Talk about creating moral hazard. The Fed has corned almost 40% of all Treasuries over 5 years in maturity. I've just discovered the bottom line for QE: the Fed's 4 years of QE, QE1, QE2, and QE3 has consolidated almost 40% of all Treasury securities over 5 years in maturity and 25% of all the mortgage backed securities not owned by Fannie Mae and Freddie Mac. Just how do you suppose Chairman Yellen will devise an exit strategy to this concentrated ownership that makes up some $3 trillion of the central bank's $4 trillion balance sheet?
|