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Goldman Expects QE4 To Start With A Bang: The Fed Will Buy $60BN Monthly For 4 Months
One month ago, and roughly four weeks before Fed Chair Powell "stunned" markets by announcing the Fed would resume its permanent open market operations, i.e., bond purchases, i.e., permanent balance sheet expansion , i.e., QE, we laid out precisely what was about to happen in "The Fed Will Restart QE In November: This Is How It Will Do It." As we explained at the time, the dramatic recent blow out in the Fed Funds-IOER spread indicated that there was a roughly $400 billion shortage in reserves. That shortage is what prompted Goldman to project that with repos clearly insufficient to restore liquidity to the ... (full story)
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- Not-KPMG
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Beware of robber banks (RB), bad advisors.