OohPooPahDoo
Gold Member
The Fed selling short term debt and buying long term
a) results in no net change to their balance sheet (if the same amount of each is transacted)
b) raises the incomes of people in retirement or near retirement, who presently are seeing barely more than a 1% return on their money investments. This will enable more people near retirement to actually retire - thus freeing jobs for younger people - and it will help keep those presently in retirement from having to return to the workforce
c) lowering the long term rates makes it cheaper for people to buy houses and to invest in new businesses
Why would anyone be against that?
a) results in no net change to their balance sheet (if the same amount of each is transacted)
b) raises the incomes of people in retirement or near retirement, who presently are seeing barely more than a 1% return on their money investments. This will enable more people near retirement to actually retire - thus freeing jobs for younger people - and it will help keep those presently in retirement from having to return to the workforce
c) lowering the long term rates makes it cheaper for people to buy houses and to invest in new businesses
Why would anyone be against that?