(Cross-posted from my place The Free Speech Zone)
Lower long-term interest rates in theory should ripple through the markets, affecting other rates, like those of 30-year, fixed-rate mortgages. That could encourage homeowners to refinance into cheaper mortgages, though it would not help the millions of Americans facing foreclosure.
The unfortunate conclusion is that QE2 will be of limited success in sustaining high growth and job creation in the US, and will complicate life for many other countries. With domestic outcomes again falling short of policy expectations, it is just a matter of time until the Fed will be expected to do even more. And this means Wednesday’s QE2 announcement is unlikely to be the end of unusual Fed policy activism.
Vote Republican you traitors?!
Trying to send ME, the great Obama a message?!?!
In short, they relieved the Mortgage Banking Industry of the debt they accumulated by shuffling paper after selling houses to people who had half a fucking Snickers bar as collateral with this bailout.
They say it’s “for us” but the truth is that with about 49 state’s Attorney Generals ready to gangbang that industry that can’t produce the notes for mortgages and robo-signed “affadavids” that stated homeowners owned a number that the banks pulled out of their asses.
So to cushion the blow that industry would take, Obama just pulled out our credit card and picked up their tab….again.