Fed begins unlimited QE

[nextJin]

nextJin it's funny you mention you don't convert most "liberals"(as I take that to mean Democrat/Obama supporters), but are more successful with uneducated Republicans. I find that to be true as well. I talk to a friend who supports Obama, nothing I say can sway their dedication. I present information and logic to a self proclaimed "Republican" and they more easily willing to look into it or accept it. Maybe that means their more gullible, who knows. Just thought it was funny as I had recently had a conversation with my girlfriend about this. I've almost converted my dad into a Liberty supporter, maybe a Gary Johnson voter, but he was so let down with the Perot loss he just wants to see his "enemy" lose. Sigh.

My best friend is a Democrat and I'd die for him. We have a difference in philosophy but that does not mean we can't work together. The current GOP is anything but the right answer, period.

The best I have ever been able to do is get some Democrats to outright not hate Ron Paul which is as far as it can go considering the circumstances.

Even the extremely hawkish neoconservative fuckers can be brought over. They keep getting spoon fed with Liberty, Constitution this, Patriot that when the fact is the party is using those words to cater to dumb asses they really have no idea what they actually mean.

 

[Moonbeam]

nextJin it's funny you mention you don't convert most "liberals"(as I take that to mean Democrat/Obama supporters), but are more successful with uneducated Republicans. I find that to be true as well. I talk to a friend who supports Obama, nothing I say can sway their dedication. I present information and logic to a self proclaimed "Republican" and they more easily willing to look into it or accept it. Maybe that means their more gullible, who knows. Just thought it was funny as I had recently had a conversation with my girlfriend about this. I've almost converted my dad into a Liberty supporter, maybe a Gary Johnson voter, but he was so let down with the Perot loss he just wants to see his "enemy" lose. Sigh.

You quacks need to check the the latest neuroscience research. The conservative mind is the mind that lives in la la land. It should be no big feat to convert the delusional to something dumber.

 

[Darwin333]

Yes, but that still doesn't take away from the fact that a vote for anyone other than Romney if you're not voting for Obama is a vote for Obama. By casting a vote for someone not Romney you are basically helping to elect Obama.

Myself I think I'm going to vote Huntsman (regardless of his platform). Reason: I'm not voting for the Bummer, and I can't bring myself to vote for Romney. Not voting I feel is unpatriotic, so I will vote. Mine as well cast a vote for the next biggest party, which I believe is Huntsman.

Chuck

Personally I am writing in Beelzebub. I say fuck voting for the lesser of two evils, if I am going to vote for evil then I am going to vote for the best evil I can.

 

[Moonbeam]

It's not that I support that specific party, I just support getting rid of two party control. If the Green party was ahead of the Libertarian party, I'd vote Green this time.

One of those times where the dumbest thing you can do is the best thing for other people.

 

[bfdd]

You quacks need to check the the latest neuroscience research. The conservative mind is the mind that lives in la la land. It should be no big feat to convert the delusional to something dumber.

lol, says the most delusional of us all. How goes being "enlightened" shit for brains?

Also, for someone who is always preaching to be "true to oneself" in oh so many fucking words, you truly have way to much vitriol in your heart for those who happen to be "true to themselves". You fucking tool.

 

[Jaskalas]

US Credit Rating Cut by Egan-Jones ... Again

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

 

[chucky2]

Personally I am writing in Beelzebub. I say fuck voting for the lesser of two evils, if I am going to vote for evil then I am going to vote for the best evil I can.

There might be something to that. Maybe if we got a party around that we could create something more evil and the Dems and Reps?

One of those times where the dumbest thing you can do is the best thing for other people.

What can I say, electing partisan country destructing assholes (which is what we get either way with Dem or Rep) is unappealing to me. What would you have me do, just not vote? Don't tell us you're in favor of the two party system we have now...

 

[Doc Savage Fan]

You quacks need to check the the latest neuroscience research. The conservative mind is the mind that lives in la la land. It should be no big feat to convert the delusional to something dumber.

I've always wondered why I like you so much....and now I know.

 

[nextJin]

You quacks need to check the the latest neuroscience research. The conservative mind is the mind that lives in la la land. It should be no big feat to convert the delusional to something dumber.

