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FOMC Announcement: QE3 is on to the tune of an open-ended pledge to buy $40B in MBS per month....

FOMC Announcement: QE3 is on to the tune of an open-ended pledge to buy $40B in MBS per month. The pledge to keep rates extraordinarily low is extended until mid-2015.
Comments (91)
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Bernanke should just come out and say that he will never raise rates.
    13 Sep 2012, 12:36 PM Reply Like
  • WMARKW
    , contributor
    Comments (10252) | Send Message
     
    They can't. It would be a disaster. It's already a disaster. Fed actions will not help economy.
    13 Sep 2012, 12:46 PM Reply Like
  • Shane Zhao
    , contributor
    Comments (45) | Send Message
     
    QEternity
    13 Sep 2012, 03:53 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    Personally I think this is shameful. What a joke our economy has become - Amerika is not far off. Interest rates aren't low enough already?

     

    "To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

     

    "In particular, the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015."
    13 Sep 2012, 12:36 PM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    I take it you would be happier with a rate increase?
    13 Sep 2012, 12:43 PM Reply Like
  • tom_t
    , contributor
    Comments (260) | Send Message
     
    I would. Nobody needs these rock-bottom rates any more. Fixed-income savers are being killed. Bonds are now riskier than stocks in some respects.
    13 Sep 2012, 12:46 PM Reply Like
  • WMARKW
    , contributor
    Comments (10252) | Send Message
     
    Yes. No more capital destruction.
    13 Sep 2012, 12:47 PM Reply Like
  • WMARKW
    , contributor
    Comments (10252) | Send Message
     
    What about eliminating IOER, Interest on Excess Reserve?
    13 Sep 2012, 12:47 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    It would be more refreshing if he just came out and said that the Fed was doing everything at its disposal and the real problem lies with Congress for allowing the problems related to the debt ceiling and fiscal cliff to continue to constrain the economy.

     

    Continuing to add to the bond purchase program is akin to pushing on a string.
    13 Sep 2012, 12:48 PM Reply Like
  • JB Murphy
    , contributor
    Comments (88) | Send Message
     
    The FED is stuck. . .if they raise rates it will crush the paltry growth we have. if they continue to keep rates low, prime the pump, and pray for rain then we will get inflation.

     

    Money printing is all they know how to do. We will get QE to infinity before we collapse.
    13 Sep 2012, 12:48 PM Reply Like
  • Shortie Long
    , contributor
    Comments (103) | Send Message
     
    The banks have to rebuild their balance sheets somehow. Free loans, the ability to dump their junk on the Fed and the government continuing to look the other way while all this goes on. All of the fraud went on with Bernanke's tacit approval. Either that or he was too incompetent to see what was going on right under his nose. He's now in too deep to do anything but try to cover it up. We will all pay the price for it while the banksters laugh at us. Hey, they got theirs. Let all the poor schmucks eat cake.
    13 Sep 2012, 12:52 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Pack in the early 90's when the S&L's collapsed the RTC took all the bad loans off the books of banks. In order for them to rebuild their balance sheets Greenspan steepened the long end of the curve for a year so that banks could widen their spreads and rebuild their balance sheets.

     

    After a year the far end moved back to a normal range and economic growth began to pick up.

     

    We are doing the exact opposite.
    13 Sep 2012, 12:55 PM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    Not in some respects, probably in most respects
    13 Sep 2012, 01:02 PM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    Bank balance sheets aren't a problem now. We have different problems today.
    13 Sep 2012, 04:21 PM Reply Like
  • Jason Tillberg
    , contributor
    Comments (1237) | Send Message
     
    The Fed and Markets are addicted to this crack QE.

     

    Stunningly pathetic.

     

    Gas was $3.99 yesterday...
    13 Sep 2012, 12:37 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Well, let's see if this gives the usual addict getting fixed reaction or has the addict doped so many times that the thrill is gone? Not looking like much of a buzz so far.

     

    And, other than pumping the stock bubble a little bigger, it's not going to help the real economy anyway.
    13 Sep 2012, 12:38 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Well during Bernanke's Jackson Hole speech he admited to not knowing what he is doing.

     

    "As a result, central bankers in the United States, and those in other advanced economies facing similar problems, have been in the process of learning by doing."

