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kleinbl00 · 1674 days ago · link · · parent · post: The Fed just pumped $128 billion into markets to pull down interest rates, its first injection in 10 years
So... a little math. QE, the first round of mortgage-backed securities bought by the Fed under Bernanke, ultimately ended up being $600b. QE2, the second round, was $600b of t-bills. QE3 was $40b a month for three months, until that didn't work, then it was $85b a month, then it was working so Bernanke brought it back to $60b a month after six months, at which point the Dow dumped 4%. We're at a quarter of QE1 or QE2 and more than three months of QE3. In two days. A billion here, a billion there and before too long we're talking about real money. I'll say this much: the algorithms trading 85% of the securities out there don't know what a "repo" is either.