{"id":50378,"date":"2020-01-01T11:41:32","date_gmt":"2020-01-01T16:41:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=50378"},"modified":"2020-01-01T11:41:38","modified_gmt":"2020-01-01T16:41:38","slug":"jim-bianco-says-this-is-qe-like-y2k","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=50378","title":{"rendered":"Jim Bianco Says This Is QE, Like Y2K"},"content":{"rendered":"\n

Jim Bianco Says This Is QE, Like Y2K<\/a><\/h3>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

In contrast to Hussman, Jim Bianco, at Bianco Research says the Fed’s repo actions are QE. <\/p>\n\n\n\n

Earlier today I posted, Hussman Sides with Powell: It’s Not QE4<\/a>.<\/p>\n\n\n\n

If Hussman convinced you the Fed was not conducting QE, I will give you a chance to change your mind again.<\/p>\n\n\n\n

\u201cNot QE\u201d Looks a Lot Like Y2K<\/strong><\/p>\n\n\n\n

This is a guest post by permission from Jim Bianco<\/strong><\/p>\n\n\n\n

Jim Bianco at Bianco Research says \u201cNot QE\u201d Looks a Lot Like Y2K<\/a><\/p>\n\n\n\n

We would argue the special lending facility that started in late 1999 to support the feared Y2K computer glitch offers a historical analogy to the current period.<\/p>\n\n\n\n

Stories 20 years ago sound like they are describing what is happening today:<\/p>\n\n\n\n

Dow Jones News Service \u2013 (December 28, 1999)<\/strong><\/em> CASH IS FLOWING LIKE CHAMPAGNE FOR Y2K<\/em><\/a>
The volume of cash that the Federal Reserve has temporarily given to banks to avert potential Year 2000 strains is rising to dizzying levels. Including nearly $20 billion it gave to the banking system in the form of term \u201crepurchase\u201d agreements Monday, the Fed has almost $100 billion in hard currency loans outstanding to banks. That\u2019s the most money lent out through repurchase agreements ever, said Peter Bakstansky, spokesman for the New York Federal Reserve. For some perspective, the Fed had $23 billion in outstanding \u201crepos\u201d in December 1998, and around $9 billion in December 1997.<\/p>\n\n\n\n

The Y2K special lending facility had a similar effect on the Fed\u2019s balance sheet. It was also done for \u201cplumbing reasons.\u201d<\/p>\n\n\n\n

And, as the [Champagne] story points out, the Fed supplied record amounts of repo never before seen at the time.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Jim Bianco Says This Is QE, Like Y2K In contrast to Hussman, Jim Bianco, at Bianco Research says the Fed’s repo actions are QE.  Earlier today I posted, Hussman Sides with Powell: It’s Not QE4. If Hussman convinced you the Fed was not conducting QE, I will give you a chance to change your mind again. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18451,14648,538,661,25538],"class_list":["post-50378","post","type-post","status-publish","format-standard","hentry","category-economics","tag-jim-bianco","tag-michael-shedlock","tag-money-printing","tag-qe","tag-y2k"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50378"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50378\/revisions"}],"predecessor-version":[{"id":50380,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50378\/revisions\/50380"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}