|
Post by unlawflcombatnt on Dec 27, 2014 14:21:08 GMT -6
Though the Fed announced that Quantitative Easing would end in Oct 2014, it appears it's over in name only. The Fed bought $28 billion of securities in December, and $16 billion in November. Of that $44 billion, $32 billion were Mortgage-Backed Securities. Monthly Fed Holdings can easily be seen here, thanks to the link posted by Pam & Russell Martens on their site. The Fed apparently wants to re-inflate the Housing Bubble as much as possible, by continuing to buy overvalued MBS's from banks with newly printed dollars, further reducing the buying power of currently circulating dollars. Paying $100 billion for something worth $40 billion amounts to a subsidy of $60 billion, and is outright Corporate Welfare. {To put this in perspective, the entire Federal outlay for TANF, or classic "welfare", is ~$16 billion/yr.--(see Treasury Statement, p10)} The Fed also appears determined to insure that homes remain unaffordable to many Americans, by propping up home prices, as well as suppressing real wages of American workers through inflation.
|
|
|
Post by unlawflcombatnt on Jan 11, 2015 16:24:10 GMT -6
Below is a graphic showing the relationship between QE and the S&P 500 from streettalklive. streettalklive.com/index.php/blog.html?id=2511It's a couple of months out of date, however. The Fed has continued to buy bonds through November & December, buying $16 billion in Nov & $28 billion in Dec.
|
|