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 ...
What recovery?
Ok ..I will bite on this one..WITH WHAT??????
WHOO HOOOO!!!!
We’Re Rich! Rich , I tell ya!!
Mercedez Benz in every driveway
Wagyu in the stewpot
Just print more money!!
Brilliant!
So it is using bad paper to buy up bad paper in order to keep the economic smoke and mirror game going.
Like the blond said, “I can’t be broke, I still have checks in my checkbook.”
We'll issue some new debt. China will buy it. :)
We'll issue some new debt. China will buy it. :)
“The Fed bought $1.25 trillion in mortgage-backed securities, and another $200 billion in debts owed by government-sponsored enterprises, primarily Fannie Mae and Freddie Mac, and completed the purchases in March. The Fed had planned to allow the size of that portfolio to shrink gradually over time as the debts matured or were prepaid. Instead, the Fed will now reinvest those principal payments in longer-term Treasury securities.
The central bank said it will continue to roll over its holdings of other Treasury securities as they mature.”
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Does this sound insane to you or is it just me? I’m only one of the “small people” but putting this in my terms sounds like using a credit card to pay off a credit card.
We call this the “Quentin Tarantino” financing method.
This is akin to someone reading tarot cards to determine how the manipulate the control in the cockpit of C-5A Galaxy. This isn’t going to end nicely.
This is akin to someone reading tarot cards to determine how to manipulate the controls in the cockpit of C-5A Galaxy. This isn’t going to end nicely.
OMG! Rush just now told that same joke! LOL
Ping for later
lol, Barry and the blond, both have the same economic literacy. Throw in Helicopter Ben Bernanke and Tax Cheat Timmy, and you have the trifecta of economic incompetence. Buy gold, guns, and non perishable food, a small piece of land far from the cities, and you may be able to survive this administration.
God Help.
“Does this sound insane to you or is it just me? I’m only one of the “small people” but putting this in my terms sounds like using a credit card to pay off a credit card.”
Or, perhaps more accurately, using a credit card to buy piles of steaming, stinky turd. You’re welcome, bad banks!
With fiat that they create with an accounting entry.
The Federal Reserve is neither federal nor a reserve. It is a private bank that creates fiat currency at will.
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