Bend over....you're in for a "Quantitative Easing"

I see on the news today where Bernanke has printed up $900 Billion (that's $900,000,000,000.00 or about 20 million pounds of $100 bills) to "quantitatively ease" our economy. That means he's going to buy debt and securities from financial institutions in the hope that they'll have more liquidity and start to spend money that will create jobs....or something like that.

I think it's BS. We, the taxpayers, are just being put on the hook for more worthless investments currently held by the shysters as "assets" which actually likely have little to no value. If these CDO's and other trash paper had value there's be a market for them and there isn't...so Big Daddy is going to save the banker's bacon while main street gets spit.

Bernanke could just as easily give every citizen $2500 each and that WOULD stimulate the economy...because why would anyone want to save it? Put it an CD at less than 1% return...or pay off a debt...paint your house...or buy something needed? Easy decision for me.

To do this the day after a devastating beating at the polls is, for Obama, another bullet. If I were Republican I'd be screeching like heck. Not to say they wouldn't do it or may even like it for their Wall Street buddies...but they get to hammer it home again...nothing for main street.

There are other risks...but I'm not an economist....and predicting hyper-inflation and such is out of my pay grade. But I do know feces when I smell 'em...and this is it.

Comments

Need food or medical care or rent money because

you lost your job because wall street screwed us? Well, screw you! Be a hedge-fund /trash fund /investment broker that pissed away millions trying to defraud investors...and lost your ass? No problem! How much do you need.

What the hell is going on with our President and our government?

Stan Bozarth

Best.headline.ever

:)



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Vote Democratic! The ass you save may be your own.

QE is what we need now

We're seriously flirting with deflation now, which would be terrible. They aren't buying toxic assets; they're buying Treasury bonds (ie, the federal debt.) It increases the money supply and decreases the national debt. That's pretty cool.

If inflation was higher now, it would be an awful idea.

I agree on the excellent headline, though.

You're correct, Jake.

The Fed is buying bonds. Or at least that's the story line. How that will work out for Main Street remains to be seen, but I'm guessing it will be less than impressive. Wall Street is loving it.

As an aside, I wonder why we worry about the "national debt" or deficit if the answer is simply to print money. Heck, we can stop paying taxes and just print what we need. The Greeks would be in good shape if they hadn't joined the EU and could just print a gazillion drachma to pay their pensions and so on. I'm kidding. I understand why. And I suppose some inflation brought on by a devalued dollar is better than deflation. I wonder if Mr. Bernanke knows the exact tipping point? The answer may be to watch the commodities market over the next few months.

Stan Bozarth