Today we read the following from the various news sources, “In an unprecedented and controversial move, the Federal Reserve today announced the initiation of an open-ended round of Quantitative Easing (QE3) and extended the period for which it will keep rates between 0 and 1/4% to mid-2015….”….The (Federal Reserve) Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. “
What did the committe really mean? It meant this; The committee agreed today to buy $40 billion in wortheless mortgage-backed bonds from the 1 percent richest people and from super politically powerful investment banks and hedge funds that these rich people employ, like Morgan Stanley and Goldman Sachs. The bonds are valueless or nearly so, most likely trade for 0 to 40 cents of their face value, but the Federal Reserve will purchase them at their face value, like it has for several years now. In other words, the Fed is rescueing the rich from their own stupid investment decisions. If some affluent person bought their bondsfor $100,000,000 that’s what the Fed will pay for them, if not more, which might happen given inflation.
See the complete misleading story below.
click on the related story below.