The geniuses at the Federal Reserve have concocted a bold new plan to revive the U.S. economy -- print a bunch of money, loan it to Americans at super low interest rates so they can speculate on rising real estate prices, extract the appreciated equity and spend it on consumer goods. In other words, build an economy of real estate, by real estate, and for real estate. The only problem is we've been there and done that. The last time it almost destroyed the U.S.economy. I guess almost isn't quite good enough for the Fed, so now it's determined to finish the job.
The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month. The end date remains up in the air, as the Fed will re-evaluate the strength of the economy in coming months. The Fed is wasting no time. The purchases begin Friday and are expected to add up to only $23 billion for the remainder of September.
Originally posted by DIRTYDONKEY
I may be wrong so please correct me if so, but i think you guys are missing something here. The 40 billion is for mortgage securities.LINK
The Fed 's pledge Thursday to buy $40 billion of mortgage securities a month until the economy improves comes a week after the European Central Bank announced its most ambitious plan yet to ease Europe's financial crisis by buying unlimited amounts of government bonds to help countries manage their debts..
So am i wrong in assuming that they are just preparing for the next market crash? If they are investing in property (as collateral on mortgage loans) Wouldn't this be the first step in the next land grab?LINK
A mortgage-backed security (MBS) is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization.
So they devalue our currency buy making more, to buy mortgage securities, that will surly fail as our dollar continues to weaken. Hmmm sound kinda familiar. 2008ish.
Again I may be confused on the whole thing but that is what jumped out to me right away. What will be worth the most value if our currency is destroyed? Don't worry tho they will still need us to upkeep the property for them, maybe they will supply room and board for our labor. That too sounds familiar.
Keep it dirty
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. Good thing that's not happening! Eh? The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809) “I believe that banking institutions are more dangerous to our liberties than standing armies.” – Thomas Jefferson … The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating. -Thomas Jefferson
If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations. -Andrew Jackson
Originally posted by anno141
I think people are tired of hearing about how screwed we are, we have been told this too long so now people just don't heed any of it much attention. "Can't it just crash already and be over with?".. Well it's not like the US or the EU will ever get out of this crisis without something drastic like seizing crooked privately owned banks or writing off debt.
A crash will probably be for the better in the long run, tough times ahead though. Let's just hope that it won't hurt the people too much while eradicating the current US and EU monstrosities, their crook politicians and bankers and the oppressive policies all in one fell swoop.
Originally posted by Zarniwoop
That was a long video to get across his points.
1. Peter does not like Bernanke
2. Peter has no alternate suggestions, other than allowing interest rates to rise.
3. Peter would appreciate it if you buy his book, that apparently tells you to buy gold and exit the dollar.
Originally posted by magma
Things that drive confidence and economic recovery:
This thread is more fear mongering from a guy who wants to capitalise on the situation.
Can't blame him really everyone is trying to earn a buck these days.
Um you forgot one thing. Peter has been right on the money with his economic forecasts!... Geeze people do some research or put a sock in it...