Replies to post #308744 on SPDR S&P 500 (SPY)

[fitzwell11]

I understand BE, truly I do (was top of my class in accounting, finance and Econ. Means nothing for trading but I do understand the Fed liquidity piece of this). But I’m telling you, the Fed has fully lost control. They cannot stop what’s coming.

[Tbags7]

So I was able to hear some info on these Fed dollars from a reliable source at the Chicago Federal Reserve and where these dollars are truly ending up. All they are really doing is sitting on bank balance sheets as reserves in order to provide more liquidity for the ratios banks need to maintain to loan out to the public. So it may not create the inflation you’re thinking because it isn’t necessarily all in circulation. They were able to give the banks more security to loan money, so sure those dollars are out there, but if it’s sitting in a bank vault, it doesn’t cause inflation.