administration will call their counterparts at Goldman to forward enough cash to Goldman to soak up everything the Chinese, and everyone else, wants to sell, for resale, at a profit, to the Fed and Treasury. The Fed then will offer attractive interest rates for the banks to deposit the cash received for the Treasuries at the Fed. No extra cash in the real economy. No excessive inflation.

Print the post  


This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.