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Farewell to the Spectator
December 16, 2011 | 8 comments
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Tentative Praise for Ryan’s New Bipartisan Medicare Plan
December 15, 2011 | 3 comments
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The Day Ahead: Thursday, December 15
December 15, 2011 | 0 comments
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Examiner for Romney, National Review Against Gingrich
December 14, 2011 | 39 comments
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Paul Ryan to Introduce New Medicare Plan with Democrat Ron Wyden
December 14, 2011 | 4 comments
The Spectacle Blog
As expected, the Fed announced an Operation Twist of about $400 billion. That amounts to the Fed selling $45 billion in short-term bonds and buying the same amount in longer-term Treasury bonds every month for the next nine months or so.
The Fed also introduced a somewhat more surprising measure, though. It will begin reinvesting any proceeds from the mortgage securities it owns into more mortgage-backed securities. Previously, it had been buying more Treasuries with funds from maturing MBSs. Its holdings of private-label MBSs and GSE debt over the course of the recession have looked like this, from the Cleveland Fed:
Instead of continuing to decline, they’ll remain at their current level to stimulate the mortgage market. As David Indiviglio notes, this policy could end up being more significant, in dollar terms, than Operation Twist.
Chuck| 9.21.11 @ 9:18PM
JFK saw through the deception of the Central Bank. Kennedy signed an executive order in June '63 authorizing the Treasury to print debt free US Treasury Notes aka silver certificates the amount equivalent to the value of silver in US vaults. The effort was to bypass debt ridden federal reserve notes. Some of the money was circulated but when Kennedy died all US Treasury notes were removed from circulation.
Clint| 9.21.11 @ 11:20PM
"America tried precisely that in 1961. To lower long-term rates the administration of John Kennedy persuaded the Federal Reserve to co-operate with the Treasury in selling (shorter-term) bills and using the proceeds to purchase (longer-term) bonds. By altering the supply of different types of debt, the idea was to “twist” the yield curve. This came to be known as Operation Twist after the early 1960s dance craze sparked by Chubby Checker, a singer whose views on QE are not known.
Operation Twist has long been considered a failure. Early studies found little impact on yields, vindicating those who argued that the price of a security depends only on expectations—of inflation, for example, or monetary policy—not its relative supply."
Dai Alanye | 9.22.11 @ 9:44AM
Quoted passages should be sourced.
joshua gamen | 9.22.11 @ 1:28AM
Sad that we are so aware of changes to our social media but clueless about our money which most of us "don't care about" yet are enslaved to. http://youtu.be/QxahtcEfHyw
joshua gamen | 9.22.11 @ 1:28AM
Sad that we are so aware of changes to our social media but clueless about our money which most of us "don't care about" yet are enslaved to. http://youtu.be/QxahtcEfHyw