     

    What do you take from that statment?
    13 Sep 2012, 12:39 PM Reply Like
  • SmashFinance
    , contributor
    Comments (34) | Send Message
     
    40 Billion a month? A bit on the low end... sounds like Uncle Ben didn't really want to do anything, but got a little election year nudge!
    13 Sep 2012, 12:39 PM Reply Like
  • bull_market_somewhere
    , contributor
    Comments (113) | Send Message
     
    my mREIT portfolio is gonna crush, thanks ben!
    13 Sep 2012, 12:40 PM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    Yup! Long NLY
    13 Sep 2012, 01:03 PM Reply Like
  • mobyss
    , contributor
    Comments (1840) | Send Message
     
    A couple of years ago I told some coworkers that 30-year mortgages would be under 2% before this is all over. They laughed at the time.

     

    I'm still right.
    13 Sep 2012, 12:40 PM Reply Like
  • MICHAELIRISH131
    , contributor
    Comments (43) | Send Message
     
    Gas, milk, bacon, cereal, $3, 99 this morning..
    13 Sep 2012, 12:40 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    This is a tale of saving Frannie and propping up the MBS markets. Everyone ought to be asking: why do they need to be propped up, and will this attempt have unintended consequences? (Hint: moral hazard is one.)
    13 Sep 2012, 12:41 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    NOOOOOOOOOO, not bacon!!!!
    13 Sep 2012, 12:41 PM Reply Like
  • JB Murphy
    , contributor
    Comments (88) | Send Message
     
    Bacon is the "gateway meat"
    13 Sep 2012, 12:49 PM Reply Like
  • WMARKW
    , contributor
    Comments (10252) | Send Message
     
    You need cholesterol for good brain function.
    13 Sep 2012, 12:50 PM Reply Like
  • bbrady413
    , contributor
    Comments (757) | Send Message
     
    That gateway comment made me choke on my water. Definitely the funniest thing I've read today.
    13 Sep 2012, 01:07 PM Reply Like
  • jsingular
    , contributor
    Comments (28) | Send Message
     
    As funny as this is, the "gateway meat" comment is quite accurate. Research has shown that the smell of bacon fat is so enticing that many vegetarians eat bacon as their first meat when they break their diet. Personally, I went for steak first, but bacon sure was tempting me for many years.
    13 Sep 2012, 01:54 PM Reply Like
  • ericmcarter
    , contributor
    Comments (179) | Send Message
     
    The Fed only has $500b in 1 to 5 yr treasuries left. They can only accommodate $40b in monthly MBS purchases for a year if they want to sterilize all new purchases. Who will buy them and what happens when the Fed has no short-term holdings a high-duration bond portfolio in a zero-interest rate environment? Levered at 53-to-1, interest rates cannot go up at all or we will have an insolvent Fed. Nice!
    13 Sep 2012, 12:43 PM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    The Fed can print all the money it wants electronically to buy more bonds and then "make a profit" for the government on those bonds LOL
    13 Sep 2012, 01:47 PM Reply Like
  • helicopterDeadBenjamins
    , contributor
    Comments (20) | Send Message
     
    Thank goodness for Ben. Too bad congress couldnt get a little stimuli for the economy, you know laser like focus on jobs. Could you imagine the pickle we would be in if Ben wasnt on the job
    13 Sep 2012, 12:43 PM Reply Like
  • D. McHattie
    , contributor
    Comments (1823) | Send Message
     
    Your sarcasm is a little too subtle - I hope not but I think you might actually be serious.

     

    If Ben and any of the Greenspan-alike inflation dove potential replacements weren't on the job we might have purged the system of all the bad debts 5 years ago and now be back to a healthy economy.

     

    If Ben wasn't on the job we might not be capitulating to our financial overlords, handing our currency over to them so that they can lend us money at interest.

     

    If Ben wasn't on the job? Man, I can only dream.

     

    D
    13 Sep 2012, 12:53 PM Reply Like
  • Jeb Handwerger
    , contributor
    Comments (622) | Send Message
     
    "The Fed may follow China and other countries around the globe in making accommodative moves. This summer China began cutting interest rates for the first time in years. Do not forget two years ago at the end of August, Bernanke announced QE2, flooding the markets with $600 billion. Silver soared from $18 to $50. It seems that investors have already prepared for such a move as gold and silver stage technical breakouts, while the miners are just beginning to play catch up."

     

    http://seekingalpha.co...
    13 Sep 2012, 12:43 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    So 40b/mo or 480 billion QE and the S&P has added how many trillions in value since al this talk
    13 Sep 2012, 12:44 PM Reply Like
  • $CLU
    , contributor
    Comments (207) | Send Message
     
    I think Gold prices just had the closest thing to an orgasm a market can have.
    13 Sep 2012, 12:46 PM Reply Like
  • mobyss
    , contributor
    Comments (1840) | Send Message
     
    Gold reacts to impeding inflation, or even hyperinflation.
    13 Sep 2012, 12:51 PM Reply Like
  • johnybutts
    , contributor
    Comments (62) | Send Message
     
    I know I did.
    13 Sep 2012, 12:55 PM Reply Like
  • The Cynic
    , contributor
    Comments (256) | Send Message
     
    Lol... now that gold orgasm comment is comical!
    13 Sep 2012, 02:23 PM Reply Like
  • azblackbird
    , contributor
    Comments (358) | Send Message
     
    Cool... now that we got that out of the way... there can be no more WE NEED QE, WE NEED QE, WE NEED QE, bullsh!t (at least for awhile anyways) spouted from the MSM. Now maybe we can get back to trading on fundamentals rather than Hopeium!
    13 Sep 2012, 12:51 PM Reply Like
  • Joseph Stuber
    , contributor
    Comments (1700) | Send Message
     
    Geez people go back to school. This is not QE. It is another Twist. Such stupidity.
    13 Sep 2012, 12:54 PM Reply Like
  • mobyss
    , contributor
    Comments (1840) | Send Message
     
    The Fed will CONTINUE Twist, AND purchase an additional $40B of MBS per month with newly printed money.

     

    Go read the press release again.
    13 Sep 2012, 01:07 PM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
     
    This is good for the short term.. But unfortunately that's all the gunpowder Ben and draghi had. That was it haha.. The double bazooka lol. I'm starting to get worried now. We need a new president.
    13 Sep 2012, 12:55 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    Right that's it. No more stocks/bonds or other fiat based poo for me. I'm off buying physical gold and silver. See you on the other side.
    13 Sep 2012, 12:55 PM Reply Like
  • anomaly1
    , contributor
    Comments (767) | Send Message
     
    QE priced into the market. Nothing new to pump.
    13 Sep 2012, 12:56 PM Reply Like
  • zorrba
    , contributor
    Comments (397) | Send Message
     
    The owners of U.S. debt will simply take their payment of printed money and park it in another place it has zero velocity.
    That is the difference between using printed money to pay debt as opposed to any manner of projects benefiting society with new jobs and the positive results of the work done.
    13 Sep 2012, 12:59 PM Reply Like
  • Joseph Stuber
    , contributor
    Comments (1700) | Send Message
     
    As people realize what they got then what. Read QE below from Wikipedia. QE is bond buying from banks to inject liquidity. This is another Twist. Really bad reporting based on no knowledge of what just happened which is nothing but a continuation of the pressure on the long bond yields.

     

    Good land this is irresponsible reporting.

     

    Quantitative easing (QE) is an unconventional[1][2] monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank implements quantitative easing by buying financial assets from commercial banks and other private institutions with newly created money, in order to inject a pre-determined quantity of money into the economy. This is distinguished from the more usual policy of buying or selling government bonds to keep market interest rates at a specified target value.[3][4][5][6] Quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield.[7]
    13 Sep 2012, 12:59 PM Reply Like
  • Craig Cooper
    , contributor
    Comments (2111) | Send Message
     
    From Investopedia:

     

    "Central banks tend to use quantitative easing when interest rates have already been lowered to near 0% levels and have failed to produce the desired effect. The major risk of quantitative easing is that, although more money is floating around, there is still a fixed amount of goods for sale. This will eventually lead to higher prices or inflation."
    13 Sep 2012, 01:11 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1001) | Send Message
     
    The problem isn't interest rates - the problem is Obama, a POTUS who tells business owners, "you didn't build that."

