Thursday, November 4, 2010

The New Normal, Part VII: Quantitative Easing II Is In Place Through End of 2011

The Fed is going to assist in impoverishing future generations and drive America into Depression spend $600+ Billion to buy up Treasuries,  in order to "stimulate" the "disappointingly slow" economy.  Many agree this is not enough.  It will, however, boost stock prices.  And it will keep mortgage interest rates low for quite some time.

Others say this move will just be an outright failure.  For the hard numbers and graphs, see these two posts from BI: The Fed's moneyprinting hasn't worked thus far, and it's unlikely to work through 2012 because it won't stop devaluation and deleveraging. The latter points out (among many other things) that residential real estate is currently valued at $18.8 Trillion.  Estimated value in 2014: $13.8 Trillion, a decline of $5T or 26%.  Somebody has to take the writedown.... 

Related:
The New Normal - A Multi-Part Series

1 comment:

Anonymous said...

Wall Street at 2 year high. The Fed exists to make the rich richer.
http://www.nytimes.com/2010/11/05/business/05market.html?hp