Skip to comments.
Fed to buy up to $300B long-term Treasury bonds
AP via Yahoo News ^
| March 18, 2009
| Jeannine Aversa
Posted on 03/18/2009 12:33:21 PM PDT by TenthAmendmentChampion
WASHINGTON (AP) -- The Federal Reserve announced Wednesday it will spend up to $300 billion over the next six months to buy long-term government bonds, a new step aimed at lifting the country out of recession by lowering rates on mortgages and other consumer debt.
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.
Fed purchases should boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt. The last time the Fed set out to influence long-term interest rates was during the 1960s.
(Excerpt) Read more at finance.yahoo.com ...
TOPICS: Breaking News; Business/Economy; Government; News/Current Events
KEYWORDS: bernanke; china; inflation; thecomingdepression; treasury
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-80 ... 101-108 next last
Someone called this the "snake eating its tail."
To: rabscuttle385; TigerLikesRooster
2
posted on
03/18/2009 12:33:41 PM PDT
by
TenthAmendmentChampion
(Be prepared for tough times. FReepmail me to learn about our survival thread!)
To: TenthAmendmentChampion
3
posted on
03/18/2009 12:34:42 PM PDT
by
TenthAmendmentChampion
(Be prepared for tough times. FReepmail me to learn about our survival thread!)
To: TenthAmendmentChampion
Also called "Quantitative Easing"
Also called "Monetizing the Debt"
Also called "printing money"
Also called the beginning of the end......
4
posted on
03/18/2009 12:36:07 PM PDT
by
OB1kNOb
(Communist China is doing more to foster capitalism in their country than our politicians are doing.)
To: TenthAmendmentChampion
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!
5
posted on
03/18/2009 12:36:30 PM PDT
by
b4its2late
(Ignorance allows liberalism to prosper.)
To: TenthAmendmentChampion
This had been predicted by many as a future step we would see on the way to hyperinflation. Hurray.
6
posted on
03/18/2009 12:37:23 PM PDT
by
kc8ukw
To: TenthAmendmentChampion
It’s like using your VISA to pay your Mastercard.
To: TenthAmendmentChampion
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?
To: TenthAmendmentChampion
Where is the $300B coming from?? or should I ask??
9
posted on
03/18/2009 12:40:09 PM PDT
by
elpadre
(nation)
To: TenthAmendmentChampion
10
posted on
03/18/2009 12:42:05 PM PDT
by
jsh3180
To: 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.
11
posted on
03/18/2009 12:42:23 PM PDT
by
TenthAmendmentChampion
(Be prepared for tough times. FReepmail me to learn about our survival thread!)
To: TenthAmendmentChampion
Can you say Weimar Republic?
12
posted on
03/18/2009 12:42:37 PM PDT
by
SMARTY
("Stay together, pay the soldiers and forget everything else" Lucius Septimus Severus)
To: IDRATHERNOT
Its like using your VISA to pay your Mastercard. Actually, it's more the equivalent of paying off your Mastercard with one of those "preapproved" facsimile credit cards you get in the mail.
13
posted on
03/18/2009 12:42:45 PM PDT
by
DuncanWaring
(The Lord uses the good ones; the bad ones use the Lord.)
To: elpadre
Out of the collective imagination of Bernarke and his stooges.
14
posted on
03/18/2009 12:43:05 PM PDT
by
brydic1
To: elpadre
15
posted on
03/18/2009 12:43:09 PM PDT
by
DuncanWaring
(The Lord uses the good ones; the bad ones use the Lord.)
To: jsh3180
16
posted on
03/18/2009 12:43:23 PM PDT
by
TenthAmendmentChampion
(Be prepared for tough times. FReepmail me to learn about our survival thread!)
To: 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?
17
posted on
03/18/2009 12:44:51 PM PDT
by
TenthAmendmentChampion
(Be prepared for tough times. FReepmail me to learn about our survival thread!)
To: IDRATHERNOT
“Its like using your VISA to pay your Mastercard.”
Don’t give them any ideas.
18
posted on
03/18/2009 12:44:51 PM PDT
by
Hacklehead
(Liberalism is the art of taking what works, breaking it, and then blaming conservatives.)
To: SMARTY
More:
http://www.marketwatch.com/news/story/Fed-acts-boldly-wont-distracted/story.aspx?guid={00C8F974-4000-4197-A043-6E1D035B1015}
Fed not distracted by circus over bonuses
Commentary: FOMC ramps up credit easing in face of worsening economy
By MarketWatch
Last update: 2:48 p.m. EDT March 18, 2009Comments: 181
WASHINGTON (MarketWatch) — The grownups in Washington aren’t about to let the latest political and media circus over ill-gotten bonuses distract them from saving this economy.
The Federal Open Market Committee acted very boldly Wednesday, promising to crank up the money supply until the economy starts breathing on its own again.
The FOMC said it would buy up to $300 billion in longer-term Treasurys over the next six months. And it said it would boost its purchases of mortgage-backed securities and agency debt, all in a bid to get credit flowing through the economy again. See full story.
All told, the FOMC committed to boost its arsenal by $1.15 trillion, doubling in one pen stroke the amount of “credit easing” it’s already accomplished.
19
posted on
03/18/2009 12:46:50 PM PDT
by
TenthAmendmentChampion
(Be prepared for tough times. FReepmail me to learn about our survival thread!)
To: TenthAmendmentChampion
lender here quoting 4.75% 30 yr fixed mortgages
unbelievable
20
posted on
03/18/2009 12:47:07 PM PDT
by
silverleaf
(Freedom's just another word for "nothing left to lose")
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-80 ... 101-108 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson