All Glory to The Benbernanke

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http://www.cnbc.com/id/49018964

 

Ben is firing up his heliocoptor.

[IDBillzFan]

Admittedly, I'm no economist, but two things strike me as odd.

 

One, doesn't buying mortgages sound like a BAD thing to do with money right now?

 

And two, according to the story, the goal is to drive down mortgage rates. The current rates are pretty freaking low. Will dropping them another half a percent or so really make that much of a difference?

 

Okay...a third thing. Does this not cause a bunch of people here great concern?

[GG]

Admittedly, I'm no economist, but two things strike me as odd.

 

One, doesn't buying mortgages sound like a BAD thing to do with money right now?

 

--- Not necessarily. Depends on the price of the mortgage bonds.

 

And two, according to the story, the goal is to drive down mortgage rates. The current rates are pretty freaking low. Will dropping them another half a percent or so really make that much of a difference?

 

-- Maybe another 1/8%, but certainly not enough to make a difference, because it's not the interest rates that are holding back the recovery.

 

Okay...a third thing. Does this not cause a bunch of people here great concern?

 

-- Immediately, not a concern. But it is a useless action to move the economy into higher gear. If monetary expansion was the roadblock, we would not have needed Summer of Recovery Part 3.

Edited September 13, 2012 by GG

[BillsFan-4-Ever]

the DOW is up 37.71% over the last 3 years. and 10% Year to date. Meaning companies are profitable.

 

Someone is making money. What are they doing with it?

 

FTR since the peak in 2007, the market is only down 3%

 

 

 

And all that with a party wanting him to FAIL

Edited September 13, 2012 by BillsFan-4-Ever

[/dev/null]

One, doesn't buying borrowing money from China to buy mortgages sound like a BAD thing to do with money right now?

Corrected

And no, it doesn't sound like a good idea to me

 

And two, according to the story, the goal is to drive down mortgage rates. The current rates are pretty freaking low. Will dropping them another half a percent or so really make that much of a difference?

I compared the current rates with my mortgage from a year ago. I could save about $150 a month if I refinanced. Of course that $1800 a year savings would cost about $6k up front. But think of all that money going into the economy now instead of later!

No, won't make any difference.

 

Okay...a third thing. Does this not cause a bunch of people here great concern?

Wall St and the banks seems to enjoy the free money

[3rdnlng]

the DOW is up 37.71% over the last 3 years. and 10% Year to date. Meaning companies are profitable.

 

WHERE are the fracking jobs?

 

Someone is making money. What are they doing with it?

 

Do you have any idea why it is up? How much higher is it than 5 years ago? Does inflation/potential of inflation have anything to do with it? (I'm giving you a softball there, not that you deserve it) Let's see if you have anything more than nothing. In fact, let's see if you are led to water if you will even get the idea to take a drink.

[/dev/null]

And all that with a party wanting him to FAIL

Why do libs have to make things so personal? Anything critical of the benevolent policies of our Dear Leader is pure Racist® hatred, right?

It's not that people want Obama to fail. It's that he is failing and people are getting a little perturbed at the Epic Fail of this Adminsitration so many had high hopes for

 

 

 

Do you have any idea why it is up? How much higher is it than 5 years ago? Does inflation/potential of inflation have anything to do with it? (I'm giving you a softball there, not that you deserve it) Let's see if you have anything more than nothing. In fact, let's see if you are led to water if you will even get the idea to take a drink.

But...but...but...A dollar is worth a dollar, so a dollar in 2007 is the same as a dollar in 2012!

[fjl2nd]

The Fed can only do so much. They can't fix the unemployment problem. Congress has the tools to do that but nothing will get done politically. This is the perfect time to undergo some government spending to get the ball rolling because interest rates cannot go any lower and there is no signs of inflation (despite boogeyman warnings for 3 years!). The inflation rate is probably too low.