     

    A Fed policy of ZERO interest rates does not make up for anti-business policies coming from DC.
    13 Sep 2012, 01:05 PM Reply Like
  • JLesinski
    , contributor
    Comments (137) | Send Message
     
    And the wheels on the bus go round and round......until gas hits $5.00. Thank God I take the metro to work...
    13 Sep 2012, 01:06 PM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
     
    So when the dust settles the Dow goes back below 13k and the Feds out of bullets. The US dollar is only down .2 %... That was the last catalyst for the market. Now Spain and whoever else will get their bailouts and well see how our market can weather the storm. I'm getting out see ya after the election lol.
    13 Sep 2012, 01:11 PM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
     
    Market has topped.
    13 Sep 2012, 01:12 PM Reply Like
  • Craig Cooper
    , contributor
    Comments (2111) | Send Message
     
    .... for the day .... or the year? :-)
    13 Sep 2012, 01:19 PM Reply Like
  • mobyss
    , contributor
    Comments (1840) | Send Message
     
    From the Financial Times:

     

    US wholesale prices in sudden surge

     

    By Anjli Raval in New York

     

    Wholesale prices in the US rose the most in three years in August as food and energy costs jumped.

     

    The labour department said its producer price index rose 1.7 per cent on a seasonally adjusted basis last month, the largest gain since June 2009, after increasing 0.3 per cent in July.

     

    ----------------------...

     

    Good Job Ben! Massive inflation just as food and energy make their biggest jump in three years!

     

    All SA readers - fill your gas tanks on the way home tonight - this will be the cheapest gas you see for a long, long time.
    13 Sep 2012, 01:21 PM Reply Like
  • Shane Zhao
    , contributor
    Comments (45) | Send Message
     
    QE3 is counter-productive at this point. As high commodity price will lead to high food & energy price, which results in slowing down the consumer consumption.
    Buying more MBS will also encourage reckless lending from the bank. Now there is a place to sell that junk again.
    There is a even bigger bubble than 2008 underway.
    13 Sep 2012, 01:36 PM Reply Like
  • azblackbird
    , contributor
    Comments (358) | Send Message
     
    Yep... I see it coming already. Neighbor just bought a home for 0 down. Both him and wife are unemployed and living on disability. Go figure. (banging head on wall)
    13 Sep 2012, 01:40 PM Reply Like
  • bbro
    , contributor
    Comments (9326) | Send Message
     
    Listen to the wailing...Bernanke for President!!!
    13 Sep 2012, 01:23 PM Reply Like
  • tom_t
    , contributor
    Comments (260) | Send Message
     
    Wow, you really have no idea what you are talking about, if you think any of this is good for the economy.
    13 Sep 2012, 01:42 PM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    I agree with bbro. Bernanke is a genius. Medal of Freedom for him.
    13 Sep 2012, 03:12 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    Risk on!
    Actually, Bernanke had no choice. If Big Ben hadn't launched QE3 today, the Fed would have developed the same credibility gap that haunts Mario Draghi.
    13 Sep 2012, 01:27 PM Reply Like
  • mobyss
    , contributor
    Comments (1840) | Send Message
     
    Risk on?

     

    So let's talk some numbers. S&P to what 1600? 1700?

     

    Gold to $2000? $2500?

     

    Oil to $130, $140, $150?

     

    Gasoline to $5, $6?
    13 Sep 2012, 01:29 PM Reply Like
  • JLesinski
    , contributor
    Comments (137) | Send Message
     
    Probably gas to $5 and I hope gold goes to $2500, I bought everything in sight this morning. 1900 or 2000 is probably more realistic.
    13 Sep 2012, 01:34 PM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
     
    When do you think bernanke will start talking about QE4 lol
    13 Sep 2012, 01:28 PM Reply Like
  • bbro
    , contributor
    Comments (9326) | Send Message
     
    S&P earnings yield minus Baa corporate yield...
    13 Sep 2012, 01:32 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1560) | Send Message
     
    I hope all of you realize that if the Fed let rates rise right now, the US couldn't afford the interest payments on our debt alone. We'd have to default almost instantaneously.
    13 Sep 2012, 01:46 PM Reply Like
  • tom_t
    , contributor
    Comments (260) | Send Message
     
    If that is the case, then our economy is doomed.
    13 Sep 2012, 01:59 PM Reply Like
  • Metals are Precious
    , contributor
    Comments (713) | Send Message
     
    Just keep adding to your physical folks...I would have believed Bens comments were already baked into the market. I guess i was wrong or people are starting to believe in those coins finally..

