me: >> I don't think that QE is about that (increasing the money supply). >> It's about trying to maintain the stability of the banking system and >> to get long-term interest rates (and the real effective cost of >> longer-term credit) to fall more in line with short-term nominal >> rates. That's why the Fed has bought risky and/or long-term assets >> from banks.
Sabri Oncu <[email protected]> wrote: > QEI+QEII+Operation Twist (QEIII) and mortgage purchases are about > saving the real estate market. That is why the Fed bought/did those > things. that's right. But the health of the real estate market and that of the banks (and similar financial institutions) are profoundly connected, since the financiers accumulated so make mortgage-related assets during the bubble years. -- Jim Devine / "An atheist is a man who has no invisible means of support." -- John Buchan _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
