Fed announced rates will be low until unemployment is 6.5%

disgraceful that the fed is now tasked with unemployment targets

Thanks Obama

Cancel your 22 day vacation and get to work on jobs you lazy slob

 

Right...

Darn that Obama's for the Humphrey-Hawkins Act passed in 1978!
Darn him for the Employment Act of 1946 too!

 

The $85 billion the Fed is using to purchase assets every month, who gets that money?

 

Let the hate fill you

 

That money is credited to Primary Dealers' reserve accounts (i.e. 20 or so of the largest banks/bank holding companies in the world), bolstering their already substantial reserves.

 

So bankers are just handed $85 billion a month? What about the rest of us?

I'm in the wrong business.

 

I wouldn't really look at it that way. Imagine you run a bank and you have vault already brimming with cash. The Fed then says to you, "Hey we'll put even more cash in that vault of yours!"

Honestly, there's only so much you can do with that money. You can't exactly take that cash and go buy yourself a new jetski and mansion. The only thing you can really do is invest it, lend it, or whatever else to generate a profit. However, does that really change anything for you? You already had a vault brimming with cash. More than likely, that additional cash is just going to sit in your vault collecting dust.

EDIT: I should also point out that the reserves aren't just being handed to them per se. Banks have to give up the MBS (QE1/QE3) or Treasuries (QE2) in the process. The amount of assets on banks' balance sheets remains unchanged...just morphed from securities to cash.

 

Like I said, I need to get into the business where the Fed purchases whatever assets I acquire. And they never run out of money to keep giving to me.

Pretty sweet deal.

 

First of all, the Fed is the business of stabilizing the banking sector. You can't just buy up random assets from every Tom, Dick, and Harry and expect to sell it to the Fed later. Unless the Fed specifically intends to increase the level of reserves in the banking system due to some inherent banking instability, you're stuck with those assets.

Second, you would also have to purchase whatever assets the Fed tells you to purchase. Just as the Fed will buy your assets to fill your vault when the situation calls for it, it can also force you to buy Treasuries to destroy all that excess vault cash.

 

Just curious, is there anything at all the president has done that you support?

 

There's so much to be proud of for what he has done... like never getting a single vote for his proposed budgets. I'm really proud of that one, seeing that not a single democrat in the House or Senate has ever voted in favor of his proposed budgets.

Now that's a feat!

 

Four more years.

 

Yeah...except the President's budget proposal is merely a spending request. The budget committees in Congress are supposed to come up with a budget (typically using the President's proposal as a guideline) and pass it through both houses.

I don't believe any other President in recent history had his budget proposal voted on as-is (but I may just forgetting). Regardless, it's not standard operating procedure, and Senate Republicans brought it up for vote knowing damn well it'd be rejected in a landslide. It was all idiotic political grandstanding to embarrass the President.

Of course, many conservatives can't seem to remember anything before 2009. We likewise had no budget passed in 2006 for FY2007, when Republican controlled both houses. I'm sure those on the right-wing were just as outraged then.

 

It's your story sister, tell it like you want it. Obama is a financial nightmare, the numbers don't lie.

 

Financial nightmare? Let me guess, "Oh nro! The exploding national debt!"

You're the one ignoring the truth about the fact that Presidential spending proposals rarely (if ever) get brought up to vote as-is.

 

Certainly true. The stock market has more than doubled over the last 4 years, and is widely considered a strong indicator of expectations of where the world thinks things are headed in the future. So that should give you a good indication of where things stood in 2009 vs today.

 

Yeah, the nearly 17 trillion dollar national debt has something to do with it. If you don't think it is a big deal, you sir are more ignorant than I ever imagined.

There's also a difference not getting a proposed budget passed and then not even getting a single vote... in four years. So in 2000+ opportunities, not a single lawmaker voted for one of his budgets.

 

Problem with that though is...

All the stock market indicates from this info is that the upper income earners & corporations are doing well.