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Markets Surge As Federal Reserve Offers New Stimulus

Memo Pad

Markets Surge As Federal Reserve Offers New Stimulus


On Thursday, the Federal Reserve announced its third round of quantitative easing — in other words, a slew of asset purchases focused on the housing market, with the goal of easing unemployment and speeding up the economic recovery. The Fed will buy $40 billion in mortgage-backed securities each month for an indefinite period of time, until it is confident the outlook for the labor market has improved.

The statement from the Fed expresses dissatisfaction at the current rate of economic growth, and the need for proactive action:

Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment appears to have slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation has been subdued, although the prices of some key commodities have increased recently. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.

With interest rates already at their lowest level —the “zero bound” — the Fed has resolved to take on a more active role in boosting the economic recovery. In buying up assets such as mortgage-backed securities from banks, the Fed is injecting money into the US economy, and keeping interest-rates low in the long-term.

Together with the $40 billion a month to support mortgages, the Federal Open Market Committee (FOMC) is extending its 2011 Operation Twist program—an initiative of buying long-term Treasuries and simultaneously selling a portion of its short-term issues—which will total $85 billion a month in new assets.

“One of the main concerns that firms have is that there is not enough demand, people coming and demanding their products,” Federal Chairman Ben Bernanke said at a news conference in Washington. “If people feel their financial situation is better because their 401(k) is better, or their house is worth more, they’re more willing to go out and spend, and that’s going to provide the demand firms need to be able to hire and invest”

Bernanke reassured investors that he “would not accept the proposition that the Fed is out of ammunition. Our tools,” he continued,”while non-standard, still can create more accommodative financial conditions, can still provide support for the economy, can still help us to return to a more normal economic situation.”

The latest move from the Fed will be instrumental in restoring confidence in the marketplace. Already the markets have reacted positively, with the Dow Jones and the S&P 500 already at levels higher than in December 2007 and early 2008, respectively. The Dow surged 1.4% to 13,523.77, and the S&P 500 rallied 1.6% to 1,459.09. The Nasdaq increased 1.4% to 3,157.68.


  1. Clarence Swinney September 13, 2012

    US NET WEALTH-$59,000 Billion
    5% CONTROL –74%
    Stocks & Mutual Funds—1% own 50%–90% own 10%
    Financial Securities—1% own 60%–90% own 2%
    Trusts—1% own 38%–90% own 20%
    Business Equity—1% own 65%–90% own 5%
    Non-Home Real Estate—1% own 28%–90% own 23%
    Derivatives—5 US Banks hold $250,000 Billion of $600,000 B world wide
    Is this a crazy financial system or what? Rich Gamblers Heaven.
    Problem each winner has a loser.

  2. Dominick Vila September 13, 2012

    Hopefully the Fed’s decision will help stimulate the economy, and the real estate and construction sectors in particular, as credit becomes available with record low interest rates. However, I don’t expect this to be an instant panacea and the results of this latest attempt to stimulate the economy will probably not be evident until 4 to 6 months from now. It is a step in the right direction, but a lot more needs to be done. Unfortunately, the current political climate in Washington, and the fact that there is an election less than 2 months from now, and the Holiday season immediately thereafter, suggest that nothing constructive will be done until January or February, regardless of who wins.

    1. DurdyDawg September 14, 2012

      But that was the plan all along, Dom. It was a four year pub deal with big corp and industry.. By now the Republicans should have been wallowing in the top statistical blatherings but instead are seeing a substantial decrease and the feds say, “No more of this” while the others soon join in. The only regret the GOP will express is they won’t be the ones crowing about saving the Nation. They will hate it when everybody (is forced in their minds) to credit the president and their only get back will be to try to delete his second term accomplishments from history by concentrating on the first four years when (they successfully) stifled progression.

  3. William Deutschlander September 13, 2012

    It is about time something more is being done for the 67% of Americans who have been paying the horrendous price of the Republican Malfeasance and Failure to meet their Fiduciary Duty!

    If the Republicans in Congress were doing the work that those who elected them expected them to do, the FED would not be the one to take on Congresses Failure.

    McConnell, KYL, Boehner, Cantor and cohorts should hide in shame and be shown the exit door.

    1. Bob Williams September 13, 2012

      Lets see – Obama had a Democratic House and Senate for his first two years, and has had a Democratic Senate since. In that time, Obama has run up the debt about $6 TRILLION BUCKS! Obama doesn’t need any help in pissing our money away. He does fine on his own.

      When you take a job where you commit to address and fix the known problems, and then golf and party the time away instead of correcting the problems, you won’t survive – unless your name is Obama.

      Meanwhile, Romney has a solid history of taking similar problems and solving them within a proper time frame. Personally, I don’t give a crap about the fact that Romney is worth $200 million bucks, as he didn’t take any of that money away from me. I also don’t give a crap about the fact that the Yankee’s Alex Rodriguez got a contract for $175 million bucks, as none of that money came out of my pocket, either. Or that P.Diddy is reportedly worth more than the two of them combined. I consider it their good fortune, along with skill and perseverance.

      1. msm859 September 13, 2012

        Obama did NOT have a Democratic Senate for 2 years!! The Republicans filibustered virtually EVERYTHING. Thus, without a solid 60 Senators they could get nothing done. Romney has NO history with “similar” problems. The problem we are facing today has little if anything to do with his prior experience.

