Obviously the Fed can't and isn't going to pump liquidity into the market forever.
The idea is that in QE1 and QE2, if buys treasuries....this is supposed to keep interest rates low, and puts cash back into institutions selling them to the FED.
THEN...when things improve, it SELLS those billions of treasuries back into the system, squaring its own books and tightening liquidity in the process.
wednesday trading, page-63
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