Federal Reserve launches QE3

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NEW YORK (CNNMoney) -- The Federal Reserve announced plans to unleash more stimulus Thursday, in its third attempt at a controversial program to rev up the U.S. economy.

The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month. The end date remains up in the air, as the Fed will re-evaluate the strength of the economy in coming months.

The Fed is wasting no time. The purchases begin Friday and are expected to total about $23 billion over the remainder of September.

In addition, the Fed also indicated that it plans to keep interest rates at "exceptionally low levels" until mid-2015. Previously, the Fed had forecast rates would remain low until late 2014.

The central bank's main objective is to lower interest rates and mortgage rates in particular. By keeping rates low, the Fed hopes to fuel more spending and eventually, more hiring.

The policy "should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," the Fed's official statement said.

Meanwhile, the Fed will continue its existing policy known as Operation Twist. Together the two programs will add $85 billion in long-term bonds to the Fed's balance sheet each month.

Related: QE3 won't create jobs

The Fed has been trying to stimulate the economy for over three years now, and has exhausted its usual tool by keeping interest rates near zero since late 2008. Quantitative easing is an unconventional way of trying to lower rates further.

Still, the Fed is not satisfied, given that the unemployment rate has remained above 8%.

In a speech two weeks ago, Fed Chairman Ben Bernanke called the job market a "grave concern." Later, the government's jobs report showed hiring slowed substantially in August and the labor force shrank.

In its statement Thursday, the Fed indicated it will not only continue QE3, but also "employ its other policy tools" if the "labor market does not improve substantially."

The Fed's accommodative policies have been contentious from the start. Republicans often warn that as the Federal Reserve has expanded the money supply, it has set the economy up for rapid inflation in the future.

Meanwhile, economists expect the benefits to be minor, and the risks are uncertain. The first two rounds of quantitative easing lowered interest rates and fueled stock market gains, but banks haven't been eager to lend out money readily.

Martin Feldstein: What worries me about QE

Banks are sitting on $1.6 trillion in reserves and credit standards remain tight following the financial crisis. Households continue to pay down debt, and are in no hurry to ramp up their spending.

That said, it's possible the Fed's move could help the housing market slightly. New construction and home prices have already started picking up recently, and should mortgage rates fall further, that could fuel a quicker housing recovery.

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The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month.

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Holy fuck. This is a huge bailout gift to the TBTF banks that got us into this shit.

Bank stocks should go fucking nuts.

Yay?

"Households continue to pay down debt"

no, that's over.

http://www.nerdwallet.com/blog/wp-co...5671884593.jpg

http://www.nerdwallet.com/blog/credi...ebt-household/

"set the economy up for rapid inflation in the future"

St Ronnie's Fed guy Volcker showed how to stop that in '80s.

I knew it was a big number but I didn't realize that student loan debt was larger than credit card debt.

Wow... terrible news, tbh.... setting us up for our dollar losing reserve status imho...

Basically the Fed pays 100% face value for crap in bank portfolios that is actually worth pennies on the dollar. WTF? How does this help anyone but the fucking banks? Cocksuckers still don't make loans. Mother fuckers then borrow at 0% from the Fed window and buy treasuries with a guaranteed profit spread. Shit. Bernake sucks.

It's not just Bernanke... this shady shit is exactly how the Fed has operated since it came into existence, tbh.... this is why our Founders warned us against central banking and strictly delegated the coinage of money to Congress....

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Originally Posted by boutons_deux

"set the economy up for rapid inflation in the future"

St Ronnie's Fed guy Volcker showed how to stop that in '80s.

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Actually St. Jimmy's Fed guy.

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Originally Posted by CosmicCowboy

Holy fuck. This is a huge bailout gift to the TBTF banks that got us into this shit.

Bank stocks should go fucking nuts.

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BofA is up 5% since the anouncement. I'm not sure that this will provide a lasting bump since the fed's actions basically amount to an announcement that the economy and our financial institutions are in worse shape than most people think.

^^^ that

the biggies were ALL bankrupt end of 2008. and many still are except for taxpayer support.

Was the prime time to nationalize them all and turn banking a non-profit public utility, while removing the risk.

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Originally Posted by SnakeBoy

BofA is up 5% since the anouncement. I'm not sure that this will provide a lasting bump since the fed's actions basically amount to an announcement that the economy and our financial institutions are in worse shape than most people think.

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Buying 40 billion of crap every month indefinitely can go a long way towards fixing the banks fucked up balance sheets.

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Originally Posted by boutons_deux

the biggies were ALL bankrupt end of 2008. and many still are except for taxpayer support.

Was the prime time to nationalize them all and turn banking a non-profit public utility, while removing the risk.

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Solyndra X 1,000,000,000,000,000

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Originally Posted by boutons_deux

Was the prime time to nationalize them all and turn banking a non-profit public utility, while removing the risk.

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You clearly know nothing about the economy or our government if you think nationalized banks would be anything other than a catastrophic failure, tbh.... between the Fed's non-stop money-printing and the scandal that occurred when the House of Representatives tried to run their own bank, nationalization would CREATE bigger risks than it could ever mitigate....

I swear we'd have been much better off just giving every household $100,000 than doing all this QE crap.

Blah. I'm not a huge fan of derivative sequels, excepting ESB of course.

The scale is substantially smaller than previous instances. As long as there's no inflationary pressure, why not? If it helps prop the economy, then let's do it.

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Originally Posted by coyotes_geek

I swear we'd have been much better off just giving every household $100,000 than doing all this QE crap.

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Front loaded QE! I'm in!

I hate the fucking banks so much

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Originally Posted by MannyIsGod

I hate the fucking banks so much

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yep, but the banks are completely immune to hate from their victims.

I thought this would push gold to $1800 but just $1760 so far.

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Originally Posted by Homeland Security

I thought this would push gold to $1800 but just $1760 so far.

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I wonder what will happen when that golden bubble pops?

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Originally Posted by Wild Cobra

I wonder what will happen when that golden bubble pops?

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The bubble already popped. It was over $1900 a year ago then fell down around $1500.

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Originally Posted by Homeland Security

The bubble already popped. It was over $1900 a year ago then fell down around $1500.

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No widespread news about it?

I wasn't paying attention to it, because I know it will be another place people lose money, and timing the rise and fall is difficult.

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Originally Posted by Wild Cobra

No widespread news about it?

I wasn't paying attention to it, because I know it will be another place people lose money, and timing the rise and fall is difficult.

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I don't speculate or play the margins in precious metals. Their use is as a hedge against inflation and holdings should be the actual metals and not certificates.

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Originally Posted by Wild Cobra

No widespread news about it?

I wasn't paying attention to it, because I know it will be another place people lose money, and timing the rise and fall is difficult.

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I bought a half pound of gold @ $370 oz. and the stockbroker I was using at the time told me I was stupid.

Yeah, I think the news here is that this is indefinite. They're just going to keep buying up mortgage backed securities until the unemployment rate comes down and they'll let inflation exceed the target 2%? Am I understanding that correct?

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Originally Posted by CosmicCowboy

I bought a half pound of gold @ $370 oz. and the stockbroker I was using at the time told me I was stupid.

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Good for you. So hard to predict the future. I saw the decline starting in 1998. Wish I was wiser and bought some then. I would be selling no later than mid next year I think, but then again, I would reassess then.

the gold bubble will pop when the US issues its brand new currency

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Originally Posted by angrydude

the gold bubble will pop when the US issues its brand new currency

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The Chinaro?

Aaaaaand thanks to the corrupt Fed's launch of QE3, we've just been downgraded again...

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Originally Posted by Clipper Nation

Aaaaaand thanks to the corrupt Fed's launch of QE3, we've just been downgraded again...

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The elitists are helping the rich get richer, one step at a time.

See what the stock market did?

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Originally Posted by Wild Cobra

Good for you. So hard to predict the future. I saw the decline starting in 1998. Wish I was wiser and bought some then. I would be selling no later than mid next year I think, but then again, I would reassess then.

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Did even better on 1 oz. Palladium Ballerina proofs I bought in 1990 and 1991. The USSR was hurting for dollars and they sold them at just a little over bullion price. I think I paid $225 for them. Then the USSR broke up and they became collectors items with newly rich Russians. Iv'e seen them go on e-bay for more than $2000.

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Originally Posted by CosmicCowboy

Did even better on 1 oz. Palladium Ballerina proofs I bought in 1990 and 1991. The USSR was hurting for dollars and they sold them at just a little over bullion price. I think I paid $225 for them. Then the USSR broke up and they became collectors items with newly rich Russians. Iv'e seen them go on e-bay for more than $2000.

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LOL...

Awesome.

obliquely related: http://finance.yahoo.com/news/enigma...161206290.html

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Originally Posted by Winehole23

obliquely related: http://finance.yahoo.com/news/enigma...161206290.html

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I got this far before being disgusted:

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Right now, borrowers are paying around 3.55 percent for a 30-year fixed rate mortgage that qualifies for a government guarantee of repayment. That's down from 4.1 percent a year ago, and 5.06 percent three years ago.

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That's right, put the burden on our progeny.

the beginning of the end is starting. between this Central Bank and the shit going on in Europe's banks, time to buckle the belt and enjoy the ride to world financial oblivion

this is equivalent to the doctor giving the green light to unlimited amounts of morphine to a terminal cancer patient.

shouldn't terminal patients have robust palliative care?

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Yet the 2012 presidential contest may have already been decided by the Federal Reserve, which just delivered an unprecedentedly aggressive dose of money-printing stimulus with the aim of boosting stock prices and home values, elevating consumer confidence and boosting job growth via increased consumer spending. It will also boost exports. It will encourage new investment by businesses. And it will take the sting out of ongoing federal deficits and a rising national debt by holding down the government's borrowing costs.


In other words, Fed Chairman Ben Bernanke -- an appointee of a Republican president, by the way -- has likely just delivered a second term to President Barack Obama.

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http://money.msn.com/investing/did-t...re-elect-obama

Most commentators I read said the Fed's buying shit mortages and MBS helps the banks, while lower Fed rate is allowing the banks also to profit from the bigger spread rather than lowering rates to borrowers.

Obama doesn't need the Fed's help, as Gecko and Anne are screwing themselves everytime they open their mouths.

Of course, Gecko saying he'd fire Bernanke probably doesn't endear Benanke to Gecko. I expect Gecko's replacement would be even worse embedded with supporting the financial sector.

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Originally Posted by boutons_deux

Most commentators I read said the Fed's buying shit mortages and MBS helps the banks, while lower Fed rate is allowing the banks also to profit from the bigger spread rather than lowering rates to borrowers.

Obama doesn't need the Fed's help, as Gecko and Anne are screwing themselves everytime they open their mouths.

Of course, Gecko saying he'd fire Bernanke probably doesn't endear Benanke to Gecko. I expect Gecko's replacement would be even worse embedded with supporting the financial sector.

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I wonder if Romney paying a higher tax rate than boutons will offset the harmful effects of QE3 imho

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Originally Posted by boutons_deux

Most commentators I read said the Fed's buying shit mortages and MBS helps the banks, while lower Fed rate is allowing the banks also to profit from the bigger spread rather than lowering rates to borrowers.

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Damn Boutox...did you computer get a virus and start diverting your searches to conservative websites? You damn sure didn't read that on thinkprogress or alternet.

so you assholes have nothing to say on the topic?

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Originally Posted by boutons_deux

so you assholes have nothing to say on the topic?