Well lets see you have overly religious nutjobs who are filled with nothing but old people and racists then you have sane conservatives who fill the Liberty movement. I would imagine since the country will always be split that a die hard liberal like yourself would at least rather have a sane group of people willing to work with the Democrats encompassing all views. You'll never get rid of American Conservatism, they go together as well as Americans and Apple Pie. What you can get rid of is people who are clueless, and that is what we are trying to accomplish.

The enemy of my enemy is my friend or something along those lines right?

 

[Jhhnn]

Well lets see you have overly religious nutjobs who are filled with nothing but old people and racists then you have sane conservatives who fill the Liberty movement. I would imagine since the country will always be split that a die hard liberal like yourself would at least rather have a sane group of people willing to work with the Democrats encompassing all views. You'll never get rid of American Conservatism, they go together as well as Americans and Apple Pie. What you can get rid of is people who are clueless, and that is what we are trying to accomplish.

The enemy of my enemy is my friend or something along those lines right?

Libertopians are as clueless as other Righties, just in a different way.

Just as the power of Wealth is becoming more potent & better organized at a corporate global level, they advocate crippling the only force capable of standing against it- egalitarian democracy as expressed through the govt of the People.

That's no surprise, considering who funds the Libertarian movement. Given their way, we'll all end up as bugs on the windshield of internationalized free market capitalism & banking.

 

[nextJin]

Libertopians are as clueless as other Righties, just in a different way. Given their way, we'll all end up as bugs on the windshield of internationalized free market capitalism & banking.

The left can barely get by a day without already screaming that that is already happening, most folks can challenge the free markets but when they say free markets don't work they are realistically saying government adjusted markets don't work. Picking winners and losers, setting horribly low interest rates, "QEs", changing regulations every month, severely unstable political climate, and absolutely absurd future entitlement liabilities is an America that is setting itself up for success.

 

[LegendKiller]

The left can barely get by a day without already screaming that that is already happening, most folks can challenge the free markets but when they say free markets don't work they are realistically saying government adjusted markets don't work. Picking winners and losers, setting horribly low interest rates, "QEs", changing regulations every month, severely unstable political climate, and absolutely absurd future entitlement liabilities is an America that is setting itself up for success.

Even Adam Smith acknowledged that "free markets" cannot be completely free of the government. Even a very small knowledge of human behavior shows that it won't work. Only libertopians don't realize that.

 

[piasabird]

The same feds game hundreds of billions of our tax dollars to foreign banks

 

[LegendKiller]

The same feds game hundreds of billions of our tax dollars to foreign banks

Yeah, fuck those foreign banks. It's not like they fund companies like GE's small/medium ticket leasing business for every business from small offices to medium enterprises. They would never extend credit to PHH/ARI/Wheels to finance fleet leases for small/medium and large businesses. Nor do they lend a penny to companies like Intel, or cell tower companies like Global Tower. They get nowhere near financing American car companies, or companies like Cat or Deere or CNH. Nope, not a single foreign bank funds a single penny of any loan made to a US company or US consumer.

And really, why does the Fed need to extend these non-US lending entities *SHORT TERM LOANS* (not equity...)? They can just collapse and it has no affect on US businesses, small or large.

Yup, you really proved your vast knowledge of the financial markets with your post.

 

[NoStateofMind]

Is this the FEDs last resort? What happens if things don't improve? Whats to say about confidence then?

 

[nextJin]

Is this the FEDs last resort? What happens if things don't improve? Whats to say about confidence then?

Pretty much yes it is a last option short of extremely drastic measures. If it doesn't work basically it will make people such as Legend killer look really fucking stupid.

 

[Jhhnn]

The left can barely get by a day without already screaming that that is already happening, most folks can challenge the free markets but when they say free markets don't work they are realistically saying government adjusted markets don't work. Picking winners and losers, setting horribly low interest rates, "QEs", changing regulations every month, severely unstable political climate, and absolutely absurd future entitlement liabilities is an America that is setting itself up for success.

Selectively clipped quote, ehh?

There's more to it all than you're willing to acknowledge, obviously.

Govt has always been part of markets- markets never could have existed w/o govt oversight. The whole notion of totally free markets is fantasy, simply because Wealth seeks to be the govt, to legitimize extreme & unearned inequality, much as it was during the middle ages. Libertarians support that cause, often unwittingly.

