The FED announced a 40 billion per month buy of mortgage backed securities along with extending the “operation twist” means an 85 billion buy of securities each month. It appears the FED is willing to print and print and print until something good happens. Since none of the policies have helped the economy. Why double down on them now? Because his job is to enrich the banks at every opportunity and here is another opportunity...... These are some figures. I have been reporting for years how unfair and unjust the FEDs policies are when related to PEOPLE. Using about the midpoint of the size of interest sensitive assets of $14.35 trillion and viewing the average yield around 2.14% now versus the 7.07% yield in the previous nine recoveries. That leaves a difference of 4.93%. The projected loss of income is $256 Billion (that’s right Billion) or loss of consumption, a 1.75% loss in GDP and about 2.4 million fewer jobs.
That could be the cost of the “0” interest rate policy and is on the conservative side. So sacrificing the elderly so the banks can make even more money should not occur if anyone out there had a conscience. But the greed of your normal sociopathic congressman or banker/broker probably has them laughing as they kick grandma into the gutter. There are people who have saved their whole lives for retirement only to have the FED and its banking accomplices steal that retirement from those people and crash the economy all to enrich themselves. When the hell does this stop. QEs have done nothing for the economy. The only thing this has accomplished is to fatten the balance sheets and income statements of the TBTF banks at the expense of everyone else in the country especially seniors........ Last month household survey showed 195,000 fewer jobs and this month it is 119,000 fewer jobs and that is 314,000 fewer jobs in two months. Add to that the 581,000 who dropped out of the workforce and are therefore not counted as unemployed and the unemployment numbers are again appearing as recession numbers.