Wasn't another goal the devaluation of the dollar? On Mon, Apr 23, 2012 at 7:21 AM, Sabri Oncu <[email protected]> wrote: > Jim: > >> 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. > > QEI+QEII+Operation Twist (QEIII) and mortgage purchases are about > saving the real estate market. That is why the Fed bought/did those > things. And we can say that so far so good. I have never seen the 30 > year fixed mortgage rate this low in my life before. Had they not done > this, even in Manhattan the house prices would have been way below. > However, with or without what Fed does, long term rates are bound to > come down further. Whether this can save the real estate market or > not, only time will tell. I have serious doubts though. See the US > mortgage issuance from here yourselves to reach your own conclusions: > > http://www.sifma.org/research/statistics.aspx > > Best, > Sabri > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l
-- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
