Markets to be still flooded with money

Discussion in 'Wall St. News' started by Visaria, Apr 27, 2011.

  1. Visaria


    The initial impression was that no more QE after June. But, not quite! They are going to continue to reinvest both Treasuries and MBS, meaning the markets will still be awash with money:

    Bernanke spoke after the central bank today reiterated its view that surging commodity prices are likely to have a transitory effect on inflation and agreed to finish its program of large-scale asset purchases on schedule. In his press conference, Bernanke said the central bank is likely to continue reinvesting its securities holdings, including mortgage-backed securities, as they mature even after June.

    “We are going to continue to reinvest maturing securities, both Treasuries and MBS, so the amount of securities that we hold will remain” approximately constant, he said. “The amount of monetary policy easing should remain constant going forward from June.”
    Monetary Stimulus

    When the Fed begins unwinding its record monetary stimulus, “it’s very likely that an early step would be to stop reinvesting all or part of the securities which are maturing,” he said. “That step, though a relatively modest step, does constitute a policy tightening,” Bernanke said.
  2. Larson

    Larson Guest

    Bernanke should resign. He has failed and is discredited. There are no easy solutions, but he should get out of the way.
  3. sjfan



  4. Larson

    Larson Guest

    Dollar plunging, gold and silver rocketing higher, with no end in sight, as a DIRECT result. Traveling down the same inflationary road as Arthur Burns.
  5. sjfan


    So what? Weak dollar isn't bad for the US; the Fed couldn't care less about the price of gold (nor should you, unless you have a gold position).

    And no end in sight? There's no QE3. QE2 ends on schedule. Not sure what 'sight' you were hoping for.

  6. Larson

    Larson Guest

    Complete Total Bullshit. Is this satire?
  7. sjfan


    Why? Because *you* disagree?

  8. So sjfan, what should the Fed pay attention to?

    Are you another one of these guys who believes in the "dual mandate"?
  9. sjfan


    Job growth and price stability (in both directions).

    Wait... why are 'dual mandate' in quotes? I can certainly understand that whether the Fed is able to meet their 'dual mandate', but are you implying that the dual mandate is not a legitimate goal for the Fed to achieve?

  10. zdreg


    #10     Apr 27, 2011