Markets respond to bold Fed move

A Pakistani stockbroker looks on during a trading session at the Karachi Stock Exchange


Renita Jablonski: Markets around the world today are digesting a pretty bold move by The Federal Reserve. The central bank announced yesterday it will unleash another wave of cash into the economy.
That boils down to a commitment of buying as much as $300 billion in Treasuries and doubling the purchase of mortgage debt to nearly $1.5 trillion. The goal is to bring down rates on home loans and other interest rates.

I think we could use some help boiling this down a little further. Edward Hadas of the financial Web site Breaking Views is with us. Edward, what another way to explain what the Fed is doing here and why it's so agressive?

Edward Hadas: Well, it's printing a lot of money, that's what happens when it buys securities for newly-printed money, and that's supposed to improve the economy. But it's quite a departure from the standard practice of central banks around the world and in the U.S.

Jablonski: So with a move like this, there are obvious concerns about inflation. And I guess one on take on this is that the Fed anticipated some great difficulty after all of this AIG outrage of getting additional stimulus pushed through Congress. Is that a reasonable take?

Hadas: I think that's quite reasonable. If Congress is blocking or could block getting cash in people's pockets -- which really one should always remember that's what we're talking about is getting businesses and consumers money to spend -- if Congress won't do that, then the Fed's really the only conduit for doing that, and I think that they've done that very boldly.

Jablonski: Do you think this move will finally have an effect on market confidence?

Hadas: Well, it's had a very positive effect on some markets. But one very important market, the market for the dollar, it had a very negative effect. I guess I'm pretty skeptical that this is going to do the trick.

Jablonski: And so, if it doesn't, then what?

Hadas: Well, then we're going to have to grind through some tough economic times, and perhaps we're going to have to change our economic approach and come up with some newer, new ideas. But as yet, no one's really come up with anything other than this, so we're going to have to wait and see.

Jablonski: All right, Edward Hadas is assistant editor with the online financial commentary service Breaking Views. As always, thanks Edward.

Hadas: Thanks very much.

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"Having craftily monopolized the production of money, the central bankers now presume to impose any and evey voracious scheme to authorize their further costly dispensing of the medium of exchange they exclusively -by their design- have gained controlover. And to what end? _"Do the numbers"! You know the figures!

"When and at what point does the Fed decide to lower the cost of the money they print by -entering of digits in a computer while imposing their face value charges on the compliant and abetting government borrowers who are supposed to be upholding rather than discarding and trashing the public's present and future wellbeing by rather putting governance and the public in further debt to financia swindlers. Call it what it is!

"Threats and quick impositions of jail sentences -or else- would be legally appropriate for defrauding the nation rather than buying every whim the defrauders throw out!

"Any assumption that no other value base exists in a world filled with valuable resources and as yet unacknowledged potential -far surpassing in worth the paper printing scheme now being pawned off off as "Stimulus" on officialdom (blatantly ignoring the public interests they are elected to represented)- is a gross swingling lie. If the public allows this to occur under their noses and agrees to this sort of subjugation and larceny to further enslave themselves and future generations for decades to come, can it be said we deserved better?

"Were there no better way, we could be later excused for not acting to put down this overt piracy; but ignoring the larcenous pirac, the nation is certain to fall further in debtedness to graft that will not be arrested by other than decisive legal actions taken against the offenders. Yes, it's come to that!

"Public class action suits are in order against every institution, CEO, stockholder individual and government official who is a consenting party to this swindle and perpetrating this outright fraud. Find, solicit for Attorney's who will take the case to the courts or request we do so for you! And if it's at all as feasible as it appears- DO it quickly! keep using your loud radio voice to its full advantage!"

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