FOMC: This Is The Beginning Of “The Big Print” [truthingold]
September 14, 2012 Leave a comment
The fact that enough people still listen to Cramer is the perfect indicator of just how stupid part of our population is and it explains how we – the people – let our country lapse into systemic collapse. At it’s base level, Government intervention in our lives prevents the Darwinian mechanism of natural selection from doing what it’s supposed to do. That Cramer still sells his crap and that CNBC is still on the air is a perfect testament to that…Dave in Denver
For the first time since QE first started, today’s FOMC announcement stunned me. Not because I was expecting something other than what was announced, but because of what was actually announced and the timing of the announcement. I have been expecting eventual global QE to infinity since like 2003. Seriously. I didn’t think we would get the first indication that it’s coming today, two and a half months ahead of a Presidential election, and I didn’t think it would come first in the form of a direct attempt to reflate the housing market with subprime mortgage paper.
Let me explain. Here’s the only important part of today’s announcement (the low-rate extension to mid-2015 was highly telegraphed and is about as useless as the new iPhone 5 on Mars):
The New York Fed said it will start buying agency mortgage-backed securities on Friday, at a rate that is expected to total $23 billion over the remainder of September. It will then purchase securities at a clip of $40 billion each month. The New York Fed said it will concentrate its purchases in newly-issued agency MBS in the to-be-announced market, although it may purchase other agency MBS if market conditions warrant (LINK)