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Trinnity
09-14-2012, 05:35 AM
BOHICA :ky:


Fed Launches New Bond-Buying Program
(http://www.foxbusiness.com/economy/2012/09/13/fed-bernanke-decision-qe3/)
The Federal Reserve on Thursday, in an effort to target stubbornly high unemployment, offered an array of open-ended stimulus programs designed to keep interest rates low until an economic recovery gains significant traction.

In a statement, the Fed said, "If the outlook for the labor market does not improve substantially, the committee will continue its purchase 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.”

The disappointing August jobs report released on Friday, which revealed that a meager 96,000 jobs were added last month, seemed to confirm for many that the Fed would act in some significant way to stimulate growth. While the unemployment rate fell last month to 8.1% from 8.3% it was only because 368,000 people left the workforce altogether, apparently having given up hope of finding a job.

“This is basically QE III, but it’s focused on the mortgage market rather than the Treasury market,” said Gus Faucher, senior economist at PNC Financial Services Group in Pittsburgh.Another stimulus, to prop up Obama. Take your kids' piggy banks and sent 'em to the Treasury.

Is there no end to this?
More stimulus money. More debt.

Mainecoons
09-14-2012, 06:16 AM
It's the liberal thing. If your ideas don't work, just keep piling more of the same on.

You'll notice the dollar dropped significantly.

patrickt
09-14-2012, 06:56 AM
It is peculiar to government. If a program that costs $5,000,000 isn't working you can make it work by spending $50,000,000. The idea that you should look at why it isn't working and change something makes liberals giggle.

Carygrant
09-14-2012, 09:27 AM
All predicted and clearly signalled many moons ago .
At least this Admin are trying to delay bankruptcy and the end of the American wet dream .

Trinnity
09-14-2012, 09:36 AM
Actually, they're ensuring it with more debt. FAIL

Carygrant
09-14-2012, 11:02 AM
Actually, they're ensuring it with more debt. FAIL


We nearly agree . Nothing by anybody can save bankruptcy and chaos . But I don't blame people for hanging on as long as possible and hoping for a miracle .

coolwalker
09-14-2012, 12:33 PM
We're paying for more crap again? Brilliant. I guess this does mean another tax increase, or did they find the money in the Rose garden on that money tree again?

Mainecoons
09-14-2012, 12:36 PM
No, they will print the money like all the other QEs. This administrations budgets are so far in the red they are beyond saving.

Cigar
09-14-2012, 12:38 PM
So here's a bright idea ... let start a War!

coolwalker
09-14-2012, 12:53 PM
So here's a bright idea ... let start a War!

Turn on your tv...does it look like the Donna Reed Show? Our backs are up against quite a few walls.

Chris
09-14-2012, 12:57 PM
A good write up on this: More Fed Bond Buying Won't Let 'Animal Spirits' out of the Cage (http://www.cato.org/publications/commentary/more-fed-bond-buying-wont-let-animal-spirits-out-cage)
...Quantitative easing is the Fed's version of "stimulus," the complement to fiscal stimulus. The trouble with all forms of temporary spending is that they have no permanent effects. They delay needed adjustments in the economy.

...Today's state and local governments are a case in point. Municipal and state spending was propped up by federal transfers of many billions of dollars in the president's 2009 stimulus package. But as this federal money has dried up, public payrolls are declining, ironically enough for this administration, close to the presidential election. President Obama received bad advice when he was told that government spending would prime the pump of the economy. Instead it had the effect of temporarily transferring resources from the productive private sector to a bloated public sector.

This is no secret: The FOMC minutes from its July 31-Aug. 1 meeting refer to fiscal and regulatory uncertainties as a reason for the Fed to take action. The minutes reported that some participants thought a new bond-buying program "might boost business and consumer confidence." It hasn't done so in this recession. No amount of quantitative easing at this point will stir what John Maynard Keynes called the "animal spirits"—"a spontaneous urge to action rather than inaction"—needed for growth.

What would stir the spirits of investors and employers would be some policy certainty, reining-in of out-of-control government spending, stopping ill-advised regulations, and clearing the air of antibusiness rhetoric. No repeat of a one-off round of bond buying by the Fed substitutes for the fundamental and permanent changes needed.

Carygrant
09-14-2012, 04:09 PM
No, they will print the money like all the other QEs. This administrations budgets are so far in the red they are beyond saving.


No . This is the last time .

Sometime in the early part of next year when the EU has gasped its near last , China will formally take over .
I notice that your mainstream media have kept everything about the Bejing take over secret . They are under worse than orders .
You are OK people in terms of intentions but you are being scammed to Hell .

Trinnity
09-14-2012, 04:42 PM
Yeah, we ARE being scammed. Every day, every way. <sigh>

Chris
09-14-2012, 04:51 PM
Yeah, we ARE being scammed. Every day, every way. <sigh>

Just not in any way cary seems to fathom. <double sigh> :)

Peter1469
09-14-2012, 06:24 PM
We nearly agree . Nothing by anybody can save bankruptcy and chaos . But I don't blame people for hanging on as long as possible and hoping for a miracle .

The problem is that QE3 will transfer debt from investors to taxpayers. Stupid move.

Peter1469
09-14-2012, 06:25 PM
No . This is the last time .

Sometime in the early part of next year when the EU has gasped its near last , China will formally take over .
I notice that your mainstream media have kept everything about the Bejing take over secret . They are under worse than orders .
You are OK people in terms of intentions but you are being scammed to Hell .


China is sitting on a real estate bubble that makes ours look like a pimple.