You need to wake tfu, always moaning about market rising even though it appears you are a trader, the Fed is screaming to you which side of the trade you should be on, and all you do is complain. Forget about being a moral warrior, we've heard your message a million times, go long or go home!
Your title is misleading...Anything to keep the equity markets propped up? If they did truly do that, they would never drop 30 from their peaks, like they have. Days like this are cause for nervousness. We've seen days like this (see below) many times up and down for the past month. But in my mind, when GC disconnects from ZB and the equities, things are awry! What is wrong with that picture?
Be fair - you embellished your thread title and text a great deal. Maybe you have a future at MSNBC or CNN.
I told you all along! FOMC only cares about the stock market. That is their only barometer of success. Screw the general public and the "normal" economy. Only save the rich and all is fine and dandy.
What, you didn't know already? Bond moves in inverse to stock. So does gold (for the most part, but it's been moving in tandem lately)
I don't think OP embellished anything. These are the "key points" in that article the OP linked: KEY POINTS “I frankly don’t think it’s necessary at this point ... but longer term it wouldn’t be a bad thing for Congress to reconsider the powers that the Fed has with respect to assets it can own,” Yellen told CNBC’s Sara Eisen. Normally, the Fed is only allowed to own government debt and agency debt with government backing, Yellen said. The central bank has also received special powers during the coronavirus outbreak to buy other assets such as corporate debt through exchange-traded funds. Still, “the Fed ... is far more restricted than most other central banks,” Yellen said.
Not politically popular, but at some point after balance sheets stabilize - open up the discount window to finance buybacks.
Yes, and that is the point. GC and Bonds generally move with each other. GC being the outlier, PLUS the magnitude of the moves we have seen, is cause for concern.
Well the title is not misleading at all. I mean if you break it down the fed buying equities would be nothing but a straight prop job. I mean it doesnt get any more insane than that, unless they give up hundreds of thousands each and we get to buy stocks with that free money. How does that breakdown sound?
For better comparison, GC should be compared with DX (dollar). Be that as it may, have you ever considered who are scooping up GC? Perhaps Central Banks around the world?