Inflation anyone? Fed to Spend $600 Billion More To Help Boost US Economy - CNBC

[andymays]

Fed to Spend $600 Billion More To Help Boost US Economy - CNBC
http://www.cnbc.com/id/39990450

Excerpt:

The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.

The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

[ElKabong]

On Tuesday, the electorate loudly rejected Government's spending policies.

The very next day, the Fed decides to print money and invite inflation. I hope the new Congress decides to shine a light on that Org for what they are, what they do...and let the electorate decide the Fed's fate.

Same for NPR, the dept's of Education, Agriculture, etc, etc

[bigmack]

EUR/USD

http://i154.photobucket.com/albums/s254/hunkoburninlove/graph.png

[JustRalph]

They did it today to stem the market rush upward after the election.

It worked. They stopped the market cold. Lessening the humiliation of the President. I wonder who picked the date for the official announcement? Somebody in the Cabinet I am sure.......

[chickenhead]

They did it today to stem the market rush upward after the election.

It worked. They stopped the market cold. Lessening the humiliation of the President. I wonder who picked the date for the official announcement? Somebody in the Cabinet I am sure.......

They announced it about two weeks ago, for all intents and purposes, when they first floated it. The market began reacting to it back then. QEII, they're calling it. They already did a first round of quantative easing, months ago.

I love a good conspiracy theory, but it doesn't really fit here. Inflation is much better for the market than deflation, so far as up/down movement. Wall Street in general cheers this sort of thing, they're the ones begging for it. The market reacted to this news awhile back, the only question was how big it would be.

EDIT: Here's actually a good look at it.

Earliest article I can find about QEII, it was actually earlier than I thought, Bernanke tipped it off on Aug 27.

http://www.businessinsider.com/ben-bernanke-qeii-2010-8

Here is a 3 mo chart, look at the market since end of Aug.

http://www.google.com/finance?chdnp=1&chfdeh=0&chdet=1288833707015&chddm=25415&cmpto=INDEXDJX:.DJI;INDEXSP:.INX;INDEXNASDAQ:.IXIC&cmptdms=0;0;0&q=INDEXDJX:.DJI,INDEXSP:.INX,INDEXNASDAQ:.IXIC&ntsp=0


Not saying its long term good or bad policy -- but markets love this stuff, always.

[Tom]

This is the equivalent of sticking a pistol in the face of every real working American and stealing 20% of his money.

[boxcar]

They announced it about two weeks ago, for all intents and purposes, when they first floated it. The market began reacting to it back then. QEII, they're calling it. They already did a first round of quantative easing, months ago.

I love a good conspiracy theory, but it doesn't really fit here. Inflation is much better for the market than deflation, so far as up/down movement. Wall Street in general cheers this sort of thing, they're the ones begging for it. The market reacted to this news awhile back, the only question was how big it would be.

EDIT: Here's actually a good look at it.

Earliest article I can find about QEII, it was actually earlier than I thought, Bernanke tipped it off on Aug 27.

http://www.businessinsider.com/ben-bernanke-qeii-2010-8

Here is a 3 mo chart, look at the market since end of Aug.

http://www.google.com/finance?chdnp=1&chfdeh=0&chdet=1288833707015&chddm=25415&cmpto=INDEXDJX:.DJI;INDEXSP:.INX;INDEXNASDAQ:.IXIC&cmptdms=0;0;0&q=INDEXDJX:.DJI,INDEXSP:.INX,INDEXNASDAQ:.IXIC&ntsp=0


Not saying its long term good or bad policy -- but markets love this stuff, always.

So...the bottom line seems to be: The Feds are looking out for their friends on Wall St. Could this be because they don't give a flip about the poor slobs on Main St.?

Boxcar

[Robert Goren]

Let the trade wars begin. That is what the devaluing of the currency is all about. Actually we did not start it. The Chinese did and Europeans were close behind. We are now in a catch up mode.

[chickenhead]

So...the bottom line seems to be: The Feds are looking out for their friends on Wall St. Could this be because they don't give a flip about the poor slobs on Main St.?

