‘This Is Not A Printing Press’

Seeking Alpha | Oct 17, 2019 at 3:53 PM
  • Rene Magritte’s 1929 painting “The Treachery of Images,” depicts a tobacco pipe with a caption that reads “Ceci n’est pas une pipe,” (French for “This is not a pipe”).
  • The only difference between then and now is that in 2008-2014 the Fed targeted the longer-dated end of the bond market, and this time it is targeting the shorter end…at least for now.
  • As it turns out, the Fed’s $50 billion per month of bond sales, which began early in 2018 and ended in Second Quarter of this year, drained liquidity from the overnight market at the same time increased government borrowing was sucking up all available cash.