     

    Might also start Prepping alittle as well....This hole is too deep to get out of imho...

     

    map
    13 Sep 2012, 02:09 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Hello Japan.

     

    I had the numbers somewhere but the average interest rate on US Government debt is somewhere near 2.7%. A 1% move in the average interest rate would add close to $160 billion to the federal deficit.
    13 Sep 2012, 02:10 PM Reply Like
  • tom_t
    , contributor
    Comments (260) | Send Message
     
    David, the 10-year is 1.78 as I write this. Do you think it is going back down?
    13 Sep 2012, 02:18 PM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    The Fed is purchasing MBS @ 40B/m. This is really not going to do much for anything, much less the stock market. The Federal Reserve seems to believe that the problem with the recovery is in assets like housing and if you don't have recovery in that, you won't have any recovery. They couldn't be more wrong. This isn't going to juice very much other than expectations. Really this is a bailout of housing by putting the assets on the Fed's balance sheet. One more week and we should see the stock market top out as realization sets in that this is doing nothing.

     

    Also, Bernanke is really putting him and the Fed on the line by making this political. To Republicans that were previously sympathetic to the Fed, such as Romney and his followers, the Fed is now seen as directly funding the Obama reelection campaign. If Romney has any balls and is ready to play, he should make direct statements against the Fed intervention and say what he is going to do about them when he gets put in office. I suspect you'll see a strong push for him then.
    13 Sep 2012, 02:11 PM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
     
    Preach!
    13 Sep 2012, 02:24 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    WOW and I really mean WOW. If this is not an explicit action to support Obama's re-election I'd like to know what is. And they say the Fed is independent. LMAO at the following

     

    "These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative."

     

    Helicopter BEN at his finest!
    13 Sep 2012, 02:25 PM Reply Like
  • Shane Zhao
    , contributor
    Comments (45) | Send Message
     
    Since it is open-ended, My understanding is that there will be no more QEs, because this one is going to be there FOREVER,

     

    "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."

     

    On second thought, the $40B/m may not be there forever, because there will be $90B/m, $150/m.

     

    Get use to it, don't run against the upcoming bull. It seems like the bull will keep on running for awhile. It doesn't mean QE is good for the economy or the people. but the market likes it.
    13 Sep 2012, 02:32 PM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    Junkies like crack until they die or end up in the hospital or in rehab. I think you're now going to find the anti-Fed movement begin to really heat-up. I don't think people are going to tolerate this much longer, and the Fed and politicians have antennas to see when people are quite angry.
    13 Sep 2012, 03:04 PM Reply Like
  • Shane Zhao
    , contributor
    Comments (45) | Send Message
     
    Tea Party? movement?
    just look at how much change people got from Occupy Wall Street. Nothing!Nobody cares about the middle class.
    13 Sep 2012, 03:06 PM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    Occupy isn't the same thing as the Tea Party, which isn't necessarily the same thing as the anti-Fed movement. Occupy doesn't really focus their attention on the real issue -- they are more concerned with the result of bad economic policy than the cause. The tea party is a mix of many different groups that have one common interest -- usually low taxes and fiscal discipline. They aren't really anti-Fed, though. There is a huge group of people splintering from all political ideologies that are anti-Fed. It's not just libertarians (small L). Ron Paul did get his Audit bill past the house. That's a big step, but the pressure will now increase on both the opposition party (Romney, mainly) and the senate to do something about the Fed. I wouldn't be too pessimistic.
    13 Sep 2012, 04:13 PM Reply Like
  • The Cynic
    , contributor
    Comments (256) | Send Message
     
    But it's not a real bull! It's like Barney the dinosaur, an actor in a costume. In other words, fake, deception. A flood of ccash to support still ailing bank balance sheets those banks either just depositing it with the Fed or using some of it to try to boost returns. It's not like the wider economy is really benefitting.
    14 Sep 2012, 10:02 AM Reply Like
  • The Cynic
    , contributor
    Comments (256) | Send Message
     
    Tax revolt..., it's really the only way to get it under control.
    14 Sep 2012, 10:05 AM Reply Like
  • Chris Lau
    , contributor
    Comments (1585) | Send Message
     
    As ZH calls it, "QEnfinity." How much longer can consumers be punished with higher gas prices, and responsible savers with extraordinarily low, near-zero returns?
    13 Sep 2012, 03:19 PM Reply Like
  • JLesinski
    , contributor
    Comments (137) | Send Message
     
    Until they get fed (haha it's punny...) up with it and realize that monetary policy is a poor substitute for fiscal policy and replace the gentleman in the White House, or pressure him enough to replace Bernake. Given BO's keynsian bent though, we're all doomed...
    13 Sep 2012, 03:25 PM Reply Like
  • Shane Zhao
    , contributor
    Comments (45) | Send Message
     
    We shall call it "QEternity"
    13 Sep 2012, 03:37 PM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    "How much longer can consumers be punished with higher gas prices"

     

    Crude oil moving on QE is purely speculative long positions and doesn't reflect real supply and demand.

     

    Eventually supply/demand will have to assert itself. But I'm not holding my breath.
    13 Sep 2012, 05:39 PM Reply Like
  • The Cynic
    , contributor
    Comments (256) | Send Message
     
    he short answer is until they revolt. Either by not paying their taxes or by withdrawing their cash from the banks or both.
    14 Sep 2012, 10:08 AM Reply Like
  • dreadlordnaf
    , contributor
    Comments (481) | Send Message
     
    Bad for the country, good for my pm stocks...
    13 Sep 2012, 03:28 PM Reply Like
  • tradetwister
    , contributor
    Comment (1) | Send Message
     
    Hmmm... I wonder if we can use three strikes and your out?
    13 Sep 2012, 03:40 PM Reply Like
  • ManoLive
    , contributor
    Comments (437) | Send Message
     
    I'm still at 5.25% on my mortgage. I'd better get refinancing quick. I've only got til 2015.
    13 Sep 2012, 03:43 PM Reply Like
  • GrubberMark
    , contributor
    Comments (51) | Send Message
     
    How much longer of this giddy stupidity? I used to think that the Fed knew what they were doing, but today throws that all out the window. I had also been backing Obama up until now ---that was my mistake. Maybe if we can get Romney into office we can get a chairman who's not drunk behind the wheel.
    13 Sep 2012, 03:49 PM Reply Like
  • Petrarch
    , contributor
    Comments (634) | Send Message
     
    Nominal growth is 4%
    10 year is 2%

     

    You can and should borrow all day long under those conditions. And maintaining those conditions means that this awful slack we have in the economy will be used without a World War.

     

    Destruction of productive capacity is ultimately is inflationary and will damage future living standards. Precenting that is key - so keeping the economy ticking over - by any means - is preferable.

     

    Check your politics at the door. Lose your debt aversion. This move makes it more likely you wil be able to pay off in the future. Not less likely. The economy and its potantial is the most important.

     

    Bernanke is doing the right thing. I am not a fan of Obama and yes he must go - but Bernanke is not the problem. He is a big part of the solution.

     

    Bernanke for President

     

    P
    13 Sep 2012, 05:09 PM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    "You can and should borrow"

     

    There is very little lending out there for anyone looking for less than about $1m. As in, the vast majority of the middle class for example.
    13 Sep 2012, 05:41 PM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    All the lending in the world won't happen until the banks let it.

     

    Bernanke didn't do what he really need to do...... start making interest rates negative for banks that park their reserves at the Fed (i.e. the banks start paying the fed for the privilege of parking their money there). That will make the pace of lending pick up real quick. Right now, banks get access to cheap money and get to lend it out and keep the spread. Even an idiot can make a profit like that.
    13 Sep 2012, 08:41 PM Reply Like
  • WMARKW
    , contributor
    Comments (10252) | Send Message
     
    So the real question to me is this. If Banks know what it will take to start lending to increase consumption, then are the Bankers not talking to the "central" BANKER?
    13 Sep 2012, 10:39 PM Reply Like
  • The Cynic
    , contributor
    Comments (256) | Send Message
     
    Bernanke shuns the spotlight of the Presidency, kind of like how slimy slugs shun the light in favour of cold moist refuges under rocks!

     

    Easier to be a puppet-master behind the scenes for the most part, but then again he has his own puppet-masters ttoo if you haven't realized that Jamie D and alike pull his strings.
    14 Sep 2012, 10:13 AM Reply Like
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