Baby Ben:
Posted on 09/13/2012 11:01:38 AM PDT by Free ThinkerNY
The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates.
The Fed said it will buy $40 billion of mortgages per month in an attempt to foster a nascent recovery in the real estate market. The purchases will be open-ended, meaning that they will continue until the Fed is satisfied that economic conditions, primarily in unemployment, improve.
There's strong hints that they'll do Treasurys next," Joe LaVorgna, chief economist at Deutsche Bank Advisors, said in a phone interview from London."They're pulling out all the stops to try to get this economy to gain some traction and, most important, to get unemployment down."
Enacting the third leg of quantitative easing will take the Fed's money creation past the $3 trillion level since it began the process in 2008.
"The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," the Open Market Committee said in a statement.
(Excerpt) Read more at finance.yahoo.com ...
So, with QE-3, Helicopter Ben is buying up mortgages to benefit a privileged class (homeowners) and discriminate against others.
You might want pick up some Pb !
BLOAT
Never thought I would miss the Carter days, but more things like this make me wax rhapsodic for those good old days (both equally incompetent, but at least Carter wasn’t determined to destroy the country)
But I still can't believe it happened and is so blatant an effort to prop up a communist pos like obama
I suppose by October they'll tap the strategic petroleum reserve to knock down the price of gas below $4 a gallon
God Help Us all
Excellent asset protection program suggestion.
Aren’t mortgage rates already ridiculously low?
hw many of those loans will be converted into never pay back loans? IOW a loan will be “modified” into a $0 dollars per month payment and declared a performing loan.
Disgusting. Will this help re-elect Obama, or will it possibly backfire?
I think they already do. Probably even higher for student loans, and going higher.
Mortgage rates are at record lows. Why is this necessary? How much lower can the rates go?
We’re be stimulated on again.
be=being
ugh!
I talked with the bank that holds our morrtgage about refinancing using the gov’t HARP program. We bought about 3 years ago @ a 5% interest rate, but if we could get a lower rate would save a lot of money over the long term. We have an almost perfect credit score and they quoted us a rate of 4.625%. I didn’t understand it being so high.
$40 billion a month is $480b a year!!
The economy is $15,090 billion a year. This is 3.2% of GDP!
Without QE, the official numbers would show recession.
WE ARE IN A RECESSION, FOLKS!
Romney/Ryan, is your staff reading this? Please get the word out to the sheeple during the debates!!
Part 2 of the September surprise.
How low can mortgage rates go?
Bloomberg.com currently has the 30 year fixed at 3.57% and the 15 year fixed at 2.93%.
I do not see how this will start a building boom, but I do see how it can start a refinancing boom, and each refinance is a host of fees, points, and etc. that probably net a bank a percentage or two of the refinance.
I also see how it could unstuck the used home market with used homes at lows and rates at lows. Qualifying for the loan is an issue, but with lower monthly payments more will qualify. It really strikes me as a buyers market.
So, how low will the rates go?
Also, and sadly, where is the Fed getting all this money?
Printing it.
Inflation is going to take off crazily at some point. We can only hope that wages match it when it finally strikes. They normally don’t.
Got a mirror?
Where ? - please tell
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