Fed buys $1T of Treasury, mortgage assets

[Disaster]

http://www.iht.com/articles/2009/03/18/business/fed.php

Not really sure what to make of it. It could extremely benefit the economy but if it fails it would cause a lot of inflation.

I'm curious on your opinions seeing as you guys know better economics than I do.

[Limited]

GG America for making the value of my money even less.

[NuggetWarmer]

At this rate, caps will be worth more than the dollar. Anybody wanna start up a Nuke-Cola company with me?

[SnaFuBAR]

The big economy killer is the banks not giving out loans from the bailout money, not the fed buying treasury bonds. God damn, that's pretty obvious.

[rossmum]

*watches banks getting bailout money*
*watches bank officials taking massive pay packets and rises*

THE GOVERNMENT IS DESTROYING THE ECONOMY

[Limited]

No, the big economy killer is peoples confidence. The banks have the loan system in place now (even though its rocky) however people fear from getting one.

They fear to spend that extra money on a holiday or a car, something which isnt necessary and instead save it just in case, as we dont know what is around the corner.

[MetKiller Joe]

Nobody's demanding loans Snaf. People demand loans when they want to invest in capital assets or in expensive durable goods. The housing market is down, car dealerships are shutting down, and retail markets for things big and small are closing. That leaves out capital assets, but, unfortunately, most investors are now either investing in commodities, or buying US bonds because they are so cheap (Europe); they could be also just keeping that money.

The banks aren't giving out loans because people aren't demanding them. I've heard commercials on the local radio from Bank of America and CitiGroup basically telling me "Loan our money!" Which tells me that they are in dire straits right now.

[rossmum]

Still no excuse for banks (and other bailed-out companies) to blow their bailout on luxuries or payouts for their CEOs, which is exactly what's happening. It's getting so bad here that our own government are supposedly going to put an end to it.

[Limited]

Well the US government has just introduced a 90% tax on the bonuses, basically cutting them down dramatically, but still I see your point.

[thehoodedsmack]

I anticipate a lot of anti-government and big-business sentiment in the near future. Perhaps we'll see a replacement to our stuffy captains of industry!