Posted on 08/19/2011 5:07:55 PM PDT by TigerLikesRooster
Fed could launch 'Operation Twist' instead of QE3 - The Buzz
Paul R. La Monica, On Friday August 19, 2011, 1:03 pm EDT
The Federal Reserve may have one last thing it can do to help stimulate the economy that wouldn't necessarily be considered "treasonous" by a certain presidential candidate.
Time for Ben Bernanke to put on his dancing shoes?
With the global financial markets convulsing yet again, some experts are suggesting that the Fed could try and calm things down by bringing back a tool it used in the 1960s called "Operation Twist."
That name was partly a reference to the popular dance craze and hit Chubby Checker tune. But it also was a description of what the Fed wanted to do: twist the so-called yield curve by selling short-term bonds and buying longer-term securities. That would bring short-rates up and long-term rates down.
Of course, the Fed already tried something similar late last year with a second round of quantitative easing, a program to buy bonds that was dubbed QE2. In fact, the San Francisco Fed published a paper earlier this year comparing QE2 to Operation Twist.
(Excerpt) Read more at finance.yahoo.com ...
P!
But perhaps the real name is too long, so they'll go with Operation Twist.
to be initiated along with Operation Spin.
I got a silly idea. Why don’t we stop stupid currency manipulations, stop rewarding unproductive consumption (unemployment benefits, welfare) and start rewarding the productive elements of our economy. Or, at least punish them less than we are (Obamacare, corporate tax rates). Like I said, silly.
obama’s like a teen gang robbing a convenience store—grab all they can and run
before the 2012 elections and the adults take over.
Nope, you make too much sense.
You know everything will be alright with these free market pro capitalist reign-in-spending folks.
/sarc
Wonder when business will stop being pushed around by ignorant politicians and academics who have never met a pay roll? How about mass disobedience in filing all the useless government paperwork and just doing business as it was done in the 1950s?
The American people will fix this in 2012 with “operation boot in the a**”
And the name “Twist” allows bimbos to write nice, happy, butterfly-gentle articles about how the socialist banking system is going to save us all.
So much better than “The Margin Squeeze” or “Inflation Crush.”
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