Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Fed says economy needs $600B bond-purchase program
Yahoo ^ | 1/26/2011 | Staff

Posted on 01/26/2011 1:58:27 PM PST by FromLori

he economy isn't growing fast enough to lower unemployment and still needs the benefit of the Federal Reserve's $600 billion Treasury bond-purchase program.

That was the assessment Wednesday of Fed policymakers as they ended their first meeting of the year. The Fed made no changes to the program, and the decision was unanimous.

The decision came from a new lineup of voting members that includes two officials who have criticized the bond purchases. They have said the purchases could eventually ignite inflation or speculative buying in assets like stocks.

The bond-buying program is intended to lower rates on loans and boost stock prices, spurring more spending and invigorating the economy.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: debt; economy; fed; pomo; stocks; toobigtoofail
Navigation: use the links below to view more comments.
first previous 1-2021-29 last
To: agere_contra

Frog marching some banksters, regulators & politicans to jail would give this economy a real kick start. As long as we let these zombies suck the life out of us, we will be stuck in the death spiral.


21 posted on 01/26/2011 3:03:49 PM PST by tomd2
[ Post Reply | Private Reply | To 2 | View Replies]

To: FromLori

Defund ALL the alphabet agencys, start over, meanwhile Hilary finds 500 million to give Mexico and our gov’t is going to give Russia some of our tax dollars to help them solve their airport bombing, see, there’s lots of mooola.


22 posted on 01/26/2011 3:18:43 PM PST by Waco (From Seward to Sarah.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: FromLori
F****d2.

Income down, expenses up.

23 posted on 01/26/2011 3:19:12 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: DuncanWaring

Looks like it best to prepare.


24 posted on 01/26/2011 3:27:01 PM PST by FromLori (FromLori">)
[ Post Reply | Private Reply | To 23 | View Replies]

To: agere_contra
And BOOSTING STOCK PRICES is a RETARDED REASON. It DOESN'T INVIGORATE ANYTHING.

Didn't the government policies artificially boost housing prices a few years ago. That sure worked out great. If the market is saying that a stock is worth one price, what good can come from artificially boosting it higher? (Unless you want to say that the stock market is up since you assumed the presidency). These guys have cornered the market on smoke and mirrors.

25 posted on 01/26/2011 3:47:19 PM PST by fhayek
[ Post Reply | Private Reply | To 7 | View Replies]

To: FromLori
and still needs the benefit of the Federal Reserve's $600 billion Treasury bond-purchase program.

Benefit of???

26 posted on 01/26/2011 6:53:58 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

Meanwhile... April Lexington was spotted buying more physical gold today before flying back to the United States...


27 posted on 01/26/2011 6:57:54 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori
"The bond-buying program is intended to lower rates on loans..."

That's only a very short term effect. As such action will eventually instigate a bond collapse, radically rising interest rates will follow throughout markets.


28 posted on 01/26/2011 10:32:35 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: agere_contra
“And BOOSTING STOCK PRICES is a RETARDED REASON. It DOESN'T INVIGORATE ANYTHING.”

I am not disputing what you say.

About 6-9 months ago I saw an interview with former Fed Charman Greenspan (aka ‘Easy Al’). He testified to Congress that the best thing for the economy was rising stock prices.

What was to propel stocks higher he did not say. But one would assume he meant that the thing to do was fix the real economy so that stocks would reflect an improving business and labor market, not QE 1,2,3...

On the other hand maybe I'm giving Greenspan too much of the benefit of the doubt.

29 posted on 01/27/2011 6:09:49 AM PST by MichaelCorleone (Sarah Palin is America's Margaret Thatcher)
[ Post Reply | Private Reply | To 7 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-29 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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson