Jump to content


Photo
- - - - -

QE3 has begun.


  • Please log in to reply
39 replies to this topic

#1 Floppin

Floppin

    Smooches

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 12,369 posts
  • LocationShallotte, NC

Posted 13 September 2012 - 12:23 PM

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.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.



http://money.cnn.com....html?hpt=hp_t3

Awesome!

#2 g5jamz

g5jamz

    Is back

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 17,726 posts

Posted 13 September 2012 - 12:28 PM

great

#3 g5jamz

g5jamz

    Is back

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 17,726 posts

Posted 13 September 2012 - 02:03 PM

this time it's bound to work

#4 Jase

Jase

    Kuechold Fantasies

  • Administrators
  • 15,664 posts
  • LocationMatthews, NC

Posted 13 September 2012 - 02:04 PM

open-ended, unlimited flood of money supply.

By golly we're going to inflate our way out of this.

The timing of this being so close to the election is probably not coincidental.

#5 mmmbeans

mmmbeans

    FBI SURVEILLANCE VAN

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 13,998 posts

Posted 13 September 2012 - 02:10 PM

not saying i agree with the QE but isn't real inflation nearly negative?

#6 Jase

Jase

    Kuechold Fantasies

  • Administrators
  • 15,664 posts
  • LocationMatthews, NC

Posted 13 September 2012 - 02:12 PM

It's been tame, today's report showed a moderate bump.

But I'm pretty sure the Fed wants inflation.

#7 mmmbeans

mmmbeans

    FBI SURVEILLANCE VAN

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 13,998 posts

Posted 13 September 2012 - 02:14 PM

you mean they're intentionally devaluing the currency?

#8 Jase

Jase

    Kuechold Fantasies

  • Administrators
  • 15,664 posts
  • LocationMatthews, NC

Posted 13 September 2012 - 02:16 PM

you mean they're intentionally devaluing the currency?


Not just them, most major central banks.

Competitive devaluation.

#9 g5jamz

g5jamz

    Is back

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 17,726 posts

Posted 13 September 2012 - 02:16 PM

Um...that's what happens when you print more/influx more money.

#10 mmmbeans

mmmbeans

    FBI SURVEILLANCE VAN

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 13,998 posts

Posted 13 September 2012 - 02:18 PM

Not just them, most major central banks.

Competitive devaluation.


yea, that's what I meant. I figure so too.

#11 venom

venom

    oneinfiniteconsciousness

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 7,203 posts
  • LocationPleiades

Posted 13 September 2012 - 02:34 PM

you mean they're intentionally devaluing the currency?


Duh, theyre trying to destroy the dollar/economy on purpose. We've been telling you guys this forever now.

#12 NanuqoftheNorth

NanuqoftheNorth

    Frosty Alaskan Amber

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 3,724 posts
  • LocationAlaska

Posted 13 September 2012 - 03:38 PM

Ah, wouldn't it be wonderful to be a TBTF bank?

Getting money for next to nothing from the Federal Reserve and then loaning it back to the Federal Government; creating massive bank profits and bonuses out of thin air, all paid for by US taxpayer dollars.

Meanwhile, hard working Americans watch the value of their paychecks and savings accounts shrink with every QE.

#13 mmmbeans

mmmbeans

    FBI SURVEILLANCE VAN

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 13,998 posts

Posted 13 September 2012 - 04:12 PM

so whatta we got, 4-6 weeks before we should take profits and start moving back into cash? I guess it is an election year... EOY?

thoughts?

#14 NanuqoftheNorth

NanuqoftheNorth

    Frosty Alaskan Amber

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 3,724 posts
  • LocationAlaska

Posted 13 September 2012 - 04:32 PM

Short Term Results:

EOY dip if Obama is reelected.

EOY bounce if Romney is elected.

No rational reason for it but investors are not that rational to begin with.

Here is a classic example of how little Presidents have to do with the economy:

Myth: Carter ruined the economy; Reagan saved it.

Fact: The Federal Reserve Board was responsible for the events of the late 70s and 80s.

Posted Image

Summary


Carter cannot be blamed for the double-digit inflation that peaked on his watch, because inflation started growing in 1965 and snowballed for the next 15 years. To battle inflation, Carter appointed Paul Volcker as Chairman of the Federal Reserve Board, who defeated it by putting the nation through an intentional recession. Once the threat of inflation abated in late 1982, Volcker cut interest rates and flooded the economy with money, fueling an expansion that lasted seven years. Neither Carter nor Reagan had much to do with the economic events that occurred during their terms.

http://www.huppi.com...arterreagan.htm

#15 pstall

pstall

    Gazebo Effect

  • HUDDLER
  • PipPipPipPipPipPipPipPipPip
  • 18,312 posts
  • LocationMontford

Posted 13 September 2012 - 05:20 PM

So the us treasury is telling freddie and fannie to wind down their portfolios at a much faster clip and now THIS? Ummm. HOW?


0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

Contact Us: info@carolinahuddle.com - IP Content Design by Joshua Tree / TitansReport.