Ever wonder why every leading western politician wears that little hat at the wailing wall prior to running for higher political office? Within next 2 decades the capital cities of all western nations will be Jerusalem. That can only happen if US is weak internally and externally. We're setting up to be fucked by the zionist elite and their evangelical foot soldiers. The arabs are about to get fucked harder because they'll all be deported to africa to make room for a massive zionist landmass. Arab spring is more like good pretext to beginning of arab rape.
Absolute hogwash. WAMU failed and no depositor lost money. Liquidate all these good for nothing banks robbing the taxpayer. Nothing will happen except house prices in the Hamptons will plummet
The economy cannot cope with the bad debt that is about to occur. It is not possible to pay off all of the bad debt that will exist is the money supply contracts.
Long term rates have moved up significantly since the Fed's announcement. Also, it's been said that the spread between long-term rates and MBS will narrow with the Fed's actions. So how does this benefit the banks? For consumers, could this all be a wash with little movement in mortgage rates? So far, the effect has been to move people away from Treasuries and the dollar. Is this just a way to move people into risk assets without negatively affecting the housing market? -lf
Keeping mortgage rates from moving meaningfully from these incredibly low levels isn't a "wash" for consumers, it's a massive win.
Not really. If the price of everything else has to rise to keep mortgage rates artificially low, it's a marginal win for a small subset of consumers.
They don't print money, unless you are using that term idiomatically and mean that the fed is expanding the money supply. They credit the Banks' balances on the Fed ledger. They are essentially liquifying the assetts. The banks can use thoses Fed Reserve credits as cash, or transfer them to creditors, or lend against them. Eventually the Fed will sell those assetts and retire the lliquidity. One hopes. In the meantime, the Fed is recording record profits under Bernanke, running about an 80 billion dollar profit per annum.