[TenthAmendmentChampion]

Someone called this the "snake eating its tail."

[TenthAmendmentChampion]

ping

[OB1kNOb]

Also called "Quantitative Easing"

Also called "Monetizing the Debt"

Also called "printing money"

Also called the beginning of the end......

[b4its2late]

At the same time, the Fed left a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most -- if not all -- of next year.

Unlikely. Hello Jimmy Carter!

[kc8ukw]

This had been predicted by many as a future step we would see on the way to hyperinflation. Hurray.

[theruleshavechanged]

It’s stupid ap headline. . . the real news is this:

The central bank will buy an additional $750 billion mortgage securities, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt.

That’s an outrage! Can we talk about this instead of AIG?

[elpadre]

Where is the $300B coming from?? or should I ask??

[jsh3180]

[TenthAmendmentChampion]

It’s a traveshamockery. Of the nth degree.

But AIG and the proposal to make servicemembers pay for their own war injuries are smokescreens to keep us from realizing what was happening with the economy.

[SMARTY]

Can you say Weimar Republic?

[TenthAmendmentChampion]

Didn’t the Treasury bailout the Fed not long ago?

And what is the Fed if not the banks united together?

I bail you out and then you bail me out. Who’s on first?

[silverleaf]

lender here quoting 4.75% 30 yr fixed mortgages

unbelievable

[Nervous Tick]

>> Someone called this the “snake eating its tail.”

Law enforcement authorities call it something else: kiting checks.

Ben Bernanke can do it on a breathtakingly large scale and get away with it.

If you do it on a relatively teensy scale, however, YOU will go to jail.

Hey semantic... I thought there was “no way” Bambi ‘n Ben would dare to employ quantitative easing! (And don’t get all “semantic” on me :-) ... that is EXACTLY what this is.) Sort of throws a wrench in the “starve ‘em out” machinery.

[Mad_Tom_Rackham]

So, the government is borrowing from itself?

[xcamel]

more-ish
http://www.freerepublic.com/focus/f-news/2209144/posts

[Centurion2000]

This is the beginning of monetizing the debt. Hello inflation.

[JSDude1]

So the Treasury sells bonds..which the Federal Reserve buys up (and we the taxpayers are supposed to pay them back at interest-eventually, in theory..), Where does the Federal Reserve get the money to buy the Bonds, from Treasury (newly printed-or created out of thin-air I presume) which then lends it to Federal Reserve to buy it’s own bonds (I guess they would lend it at the same rate at which the bonds yeild to Federal Reserve-”balancing it out”? The only thing new out of this is the new “money”..

Am I correct?

[Knitting A Conundrum]

Saw that, and said I’m glad I’ve been doing the bit I can as my hedge against inflation...Our country is being managed by idiots.

[nicola_tesla]

Weep for your country. The short bus riders of the markets will be waking up soon, right after they stupidly buy into this.

This will just further crush the real economy, as this will NOT get translated into wages. Prices go up, wages remain the same, the real economy goes boom.

The only thing we can look forward to is the ramping yields on the T-bills. Anybody else remember the 80s ? I’ll happily take a double or triple digit return on my T-bills.

[Psycho_Bunny]

Paying Peter to pay Paul to pay Peter to pay Paul

[jarofants]

Isn’t this like shooting dice with your wife?