Let's rewind to the 2019 liquidity surge. August rolled around—quantitative tightening wrapped up. Then? Chaos. Repo markets exploded that fall, rates shot to 10% overnight. Classic liquidity crunch.
The Fed's response? Pumped in $60 billion monthly via Treasury bill purchases. Called it "balance sheet management," not QE. Sure.
What happened next tells you everything. By February 2020—right before the world flipped—the S&P had climbed 17-19%. Nasdaq? Even wilder, up 25-28%. Gold quietly positioned itself too.
Liquidity injections don't lie. When central banks open the taps, risk assets fly. Different cycle, same playbook.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
8 Likes
Reward
8
5
Repost
Share
Comment
0/400
MetaMisfit
· 12-08 04:49
To put it simply, it's just printing money—just using a different name and some jargon.
View OriginalReply0
OnlyUpOnly
· 12-08 04:47
Isn't it just putting on a new disguise to continue loosening up? They've been using the same tricks for years anyway.
View OriginalReply0
BoredStaker
· 12-08 04:38
Here we go again with the same old trick—just change the name and it's not QE anymore? What a joke.
View OriginalReply0
rekt_but_resilient
· 12-08 04:38
To put it simply, it's just printing money. The trick has never changed.
View OriginalReply0
StakoorNeverSleeps
· 12-08 04:35
Call it "balance sheet management," sure, haha. I'm tired of hearing this spiel.
Let's rewind to the 2019 liquidity surge. August rolled around—quantitative tightening wrapped up. Then? Chaos. Repo markets exploded that fall, rates shot to 10% overnight. Classic liquidity crunch.
The Fed's response? Pumped in $60 billion monthly via Treasury bill purchases. Called it "balance sheet management," not QE. Sure.
What happened next tells you everything. By February 2020—right before the world flipped—the S&P had climbed 17-19%. Nasdaq? Even wilder, up 25-28%. Gold quietly positioned itself too.
Liquidity injections don't lie. When central banks open the taps, risk assets fly. Different cycle, same playbook.