      2. hellowoman September 13, 2012

        Since we cannot post links, I am attaching this article once again. I’m tired of the debt only being put on this Administration. Please read, as this is very interesting and can be proved as accurate from fact checkers.

        It comes from Market Watch. “Obama Spending Binge Never Happened”

        WASHINGTON (MarketWatch) — Of all the falsehoods told about President Barack Obama, the biggest whopper is the one about his reckless spending spree.

        As would-be president Mitt Romney tells it: “I will lead us out of this debt and spending inferno.”

        Almost everyone believes that Obama has presided over a massive increase in federal spending, an “inferno” of spending that threatens our jobs, our businesses and our children’s future.

        But it didn’t happen. Although there was a big stimulus bill under Obama, federal spending is rising at the slowest pace since Dwight Eisenhower brought the Korean War to an end in the 1950s.

        Even hapless Herbert Hoover managed to increase spending more than Obama has.

        Here are the facts, according to the official government statistics:

        • In the 2009 fiscal year — the last of George W. Bush’s presidency — federal spending rose by 17.9% from $2.98 trillion to $3.52 trillion. Check the official numbers at the Office of Management and Budget.

        • In fiscal 2010 — the first budget under Obama — spending fell 1.8% to $3.46 trillion.

        • In fiscal 2011, spending rose 4.3% to $3.60 trillion.

        • In fiscal 2012, spending is set to rise 0.7% to $3.63 trillion, according to the Congressional Budget Office’s estimate of the budget that was agreed to last August.

        • Finally in fiscal 2013 — the final budget of Obama’s term — spending is scheduled to fall 1.3% to $3.58 trillion. Read the CBO’s latest budget outlook.

        Over Obama’s four budget years, federal spending is on track to rise from $3.52 trillion to $3.58 trillion, an annualized increase of just 0.4%.

        There has been no huge increase in spending under the current president, despite what you hear.

        Why do people think Obama has spent like a drunken sailor? It’s in part because of a fundamental misunderstanding of the federal budget.

        What people forget (or never knew) is that the first year of every presidential term starts with a budget approved by the previous administration and Congress. The president only begins to shape the budget in his second year. It takes time to develop a budget and steer it through Congress — especially in these days of congressional gridlock.

        The 2009 fiscal year, which Republicans count as part of Obama’s legacy, began four months before Obama moved into the White House. The major spending decisions in the 2009 fiscal year were made by George W. Bush and the previous Congress.

        Like a relief pitcher who comes into the game with the bases loaded, Obama came in with a budget in place that called for spending to increase by hundreds of billions of dollars in response to the worst economic and financial calamity in generations.

        1. Linda Rock September 13, 2012

          Thank you for spelling it out for these parrots who keep repeating the same lie over and over again !

          1. TheSkalawag929 September 13, 2012

            I just wanted to take a moment to say thanks Hellowoman. You are one of the many many reasons why the Truth will always be told.

        2. vlcpolitics September 13, 2012

          Keep reposting the trust hellowoman. This needs to be done over and over until the truth sinks in. The republicans never let facts or the truth get in the way of their lies. It is infuriating and sad all at the same time. Desperation is never pretty.

        3. Warren Nicholson September 13, 2012

          Bob Williams will never read your post, it is to long and has too many facts.

          1. Fern Woodfork September 14, 2012

            That’s Romney And Ryan Whole Plan In A Nut Shell Is Lie Their Way To The White House!!

        4. Fern Woodfork September 14, 2012

          Romney Whole Campaign Is Built On A Foundation Of Lies!!

        5. concern citizen September 14, 2012

          I am fed up with the finger pointing at the President. The Economy was very bad after George Bush took over he and his followers lied so much and run the country bankrupt. Every Republican is blaming Obama why dont the rich republicans pay their fair share of Taxes so the country will have more money into the revenue so as to help and create jobs for those who needs one like me. Why and i ask again the former President gave the rich Tax shelter and the poor none we have to pay taxes or else we go to Prison. Have you ever seen any
          Rich Republican went to prison or charge with tax evasion think again. If Romney and the rest would pay their fair share of Taxes it would help the Economy. Do your share Romney and Ryan and the Koch Bros instead putting millions of dollars smearing the President and into election. God holds the Key to the white House for this Election , He put up and he takes down. God He is in Control. How long will the rich have control over the poor and what they call Black people.The reason why Romney and his followers are acting like Jackasses against the President is because of his color, they think people as they call them Black, have no sense at all. Sorry to disappoint you guys my President is Smart, intelligent and he is full of Wisdom like King Solomon . Pay your fair share of Taxes Romney and stop running around like you do not have any sense who are you trying to fool? No rich man should not be elected as President, because they do not know how to communicate with the poor. Go and communicate with your rich friends, and let a more Humble President run the country.What happen Romney and Ryan where are you going to lead us into Temptation but, guess what you cannot deliver us from anything. Be cool stop the lies and smearing about the President. If you and your family want to live into a white house please paint yours that color or build one you have enough money to do that. I need a job or else I am going to loose my Home, you get it I have paid my fair share of TAXES and get nothing in Return

          SHAME ON YOU POLITICIANS spending all this money and Citizens are here without food and shelter and they use to pay their fair share of Taxes.

