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To: rb22982
The fed is almost out of bullets. They only have 2 left and only one of which could work — buy US Gov’t long bonds. The next is printing but there are a lot of issues there

The Fed could buy high yielding corporates. They could buy GNMAs. They could buy CDOs. They could buy real estate. They can buy anything, not just Treasury securities.

32 posted on 01/27/2009 5:13:11 AM PST by Toddsterpatriot (Will the doomers ever buy a calculator?)
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To: Toddsterpatriot
The Fed could buy high yielding corporates. They could buy GNMAs. They could buy CDOs. They could buy real estate. They can buy anything, not just Treasury securities.

And how does this solve the debt funding problem? The Fed buying existing obligations (to bail out Wall Street scum) will put no new money into the system.

38 posted on 01/27/2009 8:53:50 AM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: Toddsterpatriot
The Fed could buy high yielding corporates. They could buy GNMAs. They could buy CDOs. They could buy real estate. They can buy anything, not just Treasury securities.

What will they buy them with, TP? More thin-air money, to saddle our children with more debt?

The writing is on the wall, for those who can read.

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-~~Ludwig Von Mises


46 posted on 01/27/2009 11:16:21 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Toddsterpatriot
They already have bought corporate bonds & through swaps already are have CDOs on their books which indirectly is buying real estate--how do you think their balance sheet ballooned from 500 billion to $2.4 trillion in less than 6 months? They already are buying FRE/FNM bonds by the billions which is like indirectly buying real estate. The FFR is effectively zero. The only thing left is to buy the long bond.
61 posted on 01/27/2009 3:10:37 PM PST by rb22982
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