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Fed pumps $1.2tn into US economy
BBC ^ | 3/18/09

Posted on 03/18/2009 5:28:24 PM PDT by advance_copy

The US Federal Reserve says it will buy almost $1.2 trillion (£843bn) worth of debt to help boost lending and promote economic recovery.

It said it would start buying long-term government debt and expand purchases of mortgage-related debt.

The size of the move surprised investors, causing the Dow Jones stock index to jump almost 200 points.

The Bank of England has already begun buying government debt to expand money supply - known as quantitative easing.

The Federal Reserve said it hopes the measures will boost mortgage lending and the struggling housing market by lowering interest rates on mortgages and other forms of consumer debt.

(Excerpt) Read more at news.bbc.co.uk ...


TOPICS: Business/Economy; Extended News; News/Current Events; Politics/Elections
KEYWORDS: bho44; economy; fed; obama
The Fed is throwing everything it has, but it cannot do anything about the original, verifiable, and actual cause of our economic problems. That is the current President who has been an economic disaster since the day Americans realized he could get elected.
1 posted on 03/18/2009 5:28:25 PM PDT by advance_copy
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To: advance_copy

Will this send interest rates lower?


2 posted on 03/18/2009 5:30:13 PM PDT by KansasGirl
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To: advance_copy

The real problem of our nation originates with the idiots in Congress and extend that problem to the current fraud that sits in the WH.


3 posted on 03/18/2009 5:31:19 PM PDT by lilylangtree (Veni, Vidi, Vici)
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To: lilylangtree

The Fed cannot do anything about Nancy Pelosi or Harry Reid either.


4 posted on 03/18/2009 5:32:09 PM PDT by advance_copy (Stand for life or nothing at all)
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To: advance_copy

Obama gonna buy me a new car, pay my bills , and and and ..... finally !

< /sarcasm>


5 posted on 03/18/2009 5:33:27 PM PDT by Squantos (Be polite. Be professional. But have a plan to kill everyone you meet)
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To: advance_copy
" If Obama were truthful: I'm with the government and I'm here to help you.

I propose to take all your money and all your children and grand children's money and dole it out to my friends who supported me.

But I'm really not gonna do that either. I'm building up a slush fund to create havoc down the road a bit so I can say I saved the country and win a second term!"

6 posted on 03/18/2009 5:33:48 PM PDT by FixitGuy (By their fruits shall ye know them!)
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To: advance_copy
The Fed doesn't have $1.2T.

It has IOU’s.

7 posted on 03/18/2009 5:35:18 PM PDT by Mikey_1962 (Obama: The Affirmative Action President)
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To: advance_copy

Is this real money or just play money?


8 posted on 03/18/2009 5:37:03 PM PDT by al baby (Hi Mom)
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To: KansasGirl

For a little while,until production starts up. Then watch out. 1.2 Trillion dollars chasing a few commodities, or products. Plus the other trillion or so they pumped into the stimulus package.

The dollars you will be using to pay your debt in three years will be worth a lot less than they are today.


9 posted on 03/18/2009 5:38:26 PM PDT by Vermont Lt (Ein Volk, Ein Riech, Ein Ein.)
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To: advance_copy

Hello hyperinflation is coming sooner or later!


10 posted on 03/18/2009 5:38:40 PM PDT by A. Morgan (Every night I pray that Rezko and Blago roll over on Obama!)
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To: al baby
Is this real money or just play money?

We should worry that, by the time Barak Obama is done, there will not be any difference.
11 posted on 03/18/2009 5:39:07 PM PDT by advance_copy (Stand for life or nothing at all)
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To: advance_copy

Hyperinflation here we come!


12 posted on 03/18/2009 5:41:28 PM PDT by Obadiah (Party - my house - on December 22, 2012!)
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To: al baby
Is this real money or just play money?

Real money? Since when has that existed? (1969 or so)

13 posted on 03/18/2009 5:42:31 PM PDT by NeoCaveman (control the teleprompter, control the world)
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To: al baby
Is this real money or just play money?

Photobucket
14 posted on 03/18/2009 5:43:24 PM PDT by Right_Wing_Madman
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To: advance_copy

15 posted on 03/18/2009 5:43:50 PM PDT by Obadiah (Party - my house - on December 22, 2012!)
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To: lilylangtree
The real problem of our nation originates with the idiots in Congress

Don't forget the idiots that elected them.

16 posted on 03/18/2009 5:44:59 PM PDT by WhistlingPastTheGraveyard
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To: Right_Wing_Madman

When inflation kicks in that might be what it takes for a fancy meal out


17 posted on 03/18/2009 5:56:15 PM PDT by al baby (Hi Mom)
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To: advance_copy

Monty Python Money Song:

I’ve got ninety thousand pounds in my pyjamas.
I’ve got forty thousand French francs in my fridge.
I’ve got lots of lovely lire.
Now the Deutschmark’s getting dearer,
And my dollar bills would buy the Brooklyn Bridge.

Chorus:
There is nothing quite as wonderful as money.
There is nothing quite as beautiful as cash.
Some people say it’s folly,
But I’d rather have the lolly.
With money you can make a splash.

PRESENTER:
There is nothing quite as wonderful as money.

CHORUS:
...Money, money, money, money.

PRESENTER:
There is nothing like a newly minted pound.

CHORUS:
...Money, money, money, money.

PRESENTER and CHORUS:
Everyone must hanker
For the butchness of a banker.
It’s accountancy that makes the world go ‘round.

CHORUS:
‘Round, ‘round, ‘round.

PRESENTER:
You can keep your Marxist ways,
For it’s only just a phase,
For it’s money, money, money makes the world go ‘round.


