Skip to comments.
Fed unlikely to extend QE2: officials
Yahoo ^
| 3/25/11
| Ann Saphir
Posted on 03/25/2011 12:17:00 PM PDT by NormsRevenge
click here to read article
Navigation: use the links below to view more comments.
first 1-20, 21-23 next last
April Fools joke a few days early?
saw a piece a few days back that QE3 is on deck, they just need to make the call and roll the presses.
To: NormsRevenge
I thought QE2 was going to be converted into a hotel.
To: NormsRevenge
They’re playing good guy/bad guy with contradictory announcements, made to keep everyone off balance.
3
posted on
03/25/2011 12:22:52 PM PDT
by
steve86
(Acerbic by nature, not nurture (Could be worst in 40 years))
To: NormsRevenge
Means interest rates will have to go up, possibly very high.
4
posted on
03/25/2011 12:24:53 PM PDT
by
bkepley
To: NormsRevenge
IMO, if they go one dollar further, the market for US Treasuries will tank and people will run from the dollar likes horses run from a burning stable - which they may still do anyway.
5
posted on
03/25/2011 12:29:07 PM PDT
by
IamConservative
(Liberalism - the surety of knowing that which cannot be proven.)
To: Paleo Conservative
lol.. I hope I live long enough to sail on the QE4.
6
posted on
03/25/2011 12:33:00 PM PDT
by
NormsRevenge
(Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
To: steve86
Yup,, not sure how much longer they can prop the market up.. time to audit the Fed?
We could use some good soap opera hearings in DC right up to the election next year.. and then ‘Blame Canada’ if Libya goes bad. ;-)
7
posted on
03/25/2011 12:36:11 PM PDT
by
NormsRevenge
(Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
To: NormsRevenge
I think QEII will probably be enough to push this train off the tracks anyway. We are all so screwed. Wait til the end of the year and unemployment is still at 9% and inflation is still going up up and away.
8
posted on
03/25/2011 12:38:36 PM PDT
by
Georgia Girl 2
(The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
To: bkepley
Back in the day, there wee 9% Treasuries.
Perhaps there will be some relief for savers.
To: NormsRevenge
“lol.. I hope I live long enough to sail on the QE4”
There is another new Cunard ship known as the Queen Elizabeth: no numeral. I understood that the QE2 destined to become a moored hotel in Dubai, was to be sent to South Africa to serve as a floating hotel for last year’s world cup games.
10
posted on
03/25/2011 12:49:44 PM PDT
by
IWONDR
To: reformedliberal
To: NormsRevenge; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; ...
RE :”
With the economy on firmer footing the Federal Reserve Bank is unlikely to extend its bond-buying stimulus program beyond a planned $600 billion, several top Fed officials said on Friday. Members of the more hawkish wing of the Fed went further, with Philadelphia Fed Bank President Charles Plosser saying the U.S. central bank will have to reverse its easy money policy in the “not-too-distant future” to avoid sowing the seeds of inflation.
The Fed has kept short-term rates near zero since December 2008 and has bought more than $2 trillion in long-term securities to push borrowing costs down further and boost recovery from the 2007-2009 recession. “
Outside of the monetary effects you have to ask who will finance US debt if the federal reserve stops? Japan? There still is alot of money out there but you can see the government is spending like crazy.
12
posted on
03/25/2011 12:57:04 PM PDT
by
sickoflibs
("It's not the taxes, the redistribution is the federal spending=tax delayed")
To: NormsRevenge
maybe the thought of the Ron Paul Hearings was just more than they could stomach...
To: Buckeye McFrog
. . . maybe they ran out of paper...
14
posted on
03/25/2011 1:05:08 PM PDT
by
de.rm
('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
To: NormsRevenge
With the economy on firmer footing the Federal Reserve Bank is unlikely to extend its bond-buying stimulus programThis is false on so many levels. First, they imply that QE is a stimulus program. It is not. Second, they imply that a stronger economy removes the need for it. This is not so. The purpose of QE is to provide funding for government deficit spending while keeping interest rates low. The problem here is that deficit spending continues, and at current interest rates being offered by the Treasury, there is no way possible to sell enough bonds to finance $1 trillion in debt each year. It simply is not possible.
There are three possibilities here:
- The government gets its spending under control so that it does not need to raise huge sums to run its affairs
- The Treasury raises interest rates to around 20% in order to attract the $1 trillion needed to fund deficit spending
- expand the money supply by another $1 trillion
I bet they choose option 3.
15
posted on
03/25/2011 1:47:43 PM PDT
by
Hoodat
(Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
To: NormsRevenge
I'll be called KE1 (Kinetic Easing) instead, and funded initially funded at 1 Trillion dollars.
16
posted on
03/25/2011 1:48:42 PM PDT
by
Errant
To: Hoodat
$1 trillion ain’t what it used to be. Better bank on $10 trillion.
17
posted on
03/25/2011 5:01:11 PM PDT
by
Milhous
(Lev 19:18 Love your neighbor as yourself.)
To: NormsRevenge
Without QE2 there is only one place the Fed can get the money from.
Your Pension.
They may force all pension accounts to buy their garbage treasuries.
18
posted on
03/25/2011 5:32:37 PM PDT
by
agere_contra
(As often as I look upon the cross, so often will I forgive with all my heart.)
To: steve86
Discombobulated.......by design.
19
posted on
03/25/2011 5:43:09 PM PDT
by
unkus
To: Georgia Girl 2
Wait til the end of the year and unemployment is still at 9% and inflation is still going up up and away. If a tree falls in the forest and the liberal media refuses to report it, does it make any noise?
It won't be reported, so it won't exist. Nothing to worry about.
20
posted on
03/25/2011 6:02:53 PM PDT
by
ChildOfThe60s
( If you can remember the 60s....you weren't really there)
Navigation: use the links below to view more comments.
first 1-20, 21-23 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson