Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.
“Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending,” the Fed said, adding that it would “employ all available tools to promote economic recovery and to preserve price stability.”
As expected, the Fed kept its benchmark interest rate at virtually zero. But in a surprise, it dramatically increased the amount of money it will create out of thin air to thaw out the still-frozen credit markets that have cramped lending to consumers and businesses alike.
Where did the FED get $1 Trillion dollars? I mean, that’s a lot of money. The stock holders of the banks that make up the FED seem to have an inexhuastable supply of ready cash, don’t they? I wonder where they got it from?
I wish I could go into the back yard and grab another handful off the money tree. It’s good to own the printing presses.
The NY Times headline should have read: “Fed to Devalue Dollar.” The Chinese aren’t going to be happy.
Why do I feel like I’m being pimped?
Am I now to suddenly appreciate the damage that the federal government is doing to our nation? Is wealth the end of all things?
Perhaps “money can’t buy me love” as some singing group pointed out but polititians seem to think that it can. But, in the end, I’ll resent the government and government won’t have any respect for me – therefore there can be no love in this country.
Don
Don, but it can sure buy you votes. And if you allow illegals to vote, it can secure your hold on the Presidency and Congress.
Can you spell I N F L A T I ON? I knew you could…
I sincerely hope I’m wrong, but these policies seem likely to recreate the stagflation of the Carter years, as the inflation that will inevitably come from “creating currency out of thin air” will demand higher interest rates, which if done before a drop in unemployment would return us right back to the late 70’s mess.