QE 3: It's About Time

B

Bonestorm

Thrillhouse
It's about time. I'd prefer a different policy to get the economy cooking, but at least it's something and it seems targeted towards housing, which is important:

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

“If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate,” the Federal Open Market Committee said today in a statement at the end of a two-day meeting in Washington.

The FOMC said it would probably hold the federal funds rate near zero “at least through mid-2015.” Since January, the Fed had said the rate was likely to stay low at least through late 2014. The Fed said “a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.”


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http://www.bloomberg.com/news/2012-...illion-in-mortgage-securities-each-month.html
 
LMAO... so the previous two efforts did nothing to help the unemployment situation, yet did again provide a weakening effect on the dollar... but hey... lets try the same thing all over again. Nothing like watching a bunch of idiots inflate the bubble with the expectation that THIS bubble won't burst.

Market gets bad economic news and goes up... because it expects the idiots at the fed to pump more money into the system.

Yeah... great idea. Cause we have never seen anything go wrong from holding interest rates at artificially low levels for extended periods of time. What bad could come of this???
 
Superfreak said:
LMAO... so the previous two efforts did nothing to help the unemployment situation, yet did again provide a weakening effect on the dollar... but hey... lets try the same thing all over again. Nothing like watching a bunch of idiots inflate the bubble with the expectation that THIS bubble won't burst.

Market gets bad economic news and goes up... because it expects the idiots at the fed to pump more money into the system.

Yeah... great idea. Cause we have never seen anything go wrong from holding interest rates at artificially low levels for extended periods of time. What bad could come of this???
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You're a joke. Just yesterday you were bitching about how shitty the economy and the recovery are and then today you bitch about the only entity capable of doing anything about it actually doing something about it.
 
General Buck Turgidson said:
You're a joke. Just yesterday you were bitching about how shitty the economy and the recovery are and then today you bitch about the only entity capable of doing anything about it actually doing something about it.
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You are a fucking idiot. Yes, the economy is shitty. But THIS doesn't do anything to resolve that. We have tried it... TWICE... and it didn't work either time to lower unemployment. Which is one of the two things the Fed tries to control. The previous two efforts didn't do anything to stimulate long term improvements. All they are doing is blowing up another bubble. When the market goes up on BAD economic data, you have a bubble forming.

Also moron, it is not the only entity capable of doing something. Though I understand your confusion given that Reid's do nothing Senate refuses to act and can't even pass a budget.
 
Superfreak said:
You are a fucking idiot. Yes, the economy is shitty. But THIS doesn't do anything to resolve that. We have tried it... TWICE... and it didn't work either time to lower unemployment. Which is one of the two things the Fed tries to control. The previous two efforts didn't do anything to stimulate long term improvements. All they are doing is blowing up another bubble. When the market goes up on BAD economic data, you have a bubble forming.
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That must be why the vote in favor was 11-1, and the only dissenter. I'm not suggesting that it's the best or optimal policy tool, but it is better than nothing, which is what you apparently think is appropriate.

Superfreak said:
Also moron, it is not the only entity capable of doing something. Though I understand your confusion given that Reid's do nothing Senate refuses to act and can't even pass a budget.
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Actually, it is. Congress isn't going to do shit. It is incapable of doing anything in the current political environment. Fiscal policy is off the table. Only monetary policy options are viable.

Also, too, whether the Senate passes a budget has nothing to do with anything.
You're a joke, man. Seriously. There isn't really any reason to complain about QE3.
 
General Buck Turgidson said:
That must be why the vote in favor was 11-1, and the only dissenter. I'm not suggesting that it's the best or optimal policy tool, but it is better than nothing, which is what you apparently think is appropriate.
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Yet again moron... we have tried it twice and twice it has failed to reduce unemployment. The main thing reducing unemployment is people giving up looking.

You are also an idiot to suggest that I think doing nothing is appropriate. That is simply yet another of your pathetic straw men. Which is not shocking.

Actually, it is. Congress isn't going to do shit. It is incapable of doing anything in the current political environment. Fiscal policy is off the table. Only monetary policy options are viable.
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The stupidity of the above shows that you have no idea what you are talking about. That is why we need a change in leadership. Your masters have failed and they are incapable of leading.

Also, too, whether the Senate passes a budget has nothing to do with anything.
You're a joke, man. Seriously. There isn't really any reason to complain about QE3.
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There are plenty of reasons to complain about QE 3... IT WILL DO NOTHING to solve our problem of unemployment as the past two failed efforts have proven, yet it will ADD to the bubble being created. You know... something like the bubble created from 2001-2007 when the Fed kept rates artificially low and created a housing bubble. Punching long term rates lower is not going to encourage companies to hire. What will encourage them to hire is to actually work at solving the problems facing the global economy. But we don't get that. Instead we get idiots like you chirping how great QE3 is.

Tell us Dung... how does it help? Is it going to magically lower credit/lending standards so that more money flows into the system? Corporations are flush with cash right now. So tell us Dung... what is so great about their buying these long term assets? Once you flail away at an attempt to answer this, follow it up with what happens when the Fed tries to sell these assets in the future?
 
General Buck Turgidson said:
I think it's hilarious that you link to someone who thinks the FED should have done more than QE2 while you apparently think it should have done (and do) less. LOL.
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I think it is hilarious that you are not capable of comprehending what you read...

The Fed's forecast range for the unemployment rate in 2012 is 7.7% to 8.2%, and the Congressional Budget Office forecasts an unemployment rate of 8.4% (this forecast dates to after the announcement of QE2, but isn't meaningfully different from its forecasts from the summer of 2010). This would suggest that with QE2 in place, American unemployment is likely to be between 6% and 7% in 2012.
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Not only did we not hit that 6-7% range, but the only reason we are below 8.5% is because of the severe drop off in labor participation.
 
Summing up the Colorado Contingent's position on QE3: The economy sucks and employment is too low, but the FED's efforts to do anything about those problems are stupid and won't work and are done for political reasons just to help Obama.
 
General Buck Turgidson said:
I love it when you betray your core Republicanness. It's awesome.
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Explain. This is when I learn the most about you. There is something in a light-hearted sardonic post that you would do if the tables were turned that you think I'm doing. I'd like to know what it is. This is when you really show what makes you, well... you.
 
General Buck Turgidson said:
It's about time. I'd prefer a different policy to get the economy cooking, but at least it's something and it seems targeted towards housing, which is important:



http://www.bloomberg.com/news/2012-...illion-in-mortgage-securities-each-month.html
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How does weakening our dollar and impacting the savings of the elderly improve the economy?

Why did QE1 and QE2 not work?

Why do they call it Quantitative Easing instead of what it really is; money printing?
 
General Buck Turgidson said:
Summing up the Colorado Contingent's position on QE3: The economy sucks and employment is too low, but the FED's efforts to do anything about those problems are stupid and won't work and are done for political reasons just to help Obama.
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Summary of Polly's position: 'I have no idea what I am talking about and I think if we just pretend people are doing something positive that it will indeed be positive and we need to be positive so master can get re-elected... and now, for my cracker'
 
Superfreak said:
I think it is hilarious that you are not capable of comprehending what you read...



Not only did we not hit that 6-7% range, but the only reason we are below 8.5% is because of the severe drop off in labor participation.
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No, I comprehend what I read. I just don't think that not meeting the forecasted rate levels means QE2 didn't work. You see, I believe the world is a bit more complex than that. A lot has happened between November 2010 and now and growth has been slow for a whole host of reasons that have nothing to do with the efficacy of QE2.
 
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