Posted on 03/18/2009 11:30:01 AM PDT by AngieGal
Edited on 03/18/2009 11:41:54 AM PDT by Admin Moderator. [history]
The Federal Reserve surprised financial markets and committed to buy $300 billion in longer-term Treasurys to help the economy recover.
Sorry left out the source...
MarketWatch
http://www.marketwatch.com/News/Story/Story.aspx?guid={8C08C8DB-1945-4A8A-A047-C3782DE43911}
are these people F#$@ING CRAZY???????????
Here comes Inflation... Welcome to the Carter Regime, Act II.
I had no idea the Fed had that sort of reserve.
I suppose this means we don’t need China’s dirty ole money.
Hooray!
I’m going to go buy stocks because any company I pick will have a better balance sheet because of this!
If I take $20 from my right pocket and put it in my left pocket, did I gain wealth?
This is nuts.
Gov prints money and buys its own debt... I wonder if it discounts its own interest rate?
The equities market is in a suckers rally.
There is a gross and et outflow of foreign money flowing out of US equities.
This is a equities market suckers rally that has almost exclusively American money as the suckers at the table.
When this flushes, this will cause untold harm for years to come.
Gold has gone parabolic in the last 30 minutes....It’s moved up over $45 dollars. UNREAL!!!
Does this mean the Chinese didn't show up to the auction?
Gold agrees with you 100%. Up forty bucks in fifteen minutes. That's one of the sharpest spikes of all time.
With what money? No answer needed -- it's just a rhetorical question. The answer is, with the money We the People haven't even made yet and so will be working to pay off until the seas rise and swallow Washington, DC due to global warming.
What interest rate did you charge that pocket.
Will you have to send the broken nose boys to visit it when it can't make the payments?
Will we soon see that pocket on "pocket foreclosures in your area" infomercials?
Weimar Germany,
Mugabe’s Zimbabwe,
and now ObamAmerica.
Hubby and I just sat and watched the markets go crazy on his computer (he trades commodities) he couldn’t believe the move and thought something was wrong, until I read the screen on CNBC that said ‘Fed to buy another 700 Billion in Mortgage backed securities’...I turned around and said ‘there you go...buying bonds, gotta print $$$, I bet gold is headed back up too....sure enough it was (has been down all morning, and is now up), inflation here we come. All this happened in the space of five minutes. The bond futures June contract just jumped $6k!
The Fed is simply establishing itself as the market maker for Treasuries and in so doing can keep interest rates low. There is a lot of debt that the U.S. government is going to have to finance in the next few years and without the Fed stepping in as a buyer the interest rates on new Treasuries would surely rise. When you have $11 trillion in debt that is growing by leaps and bounds the interest that you are paying out is a huge part of the federal budget - even 3% of $11 Trillion is $333 billion a year in interest. That's big money even by Obama's standards. If interest rates rise on Treasuries it could easily eat into some of that money that Obama plans to direct to Acorn to insure his election in 2012.
Of course we will have massive inflation to deal with down the road (since the Fed will just print that $300 billion) but the important thing is to get and keep the Dems in office. That's how policy is made in this country.
LOL brilliant!
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