Fed considers upping QE3 size and language

Discussion in 'Economics' started by pupu, Oct 22, 2012.

  1. pupu

    pupu

  2. kashirin

    kashirin

    it was known since June

    as they don't have any short bonds to sell the only choice is outright purchases

    nobody will buy government bonds if Fed is not in the market
    rates would be higher than for Greece if not the Fed
     
  3. maxpi

    maxpi

    No rate hikes for 2-3 years! I gambled on variable rate loans on some RE and it's been great [so far].

    More QE pleeeezzzzee! Somebody has to buy those bonds.
     
  4. clacy

    clacy

    But the Fed is in the market, so we're not like Greece at all IMO.
     
  5. achilles28

    achilles28

    What a surprise?
     
  6. vicirek

    vicirek

    Since August 15, 1971 actually - gold standard - Nixon Shock
     
  7. maxpi

    maxpi

    Yeah, it's unreal. The gold backed US $ was settled on as the reserve currency at Bretton Woods. Then we went off the gold standard. The perceived stability of the US $ is the new gold standard. However, nobody is buying the Treasuries of late except the Fed. Is it because we have a marxist as POTUS maybe? Is it because we deregulated and now have a third worldish financial system? Stay tuned folks, more to follow...
     
  8. SO no one wants to buy US bonds except for the Fed?

    [​IMG]

    And yet when a QE is launched, rates drift higher and when QE ends, rates drift lower. Ignore Twist as it was just changing the maturity of the portfolio.
     
  9. I'm doing pretty damn well. There's been some ups and downs. But all of it has been under the watchful eye of the Federal Reserve.

    I doubt things would be this stable in my life without them.
     
  10. clacy

    clacy

    I blame the Fed for cancer
     
    #10     Oct 22, 2012