To: KarlInOhio
Keep in mind that something like $45B of the monthly “QE3” purchases involve mortgage-backed securities, not government bonds. In effect, the Fed is probably buying a lot of mortgage-backed securities where the mortgages were written several years ago — meaning the money was already in circulation long before the Fed purchased the MBS instruments.
5 posted on
10/13/2013 2:07:13 PM PDT by
Alberta's Child
("I've never seen such a conclave of minstrels in my life.")
To: Alberta's Child
mortgage-backed securities where the mortgages were written several years ago meaning the money was already in circulation long before the Fed purchased the MBS instruments.But by buying those securities, they give the banks actual cash to lend out gamble with on Wall Street.
8 posted on
10/13/2013 2:17:55 PM PDT by
BfloGuy
(Workers and consumers are, of course, identical.)
To: Alberta's Child
mortgage-backed securities where the mortgages were written several years ago meaning the money was already in circulation long before the Fed purchased the MBS instruments.But by buying those securities, they give the banks actual cash to lend out gamble with on Wall Street.
9 posted on
10/13/2013 2:18:02 PM PDT by
BfloGuy
(Workers and consumers are, of course, identical.)
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