and America takes another one in the........
2nd: How does the Fed "promote a very strong recovery"?
The recession was over in June 2009, that's 4 years of a jobless recovery, and the who expects the next business cycle is more recovery???
3rd: Senate Rules changed to the Simple Majority.
Since January 2007 Democrats have been running the 'economy' and gotten every jobs program and stimulus they ask for. Today, every month the Fed is buying $85 billion in bonds to 'promote recovery'. The Fed should not be the biggest US Government Creditors.
But it continues the spending because Banks aren't stuck with the bond debt, the Fed buys it with electronic funds transferred, there is no real economic activity except the banks now have cash.
And where do these bonds go? The banks will later be regulated to buy them again, as the Fed will require more liquid assets be held by banks.
4th: The Fox Reporter should add in March 2006, Yellen was saying "overall the economy has shown considerable resilience", she wasn't signaling then. Another 2006 speech Yellen was encouraging banks to give out loans encouraging home ownership. Ask Peter Schiff who was first to sound the alarm of the housing bubble.
Housing Speculation is More Rampant Than You Think by Peter Schiff, Euro Pacific Capital. July 5, 2005
http://www.financialsensearchive.com/fsu/editorials/schiff/2005/0705.html
QE will continue till Obama leaves office, then the next president will be handed a larger POS than the 8 years previous.
And to further elaborate, the Fed buys bonds with per-non-existing funds, later sells bonds to take the real cash out of banks.
Banks now have the 'per-non-existing funds' and the bonds they original owned by paying cash for twice.
Where does the cash go? Inflation is the first thought. $85 billion dollars a month.
And how long does it originally take for bank customers to deposit $85 billion dollars?
The real story here is that the FED and all of its governors aren’t any smarter than the people reading this thread. They didn’t know, they suspected, they did nothing and here we are today. How is that better than just the market regulating itself?
The FED is working to eliminate the volatility of the marketplace. It’s tamped it down so badly that it is causing a series of other disruptions. Government has destroyed trust in itself and its institutions. Who can you turn to now?
I was having a conversation the other day with a Kenyan doctor and his wife, an MBA. The wife said that socialism was bad as it encouraged corruption and that capitalism was just as bad because people will cut corners for greed.
and America takes another one in the........