I think the first round of QE was beneficial because it took pressure off banks' risk-adjusted capital ratios and stabilized the banking sector. The second (mostly Treasury purchases) and this one (mostly MBS purchases) do a whole lot of nothing. The Fed's basically swapping out securities at par value for additional reserves when banks already have mountains of them. The Fed felt they had to take action because of their employment mandate, but at the end of the day the Fed can only transact with banks. Only through private/commercial lending do any Fed actions actually make their way into the economy, and banks lend based on credit-worthiness. Lending standards aren't suddently going be thrown by the wayside just because they have additional cash in their vaults. About the only thing the Fed really accomplishes with these two rounds of QE is artificially propping up stock/commodities indices. Those with reserve accounts at the Fed will likely seek yield elsewhere instead of letting their reserves sit idle, and the Average Joe investor will think "hyperinflation cometh" and park his/her money in equities/commodities. I may not be seeing the whole picture, but that's just my 2 cents...
Poor texxx seems the libtards on the board aren't the only ones who blame bush for everything. Poll: 54 Percent Blame Bush And GOP For Economic Woes More than half of voters nationwide attribute the country's current economic problems to former President George W. Bush and Republicans as opposed to President Barack Obama and the Democrats, a new poll released Thursday shows. The latest release from CNN shows that 54 percent of likely voters think Bush and his Republican colleagues are more to blame for the still-sluggish national economy, compared with 38 percent who blame Obama and the Democrats.
Artificially propping up markets creates wealth, which can then spur economic growth which would justify the increased stock market prices. The economy is built, in large part, on confidence - so if the Fed can successfully create that, it can theoretically generate real employment.
Does anyone think this extended version of QE3 will actually drive the markets down in the short term? We saw the DOW 6500 in between QE1 and QE1a, and it had a huge pullback in August of 2011 in between QE2 and Operation Twist. I just can't see this market rising any more than it has, given weak employment and turmoil overseas.
Job numbers and housing recovery must not have sat well with the Federal Reserve. I just wish for once the Fed would consider $40 billion per month purchases of US stocks for the next 12 months. http://www.ritholtz.com/blog/wp-content/uploads/2012/09/qe-2-chart.png
Pardon me, the HOUSE, not Congress. Speaking of the quality of posters, maybe if you told us something besides regurgitating the typical Republiconservative talking points, you'd have the proverbial leg to stand on. Any poster who puts the amount of blame on the ills of our country at the foot of one person, even if that person is the President, shows a woeful lack of understanding about how the country- and the world- operates. My gaffe trumps your obliviousness, son.
So...the real question is...will mortgage rates go any lower? Not sure how that is possible. I mean, I've been hearing "rates will never be this low" from the predatory housing industry shills for what seems like an eternity...kind of like the annual bottom-calling of the housing market.
what's unbelievable is that the jobs number is still so atrocious even with shockingly low mortgage rates and the fed with the pedal to the metal for a loooooong time now just goes to show what a truly piss poor job Obama has done, even with every advantage
in other news, gallup shows unemployment dropping to 7.9% and underemployment at 16.7% - the lowest ever Gallup has recorded since it began measuring it. Yes, what is shocking is how distorted your perception of reality is. They should make a reality TV show about it.
Sounds like you're unhappy that the economy is doing better. How un-American of you. You find joy in all of Americas successes.
Life is good here. Perhaps you should work harder and/or achieve a higher level of education and things will look up for you?
I have to say, the tables in the Galleria food court have been taking a little longer to be cleaned lately. Less postie, more cleanie, texxx.
Wait until it drops below 7% next year. That really will be a national disgrace. And when it drops to 6% the year after, Obama's failure will be complete.
Every advantage except being born white, rich, with both parents, inheriting a stable economy, having a cooperative Rebuplican Party with a commitment to bi-partisanship.
Oh my! Bureau of Labor Statistics shows that the private-sector added 450,000 more jobs as of March 2012 than previously thought. This means that the economy has crossed the threshold and more jobs have been created than lost during President Obama’s term. More analysis from Think Progress
