It's more QE∞ as the Fed launches an open-ended $45B/month Treasury purchase program to replace...


It's more QE∞ as the Fed launches an open-ended $45B/month Treasury purchase program to replace the expiring Operation Twist. This will be more expansionary than The Twist as that program included the sale of short-term Treasurys to go along with the purchase of longer-dated paper. The other QE∞ - the Fed's open-ended purchases of $40B/month of MBS - continues.

Comments (4)
  • realornot
    , contributor
    Comments (1263) | Send Message
     
    keep on printing ..... our money is getting dirt cheap!
    12 Dec 2012, 12:35 PM Reply Like
  • GaltMachine
    , contributor
    Comments (2068) | Send Message
     
    So no more "sterilization"?

     

    Our money will multiply like bunny rabbits in the wild.
    12 Dec 2012, 12:41 PM Reply Like
  • Captain Sparrow
    , contributor
    Comments (57) | Send Message
     
    You go to a party. In one room, it's sex and drugs and rock and roll, AND they're handing out $100 bills for free! In the other room, everyone is worried about what will happen when the party is over. Which room do you enter?
    12 Dec 2012, 12:42 PM Reply Like
  • GaltMachine
    , contributor
    Comments (2068) | Send Message
     
    Great quote, especially the last sentence, from James Montier of GMO courtesy of Pragcap:

     

    "Essentially, Bernanke’s first commandment to investors goes something like this: Go forth and speculate. I don’t care what you do as long as you do something irresponsible.

     

    Not all of Bernanke’s predecessors would have necessarily shared his enthusiasm for recklessness. William McChesney Martin was the longest-serving Federal Reserve Governor of all time. He seriously considered training as a Presbyterian minister before deciding that his vocation lay elsewhere, a trait that earned him the beautifully oxymoronic moniker of “the happy puritan.” He is probably most famous for his observation that the central bank’s role was to “take away the punch bowl just when the party is getting started.” In contrast, Bernanke’s Fed is acting like teenage boys on prom night: spiking the punch, handing out free drinks, hoping to get lucky, and encouraging everyone to view the market through beer goggles."
    12 Dec 2012, 12:47 PM Reply Like
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