        6. lkbold1 September 14, 2012

          hellowoman Thanks for breaking down step by step Obama spending increase is less then 0.5%. But you know what the Republicans Base is like, Even If It’s A Lie, just keep on saying it over and over again it will stick somewhere.
          Like Rush Limbaugh, I will never forget, I relocated to Nashville Tn 1996 late one night. Bill Clinton was getting ready for a 2nd term. The only station I could pick up clear on radio was Rush Limbaugh show 8pm on Hwy 40 E. Rush and his caller talk about Bill Clinton so bad. They call him The N—-er Lover and made comments we can call him Boy and what they need to do to keep him from being re-elected.
          It was scary it sound like I just pick a Ku Klux Klans meeting on air
          you could picture them at a cross burning. Talking about the
          Hated they had for Bill Clinton.

          And those with Pure Hate there is NOTHING this President can do right in there mine.

          I Just want to say this have nothing to do with Nashville Tn.
          I met some of the most Beautiful people there regardless of race.

        7. Ida Bill September 15, 2012

          Thanks for your information. I will post it as an answer to others who continually claim that President Obama went on a spending spree and increased the deficit.

          I hope others will do the same! Somehow these blatant lies have to be stopped! At least those seeking the truth will recognize it and move on!

        8. Richard Holmes September 15, 2012

          The previous congress was controled by democrats. There has not been a budget by this adminestration in three years. obamma has spent a trillion dollars a year from the first year he was in office up to now. bammas’ agenda is not to fix anything just run this country into the ground.
          He needs to go along with all the liberals.

        9. Don September 16, 2012


      3. CarlDiederichs September 13, 2012

        I hope you do realize that for the majority of the time Obama has been in office the Republicans have blocked all initiatives, and some that were the Republicans’ own ideas. And you have heard of the filibuster? Thus, no action in the senate. Come, on, give the guy a break. After this election, when the dems have a majority in the house and senate we will see a renewed America.

        1. ontop66 September 14, 2012

          Tell me, how did the Republicans block the initiatives when the Democrat Party controlled both House of Congress?

          1. DurdyDawg September 14, 2012

            Filibusters and super majority votes.. Any more questions?

        2. Fern Woodfork September 14, 2012

          Amen To That!!!

      4. Rosemary B September 13, 2012

        Bush the slush didn’t have any problem pissing money away either, the drunk.

      5. johninPCFL September 13, 2012

        Let’s see – he could overcome GOP filibusters for four months of that time. So, it’s really been about four months of the four years where any constructive work could be done.

        And the teabaggers have continued adding to the debt at the same rate that GWB did – about $1T per year. Congress passes the spending bills, blinky, not the president.

        Romney’s big claim to fame is the ability to buy into a company for 10% down and then borrow tremendously on their assets to take a huge paycheck home. For instance, Bain invested a few $million in GST steel, got others to invest $10 of millions, then went to the banks and borrowed $100s of millions. Bain took out $42million and stuck the banks with $437 million. They invested $2million and took home $42million. Got it now?

        Since FSLIC is funded in part by taxpayer dollars, he did get much of his money from you.

      6. Linda Rock September 13, 2012

        I bet you had nothing to say when Bush was MIA most of the time ,more than any other President before him or after him ! So clam up and get your math right and stop adding the trillions that Bush ran up in his 8 years to Obama’s deficit spending !
        If we don’t spend money on our infrastructure then we can’t get people back to work ! We have to spend some to get people working ,people don’t buy when they are out of work ,which means our economy won’t recover !

        BTW Romney did take that money away from you when you think about it !
        He took jobs that were here in our country and moved them to foreign countries putting an awful lot of peoples out of work ! He also hide money in the Cayman Islands and another overseas account that he will never pay taxes on while you and me would go to jail if we didn’t pay taxes on ALL our income ! How do you justify that ? Do you see yourself less worthy than him, that you should pay more of a percentage in taxes than he does ? Why ?

      7. hilandar1000 September 13, 2012

        The facts are here in the replies to your post if you want to read them, Bob. Obama has done extremely well — especially when you consider what he had to contend with. The wars were not included in the Bush budget, whereas they ARE included in Obama’s budgets. That alone makes the numbers look bigger for Obama. When you consider the unemployment numbers which means loss of revenue plus the tax cuts that Bush put in place that were not paid for, it becomes clear that no one could have done any better than Obama has done. I would imagine that even you are aware of the actual facts, but are just too stubborn to admit it. You have learned the GOP talking points, so I have to assume you have the intelligence to be able to look at the facts and can understand that all those accusations are simply not true.

      8. Dominick Vila September 13, 2012

        The main reasons for the debt increases the last 4 years are due to:
        1. Bush’s TARP, which was signed October 3, 2008 and, therefore, appears in the FY09 budget that started 10/1/08. This added almost $1T.
        2. Obama’s stimulus plan, which added almost $1T.
        3. Interest on the debt accumulated during the last 7 years added over $1T
        4. Revenue losses caused by the Great Recession and increases in unemployment benefits.
        5. The rest was all programmatic and has nothing to do with Obama’s policies.
        Spending, and the size of government insofar as number of civil servants, has gone down during Obama’s tenure.

