QE and you....

[StoopTroup]

Some really fun stuff to think about while you're watching the whorns dismantle the gumbies....


FACTBOX - What is quantitative easing?
Central banks throughout the world are considering or turning to non-conventional measures like quantitative easing to keep credit flowing as they run out of scope to lower benchmark interest rates any further.

Read more: http://network.nationalpost.com/np/blogs/fpposted/archive/2009/03/05/quantatitve-easing-fact-box.aspx#ixzz14oLF5pXN

Yummy....


* U.S. FEDERAL RESERVE:

-- Economists agree the Fed's various programmes to boost the flow of credit through the expansion of its balance sheet to over $2 trillion (1.41 trillion pounds) can be regarded as a form of quantitative easing.

-- On March 3, the Fed announced the details of the Term Asset-backed Securities Loan Facility, TALF. A $200 billion (91 billion pound) programme to lend against securities backed by student, auto, credit card and business loans, TALF could expand to $1 trillion and include troublesome mortgage and debt securities from banks.

-- The Fed is buying highly rated, U.S.-dollar denominated, three-month commercial paper through a special purpose vehicle to run until October 30.

-- In January, the Fed started a programme to buy $100 billion in the direct obligations of housing-related government sponsored enterprises -- Fannie Mae, Freddie Mac and the Federal Home Loan banks -- and $500 billion in mortgage-based securities backed by Fannie Mae, Freddie Mac and Ginnie Mae.


Read more: http://network.nationalpost.com/np/blogs/fpposted/archive/2009/03/05/quantatitve-easing-fact-box.aspx#ixzz14oLk4WGC

http://network.nationalpost.com/np/blogs/fpposted/archive/2009/03/05/quantatitve-easing-fact-box.aspx

[The]

What is quantitative easing

What you do when you're out of lube.

[3rdgensooner]

Some really fun stuff to think about while you're watching the whorns dismantle the gumbies....Cool! Where's the fun part?

[Mississippi Sooner]

I like money.

[Bourbon St Sooner]

Cool! Where's the fun part?

When you get the bill.

[NormanPride]

I feel like I need a degree in finance just to keep up with politics anymore. :(

[tommieharris91]

I'll compare Hitler and Ron Paul as soon as soon as the Hugo Chavez libertarians get in here.

[The]

I'll compare Hitler and Ron Paul as soon as soon as the Hugo Chavez libertarians get in here.

http://27.media.tumblr.com/tumblr_l5smjtjLEF1qzuo8ao1_400.jpg

[SCOUT]

Some really fun stuff to think about while you're watching the whorns dismantle the gumbies....



Yummy....



http://network.nationalpost.com/np/blogs/fpposted/archive/2009/03/05/quantatitve-easing-fact-box.aspx

I am no financial expert, but aren't what they doing is using derivatives as assets? In other words, they are bundling the securities backed loans to provide more loans. Isn't that what played a decent sized role in our most recent financial melt-down?

[Ike]

I am no financial expert, but aren't what they doing is using derivatives as assets? In other words, they are bundling the securities backed loans to provide more loans. Isn't that what played a decent sized role in our most recent financial melt-down?

Not quite. Really what they are doing is creating money out of thin air (600 billion of it), and using it to buy US bonds.

Here's a somewhat decent laymans summary of it: (click 'convert all' on the fed statement to read it in plain english)
http://www.npr.org/blogs/money/2010/11/03/131043062/federal-reserve

Yes. We are printing more money.

[Blue]

Which will devalue our currency, inflate the price of commodities, food, and basically send us into another depression. Thanks Bernanke!

Silver went up like 3 bucks yesterday. Its correcting, but it was crazy. 28 bucks an ounce when 12 months ago it was at 12 or so.

[StoopTroup]

We're taking over the World with Internet Bucks.

[StoopTroup]

Which will devalue our currency, inflate the price of commodities, food, and basically send us into another depression. Thanks Bernanke!

Silver went up like 3 bucks yesterday. Its correcting, but it was crazy. 28 bucks an ounce when 12 months ago it was at 12 or so.

The story I picked off "QE" from was talking about how Pork Bellies had risen 200% over the last couple of years.

Yep....your Bacon Cheeseburger is gonna cost a buck extra soon.

[Ike]

Which will devalue our currency, inflate the price of commodities, food, and basically send us into another depression. Thanks Bernanke!

Silver went up like 3 bucks yesterday. Its correcting, but it was crazy. 28 bucks an ounce when 12 months ago it was at 12 or so.

I think right now, the Fed would like to see a little inflation. While it's true that commodities are going up, thus far, consumers are not seeing much of the increase....mainly because producers are hesitant to pass that cost onto consumers that are looking for any way they can to pinch pennies. Not because they are good-hearted, but because no producer wants to be the first to do it, and potentially drive consumers to their competition. The price inflation US consumers are seeing is really really low (less than 1%). Plus, some inflation and dollar devaluation will make our exports look better to the rest of the world.

Plus, I have doubts that whatever effect it has will be significant.

[Blue]

n6qo2S84r5w

[Bourbon St Sooner]

Good article here about the effects of printing money.

http://www.marketwatch.com/story/latest-qe-threatens-the-world-2010-11-09?link=kiosk

[GDC]

Hmmm...lasagna rolls!

http://photos-e.ak.fbcdn.net/hphotos-ak-ash2/hs564.ash2/148599_453135686246_93861456246_5680525_5111086_s. jpg