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:lmao:lmao:lmao:lmao:lmao

Sorry you had to wait for someone else to tell you what to think so you could cut and paste it.

Here was my off the cuff response on page one as soon as it happened...did you even read the thread?

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Originally Posted by CosmicCowboy

Basically the Fed pays 100% face value for crap in bank portfolios that is actually worth pennies on the dollar. WTF? How does this help anyone but the fucking banks? Cocksuckers still don't make loans. Mother fuckers then borrow at 0% from the Fed window and buy treasuries with a guaranteed profit spread. Shit. Bernake sucks.

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Originally Posted by boutons_deux

so you assholes have nothing to say on the topic?

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I want to see your fucking tax returns Mr

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Originally Posted by mavs>spurs

I want to see your fucking tax returns Mr

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GFY, stalker.

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Originally Posted by boutons_deux

GFY, stalker.

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the consensus around here is that you paid less taxes than mitt and don't get to criticize him anymore

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Originally Posted by CosmicCowboy

I knew it was a big number but I didn't realize that student loan debt was larger than credit card debt.

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Yep. It's the other shoe that hasn't fallen yet tbh. Further complicating the issue is that bankruptcy does nothing to save you from it.

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Originally Posted by Agloco

Yep. It's the other shoe that hasn't fallen yet tbh. Further complicating the issue is that bankruptcy does nothing to save you from it.

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i'm not sure if this is true or not but i heard somewhere in the media that the student loan bubble is bigger than subprime ever was

Meh. All the unemployed liberal arts majors will eventually get their inheritances and the loans will be paid in probate..

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Originally Posted by CosmicCowboy

Meh. All the unemployed liberal arts majors will eventually get their inheritances and the loans will be paid in probate..

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cofl the panic will start long before then, when the first of them start deferring their loans due to joblessness in mass

Dallas FED President Richard Fisher on QE3: http://www.realclearpolitics.com/art...rs_115536.html

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Originally Posted by mavs>spurs

cofl the panic will start long before then, when the first of them start deferring their loans due to joblessness in mass

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Phoenix alums (many of them bums given $50 to apply for FAFSA/Pell Grant aid) are already leading the vanguard.

Hooray free market.

^i think manny got his earth science or whatever degree from there rofl

are you sure about that, or do you just like to make stuff up?

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ust recently, in a hearing before the Senate, your senator and my Harvard classmate, Chuck Schumer, told Chairman Bernanke, “You are the only game in town.” I thought the chairman showed admirable restraint in his response. I would have immediately answered, “No, senator, you and your colleagues are the only game in town. For you and your colleagues, Democrat and Republican alike, have encumbered our nation with debt, sold our children down the river and sorely failed our nation. Sober up. Get your act together. Illegitimum non carborundum; get on with it. Sacrifice your political ambition for the good of our country—for the good of our children and grandchildren. For unless you do so, all the monetary policy accommodation the Federal Reserve can muster will be for naught.”

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Awesome quote

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As one would expect, most financial market operators focus their analysis on the financial aspects of so-called "deleveraging". And, no doubt about it, the titans of today's gigantic global leverage speculating community are precisely those players that have most adroitly played the ongoing cycle of global central bank reflationary policymaking. Their astounding financial success provides them a public forum in which to shape both the analytical debate and general viewpoints.

I tend to believe that conventional thinking - albeit from central bankers, bond and hedge fund kings, or FT and WSJ columnists - is wrong on deleveraging. Deleveraging is not predominantly a financial issue. Economic structure matters - and it matters tremendously. Importantly, true deleveraging requires that system debt loads are reduced to a level supportable by the capacity of an economy to produce real wealth.

A system can achieve stability and robustness only when a sound economy supports a manageable amount of system financial assets. Yet with a highly unsound economy, ongoing rampant inflation of non-productive debt and highly unstable financial markets, from my framework our system remains very much in a financial leveraging credit bubble cycle.