        1. Dominick Vila September 13, 2012

          I neglected to include the cost of the wars in Iraq and Afghanistan, which President Obama moved to the general budget as part of his transparency efforts, instead of hiding it like his predecessor did to give the illusion that the deficits were smaller than they actually were. That added $1T to the debt, that should have been there all along since it was all borrowed money and we are paying interest on it.

      9. vlcpolitics September 13, 2012

        Bob, I hope you read hellowoman’s response to your message. Please open your mind and accept that you are incorrect and that you have been lied to by your republican party.

      10. Gilbert September 13, 2012

        Bob, I am surprised at you. For a guy who is so strongly opinionated, you don’t know a damn thing about debt-financing. Please allow me to educate you. First of all that hog-wash about Obama adding $6 trillion to the federal debt is pure Bull-S*t. Here is where all the debt comes from. On January 20, 2009, the date President Obama was sworn in, the National Debt according to BARRON’S was $10.7 trillion… But… There was another $1.3 trillion that had not yet been added to this amount. this came in the form of the Bush 2009 fiscal budget, which ran a whopping $1.3 trillion deficit. By the way, the largest budget deficit in history. {It cost $3.6 trillion to run the government for a year, and only $2.3 trillion of tax revenues came in.} Are you still with me? that adds up to $12 trillion. But hold on… At that time it was also known that the budget deficit would repeat itself… it would be at least $1.3 trillion/year into the foreseeable future until such time as revenues = expenditures. That means for fiscal 2010, 2011, 2012, 2013… the years that Obama would inherit these “hidden”costs. So add $1.3 trillion x 4 years = $4.2 trillion to the $12 trillion sub-total. $12 trillion + $4.2 trillion = $16.2 trillion… and that is before President Obama spends as much as a dime! All of it is the Bush era debt legacy… and by the way, that isn’t the end of it, because we have to pay interest on all of it. That’s right! Money borrowed through the sale of 30-year treasuries sold in 2002, must continue to pay the semi-annual coupons for another 20 years… and this includes the last issue of Bonds at the time Georgey-boy left office. That last budget, with the deficit of $1.3 trillion, the biggest annual deficit in history, had to be borrowed by selling more bonds. So from early 2009 onward, in addition to debt already piled-up, we have another $1.3 trillion to pay interest on through 2039. Now… let’s talk about what President Obama spent. President Obama had to spend all $2.3 trillion a year that were collected in taxes + $1.3 trillion dollars a year in George Bush deficit leagacy costs… remember it costs $3.6 trillion/year to run the government, + the costs of two wars {yeah, money was borrowed Off-the-books for that project}, and the George Bush tax cuts which guaranteed we would have to continue to borrow money… perpetuating the deficit. So President Obama, by the time 4 years is up will have spent $3.6 trillion x 4 = $14.4 trillion. Now subtract the tax revenues, $2.3 trillion x 4 = $9.2 trillion. The difference between $14.4 trillion – $9.2 trillion = $5.2 trillion. Of this sub-total, 4 years of Bush legacy budget deficits = $1.3 trillion x 4 = $4.2 trillion. Subtract that expense that was imposed upon President Obama’s budget, $5.2 – 4.2 = $1 trillion. So… the amount of added spending that can be justly attributed to President Obama is $1 trillion over 4 years. I’d say he has done a fantastic job! You should be thanking him instead of whining and bitching all of the time. You republicans aren’t very smart. You are a sucker for every negative piece of propaganda, every bumper sticker. You believe a lie instantly… you don’t even check things out. Maybe you don’t know how. So, ordinarily I would charge for the lesson you just got. But this one is on the house… O.K. Bob? Pick up a copy of BARRON’S weekly and study it. When you get to the Market Watch section, you’ll see where they publish a running tally of the Statutory Debt Limit, and where we are as of today. I’ve been a subscriber to BARRON’S for some 20 years now. So you have some catching-up to do. If you read this kind of publication instead of the bumper stickers, Mitt Romney won’t be able to lie to you again, and get away with it.

        1. DurdyDawg September 14, 2012

          Wow Gilbert.. Thanks for the lesson. I believe we all needed to know this. Thanks guy.

        2. crestdad September 14, 2012

          Thanks. Your a true, and truthful patriot. We need to do more grassroots education as you have expressed rather well to the general public. One post like this is more than any commercial. I don’t hate Republicans. I previously voted Republican. This campaign vindicates my reason of leaving the party. It’s not the betterment of our Republic they now look for. Not with the lies and smoke and mirrors being run. The Medicare 700 billion cut is evidence they will lie about anything. It’s an insult to seniors intelligence. It doesn’t stop there. They attack every voting block they can to hope somewhere they will find a mindless group that will follow. Keep up your fiscal educating. It has to open some eyes. And let’s get the vote out this time.

      11. DurdyDawg September 14, 2012

        So, Bob Williams , what you’re telling us is that all those OTHER smucks he screwed around, took their pensions, fired them then rehired some of them back at a much lower pay scale with no benefits THEN when the time was ripe, took it ALL away are no concern of your’s so long as he didn’t target you’re sorry butt. Yeah, I can see exactly what kind of person you are. Oh, and skill and perseverance has nothing to do with the ‘fleecing’ game. only unaware suckers and the (now richer) owners they depended on with their livelihood..

