Federal reserve announcement

[Os Cangaceiros]

On Thursday, the Federal Open Market Committee announced that the Federal Reserve will purchase $40 billion a month in mortgage-backed securities indefinitely (MBS) from financial institutions, will keep interest rates at zero percent until at least 2015, will make additional purchases if the employment picture doesn't improve, and in general will maintain an stimulative policy for a "considerable time."

http://www.policymic.com/articles/14668/qe3-here-fed-announces-40-billion-dollars-in-monthly-mbs-purchases-zirp-through-2015


On Thursday, the Federal Open Market Committee announced that the Federal Reserve will purchase $40 billion a month in mortgage-backed securities indefinitely (MBS) from financial institutions

:blink:

[Geiseric]

Uhhhh wait so the Federal Reserve is going to be forclosing on peoples houses basically?

[castlebravo]

mbs's are asset backed instruments, where one would speculate based on the pool of mortgage loans from a bank that issues the mortgage. as they are not the bank offering the mortgage, the fed can't foreclose on anyone by holding mbs...but let's not forget that subprime mortgage backed securities were a massive factor in what caused the 08 crisis of capitalism.

[ckaihatsu]

Translation: They picked the -yawn- housing market again for their next economy-floating speculative bubble -- there just aren't enough mattresses around to hold all the cash....

[ckaihatsu]

Remember, it's your patriotic duty to get excited about this, so, uh, make sure to get right on that.

[The Jay]

This is just unbelievable. More trickle-down stimulus, great. Prepare for a fake housing bubble that is going to pop worse than '08. If anyone has an opportunity to buy a house in the next year or so prepare to sell it soon to make anything off of that investment because your wealth is going to be drained in a huge way.

I hope I'm wrong, but this is just going to encourage more crazy-as-hell lending and then we will be in worse shape than now.

I don't think that the country can take another big hit, especially with the coming food price increases. People will go nuts.

[roisengn]

This is just unbelievable. More trickle-down stimulus, great. Prepare for a fake housing bubble that is going to pop worse than '08. If anyone has an opportunity to buy a house in the next year or so prepare to sell it soon to make anything off of that investment because your wealth is going to be drained in a huge way.

nice post thanks for posting

[roisengn]

as they are not the bank offering the mortgage, the fed can't foreclose on anyone by holding mbs...but let's not forget that subprime mortgage backed securities were a massive factor in what caused the 08 crisis of capitalism.will make additional purchases if the employment picture doesn't improve, and in general will maintain an stimulative policy for a "considerable time."

nice post
thanks
roise