Federal Reserve to buy up $300b in long term debt

Discussion in 'Economy' started by DavidS, Mar 18, 2009.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    Fed Plans to Buy Up Long-Term U.S. Government Debt - Financials * US * News * Story - CNBC.com

    The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.
    CNBC.com​
    In a statement at the end of a two-day meeting, the central bank's policy panel also said it had decided to hold its target for overnight interest rates in a zero to 0.25 percent range —the level reached in December.
    It said rates would stay low for "an extended period," a more explicit vow to stay on hold for a prolonged time.
    "In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability," the Fed said.
    Prices for U.S. government bonds shot higher and U.S. stocks jumped on the move, with the blue chip Dow Jones industrial average moving into positive territory. The dollar fell sharply.
    "This is a pretty dramatic move ... They are trying to bring down all consumer rates," said James Caron, head of global rates research at Morgan Stanley in New York.
    In addition to the purchases of U.S. Treasury debt, the Fed said it would expand an already existing program to buy debt and securities issued by the government-backed mortgage finance agencies.
    It said it would expand those purchases by a combined $850 billion to a total of $1.45 trillion this year.
     
    Last edited: Mar 18, 2009
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    This is a last ditch effort to try to stop the Economic Collapse. I doubt that it will work.
     
  3. mash107
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    mash107 Active Member

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    You meant to bring on the collapse?

    Inflation never worked for Argentina or Zimbabwe, why the hell will it work for us?
     
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  4. SwingVoter
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    SwingVoter VIP Member

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    With the lack of focus, Iran appeasement, and ineffective cabinet, I get that Obama wants to be the next Jimmy Carter, so did he put a call into Bernanke to make sure the inflation part comes together as planned?
     
  5. mash107
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    mash107 Active Member

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    Not like we have much money left over after the failures in Iraq and Pakistan. Wars always drive countries to bankruptcy, if history isn't firm enough evidence for that. Bush's policies of socialism and wars failed, and Obama continuing the same policies is nothing short of insane. You might want to start caring less about Iran and more about our economy being driven into the ground with the Federal Reserve at helm.
     

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