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Fed to Buy $1 Trillion in Securities to Aid Economy (Printing Presses Go Overtime....)
New York Times ^

Posted on 03/18/2009 12:02:49 PM PDT by wk4bush2004

WASHINGTON — Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy
KEYWORDS: grandtheft
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These people are totally insane! Say hello to hyperinflation!
1 posted on 03/18/2009 12:02:49 PM PDT by wk4bush2004
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To: wk4bush2004

Insane?

Hardly. “They” are very competent and the “plan” is working to perfect.


2 posted on 03/18/2009 12:05:40 PM PDT by BGHater (Tyranny is always better organised than freedom)
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To: wk4bush2004

Just what the Chinese were worried about and Obama told them not to worry.


3 posted on 03/18/2009 12:06:27 PM PDT by Need4Truth
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To: wk4bush2004

We are so screwed.

We are going to look back at 1979 as a GOOD time in History.

Democrats have proven once again, they ONLY know how to run things into the ground.


4 posted on 03/18/2009 12:06:48 PM PDT by Danae (Amerikan Unity My Ass)
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To: wk4bush2004

I couldn’t agree more. Bernacke is nuts. We are in a credit crunch, and his “solution” is essentially to print even more money to chase an ever-declining amount of goods and services. All so that the government can continue spending way beyond its means, and make it easier for the some of the rest of us to continue borrowing and spending beyond their means as well. Brilliant!


5 posted on 03/18/2009 12:07:49 PM PDT by kesg (enduring Day 28 of our national holiday from reality)
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To: wk4bush2004

Of course the reccession is deepening, we put a left wing terrorist in the oval office and promoted more of this socialist crap. Liberals don’t get it. They think the solution to communism is more communism.


6 posted on 03/18/2009 12:08:25 PM PDT by mainestategop (MAINE: The way communism should be)
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To: Danae

More like 1929!


7 posted on 03/18/2009 12:08:33 PM PDT by Errant
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To: wk4bush2004
It only becomes hyperinflation when no one buys treasuries and the US Treasury actually has to print money to cover its debts.

The Federal Reserve can't print money. Presumably it is buying US debt with actual reserve dollars.

I'm not worried, though. I still have Mediterranean and Baltic.
8 posted on 03/18/2009 12:08:34 PM PDT by atomicweeder
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To: wk4bush2004

Yep, they are.

HOWEVER.... this might very well cut mortgage rates, because the Fed has also been buying agency paper. By artificially compressing the long end of the curve and agency rates, this might well be the lowest mortgage rates we’ll see for QUITE some time to come in the future.

So if folks are looking to re-fi or buy a house... within the next several months there will be perhaps the lowest rates we’re going to see for a long time to come.

And at some point in the future, rates are going to go up, and there won’t be much the Fed will be able to do about it.


9 posted on 03/18/2009 12:09:34 PM PDT by NVDave
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To: atomicweeder

I’m on do not pass go. sigh


10 posted on 03/18/2009 12:10:46 PM PDT by pappyone (New to Freep, still working a tag line.)
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To: wk4bush2004
From Montana to South Carolina, lawmakers in mostly red states have pushed ahead with measures calling for state sovereignty under the Tenth Amendment, saying the federal government has overstepped its bounds with the stimulus package. The states are calling for the right to ignore laws they deem unconstitutional.

Oklahoma state Sen. Randy Brogdon, a Republican and the first to introduce this type of legislation last year, originally pursued it because he thought then-President Bush and Congress exceeded their authority with the Real ID Act, which required states to include certain information on driver's licenses.
 
11 posted on 03/18/2009 12:12:20 PM PDT by antonia (A nation of sheep will beget a government of wolves. - Edward R. Murrow)
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To: atomicweeder

I have broadway and park place with hotels — how cool is that.


12 posted on 03/18/2009 12:12:26 PM PDT by edcoil (Are we there yet?)
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To: wk4bush2004

Look at what has happened to the US Dollar in the last hour folks. Inflation is coming!!


13 posted on 03/18/2009 12:12:26 PM PDT by Boanarges
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To: atomicweeder

Yeah, but the real question is: Why is the Fed buying debt? Are we reaching or have we reached the point where we can no longer sell our debt to anyone else?


14 posted on 03/18/2009 12:12:32 PM PDT by stylin_geek (Liberalism: comparable to a chicken with its head cut off, but with more spastic motions)
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To: wk4bush2004

The link below may point out big this financial meltdown really is and how long ago it started.

http://www.villagevoice.com/content/printVersion/850296


15 posted on 03/18/2009 12:12:55 PM PDT by Grampa Dave (Does Zer0 have any friends, who are not criminals, foreign/domestic terrorists, or tax evaders?)
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To: wk4bush2004

Kiss your country goodbye along with your freedom and your children and grandchildren’s futures.

Call or email these morons to express your thoughts:

http://www.conservativeusa.org/mega-cong.htm


16 posted on 03/18/2009 12:13:57 PM PDT by ExTexasRedhead
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To: wk4bush2004

So, lets see: the Fed prints $$ (out of thin air), then buys Treasuries to keep the interest rates low. I may be oversimplifying here, but am I wrong? If so, what am I missing?


17 posted on 03/18/2009 12:14:32 PM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: rbg81

Buying securities is the usual way that Fed money enters the economy. Usually they buy the securities from a third party, this time looks like the T-bills are going directly from the Government to the Fed in exchange for printed cash.

In an inflation scenario the first person to get the “new” money gets the advantage.

A big middle finger to the chinese and anyone who wants or needs to save with low risk, as this depresses rates on all savings rates everywhere.

Not to mention the dollar collapse risk they’re running.


18 posted on 03/18/2009 12:18:03 PM PDT by delapaz
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To: wk4bush2004
The Bank of England started buying UK sovereign paper today and it was a disaster. A good lesson for Bernanke because the same thing will happen if he tries it here. That's why he hasn't.

Caution On Quantatative Easing

19 posted on 03/18/2009 12:18:27 PM PDT by Vet_6780 ("I see debt people")
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To: wk4bush2004

I guess this means that we will soon be paying $150.00 per barrel for oil again.


20 posted on 03/18/2009 12:20:09 PM PDT by NRG1973
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