18 posted on 03/18/2009 6:07:19 PM PDT by Mikey_1962 (Obama: The Affirmative Action President)
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To: KansasGirl

Look for a 30 year mortgage to be 4%. If this doesn’t help the home building industry, nothing will.


19 posted on 03/18/2009 6:27:54 PM PDT by Terry Mross (I Hate All Politicians, Republicans Included.)
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To: NeoCaveman

Nixon was the first president to spend more than we took in. Up until that time mortgage rates were around 4% and never waivered.


20 posted on 03/18/2009 6:29:36 PM PDT by Terry Mross (I Hate All Politicians, Republicans Included.)
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To: Obadiah
"Hyperinflation here we come!"

I think Obama's plan (the tax part of it already stated), is to inflate to the point that home values are back where they were (though a gallon of milk will be $5), and then raise taxes to soak up and redistribute money, thus cooling down the economy.

21 posted on 03/18/2009 6:34:50 PM PDT by LZ_Bayonet (There's Always Something.............And there's always something worse!)
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To: Obadiah

Is that picture from Argentina or Italy?


22 posted on 03/18/2009 6:37:37 PM PDT by conservaDave (You can't ignore the democRAT...He's a menace to health, home and industry...kill him!)
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To: advance_copy

They want banks to lend but they have no clue that no one wants to borrow.

Take your trillions and use it to fund massive tax relief. Then you’ll see results.


23 posted on 03/18/2009 6:44:09 PM PDT by fightinJAG (Good riddance, UAW.)
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To: Terry Mross

It doesn’t matter how low the interest rates on mortgages go. Very few people can get mortgages because very few homes meet LTV ratios.


24 posted on 03/18/2009 6:45:53 PM PDT by fightinJAG (Good riddance, UAW.)
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To: Terry Mross

P.S. I meant mortgages for refinancing.


25 posted on 03/18/2009 6:46:27 PM PDT by fightinJAG (Good riddance, UAW.)
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To: LZ_Bayonet

There is merit to supplying money for “reflation” -—if the people doing it know what they’re doing (and these clowns do not). However, home prices going back to the 2005 peak? Not going to happen.


26 posted on 03/18/2009 6:48:08 PM PDT by fightinJAG (Good riddance, UAW.)
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To: Right_Wing_Madman

27 posted on 03/18/2009 6:55:44 PM PDT by Thunder90
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To: advance_copy

another $1.2 trillion?

so what is the total up to since jan 20th? $7 trillion? 8?

anyone have the full list?


28 posted on 03/18/2009 7:32:32 PM PDT by sten
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Since this spending orgy and these bailouts started last fall, I’ve been wondering this: Have the money managers for the overwhelmingly wealthy members of Congress been hedging the pols’ $$$$ against the damage that Congress and POTUS are doing to our currency?

We in the middle class, who don’t have the funds to hire professionals, will get clobbered as a result of their unimaginably irresponsible overspending.


29 posted on 03/18/2009 7:36:45 PM PDT by OneTimeComment
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To: Terry Mross

Not true, I am 65 years old and don’t remember ever seeing interest rates below 6 percent until recently.


30 posted on 03/18/2009 7:44:44 PM PDT by fatrat (impeach the HPIC (head-porksucker-in-charge))
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To: Obadiah
if we get hyperinflation, will our stocks rise too?.......rates on savings?.....

just want to know....looking for a positive....

31 posted on 03/19/2009 1:29:10 AM PDT by cherry
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To: cherry
if we get hyperinflation, will our stocks rise too?.......rates on savings?.....

Short answer..., probably yes. However, the bad news is that the rise in the market value of your assets WILL NOT keep up with the rate of inflation and you will lose true net worth daily (along with your purchasing power).

Inflation is inevitable under our current monetary system where currency is created from thin air and merely backed by the "full faith and credit" of the issuing governmental body. It is just a matter of the rate of inflation at any given time.

Since the creation of the Federal Reserve nearly 100 years ago, a dollar's purchasing power at that time is worth less than 5 cents today (and that is by using "Official Inflation" data which has been politically manipulated for decades now!)

A website calculating such data may be found at:

http://www.westegg.com/inflation/

32 posted on 03/19/2009 1:45:59 AM PDT by ExSES (the "bottom-line")
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To: fatrat

I swear I remember mortgages in Arkansas at the 4% level int he 60’d.

fightenJAG-Yhe low interest rates will spur NEW HOME sales. The LTV is okay on new construction. It lowers the heck of the value of existing homes in the area but it keeps people working. If I remember correctly, there are something like 27 businesses tied directly to the building of each house.

Refinancing will not be affected in most parts of the country because of LTV. Sadly new homes purchased a year or two ago have gone down in value and can’t be refinanced without bringing money to the table.


33 posted on 03/19/2009 10:16:38 AM PDT by Terry Mross (I Hate All Politicians, Republicans Included.)
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To: Terry Mross

I can’t vouch for the very early 60s but i bought my first home in 1967 after returning from Viet Nam. I bought it with a California Veteran’s loan and the interest rate was only 3 3/4 percent which was much lower than the going rate at that time. I believe the going rate at that time for FHA and regular VA loans was high 5s or low 6s. The reason the rate was so low was that i was one of the very 1st vietnam vets to apply under the CALVET loan program and they had not adjusted the interest rates since shortly after the Korean war. The CALVET program was great. The state loaned the full amount directly to me and my total out-of-pocket, move-in cost was less than $100. It was a 20 year loan and at 3 3/4 % about half of my very first payment went to equity.


34 posted on 03/19/2009 10:58:39 AM PDT by fatrat (impeach the HPIC (head-porksucker-in-charge))
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