Bank of England flags risk of 'sudden correction' in tech stocks inflated by AI

Post by whimsicalism » Tue, Oct 14, 2025, 3:56 PM UTC

CraigJPerry wrote: post #178

whimsicalism wrote: post #177

Earlier quoted context omitted.

> Is it when the select panel banks, the primary dealers are legally obligated to make fair market bids for every issuance? (there aren't many other markets where the buyer legally obligated to buy) Yes, it comes in at the 'fair market bids' part. When yields spike, the mechanism still “works” legally, but the government’s interest costs and financial stability risks explode in real terms. The “law” doesn’t immunize…

>> Yes, it comes in at the 'fair market bids' part No, you’re confused. The legally obligated “fair market bids” - a tongue in cheek term - isn’t conducted in dollars. I believe you’re thinking of the secondary market activity which occurs at a later time - where private buyers purchase from the primary dealer banks and those txns are in dollars. At the primary dealer purchase stage, the fed provides the funds to pur…