      12. Bill September 14, 2012

        Bob What Romney did at Bain was a little different than you describe. Bain takes over companies sometimes improving them and other times loading them up with debt then extracting their profits from the company leaving it bankrupt and then closed. The workers are out of jobs, their health insurance gone and a probability that their pension plans are underfunded. I don’t care how much money he has, he just doesn’t understand the life of middle class people. He tells students to borrow money from their parents to pay for college, great advice if your parent had the money. That Romney statement is typical of him being clueless when it comes to ordinary people. Don’t you think that parents generally want to send their children to college and would GLADLY pay the tution if they had it.

      13. Don September 16, 2012

        Now where dit the President get this money? The House released it to them and they werte Republicans there who let it go through so that they could put the President under the rug and stamp on him for this.

    2. vlcpolitics September 13, 2012

      I still am amazed that these republicans and their tea party cohorts who got swept into office in the 2010 election promised to work for the “American people” and get them jobs and once in, they did absolutely nothing about getting jobs. This is where the “failure” happened in Washington. I think every republican who obstructed every effort that President Obama made to help the economy and the American people should be fired! Anybody who refuses to do their job should be fired. The republicans have only hurt the American people, not helped them. Shame, shame, shame!

      1. Fern Woodfork September 14, 2012

        They Don’t Give A Damn About America Nor The American People They Are There To Dismantle As Many Laws They Can To Get Our POTUS Out Of The White House So They Can And Make As Much Money As The Money Hoarding Thug Can Get Away With!!! Power, Control And Money Is Their Only Agenda!!

    3. Fern Woodfork September 13, 2012

      Romney Is Dropping In The Polls He Running Worst Than John McCain!! Now That The People See What Kind Of Thugs They Really Are Maybe We Can Now Be Able To Get Rid Of Some Of These American Taliban Terrorists And Traitors!!

    4. Don September 16, 2012

      This House has been one of the worst on record not releasing the Bills so people can go back to work.

  4. Angel J. Perea September 13, 2012

    KEEPING IT THOUGHTFULLY HONEST: This election is supposed to be about JOBS, Yet, the President Job bill remains on hold in House of Representatives and the Senate Bill to give tax breaks to Businesses that create Jobs in America as well as Stop tax breaks for businesses that continue to outsource American jobs that was obstructed by Republicans deserves a re-vote. THE INCONVENIENT TRUTH: The question is; Are the republican’s obstruction efforts to keep American unemployment high and Job creation low in order to play politics so the President fails in re-election? Speaking on behalf of middle Class Americans, this question needs to be raised and discussed! Hum…

    1. Diane Ribbentrop September 13, 2012

      It IS about JOBS on Obama’s side His job bill & middle class tax cuts have and will help but GOP keeps blocking so Obama loses in Nov. Bagger run GOP made that clear Jobs must come first then the Debt. Once folks are working and paying taxes debt will go lower Econ 101 All this talk of debt debt debt is over kill When GOP Bush Cheney were in power They did NOT care one iota about the debt Its another scam to crush Obama Smart folks will not fall for the GOP devious tricks again Neither party is without flaws but at least Obama is trying, Obama _ Seals Got bin laden Bush gave up US auto jobs are ALIVE MITT said Let them die’ 4 mil jobs created in – 4 yrs. Under W US lost 700 K jobs a MONTH>
      Mitt says Corps are people Money is speech !! Do you buy that greedy nonsense GOP is working for lower middle class wages- they want all states to be right to work for less .states. GOP hates birth control ! Mitt Ryan vows to Gut your kids education Repeal all regulations – give even more corp tax cuts Thats same old Reaganomics Bush 1-2 GOP policies that led to worst crash since 1929
      2 long screwed up wars based on lies, fear, war profiteers. Just look at the facts Ignore fat cats Fox Rush & Rush wannbees , Hannity Rove Cantor, Boehner, McConnell Likes of blow hard Trump who went bankrupt more times than I can count. Bain- Mitt fired people -took away hard earned pensions -sent jobs overseas, cheapened CO’s products then walked away with 100 mil in fees
      M any of his CO went belly up shortly after Bain took 100’s of millions in fees Kay bee toys is just one.

  5. Johnny Procidano September 13, 2012

    Even with a zero % interest rate, there is no way to repay any loans with the idea of constant borrowing. Anyone that does not believe, try this: Every week starting this Friday take out of your savings two-hundred dollars more than you take home from your job. Do this for one full year. Then let us all know how much more money there is in your savings. BORROWING DOES NOT GROW ANY ECONOMY.

    1. SaneJane September 13, 2012

      You are wrong on all counts. Borrowing most certainly does grow the economy. How do most businesses get started?

  6. desertdustoff September 13, 2012

    The dudley do nothing, tea baggin'(kkk), American taliban, fun dumb a mentalist, gop (greed over people, greedy ol’ pedophiles) congress (no capital letter on purpose) just had their obstructionism obstructed. What a joke the repugnicans are..hurrah to the federal reserve!! If the people who were elected refuse to do anything…some one else will!!!

  7. tokoloshi27 September 13, 2012

    The other question we need to ask ourselves is where is this $40 billion a month going to come from. If the Fed is in effect ‘borrowing’ from itself, isn’t that really devaluation? Except that the costs of U.S. goods sold abroad doesn’t actually benefit from the devaluation; just the housing and stock markets.

