The Great Rebalancing
why would household wanna feel the liquidity gap? what if they just hodling their equities and crypto asset and refuse to buy any bond?
For the second to last bullet point, is it a given that households will fill that gap or could Treasury yields increase until the Fed potentially reverses course?
Dumb question: How does selling equities fund increased Treasury supply? There's a buyer for every seller, right? Where's the money to buy come from?
why would household wanna feel the liquidity gap? what if they just hodling their equities and crypto asset and refuse to buy any bond?
For the second to last bullet point, is it a given that households will fill that gap or could Treasury yields increase until the Fed potentially reverses course?
Dumb question: How does selling equities fund increased Treasury supply? There's a buyer for every seller, right? Where's the money to buy come from?