Quick, more cards on the top to stabilize the structure.
Posted on 08/10/2010 11:49:47 AM PDT by John W
Acknowledging that the recovery has slowed, the Federal Reserve announced Tuesday that it would use the proceeds from its huge mortgage-bond portfolio to buy long-term Treasury securities, The New York Times’s Sewell Chan reports from Washington.
By buying government debt, the Fed is taking an unmistakable step to maintain the large amount of money that it pumped into the economy, starting in 2007, to prop up the financial and housing markets.
(Excerpt) Read more at dealbook.blogs.nytimes.com ...
when has it ever been sane??
Quick, more cards on the top to stabilize the structure.
We should just go ahead and change the official name of the country to the United States of Fannie and Freddie. It’s an absolute joke.
Fed to Buy U.S. Debt, Saying Recovery Has Slowed
The headline should read, “Fed to Prints more Money, Saying Recovery Has Stalled”
its all on paper...maybe we can burn it..
Its coming back now because the shell game has been extended.
gold headed higher immediately after the announcement. Smart money fleeing USD
Isn’t that sort of like lending money to yourself?
at the will of the politicians.
Thats the beauty of going off a gold (or valuable anything) standard. Your currency floats relative to something else, which may or may not have real value at the level youve appraised it. Its no different than if you started making dalebert money at home. If you’re thinking ‘confidence scheme’ youre right on the money.
Right. They already have the printing presses working 24x7x365. How much more money can they print???
It would be interesting to see who was buying today before the announcement. How about the DNC? Maybe a bunch of FOO’s? (Friends of Obama)
So that was it.
I thought I heard the sound of a bunch of heavy equipment getting cranked up. Couldn’t figure out what it was until I read about this today.
Those printing presses have to warm up a little first before you get a good run of $100 bills. After a few months I guess I won’t even notice them running day and night. The sound of my old ship’s engines used to lull me to sleep when I was in the military too.
I think we better bring back the Grovers. That way the machines wouldn’t have to work so hard.
This isn't printing more money. It's taking existing money that exists as principal payments on toxic mortgages and using it to buy US Treasury securities. There is no new money allocated in doing this.
The funny part is that the amount of principal payments on Fannie and Freddie agency debt owned by the Fed is effectively zero.
This is all a ruse.
You don't have to be blond. My ex sister-in-law did the same stunt to the tune of $200 in short check charges when those charges were only $5. She went through three books of 20 checks before the bank called my ex brother-in-law. And she was not blond, just ignorant.
true
“How much more money can they print???”
Well, if you substitute printing $100 bills for $1 bills, you can expand the money supply rather rapidly. I still have a $50 billion Deutsche-mark postage stamp put out by Germany in the 1920’s. If they were paying 50 billion just for a postage stamp, imagine what a pound of meat, shoes, a car or house cost.
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