    This looks like the same old thing where our future assets are being spent to create a bump in the market that we lemmings are supposed to see as a green light to buy Chinese iPhones.

    Does, “Bernanke reassured investors that he “would not accept the proposition that the Fed is out of ammunition. Our tools,” he continued,”while non-standard, still can create more accommodative financial conditions, can still provide support for the economy, can still help us to return to a more normal economic situation.” really look like we’ve learned that financial gimmicks like derivatives are bad things?

  8. bcarreiro September 13, 2012

    the reserve is there for us this time …so dont knock it ’til u tried it. teamwork boehner teamwork

  9. adriancrutch September 13, 2012

    I give a rat’s ass about the stock market! your “luck” is better at a casino.. unless your one of the few the proud the filthy rich!

  10. Diane Ribbentrop September 13, 2012

    Hogwash Obama took on worst crash since 1929 Thanks to 30 yrs of GOP fat cat policies, corp cuts- loopholes- deregulation- greed- 2 wars based on lies- fear tactics, profits. Obama had Dem congress 1 1/2 2 yrs at most Bush Cheney had GOP congress 2000- 2006 who never ever said NO to anything When Dems won congress in Jan 2007 Bush swore to veto / filibuster any DEM bill. They did. Later GOP refused to confirm Obama’s picks Can Baggers GOP – far right cons ever state the facts without twisting them ? Fox Rush Rove do not state facts Their only goal from day 1 has been to CRUSH OBAMA whatever it takes Secret corp Money lies- fear tactics- vile names,hate anger, Nothing will stop them in their lust for power / control. T Bagger run GOP are very dangerous for our country and its struggling middle class

  11. peterb13 September 13, 2012

    With the disgraceful, unpatriotic actions of the Republican controlled Congress blocking all actions to help the middle class, it’s good to see the independent Federal Reserve step up to help. I’m 72. I’ve seen my share of political selfishness. Nothing in that time has matched or exceeded the lying and cheating and downright ineptitude of the Republican leadership of this Congress. Well polish-up those resumes boys and girls, Sheriff Pelosi’s coming back to town!

  12. Diane Ribbentrop September 13, 2012

    Agreed but you are speaking to folks who despise Obama and will stop at nothing to crush him -make him lose Nothing Facts have NO meaning whatsoever and corp run media is bought and paid for Political ads is what makes them billions US Journalism is almost dead Perhaps PBS C span have a chance if folks would watch them and not Fox Hannity Rush & 800 other radio talk shows intent on crushing & slamming smearing Obama from day ! .

  13. Eileen Schatz September 13, 2012

    Thank You Hellowoman I agree with what you`ve written. I`m really tired of hearing all the Nonsense about this President and his over the top spending and Vacations.. It is said, if you repeat something often enough ..People will Believe it to be True. Sorry, that doesn`t work in my case and certainly hope most people will look into what they hear from the GOP Talking Heads. All you need to do is Really Listen and Question for the truth.. don`t fall for the What He Said deal. I suggest you look for the Integrity while they Speak. Also, the amount of Money being wasted on all these Negative Ads are Just Wrong, when so many are Hurting in Our Country, Where is that Christian teaching we hear so much about ? Vote Carefully. God Bless America

    1. vlcpolitics September 13, 2012

      Eileen, I thought about all the money these super pacs and the GOP campaign are spending to tell lies and mislead the electorate. If these “businessmen” would spend that money to help employ people, just think how low the employment rate would be. That would be helpful to the American people.

  14. Virginia September 13, 2012

    Oh pleeese – buying inflated defective loans is not going to stimulate employment – who does Bernanke think he’s kidding?! The banks wrote more loans than they can legally hold so they have to peel them off or the regulators will shut them down for insolvency. THIS IS JUST ANOTHER BAILOUT -WITH TAXPAYER MONEY. It’s another round of TARP “foaming the runway” as Neil Barofsky so brilliantly described in his book BAILOUT.

    It’s insanity to allow the Federal Reserve and the Treasury to keep spending and protecting the banks. Stop the madness and call a moratorium on foreclosures, evictions and deficiencies if you want to stimulate the public – and audit the Fed. Bernanke is right about one thing – if people weren’t so depressed and worried – maybe they would spend.

    Nobody in their right mind trusts Wall Street or the Fed. Pumping taxpayer money into the banks through the back door certainly isn’t going to strengthen that perception either.

    If the banks need to dump loans – strip them from the banks and give them back to the states where they belong – not the Federal Reserve – a private corporation printing public money for their own hidden agendas.

  15. Joe Narusiewicz September 13, 2012

    President Obama and the democrats need to make the filthy rich pay for food stamps and unemployment checks and totally distribute the money in this democracy. Strengthen the middle class, stop the outsourcing of jobs. The press needs to hammer Bain and outsourcing companies and CEO’s. We need no insurance companies stopping pre-existing situations in people especially children. We need to be a country that sends all our kids to college and continue to improve benefits for every citizen and we need to give small companies and businesses a break while closing all loop holes on oil companies and tax dodgers like Romney.

  16. Sep_Arch September 13, 2012

    This is silly. Quantitative Easing didn’t work before and won’t work now. People will not spend more because their 401K’s go up! It is primarily the extremely rich who benefit from QE and they do not need any extra income to spend. They will continue to spend as they always have, regardless.

