Federal Reserve to buy GSE mortgage debt

Discussion in 'Wall St. News' started by Daal, Nov 25, 2008.

  1. Daal


  2. Fed will monetize the $50 Trillion in worthless CDSs and who knows whatever else... "to get the economy moving again".

    But it's all still "eating our seed corn and calling it growth".
  3. S2007S


    So whats going to happen when all this bad paper is bought by the federl reserve, does anyone really think they are going to create another growing economy where GDP is a solid 3-4% a year, where jobs are plentiful and the consumer spending just as they should to keep the economy rolling along....
  4. There will be "economic activity"... but it will be basically "consuming our own tail with inflated Dollars"... they will call it "growth". It will be yet another big lie.

    There will not be REAL growth in the USSA at least until the Boomers die off... maybe not then, either.

    REAL ECONOMIC GROWTH comes from making things, selling them to the world, and building capital reserves from the profits.... as China is doing now (thanks in great part to greedy outsourcing by Western nations).

    "Financial engineering", "debt-based consumption", and "redistribution of the wealth" are NOT growth.
  5. Daal


    I'm puzzled by the fed funds futures market reaction. its going up a lot, one would think this gse buying would mean the fed would be using other tools instead of cuts and housing comes back soon than otherwise