Bribe to banks?
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QE 3 is a 80 Billion a month pay off to banks
- Thread starter RenkoTrades
- Start date
Quote from RenkoTrades:
If you read the details of the latest from the Fed plan you will see the new QE 3 is just more transfer of wealth to banks. The US Dollar and taxpayer lose again.
The whole Fed policy is such a blatant attack on the economy since the Fed is also paying Banks not to loan money. If you read the "reserve requirements" details from the Fed it shows how they are making sure loans are thin at best to business.
This all looks like a set up to me, with the US economy as the target. You don't see any of the broken two party system talking about this.
Ever wonder why every leading western politician wears that little hat at the wailing wall prior to running for higher political office? Within next 2 decades the capital cities of all western nations will be Jerusalem. That can only happen if US is weak internally and externally. We're setting up to be fucked by the zionist elite and their evangelical foot soldiers. The arabs are about to get fucked harder because they'll all be deported to africa to make room for a massive zionist landmass. Arab spring is more like good pretext to beginning of arab rape.
Quote from morganist:
The reason the QE is being given tot he banks is because they know there is bad debt that will cripple them. They are using it to prop up the banks to pay depositors. I don't think it is stimulus rather than an attempt to prevent the system collapsing.
I wrote about that here.
http://morganisteconomics.blogspot.co.uk/2012/08/debt-and-pay-there-has-to-be-balance.html
From the article I linked.
"When the economy contracts and the money supply falls, the ability to pay back the owed debt declines and in many cases fails. I have my suspicions that all of the efforts made by Central Banks and Governments to 'stimulate' the economy have been to address the issue of the inability to repay private sector debt, rather than to make the economy grow, which they claim is their real agenda. One method of making the repayments more affordable is to lower the interest rate, which has been done to an extreme degree as any further cuts would make the interest rate negative."
I provide an alternative to QE in my article.
Absolute hogwash. WAMU failed and no depositor lost money. Liquidate all these good for nothing banks robbing the taxpayer. Nothing will happen except house prices in the Hamptons will plummet
M
morganist
Quote from badvestor:
Absolute hogwash. WAMU failed and no depositor lost money. Liquidate all these good for nothing banks robbing the taxpayer. Nothing will happen except house prices in the Hamptons will plummet
The economy cannot cope with the bad debt that is about to occur. It is not possible to pay off all of the bad debt that will exist is the money supply contracts.
Long term rates have moved up significantly since the Fed's announcement. Also, it's been said that the spread between long-term rates and MBS will narrow with the Fed's actions. So how does this benefit the banks? For consumers, could this all be a wash with little movement in mortgage rates?
So far, the effect has been to move people away from Treasuries and the dollar. Is this just a way to move people into risk assets without negatively affecting the housing market?
-lf
So far, the effect has been to move people away from Treasuries and the dollar. Is this just a way to move people into risk assets without negatively affecting the housing market?
-lf
Quote from Random.Capital:
Keeping mortgage rates from moving meaningfully from these incredibly low levels isn't a "wash" for consumers, it's a massive win.
Not really. If the price of everything else has to rise to keep mortgage rates artificially low, it's a marginal win for a small subset of consumers.
Quote from Stok:
QE3, like 1 & 2 is buying assets from banks and holding them on the feds balance sheet. There is no transfer of wealth. It is to free up capital to banks to "hopefully" lend. Which, that is up to the banks. The assets the fed buys are real and not just giving free money to the banks with nothing in return.
But, the fed has to print the money to buy them...that's the rub.
They don't print money, unless you are using that term idiomatically and mean that the fed is expanding the money supply. They credit the Banks' balances on the Fed ledger. They are essentially liquifying the assetts. The banks can use thoses Fed Reserve credits as cash, or transfer them to creditors, or lend against them. Eventually the Fed will sell those assetts and retire the lliquidity. One hopes.
In the meantime, the Fed is recording record profits under Bernanke, running about an 80 billion dollar profit per annum.