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View Full Version : Bernanke and the Federal Reserve to begin 'Quantitative Easing 3'




AngelClark
09-13-2012, 11:15 AM
Well, we knew it was coming... Ready for a crazy market day? Let's print money like it helps us!

Thursday the markets opened with speculation as the Federal Reserve had a scheduled meeting to discuss the possibility of launching "Quantitative Easing 3" or "QE3". By an 11-to-1 vote, the Federal Reserve decided to start QE3. The program will begin with open-ended bond purchases. In fact, the Federal Reserve, headed by Ben Bernanke, will buy $40 billion of agency mortgage-backed securities each month. QE3 will begin on Friday.

The announcement by the Federal Reserve is also keeping in place with "Operation Twist", the effort the Federal Reserve began in September of 2011. Operation Twist consisted of swapping short-dated securities and reinvesting the proceeds of older securities. The Federal Reserve adds $85 billion of long-term securities each month through the end of the year.

Continue reading: http://exm.nr/PmFke5

brandon
09-13-2012, 11:17 AM
I have two questions that I'd really love some answers for!

1) So if the fed were to buy my mortgage from the bank, does that mean I then have to make my mortgage payments directly to the fed??? Or am I misunderstanding something here?

2) What makes this any different from TARP at all? Is the only difference that the money spent expands the feds balance sheet instead of the national debt?

king_nothing_
09-13-2012, 11:33 AM
http://i.imgur.com/KNwku.gif

FSP-Rebel
09-13-2012, 11:42 AM
No wonder my Silver Wheaton stock is up big today.