Remember, the Federal Reserve also has to shrink its balance sheet, its not about tapering. Tapering is the easy part, even though that is impossible. The hard part is when the Federal Reserve goes from being a buyer of Treasuries, to being a seller of Treasuries. How is that even possible? Who would step in front of that train?
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
Jan 23, 2014
If The Federal Reserve Withdraws Itself From The Bond Market, It Will Implode
Why would you want to buy U.S. Treasuries? The yields are too low compared with every other asset. Why would`t you just buy stocks? I mean, the yields are too low relative to where inflation is, relative to the risk. If the Federal Reserve materially withdraws itself from the bond market, the bond market implodes.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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