It’s a plan so dumb you have to have to Ph.D. to believe it will do any good. Quantitative easing was dumb. This is dumber.
They are calling it Operation Twist. The Federal Reserve will buy $400 billion of long-dated Treasuries, financed by selling bonds with three years to go or less. The idea is to try to drive long-term rates lower, which the Fed thinks will help the mortgage market.
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How Ben Bernanke Rationalizes “Exceptionally Low” Interest Rates
Anything happen in the markets yesterday? To tell the truth, we forgot to check. Let’s have a look now, then…
Dow up by 80-something points. A barrel of the world’s currently-preferred energy sits pretty at $100, on the nose. Nothing much, in other words.
Ooh…but here’s something: “Gold extends post-Fed rally to 6-week high.” MarketWatch has the story…
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