Fed commissars issue quantitative commands

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machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Fed commissars issue quantitative commands

The minutes of the Dec. FOMC meeting, released today, contain new quantitative
commands from their majesties. No, not specifying the size of the
Soviet wheat harvest. But, as you would expect in a centrally-planned
financial economy, ordering how many and what kind of securities to buy.

The Committee instructed the Desk to purchase up to $100 billion in
housing-related GSE debt and up to $500 billion in agency-guaranteed
MBS by the end of the second quarter of 2009.

http://www.federalreserve.gov/monetarypolicy/fomcminutes20081216.htm

Six of one, half dozen of the other, as it were. Or whatever. It's only paper money.

There are other comical aspects of these minutes, if you can wade
through them. For one, the cast of thousands (all listed at the
beginning) who attend these meetings. It must get awfully sweaty in
that conference room. I hope they kept their clothes on. If anyone got
groped in the dark during the PowerPoint presentation, it didn't make
the minutes.

Here is another howler, which understandably remained unattributed -
'Some members saw significant risks that inflation could decline and
persist for a time at uncomfortably low levels.' Laughing

Man, does that bring back memories of the goofy Greenspan era. Like
that time during Bubble I when Al foresaw such big surpluses that
Treasury securities would disappear ... ah ha ha ha. Or the time in
2004, when Al marveled that uninformed Americans could have saved
billions by taking out ARM mortgages. That turned out to be THE WORST
TIME IN HISTORY to borrow at an adjustable rate, as short-term rates
proceeded to pop more than four (4) full percentage points.

I sure miss Mad Al's loony pranks on the financially illiterate. But
it's good to see that there are still some deluded 'Wrong Way Charlies' on the
FOMC, worrying themselves sick over 'uncomfortably low levels of
inflation.' Just load up on 30-year T-bonds, boys, I'm sure you'll be
fine.

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Fed commissars issue quantitative commands

Sorry, but I find this even funnier than the Fed minutes. Be assured that I am not making this up --

In just the first three months of the 2009 fiscal year, which began on
Oct. 1, the government spent $408 billion more than it took in.

http://www.nytimes.com/2009/01/07/us/politics/07obama.html?_r=1&hp

ah ha ha ha

AH HA HA HA

$408 bill in one quarter.

Money mouthWE ARE WILD AND CRAZY GUYS Money mouth

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