September 13, 2012 - 9:39 am
Here we go, the big news: The Fed is launching a bond-buying program to purchase mortgage-backed securities by $40 billion a month.
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This is what makesthe biggest difference: the Fed isn’t announcing a limited amount of purchases. It’s an open-ended program to buy bonds until the economy improves. From the statement: “If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.”
Son of TARP. The banks bipassed the counties recording of deeds with MERS so they could creat MBS. Now they’ve gone south and they want tax payers to pick up the fall out.
The damage that could ensue until we can get these useful idiots out of the Fed is mind boggling.
Even if Romney wins, it might be game over.
The beatings will stop when morale improves.
That was my first thought when I heard about this program.
Weimar Republic with no United States of America to bail us out.
Perhaps someone with a bit more expetise in these matters can explain something for me. Isn’t the Fed paying for US govt. bonds with new money monetizing the debt? And if it is, isn’t their purchase of these MSB’s (mortgage backed securities) monetizing private debt? And if it is, who does it help besides the banks, the market gamblers, and the deadbeats who bought more house than they could afford?
Expertise would help even more! Sorry about that…
The theory behind it is that by making money worth less, people with lots of it will decide to spend it, rather than save it, thus stimulating the economy.
Of course, in reality, it makes things more difficult with great big piles of money around, since everything will end up costing more, since their money is now worth less.
D’oh, that should be “without”.
But I guess that’s what the Dems want – to drive a lot of people who are just treading water now, onto government assistance, especially food stamps
Wow, until 2027!! (Good job, Democrats!)
– just give the homes away, Obama Lover.
This is what privatizing gain and socializing loss looks like in real time.
How do we stop this?