Registered: Sep 2012
09-17-12 07:21 AM
Quote from Bob111:
i'm simple man with zero knowledge of economics,but if understand things correctly FED is buying non performing junk from banks and give them more real money to make more loans. how is this beneficial for fed? and US as a country? aren't fed represent same bunch of private banks? looks like all they do is just shoveling money from one pocket in their pants to another..
question-banks already in deep sh**t and anyone who want to buy a house and mortgage-got one..to whom they are going to loan? to same losers,who can't pay for a first one? cause everyone else is paying his..now-folks who are paying-they might refinance and that's what happening now(see zillow page on mortgage rate -see volume increase like X10,compared to volume 2-3 years ago).
but! every refinance cost you a lot of money. that's #1..and as we go closer and close to zero on mortgage rate-the effect of those QE's will be less and less. cause 0.5% difference won't do anything for mortgage holder. make no sense for him to refinance..even if there is a some savings-they will be offset by increase in price for everything else,cause of this money printing..and it's kind of bold statement, that even FED knows,that US economy can't recover on it's own,regardless to all previous help from them. cause the core of all economic problems is in DC,not on main street. give them jobs,lower taxes on small businesses(cause big ones aren't' paying anything anyway). make the country more " pro small business" then they will hire and after that -people might think about buying a house
guys just buy famous stocks now and eurusd --- after each QE there was only bullish market