Thursday, November 8, 2012

Operation Titty Twister

The following chart shows the Fed's treasury securities maturing in more than 10 years divided by the Fed's treasury securities maturing in 1 to 5 years.


Click to enlarge.

The twisting will continue until morale improves?

What is Operation Twist?

“Operation Twist” is a program conducted by the U.S. Federal Reserve (“the Fed”) in late 2011 and 2012 to help stimulate the economy. Operation Twist is the nickname for the Fed’s initiative of buying longer-term Treasuries and simultaneously selling some of the shorter-dated issues it already held in order to bring down long-term interest rates.

From Dusk Till Dawn

After successfully reaching Mexico, they arrive at the "Titty Twister", a strip club/brothel in the middle of a desolate part of Mexico, to meet their contact Carlos at dawn.

Coincidence?



What would we do without gallows humor?

Source Data:
St. Louis Fed: Custom Chart

7 comments:

  1. Inside, Seth and Richie drink heavily, encouraging the entire group to do the same.

    Operation Twist?
    Operation Titty Twister?

    It's very hard to tell them apart, lol. Sigh.

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  2. When I saw the title, I immediately thought of Dusk to Dawn, even before I read the article.

    Maybe I'm psychic?

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  3. I'm not really anonymous, or am I?

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  4. As of October, comparing the outstanding marketable non-TIPS treasuries to what the Federal Reserve currently has on its books: 38% of treasuries with 5+ to 10 years to maturity, and 33% of treasuries with 10+ year to maturity are held by the Fed. In all, the Federal Reserve has 37% of all outstanding US treasuries with a maturity of 5+ years.

    I assume they will keep going until every treasury on their book has 5+ years to maturity. What then? Repo assets for the next TAF/TALF? And how many MBSs will they have by 2015, $1.8 trillion?

    http://www.treasurydirect.gov/govt/reports/pd/mspd/2012/2012_oct.htm

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  5. Mr Slippery,

    I'm dismissing it as chance. ;)

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  6. Luke Smith,

    What then?

    Operation Supertwister?

    Sorry, just more gallows humor.

    ReplyDelete