    When exactly do we get a fiscal remedy that recognizes the real reason for unemployment? No one in the bottom 80% is secure in their job and many can’t find work. It would be foolish to for anyone in the middle class to start spending now…..

    1. Virginia September 14, 2012

      Absolutely correct. Why would we buy bad paper? Why would we allow tax dollars to be used for something we wouldn’t buy ourselves? These are inflated, defective loan products with fraudulent Libor rates and fabricated assignments of mortgage – not to mention clouded titles – who is mixing the Kool-aid over there?

      If the banks need to dump the loans – strip them and give them back to the states – but don’t pay them for them and certainly not at face value. The banks were sued by investors because these loan appraisals were inflated – why dump them on the American public?!

  17. Gilbert September 13, 2012

    Amen Brother! McConnell, KYL, Boehner, and Cantor should be horse-whipped in the public square, as traitors. The republicans don’t want to see us progress. They are greedy, selfish, pigs. Another thing, a lot of small businessmen could probably help themselves by converting to an incorporated business— C-Corporation. There are over a thousand deductions available that are not legally deductible with pass-through tax entities, and nobody should be operating as a Sole Proprietor, unless they want to be 100 years behind the times. Hopefully this latest Bernanke move will make business loan money available again. The program should be to get business loan money into the hands of small businessmen. They are the ones who take risk all the time.

    1. Virginia September 14, 2012

      Sorry Gilbert – but these banks don’t intend to lend – they are just trying to stay afloat. They have over $600 TRILLION in bad paper according to Nomi Prins (It Takes a Pillage). And even if they were to lend – 46 million families are on food stamps. 83 million people have stopped looking for work. Effectively 212 million Americans are barely making it day to day… and losing their homes and their jobs. So, who is going to be there to buy?

      1. DurdyDawg September 14, 2012

        But there are people out there who will buy.. The 5% will do this (the ones in the middle of the ubber rich and the striving) and all we need is a kick start to get more job opportunities. Before long (if the trend succeeds) those on welfare and those who quit looking will find themselves in the job market again (either from desire or mandate) don’t think these people will sit about once the economy gets better.. That’s when we can do something about so-called moochers. Right now we can’t determine the needy from the moochers and it’s right not to punish all for the likes of a few but with jobs becoming abundant, it won’t be difficult at all to cull out the frauds. Just like unemployment at this time.. Once their allotment is used up and with no perspective of employment, what would you want to do? Kick them out and let them now fend for themselves? (why even pay them in the first place?) or extend the help so as not to add to the poverty line. That’s what the president must choose between and congress votes for or against. The same applies to welfare/food stamps.. In such an economy we all must care for one another else we’re nothing more than hypocrites in our religious beliefs.. Sure, it’s taking from our taxes but ask yourself, what would those taxes be used for instead? Most definitely not as rebates and hardly to pay back on our debt but used for the same thing they had been used for before 2009, before the glut in welfare, food stamps and unemployment. The politicians won’t tell you this but logic should be apparent. I believe in the people, I will never believe we will become that which we despise in others.

        1. Virginia September 14, 2012

          We’re into TRILLION$ of dollars in debt – seriously on the verge of collapse and adding trillions more is NOT going to stabilize America. People no longer trust the government or the banks and the majority of Americans are barely getting by. The banks are are bobbing to stay afloat while the sharks are circling.

          If we want to stabilize the country we need to start with the core. Folks that can’t find work are not “moochers” – that is offensive. What you need to realize is that 2 tires on the truck of the economy have been flatten: construction, construction manufacturing along with housing and labor. Many of these folks were heading toward retirement age. Add the baby boomers that were laid off from companies like Xerox, Merek, Coke, Pepsi, GM, etc. because their companies invested/gambled the pension funds in inflated, defective, unregulated securities and lost – thus, needing to trim payroll to maintain… you now have a formula of older folks who can’t find work, have lost their retirement, exhausted their savings and are financially and emotionally depressed.

          Throwing more money at the banks is insane. It hasn’t worked in 5 years and every pathetic attempt to prop up the banksters has put America in deeper debt. The Fed cannot maintain 30 year loans and you know this is not their intent.

          If we want a true stimulus – strip the loans from the banks and give them to the states to restructure and use those funds to replenish their lost pension and retirement funds they wasted away on the Wall Street securitization Ponzi scheme. In the meantime, call a moratorium to foreclosures, evictions and deficiencies – and give American families a break over this coming holiday season. Maybe it’s just the gift needed to release the fear and relieve the depression.

      2. Charlie Watkins September 14, 2012

        Out of curiosity, how did the banks get saddled with $600 trillion in bad paper? Who is responsible for 212 million Americans barely making it day to day?

        1. Virginia September 14, 2012

          There is no short, fast answer but read the book by Nomi Prins “It Takes a Pillage”. Wall Street used mortgages (MBS), credit cards, car loans etc. (ABS) and school loans (ARS) and bundled them up and sold them over and over to investors and hedge funds who bet against them… And then they repackaged the debt and sold it in CDOs and CDS – so many times that they have created over $600 Trillion (with a “T”) of bad financial transactions.

          Just an example of the fraud – reviewing WaMu SEC trust document for 2006-2007 there were over 500 loans in 2 or more trusts, many loans were in 3 or more trusts and one NYC condo was in 6 different trusts …Sounds like The Producers, yeah? So, when you ask how did they do it – they cheated, lied and have no regulations.

