posted September 13, 2012 01:57 PM
http://www.marketwatch.com/story/fed-to-launch-qe3-by-buying-mortgage- securities-2012-09-13?pagenumber=2 i am no financial expert. however this sounds to me like the fed is buying up a lot of defunct mortgages? in other words, they are buying what was private property...
and aiming to keep interest rates at a level that will discourage lenders from lending due to lack of profit from doing so...in other words, discouraging small biz and startups through 2015.
ryan has said he thinks it will do more harm than good...for once i agree with him, but i don't agree with him that this is GOVERNMENT INTERVENTION.
as we all know the fed is NOT a government bureau or institution but a private entity. how much of the country are we going to let them buy up????
bernanke, thank god, sees his term end in '14. the man has been wrong wrong wrong on every "prediction" or "projection" or "estimation" of the economy since i first heard him speak in 08, when "everything is fine"...and he was equally complacent/optimistic in early 09.
NOW he is pessimistic (publically) and taking advantage of people's doubts by offering to HELP buy buying up 40bn of securities every month until growth picks up?
as i said, i'm no financial whizz kid. i run on intuition and common sense founded on history and instinct mostly...
thoughts, folks?