QE3

Forum: Investments
Author: [Investments] Topic: QE3
bigvern1013 PM bigvern1013
Joined: Oct 2006
Posts: 2389
Montana
 
bigvern1013
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Posted: 9/13/2012 12:53:01 PM

Well boys, it is finally here.  Today the Fed announced QE3.....which is basically the consolidation of mortgage backed securities, aka the deeds to your homes.

The feds are already the single largest owner of homes in the US (specifically the paper behind the loans on the homes), and this program will make them even larger. 

 http://www.marketwatch.com/story/fed-to-launch-qe3-of-40-billion-mbs-each-month-2012-09-13

It is difficult to truly understand what this will mean to our economy long term.  From my perspective, it will not help the real estate market one bit.  With such a large asset class being controlled by the feds, I am not sure how home values will ever gain substantially......just looks to me like the big boy on the block is buying up all of the hard assets for a fraction of what they were and are worth.

QE 3 is also a convenient way to help out the investment banks by getting some of those ugly sub-prime loans off of the books......it is a win/win for the big money.

In the end, it is my humble opinion that all of this shifting of debt loads and purchasing of mortgage backed securities is just paper magic geared towards propping up the economy in the short run.  Long run, we are looking  at inflation and static hard asset values.

spottie2935 PM spottie2935
Joined: Jun 2001
Posts: 8098
Florida
 
spottie2935
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Posted: 9/13/2012 1:07:23 PM
the little people are just supposed to pay in with little or  no benefit.  what dont you understand
Biscuit PM Biscuit
Joined: Aug 2007
Posts: 1469
 
Biscuit
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Posted: 9/13/2012 2:56:59 PM
Party on, Garth!


Biscuit PM Biscuit
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Biscuit
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Posted: 9/13/2012 2:58:56 PM
The inflation hangover is gonna suck.  
be easy PM be easy
Joined: Oct 2006
Posts: 15420
Pennsylvania
 
be easy
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Posted: 9/14/2012 1:34:31 PM
Wells Fargo sure is a big fan of the free money
Rush51 PM Rush51
Joined: Jan 2005
Posts: 4388
California
 
Rush51
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Posted: 9/14/2012 9:11:38 PM
The primary problem with QE3 is that it doesn't address the core problem facing this country.

Do any of us think that lowering interest rates further will encourage business to hire more ?

Remember , the primary actions of QE3 from the Fed Chief are to address the "grave unemployment problem."


HotRod11 PM HotRod11
Joined: Sep 2012
Posts: 216
Wisconsin
 
HotRod11
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Posted: 9/15/2012 4:19:34 AM
i like all the pictures of each person in their picture in this thread

rathman 
behind 
wayne
bird flu
obama failure  wish he would quit(wrecking our country) 
bigvern1013 PM bigvern1013
Joined: Oct 2006
Posts: 2389
Montana
 
bigvern1013
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Posted: 9/15/2012 11:32:09 AM
and Rowdy Roddy Piper....classic.
Forum: Investments
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