          As for 212 million Americans – there were over 84 million defective mortgage products sold during 2003-2008. Many of these families have had their savings drained trying to save their fraudulently inflated homes used as collateral for the Wall Street Ponzi scheme. Who is responsible? Maybe Congress shouldn’t have repealed Glass-Steagall for starters and maybe President Clinton should have veto’d the bill. In any event, left unregulated the banksters have had a heyday.

  18. ontop66 September 14, 2012

    Can you tell me why Obama has not been successful in getting a budget passed. For the first two years the Democrat Part controlled two of the branches of government and not budget was passed. Since then Senator Reid has not brought the House budget to a vote in the Senate. What is he afraid of?

    1. tropicsilk September 14, 2012

      There is no excuse that could be in the interest of the people.

  19. robertwhart September 14, 2012

    QE3 will do nothing to improve the lot of the unemployed. What you need is MUCH bigger deficits.
    as Warren Mosler says :”There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.”

  20. George Davidson September 14, 2012

    Thanks to the Feds he is true worthy American he is not like the Republicans who is trying to pushed Obama out of the White House and do not care what is happening to the country.


  21. crestdad September 14, 2012

    I’m going to be happy when this campaign is done,,,especially the TV adds. The Republicans are not using common sense. They know they have a marketing problem with their policies. Here in Iowa they are running adds about Steve King. Talked about hypocrites. Then you get one from Romney. If your a set on the fence undesider you will be voting Democrat. The adds are sickening in the hypocrisy and lies. It reminds me of the reason I live in a Democracy. Folks we gotta vote this time. This Christmas I don’t want Jackboots and swastikas. Rom eye business deals are founded in the vulture mentality. Have you ever watched his mannerisms? He even subconciously moves like a vulture. I’m sure he has his good points. But there’s just to many white lies, out right lies, and twisting reality to make it as our President. The guy who thinks Obama had two years of congress on his side, remember that on the issues that concerned jobs and the economy he needed 60% vote. And the fillibuster on each item became legendary. And watch the Dems and the Repubs debt will be handled without much problem. It won’t take four years, but eight. And as history will show only by a Democrat. Republicans seem to be the party of budget busting on the backs of the middle class and poor. Look at history.

    1. Keith Matheny September 14, 2012

      Folks, you need to realize that all the money being spent to defeat the President and Democratic Senators is for a reason. Kochs and Adelson don’t spend money without a pay back. They’re not that into charity for your ideals. An investment ,if you will, by people who wring out every cent of earnings. $18 million in Ohio alone to defeat Sherrod Brown. Why would you spend that kind of money? Open your eyes and follow the money! But you know it won’t be pretty.

  22. Malyian September 14, 2012

    That,s the problem with republicans they have a lot of ideas but none of them work or they get read of something a do nothing. This is just what we don,t need.

  23. oldtack September 14, 2012

    Nothing for me to add to this forum. I read the complete thing and except for those from the right wing one liners- all data was good and informative -made my morning coffee taste better.
    I’m glad hellowoman’s entries were addressed. When I read her first statement I missed the first o in her name. hellwoman? I thought -sure hate to get this person on my bad side.
    Thanks to all – for a good morning.

  24. Kentebe D September 14, 2012

    I know there is a GOD that helps the poor. I have been in 3 air crashes and I am alive. I passed out during hurricane Katrina and came back. I had become unconscious due to a bout with cholera somewhere in Africa, and I did not die. I have more examples in my life to show that there is a higher power that helps me as poor man. The same power will not allow the Republican party to win. If they win, it is better to leave this world than to continue living. Theses Republicans are not done destroying the world, starting with our own country.

  25. onedonewong September 14, 2012

    Desperation move by the Fed to rescue barak. Bernake already know that come Nov he’s toast Romney is on the record saying that Bernake must resign. QE1 and QE2 didn’t work the only thing that can fix the economy is to stop the trickle up disaster that Barak has saddle the country with

  26. Richard Dunkin September 14, 2012

    About damn time!!!!!!!!!!!!!!!!!!

  27. Richard Dunkin September 14, 2012

    Good news. Don’t think the obstructionists will like it.

  28. Richard Holmes September 15, 2012

    The fed wants to buy 40 billion debt with– You guest it– More debt.
    The money to make this supposedly stimulus is borrowed from– You guest it again–China.
    Quantitative easing. Double speak for more debt for the average tax payer.
    Vote them out, drag them out. Tar and feather them and run them out of the country.

  29. Don September 16, 2012

    I know the Republicans do not want this to happen until after the elections. I think they are wrong, wrong, wrong.

  30. Melford September 18, 2012

    Well, it makes a good sound bite but that is about it. True, Wall Street makes money in the short term with this move, but truth is this: It will not stimulate new jobs, and smart money knows that the fat cats on Wall Street will have little to no motivation to create jobs. Heck, if I could make money without risk on the taxpayers back, I would do it! It will kick the market up. With each new churning of the market, more “paper” profits are made. When the bottom falls out, (and it will eventually) most of those who are big time investors will bail with “free” earnings, while working joes will have their investments in the market (via their 401k programs and IRAs) lose big before they can get their money out, just like in ENRON, except it will be market wide.

    Pretty typical Obama Plan.


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