Current Events — HabitableZone

Current Events » in reply to Yep, true, but the fed is handing out absurdly low rates

in other words

I am familiar with the fundamental mechanisms at play- its not the mechanism, but the way its being used right now that is extraordinary. While the fed has dropped the Short Term interest rate before, it has never (to my knowledge) accepted the sort of instruments its accepting as 'collateral'. You could say thats because these instruments are relatively new, or you could also say that its a giveaway because the instruments could be garbage.

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