Unlimited & untaxed inheritance.

Externalizing the liabilities of pollution & resource depletion.

Free banking & hard currency, along with "innovative financial products" amounting to theft.

Centralizing of wealth & power into private hands over which the People have no control.

Humans live in a society where personal freedom is highly dependent upon economic well-being, and where shared prosperity has been created only by limiting the power of Wealth. What Libertopians fail to realize is that the ongoing acquisition of extremes of wealth isn't about money or lifestyle, at all, but rather about power, about the ability to run other people's lives employing the structure of Oligarchy.

All of which, of course, is why holders of extreme wealth promote simplistic models of Libertopian philosophy. It's shot through with the idealized & downright wrong memes of the westward expansion of America, quite intentionally.

 

[Jaskalas]

Hey guys, while we're printing money...

The Federal Reserve needs to cover the loan on everyone's house. Can you imagine how secure and prosperous this nation would be if Americans were never forced out of their homes since 2008 began?

They loaned over $29 TRILLION to float banks and investment firms, but !@#$ the people - to the street with the little folks. Heads should roll for taking care of the top and counting on trickle down instead of building the foundation of our economy.

If you're going to print money, buy me a freaking house. Whose with me?

 

[Throckmorton]

It'll probably take a decade or so to show that the Austrians were right.

I believe we have about a century of data proving that the Austrians are wrong.

 

[Gonad the Barbarian]

I believe we have about a century of data proving that the Austrians are wrong.

Austrian economics just takes a while longer to work. Always just a while longer. Just keep waiting. One day. You'll see.

 

[LegendKiller]

Pretty much yes it is a last option short of extremely drastic measures. If it doesn't work basically it will make people such as Legend killer look really fucking stupid.

Maybe you missed the last 8 years online but I was railing against the banks, housing, and excessive credit in general. I just blame it on the right people and don't have tunnel vision to the Fed. Further, I recognize that the alternative to NOT intervening is a lot worse than intervening. You're probably one of these young (or old) idealists that really has no solid grasp on struggle or paying your own bills or how a collapse would really affect people.

I also recognize that our problems extend far beyond what the Fed can fix, one of the foremost is dealing with China's currency manipulation.

 

[LegendKiller]

Hey guys, while we're printing money...

The Federal Reserve needs to cover the loan on everyone's house. Can you imagine how secure and prosperous this nation would be if Americans were never forced out of their homes since 2008 began?

They loaned over $29 TRILLION to float banks and investment firms, but !@#$ the people - to the street with the little folks. Heads should roll for taking care of the top and counting on trickle down instead of building the foundation of our economy.

If you're going to print money, buy me a freaking house. Whose with me?

Again, as I pointed out before, the Fed loaned the money to banks on a revolving basis. They made many smaller loans repeatedly, not one single large $29tr loan.

Furthermore, those same institutions, foreign and domestic, loan money to American consumers and corporations. I know that first hand because I was at an institution that used the Fed's CPFF program to continue to lend money to many US corporations.

But hey, ignore the fact that intermediation of the financial markets is how the system works now and that the little guy gets loans from bigger guys who get loans from other little guys but sometimes those little guys go away so the Fed's mandate of being a bank to the banks needs to be engaged.

 

[LegendKiller]

Is this the FEDs last resort? What happens if things don't improve? Whats to say about confidence then?

This is far from the Fed's last resort. They could always just begin to purchase ABS directly to fund US consumers at lower rates. They could also start charging money on reserves held at the Fed.

MBS just happens to be one of the tools that has several knock-on effects. It provides liquidity to the MBS market, lowering rates to borrowers. It allows borrowers to refi out at far lower rates. Those two increase disposable income. The biggest drag on those affects are 100%+ LTVs which limit refi activity.

 

[DucatiMonster696]

Sounds good. Very curious though as to how this will effect your upcoming elections.

It sounds good until you realize the negative effect inflation has on wages, purchasing power and savings. Or how with each QE the FED limits the options it has available to them to prop up the mess of debt our government and with each QE action the results it delivers is increasingly diminished while the aforementioned negative effects increase in severity.

 

[DucatiMonster696]

I believe we have about a century of data proving that the Austrians are wrong.

Which century exactly?