My interest in them did not start until after the 'Great Recession'. Like most people (it seems), I took them at more-or-less face value up until then.
If your question really is - did I knock them when Bush was Prez? No.
But I think GW Bush (and Obama) was a horrific POTUS and that both parties are worse then useless.
Last edited by DA60; 12-08-14 at 01:21 PM.
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Straight up, I studied economics during the mid to late 1980's when I was in college, never worked in that field and lost all interest until the Great Recession.
It was only due to a personal survival need that my interest became renewed. In the fall of 2008 I was trying to figure out how all of this was going to effect my business, and trying to come up with a strategy to survive.
If there was any good that came out of this recession, it's probably that a lot of people started to become interested in economics and politics, for the same reason that I did.
Apparently, it's because she believes that QE is no longer necessary, and unlike her predecessors, focuses more on factors like unemployment, discouraged workers, time out of work force etc.Oh Really. Is that because she has -all of a sudden- realized that all of her previous votes in favor of pumping were wrong?
I'm pretty sure imagep isn't an Obama defender.In some perverted way, I can see why a biased defender of this Administration’s economic policies would make such a fringe statement…
Yeah, not so much.Obviously, QE has a major effect on our economy. That’s the reason behind doing it in the first place. Right? Can we agree on that much?
It makes borrowing cheaper, but it is arguable that this wound up helping the economy much. It seems like it's not doing much except feeding another data point to the already-frazzled brains of equity traders.
lolAssets flowing from QE onto the Fed's balance sheet are now the equivalent of one-fifth of US GDP. Meaning, the FED is pumping money into the economy by buying bonds and treasuries to falsely prop it up, artificially stimulate it, and buy down inflation.
You do realize that people have spent years claiming that this type of Fed activity will cause hyperinflation, right? Just checking.
The negatives will really only kick in if politicians force the Fed to sell the reserve assets at a loss.At some point the negative downside to QE will start to creep in as the Fed tries to ween the fake ‘propped up’ economy off of the endless supply of money that the Fed has been, in effect, electronically printing.
There is a little bit of that, mostly that corporations can use cheap credit for stock buybacks. At the same time, companies are seeing record profitability, which obviously has some effect on stock prices....Example: One clearly visible side effect of QE is Market Growth, not built on fundamentals....
Yeah, not so much. The correlation is not as strong as your oversimplified graph suggests. In particular there doesn't seem to be much of a correlation between QE and GDP growth. GDP growth stalled during QE2, went up after QE2 ended, dropped in Q4 2013 for no reason connected to QE, and so forth.When the original QE ended, the market withdrew and it stymied growth in the entire economy.
Many Trump supporters have lots of problems, and those deplorables are bringing those problems to us. They’re racists. They’re misogynists. They’re islamophobic. They're xenophobes and homophobes. And some, I assume, are good people.
That massive stack of stagnant reserves is putting downward pressure on interest rates.
It will continue to put downward pressure on interest rates for the foreseeable future.
The aspect of QE that drives down interest rates is here to stay for years.
Thats because the Fed is stuck with their MBSs purchases.
IF the FED sold them off they would cause a spike in interest rates and lose hundreds of Billions on their MBS purchases.
If they hold onto them and allow these Securities to mature then they are setting themselves up for a huge loss when Interest rates inevitably rise on their own
Then again, these are GSE Securities. How does a Security with underlying assets in default mature ?
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