Nope that's the point.. but the significant injection was done back in the last half of 08. That is what has fueled the commodity buy/gold push. The thing is that inspite of more talk of EVEN MORE Quant Easing.. the Fed's balance sheet isn't expanding anymore.. In fact it is contracting.. which is what you would expect.
The Fed BOUGHT Treasury Bonds.. as those have paid out.. the injection is removed.. They have CONTINUED to buy bonds.. and with QE 3 are buying Mortgage backed Securities.. probably at a discount.. so as they are paid back that removes the injection.
The thing to realize is that we've been playing the commodity boom with Kyrie Irving.. and maybe didn't realize it.. The thing is that the Fed COULD switch sides here and then you got to play AGAINST Kyrie.. (oh crud..) So I would NOT be adding to my borrowing list.. it's time to pay things off and possibly lock in rates.. as the undoing of all this easy policy.. assuming that it is warrented.. could be the opposite..??? OR AT LEAST.. not as friendly.
just a hunch/guess.. "I could be wrong." |