You could probably look at it that way, tho it does have positive benefits for many normal people to, it makes our exports more competitive, so its good for many workers. Probably worst for pensioners.

Which reminds me, I hope thats something money managers are talking to people about, bonds will surge, but eventually have nowhere to go but down in value, long term. People with bond portfolios will eventually get crushed.

Bill Gross at Pimco is probably without question the most respected bond guy around, he published a very informative editorial about QE2 and where we are:

http://www.pimco.com/Pages/RunTurkeyRun.aspx

I read this other guy weekly, and have some money in one of his funds -- he has been pretty much dead nuts accurate, about what actions cause what results, for the 2 years that I've read him. I don't understand everything he talks about, but I read him and always learn something:

http://www.hussmanfunds.com/weeklyMarketComment.html

[boxcar]

You could probably look at it that way, tho it does have positive benefits for many normal people to, it makes our exports more competitive, so its good for many workers. Probably worst for pensioners.

Only for some "normal people". The same results could have been achieved for the workers with tariffs, no? This way consumers' dollars don't drop in value.

Boxcar

[Tom]

Could we not grow, make or mine everything we need right here at home and
not import or export goods, services, or job?

Food for thought?

[lamboguy]

the cold facts are that no republic in prior years have been able to live longer than 75 after debasing their currency's. the united states currency is a FIAT CURRENCY now and has been since nixon took us off the gold standard about 40 years ago. the ROMAN EMPIRE lasted the 75 years, most only lasted about 50 years. the question that needs to be answered is this, is the UNITED STATES BETTER of worse than the ROMAN EMPIRE. time will only answer that question, i only hope i am long gone to find out the answer.

[Mike at A+]

They did it today to stem the market rush upward after the election.

It worked. They stopped the market cold. Lessening the humiliation of the President. I wonder who picked the date for the official announcement? Somebody in the Cabinet I am sure.......
Am I missing something? The Dow is up about 200 today.

[bks]

Silver up almost 7% today alone.

[boxcar]

[QUOTE=chickenhead]They announced it about two weeks ago, for all intents and purposes, when they first floated it. The market began reacting to it back then. QEII, they're calling it. They already did a first round of quantative easing, months ago.

I love a good conspiracy theory, but it doesn't really fit here. Inflation is much better for the market than deflation, so far as up/down movement. Wall Street in general cheers this sort of thing, they're the ones begging for it. The market reacted to this news awhile back, the only question was how big it would be.

EDIT: Here's actually a good look at it.

Earliest article I can find about QEII, it was actually earlier than I thought, Bernanke tipped it off on Aug 27.

http://www.businessinsider.com/ben-bernanke-qeii-2010-8

Here is a 3 mo chart, look at the market since end of Aug.

http://www.google.com/finance?chdnp=1&chfdeh=0&chdet=1288833707015&chddm=25415&cmpto=INDEXDJX:.DJI;INDEXSP:.INX;INDEXNASDAQ:.IXIC&cmptdms=0;0;0&q=INDEXDJX:.DJI,INDEXSP:.INX,INDEXNASDAQ:.IXIC&ntsp=0

Chicken, JR might have a valid point. The DEMs have been reading the handwriting on the wall way before two weeks ago. If you don't believe this, just listen closely to some of BO's speeches. They saw this train wreck coming.

In fact, I'll even take this father by saying the Dems pretty much knew that once they shoved ObaminationCare down our throats, they could pretty much kiss their jobs good-bye. They were prepared to sacrifice their jobs to put the final nail of socialism in America's coffin.

Boxcar

[skate]

they keep UncleGeorges tax cuts, they will, and things will be fine.


it's the only way to go.:)

[andymays]

Backlash against Fed’s $600bn easing

http://www.ft.com/cms/s/0/981ca8f4-e83e-11df-8995-00144feab49a.html#axzz14LtPYrD9

[boxcar]

they keep UncleGeorges tax cuts, they will, and things will be fine.


it's the only way to go.:)

Yes! Keeping the Bush tax cuts for the poor would be a help and step in the right direction. However, how would a lib politician ever justify this move? :D

Boxcar