iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,609 Blog Posts

More Evidence The Fed is Lost: Zerohedge Gets Email From FOMC for Research Report

What the fuck is going on here?

Tyler just put the Fed on blast.

Via ZH:

As we explained in detail, the main reason why the Fed should be concerned, is that according to a research report from BofA’s Marc Cabana which we used extensively in the report, the Fed may be forced to launch Quantitative Easing as soon as Q4 to provide the market with the much needed liquidity, or else suffer the consequences of a major liquidity shortage. To wit, in describing the various steps the Fed can engage in, this is what the BofA strategist said:

Outright QE: after OMO dealer capacity is exhausted the Fed may need to start permanently expanding its balance sheet. The Fed would likely describe this as offsetting “bank reserve demand and growth in other non-reserve liabilities”. Regardless, it would represent the Fed permanently buying USTs outright to maintain control of funding markets well above the ZLB.

Well, it appears that the Fed paid attention, because moments ago we received an email from a Federal Reserve researcher which should make everyone very, very nervous. Specifically, the “rather urgent request” from a Fed staffer (no, not Edward Quince) seeks the full Cabana report whose gist, as noted above, is that the Fed will have to launch QE4 in very short notice to offset the upcoming liquidity drain

Sigh.

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18 comments

  1. numbersgame

    This isn’t as bad as it sounds:
    1) The request is from a Research Assistant, not exactly a high-ranking FED official
    2) The RA is not looking for a ZeroHedge Report – they are looking for a Bank Of America report. Of course, a competant RA would have requested it directly from Mark Cabana at BaC

    Anyway, sometime soon we will have a nice bounce:
    https://money.cnn.com/data/fear-and-greed/

    Forget stocks and bonds: cash heavy is the best play

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    • bankindamonkey

      Agree with #2. This seems made up. There is no way he actually emails zerohedge from his work email and using his actual email signature.

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      • numbersgame

        OR the alternative: that he *DID* email ZeroHedge preceisely because this particular RA is NOT competant. My take: real email, from a FED employee with little common sense and < 3 years experience out of college/grad school.

        You really think the FED – a quasi-governmental agency – has a 1.000 batting average when it comes to hires?

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    • numbersgame

      “soon we will have a nice bounce”,

      For those playing at home, take another look at the market charts and the timestamp of my comment. Toot, toot.

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  2. numbersgame

    Also, the TL;DR version of the original ZH/BofA article:

    (2018 Tax Cuts ->)
    Huge upcoming budget deficits ->
    Huge amount of treasuries to be sold to fund said deficit ->
    Not enough buyers for these Treasuries ->
    Interst rates will spike **up** if the FED doesn’t buy these Treasuries

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  3. openwater747

    Hey Fly, I retrieved my account just to help you out.
    You can take a 200mg prophylactic dose of amoxicillin within 24-72 hours of a tick bite to (likely) prevent Lyme transmission. You should have some around the house. Or go to the ER if you can’t source some immediately. Good luck

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  4. openwater747

    I meant DOXYCYCLINE

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    • trumpmeister

      Considering this bs post, I think that Fly is suffering from Lyme encephalopathy. Ampicillin or doxycycline will no longer suffice. Fly needs to be admitted to an inpatient unit and be given IV ceftriaxone to unfuck his head.

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  5. ericbakerbruce

    Or try the generic Viagra: Mycoxafloppin

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  6. spaceman

    I thank God I to have been reading ZH for years it got me into DISASTER MODE this year (truthfully they permanently kept me there) now I’m in good company and on my way to riches.

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  7. mx2101

    I think it speaks well for FED. Staffers are watching flotsam and jetsam of Internet and social media, and following up. Odds are FED organization has better and more accurate information than one industry pro, but they keep an ear to the ground just the same.

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  8. helen

    Why hasn’t everyone caught up to the fact that ZH is a propaganda machine working directly for putin!!!

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  9. oilerua

    rofl . people show his pussy so fast this time of the financial era . zerohedge been wrong on forecast for years now

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  10. og

    What ever happened to ZeroPointNow?

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