Fed reverses plan to buy U.S. debt - Washington Times »
Posted By gbudavid 4 months, 1 week ago in Political News
After more than a year of pumping money into financial markets to buoy the troubled economy, the Federal Reserve began to reverse course Wednesday, taking the first step to withdraw some of those trillions of dollars by announcing that it will phase out an unprecedented program to purchase some of the government's own debt.
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beavith14 months, 1 week ago
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everybody, tighten your seat belts.
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FTA
"Inflation will not be a problem. The Fed knows how to exit from the quantitative easing programs. This should not be a concern," he said.
The Fed stressed that the move could withdraw the stimulative measure in light of the economy's recent improvement. It cited a "leveling out" of economic activity and much improved financial conditions in recent months because of strong rallies in the stock and credit markets."
i agree that inflation won't be the big issue. though, to cite 'levelling out' as a reason to do anything is scary. what if they used the words 'bottoming out' as a rationale?
we can yet go lower. much lower.
bond and interest yields bumped up after this. good. for the moment. seeing liquidity is still strangling, this could put something of a damper on the economy. at a time when its not a great idea.
will somebody please fix the CDO and CDS issue. Please!?! -
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tadair9194 months, 1 week ago
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so after spending 300 billion purchasing U.S. debt, they plan to fight inflation by stopping the program. then, they announce they will continue all their other inflationary programs, including [continuing] "a separate program of purchasing up to $1.25 trillion in Fannie Mae and Freddie Mac mortgage securities."
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hmm... but that amount, alone, is over 4 times the headliner. way to wag the dog, fed.
let me try and summarize this for you:
in a nutshell, to stave off inflation the fed has decided to inflate slightly less than they were inflating yesterday. Treasury Bond rates increase slightly. The end. -
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calitennflo4 months, 1 week ago
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Chris Hedges speaks of a meeting between the largest and most populous countries on the planet, as they seek to organize and consolidate interests by dumping the U.S. Dollar and collecting on the U.S. Debt.
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http://www.russellmeansfreedom.com/2009/china-russ...
LOL on we go...from selling dollars at 80 cents on a dollar to what?-
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hamy4 months, 1 week ago
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Um...Bush purposefully lowered the value of the dollar to a point where it was almost 2 dollars to a British pound during his presidency. Were you complaining about that? I don't recall that. Must be because your team isn't in power anymore.
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lloydm654 months, 1 week ago
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Just wait inflation is lurking just over the rise.If unemployment stays above eight percent,through twenty ten,it will cause the printing press to crank up.This sound will bring inflation over that rise,and come crashing down on us.How strange at one time inflation was caused by consumers spending too much money,today its caused by Obama spending everything,yes folks the money is gone,along with jobs.It ain't gonna get any better than this.
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