Thread by @skywalker_2k

1/ I just discovered something VERY unbelievable. If I read these data correctly, I think the FED might have tricked all of us. Let me explain, and see if you can help me verify.
@SamanthaLaDuc @Chigrl @HenrikZeberg

2/ The FED announced a bunch of alphabet soup facilities in March 2020, & said will do infinite QE. But, I don't think FED has used all of their bullets; in fact, for some bullets, FED hasn't even fired; take a look at this chart; we have some zeros

federalreserve.gov/monetarypolicy…

3/ And then, FED's report (Factors Affecting Reserve Balances - H.4.1 - current / Apr 23) is confirming that, no shot has been fired under "secondary credit"

federalreserve.gov/releases/h41/c…

4/ And it was also the case as I go backward a few more reports. You can find all these reports on this page of the FED here
federalreserve.gov/releases/h41/

5/ If I read these data correctly, I can't help but to wonder, FED might not have bought any $LQD or $HYG at all! I.e. it has been a BIG LIE just to get the market to rally. Hence, the whole $LQD & $HYG rally triggering $SPX rally might have been a giant sold-to-you supply zone!

6/ If this is true, then my next question is, what have they been waiting for!? Did they simply set up a GIANT SAFETY NET, hope not to use it at all until when it's really needed; hence, when the REAL GFC#2 hits !?

End thread

@threadreaderapp unroll