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http://www.atimes.com/atimes/Global_.../NI25Dj01.html

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“We are unlikely to see much benefit to growth or employment from further asset purchases” Philadelphia FED President Charles Plosser said in a speech today at the district bank in Philadelphia. "Conveying the idea that such action will have a substantive impact on labor markets and the speed of the recovery risks the Fed’s credibility. ”

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“I opposed the Committee’s actions in September because I believe that increasing monetary policy accommodation is neither appropriate nor likely to be effective in the current environment,” Plosser said. “Every monetary policy action has costs and benefits, and my assessment is that the potential costs and risks associated with these actions outweigh the potential meager benefits.”

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http://www.businessweek.com/news/201...n-t-boost-jobs

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The extent to which QE3 drives down new mortgage rates and helps homeowners or is pocketed by banks will be crucial to the success of the policy and the prospects for growth in the U.S. and global economies next year.The rise in profit earned by banks from creating new mortgages came as Fed chairman Ben Bernanke sought to defend QE3 against attacks from Republican presidential candidate Mitt Romney and other critics. Mr Romney said last week the Fed was keeping interest rates “artificially low”.


Speaking in Indianapolis on Monday, Mr Bernanke said it would be “inappropriate” and “ineffective” for the Fed to raise interest rates to put pressure on Congress to tackle the deficit. QE3 would not lead to long-term inflation, he said, adding that stronger growth would help savers in the long run despite low interest rates today.


Although the average rate on a fixed 30-year mortgage reached 3.4 percent this week – a record low – mortgage rates could be lower if banks passed on the full drop in their funding costs.


“For banks which are mortgage originators this [QE3] was some of the best news they could possibly have heard,” said Steven Abrahams, mortgage strategist at Deutsche. “They will continue originating loans and selling them into the market at a significant premium.”


The interest banks pay on mortgage bonds has dropped from 2.36 percent on September 12, the day before the Fed announced its program, to as low as 1.65 percent last week. It edged up to 1.85 percent on Monday.


That means the profit, or spread, banks earn from creating new mortgages for homeowners paying around 3.4 percent and selling the loans into the secondary market has risen to around 1.6 percent. That is higher than the 1.44 percent spread they pocketed before QE3 and significantly greater than the 0.5 percent they earned on average in the decade between 2000 and 2010.

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http://www.cnbc.com/id/49249106

http://www.project-syndicate.org/com...ouriel-roubini

En Ingles for the slow people WH.

Is QE3 simply more shit on the fan, or does this have a shot not reversing our fortunes?

The fact that Bernanke appears to be speaking in tongues quite frequently is troubling to me.

the concern seems to be that countercyclical Fed policy is creating more asset bubbles in a time of weak growth. the correlation of a rising market in times of declining profit is ominous. certain asset classes would seem to be divorced from the fundamentals, which will not be mocked forever.

pride ever goeth before a fall, etc..

unaccompanied as it is by any stimulus to the broader economy -- and indeed, very much accompanied by the spectre of austerity and the reality of deleveraging -- QE3 may face some strong headwinds . . .

that's my recap of the Roubini bit, btw . . .

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Originally Posted by CosmicCowboy

Sorry you had to wait for someone else to tell you what to think so you could cut and paste it.

Here was my off the cuff response on page one as soon as it happened...did you even read the thread?

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you sorry? :lol

I have more evidence and research for my positions. Yours if basically "I'm bad assed wealthy 1% son of a bitch sucking in health care dollars, all you 99%ers can GFY. AND cut my taxes more!"

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That sanguine view of the inflation risk posed by the Fed's actions was disputed by Richmond Federal Reserve President Jeffrey Lacker, who dissented against the policy easing last month and voiced concern about the impact on price stability.

"The behavior of inflation is fundamentally attributable to the actions of the central bank, while growth and labor market conditions are affected by a wide variety of factors," he told a business conference in Roanoke, Virginia.