 

Do you have any idea why it is up? How much higher is it than 5 years ago? Does inflation/potential of inflation have anything to do with it? (I'm giving you a softball there, not that you deserve it) Let's see if you have anything more than nothing. In fact, let's see if you are led to water if you will even get the idea to take a drink.

 

I'd like to hear this explanation and the data backing it up...

[meazza]

The Fed can only do so much. They can't fix the unemployment problem. Congress has the tools to do that but nothing will get done politically. This is the perfect time to undergo some government spending to get the ball rolling because interest rates cannot go any lower and there is no signs of inflation (despite boogeyman warnings for 3 years!). The inflation rate is probably too low.

I'd like to hear this explanation and the data backing it up...

 

Ok Krugman. Not everyone believes in the multiplier effect. How has previous stimulus worked so far?

[TakeYouToTasker]

No signs of inflation!?! Are you mad? Do you have any idea how much money has been made in commodities markets in the last 3 years? In 2010 alone commodities were up more than 27%. Historically the only thing quantitative easing has led to is more quantitative easing.

[3rdnlng]

The Fed can only do so much. They can't fix the unemployment problem. Congress has the tools to do that but nothing will get done politically. This is the perfect time to undergo some government spending to get the ball rolling because interest rates cannot go any lower and there is no signs of inflation (despite boogeyman warnings for 3 years!). The inflation rate is probably too low.

 

 

 

I'd like to hear this explanation and the data backing it up...

 

No, this is 4ever Stupid's homework assignment. You don't get to rescue him by trying to now get me to explain it. So, there are no signs of inflation? Just to name a couple, try food and fuel prices. How do they compare to late 2008?

[dayman]

And the average American says...."wha?"

[/dev/null]

The Fed can only do so much. They can't fix the unemployment problem. Congress has the tools to do that but nothing will get done politically. This is the perfect time to undergo some government spending to get the ball rolling because interest rates cannot go any lower and there is no signs of inflation (despite boogeyman warnings for 3 years!). The inflation rate is probably too low.

 

2009 called, they said it didn't work then and it won't work now

[dayman]

Who would have thought PPP is so brilliant, yall should run the FED

 

(and no, I don't really have an opinion one way or the other about this third round here so !@#$ off)

[GG]

The Fed can only do so much. They can't fix the unemployment problem. Congress has the tools to do that but nothing will get done politically. This is the perfect time to undergo some government spending to get the ball rolling because interest rates cannot go any lower and there is no signs of inflation (despite boogeyman warnings for 3 years!). The inflation rate is probably too low.

 

 

 

I'd like to hear this explanation and the data backing it up...

 

If you mean Treasury should use this opportunity to lock in very low long term rates by issuing a lot more 10, 20, 30 yr paper to exchange for existing T-obligations, yes. If you mean Treasury should blow out the budget on another stimulus, then no.

[meazza]

Who would have thought PPP is so brilliant, yall should run the FED

 

(and no, I don't really have an opinion one way or the other about this third round here so !@#$ off)

 

And yet you still felt the need to chime with that asinine comment.

 

Cheers.

[dayman]

And yet you still felt the need to chime with that asinine comment.

 

Cheers.

 

Of course. Cheers

[TakeYouToTasker]

If you mean Treasury should use this opportunity to lock in very low long term rates by issuing a lot more 10, 20, 30 yr paper to exchange for existing T-obligations, yes. If you mean Treasury should blow out the budget on another stimulus, then no.

Do you have any idea what these interest rates are doing to the actuarial solvency of the worlds major finance houses? Everyone is in panic mode. There is a very real risk of complete collapse.

[GG]

Do you have any idea what these interest rates are doing to the actuarial solvency of the worlds major finance houses? Everyone is in panic mode. There is a very real risk of complete collapse.

 

Huh, what? Is that the reason that Wall Street is cheering QE3? Who do you think makes out like a bandit?

[/dev/null]

Huh, what? Is that the reason that Wall Street is cheering QE3? Who do you think makes out like a bandit?

 

Same reason a crack whore gets all happy when they find some free crack