[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 229 KB, 600x685, 4970327832434234.png [View same] [iqdb] [saucenao] [google]
50112909 No.50112909 [Reply] [Original]

Quantitative tightening is being used for the first time in history, and it's going to be a disaster
Even in theory they know it only works when markets are consistently positive
We've been in a recession for half a year and everybody is afraid to say it. Truly a modern day Emperor's New Clothes
As soon as it's announced that we're actually in a recession there will be massive layoffs
Expect at least 25% real unemployment, likely higher
I hope you guys are prepared

>> No.50112922
File: 389 KB, 478x340, SSSS33333.png [View same] [iqdb] [saucenao] [google]
50112922

>>50112909
they will immediately backpedal and go back to pumping liquidity when they realize they cant tighten at all without melting down teh world.

protip: world will melt down anyway

>> No.50113141

>>50112909
bobos are such midwits jesus christ

>> No.50113309

It was used in 2019. As usual boobs are fucking retards.

>> No.50113319

>>50112922
Not this time bobo. Sorry but you are incorrect

>> No.50113400

>>50112909

Quantities Tightening is just the Fed divesting itself of the assets it purchased. Unless they're planning to fire sale them at an enormous loss... I don't see the issue.

The problem is the artificial inflation of asset prices on cheap QE cash. It was never going to last, it's like stretching an elastic band, the market will always eventually return to the fundamentals. It would take ever increasing amounts of QE just to tread water.

Eventually it will be a whole lot of government debt that created a few good years and a decade of recession and stagflation.

>> No.50113422

>>50112909
>Quantitative tightening is being used
No it's not, the whole thing was a lie

>> No.50113421

>>50112909
>QT first time in history
Do permabears really?

>> No.50113434

>>50112909
it was used in 2018-2019 but back then there was economic growth and even then they had to stop it.

This time shit is already collapsing anyway so it's a larp.

>> No.50113485

>>50112922
only in your dreams, baggie

>> No.50113629

>>50112909
It was already announced 6 months ago.
Every normie knows it and talks about it.
I own massive quantities of chain link.
I’m buying more and you can’t stop me.

>> No.50114297

>>50112909
the boj didn't even pretend and de facto nationalised its entire bond market
the eu said they would tighten and already the ecb prepared a completely illegal bond buying program, they never even got to any tightening
the fed has said they will tighten but their balance sheet runoff is nothing yet it just flat and on top of that there is the still ongoing easing through the repo facilities that doesn't show up in the balance sheet

so in short nothing has tightened yet and the world is already breaking apart
it will not be long until they start massive easing again, especially the ecb is going have to bail out/nationalize the entire eu energy sector before this winter or risk both people freezing to death and the entire eu bank sector to implode 2008 style
its not a good time to be a bobo

>> No.50114365

>>50112922
QT

>> No.50116164

>>50113434
>back then there was economic growth
why was it there?

>> No.50116288

bobos are such midwits jesus christ

>> No.50116347

QT / QE doesn't do anything. It's a nothingburger.

>> No.50116372

>>50112909
nothing burger, they already announced that they will stop "tightening" by the end of the year and we're already more than halfway there.

>> No.50116411
File: 14 KB, 480x360, bigal.jpg [View same] [iqdb] [saucenao] [google]
50116411

>>50113485
in yer dreiiiimz baggie, in yer driiiimz

>> No.50116541

>>50113434
>economic growth
>after 2008
Anon, I...

>> No.50116921

>>50116347
>It's a nothingburger
why?

>> No.50117020

>>50116372
>they already announced that they will stop "tightening" by the end of the year
where?

>> No.50117042

>>50112909
>Quantitative tightening is being used for the first time in history
>he thinks central banking is new

>> No.50117052

I work in defense. I literally can't be fired.

>> No.50117096

>>50112909
they're back to doing QE before EOY

>> No.50117142

>>50112909
This is going to be worse than the great depression because of overpopulation, most people are useless doughy eaters now

>> No.50117488

>>50117042
You have no idea how banking works, do you?

>> No.50117533
File: 69 KB, 750x1334, 9sgm6ebzzj141.jpg [View same] [iqdb] [saucenao] [google]
50117533

>>50112909
because you're panicking over transitory deflation.

>> No.50118266

>>50117488
well neither do the central bankers themselves apparently
the walking leather couch referred to as lagarde studied law and english, i'll let you take a guess at 'early life section'

>> No.50119364

>>50117533
>transitory
you people actually believe this holy shit

>> No.50119497

>>50116372
lol QT hasn't event started yet. It will begin this month. And it is when they remove money out of circulation. We've been doing quantative easing since 2008 since that crash.

The problem is that they never stopped

>> No.50119533

>>50119497
>The problem is that they never stopped
The problem is thinking you can just negate QE with QT, something that has never been observed in reality

>> No.50119562

>>50113421

the first time in history since 2017-2019!

>> No.50119585

>>50119562
>try it one time for a couple months at a time
>it fails every time
>this is totally QT and not a failed experiment guise

>> No.50119608

QT was actually scheduled for June 1st, but they were still QE halfway through June.

>> No.50119701

>>50112922
What is your logic for your assumption?
Look at the Biden Phrase "BUILD BACK BETTER"
To build something back you must first destroy that thing.