Lacker said that while the Fed had the tools - in theory - that would allow it to shrink the balance sheet and lean against inflation, the exercise had never been conducted in real-life, sounding a note of scepticism over how confident policymakers should be that they can do so when the time comes.


He also voiced doubt that the U.S. economy was really running so far beneath its so-called trend growth rate, and that there is not much more monetary policy can do at the moment to spur the economy.


"Simply observing a high unemployment rate does not imply that the Fed's monetary policy is failing to comply with its congressional mandate, nor does it necessarily mean that monetary policy needs to do more to achieve its goals," he said.

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http://www.reuters.com/article/2012/...89419L20121016

"behavior of inflation is fundamentally attributable to the actions of the central bank"

supply and demand aren't a factor? gasoline price in CA inflated recently due to limited supply from refinery and pipeline problems, and CA's special gasoline not produced by out-of-state refineries.

The Fed has been pumping out t $Ts and inflation is not rampant. In fact, it's non-factor. Today's SS COLA for 2013 will be lowest in decades.

Fucking economists, what a bunch of losers. And they were so accurate and forewarning, and USEFUL!, about the credit/housing bubble. :lol

the diversity of views expressed by the Fed is a bit of an historical oddity. before 2008, anyway.

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The Federal Reserve said Wednesday that it plans to keep interest rates ultra-low even after unemployment falls close to a normal level — which it thinks could take three more years. As long as expected inflation remains tame, the Fed said it could keep its key short-term rate near zero even after unemployment falls below 6.5 percent. Unemployment is now 7.7 percent.

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http://www.washingtonpost.com/busine...b4e_story.html

http://www.policyshop.net/home/2012/...s-seniors.html

seamy underbelly: is 6.5% unemployment the new full employment?

http://www.forbes.com/sites/cedricmu...d-republicans/

Minyanville on the specter of inflation:

http://www.minyanville.com/business-.../2012/id/46664

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Originally Posted by Winehole23

seamy underbelly: is 6.5% unemployment the new full employment?

http://www.forbes.com/sites/cedricmu...d-republicans/

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Don't worry about unemployment. As soon the job-creating House Repugs get back to work in the next session, they will continue their incredible, never-ending War on Unemployment and helping the jobless.

how does giving away money to banks lessen unemployment? the linkage ain't clear. can you explain it to me, maestro?

related: Fed extends liquidity swaps to foreign banks through 2014:

The Federal Reserve, along with four other central banks, announced Thursday that it will extend a program that keeps borrowing costs cheap for foreign banks that want to deal in U.S. dollars.

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Last year, the Fed slashed in half the rate that foreign central banks pay to borrow U.S. dollars, a staple in global financial transactions.



The so-called dollar liquidity swaps are basically credit lines to foreign central banks. It's a tool that has been extended and revived several times, to lower the cost of short-term borrowing, particularly for European banks, and keep the global economy free of a credit crunch as in 2008.


The Fed announced Thursday that it will extend the program through February 2014. Previously, it was set to remain in place until February 2013.

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http://money.cnn.com/2012/12/13/news...html?iid=HP_LN

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Originally Posted by Winehole23

how does giving away money to banks lessen unemployment? the linkage ain't clear. can you explain it to me, maestro?

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Don't worry about unemployment. As soon the job-creating House Repugs get back to work in the next session, they will continue their incredible, never-ending War on Unemployment and helping the jobless.

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Originally Posted by Winehole23

related: Fed extends liquidity swaps to foreign banks through 2014:

The Federal Reserve, along with four other central banks, announced Thursday that it will extend a program that keeps borrowing costs cheap for foreign banks that want to deal in U.S. dollars.

http://money.cnn.com/2012/12/13/news...html?iid=HP_LN

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Fuckers are whoring to foreign banks propping the dollar to counterbalance the negative impact of monetizing of debt. Son of a bitch!

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Originally Posted by boutons_deux

Don't worry about unemployment. As soon the job-creating House Repugs get back to work in the next session, they will continue their incredible, never-ending War on Unemployment and helping the jobless.

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What?

I thought we were "moving forward" with Obama to eliminate unemployment.

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Originally Posted by CosmicCowboy

What?

I thought we were "moving forward" with Obama to eliminate unemployment.

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The Repugs control the House financial strings.

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Originally Posted by boutons_deux

The Repugs control the House financial strings.

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And the senate keeps shutting the house down.

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"For the many reasons I have noted today, I think this extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policymakers at the Fed," Yellen said.

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http://www.marketwatch.com/story/yel...ime-2014-03-31

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Originally Posted by Wild Cobra

And the senate keeps shutting the house down.

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example?

we know Boner won't even allow votes on stuff that comes from the Senate with bi-partisan passage.

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Originally Posted by Winehole23

http://www.marketwatch.com/story/yel...ime-2014-03-31

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nothing but continuing to enrich the financial sector, giving them free money to gamble.

Fed offers NO HELP for the non-financial economy, as always

can't piss off the political donor class. how can a public servant do good if he can't afford to run?

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Originally Posted by Winehole23

can't piss off the political donor class. how can a public servant do good if he can't afford to run?

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Fed people are appointed, not elected.

the Fed was created by the banks, for the banks, always was, always will be.

you'd do well to focus on basic elements of grammar and style. your posts often have a fractured, frenetic quality that does you little credit.

presumably there is such a thing subject/verb agreement in whatever your first language is.

cost of ultra low interest rates to American savers -- and hence, the benefit to banks -- is $758 billion, and that's just purchasing power lost to inflation.

http://www.money-rates.com/research-...rates-2014.htm

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Originally Posted by Winehole23

you'd do well to focus on basic elements of grammar and style. your posts often have a fractured, frenetic quality that does you little credit.

presumably there is such a thing subject/verb agreement in whatever your first language is.

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typy/grammar smack! GFY

QE3 comes to an end:

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The Federal Reserve on Wednesday formally ended its controversial purchases of government and mortgage bonds, and in doing so cleared the decks for eventual increases in interest rates, last seen in 2008.

The nearly unanimous decision by the rate-setting Federal Open Market Committee – only one member of the 10-person panel voted “no” – brought to a close a program that saw the Federal Reserve make more than $4 trillion in bond purchases, over three incarnations, designed to keep the economy moving forward after the financial crisis

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Read more here: http://www.mcclatchydc.com/2014/10/2...#storylink=cpy

so the financial sector created $Ts in toxic loans, and their puppets at the Fed bought them all.

"designed to keep the economy moving forward after the financial crisis"

:lol no, designed to keep the financial sector afloat and enriching itself with free Fed $Ts. The Real Economy? still stagnating

we're in agreement there, only, I don't find it funny.

the Real Economy will go into full recession once the Repugs gut even more fed, state, local spending, eg, Kansas, Wisconsin, etc.

Republicans don't control the economy any more than Dems do. That's a fairytale.

Plus which, you're terrible at prediction. You do it all the time here, and you're almost always wrong.

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Originally Posted by Winehole23

Republicans don't control the economy any more than Dems do. That's a fairytale.

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who said anything about control?

govt spending, govt employment are huge components of the economy.

Cut $300B from DoD and see how many Ms of jobs are lost.

Just the fucking F-35 fiasco sustains jobs in nearly every state. That's why Congress won't kill it, even though the military doesn't want it and other useless weapons systems.

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govt spending, govt employment are huge components of the economy.

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government spending is not going away under GOP rule.

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Originally Posted by Winehole23

government spending is not going away under GOP rule.

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fed govt spending on science, safety net, health, environment, education, IRS, etc, will all be cut more, as they have been since 2010.

And red states will continue to screw public schools, lay off public school teachers, etc and then blame the schools for poor performance so they can transfer taxpayers funds to Christian Taliban madrasas and for-profit charter scammers, and kill RET as they are paid to do by BigCarbon.