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IPFS News Link • Federal Reserve

Feds in a Box - Unwinding May Not Be So easy

• Chris Martenson
Now that the Fed has declared that the recession has ended and green shoots are everywhere, the next obvious part of this journey will have to be the unwinding of the massive amounts of stimulus and thin-air money that has been injected into the system. Certainly after watching the risk-money out-chasing junker stocks well up off their lows, we can surmise that the speculative animal juices are flowing again and that the Fed might want to consider taking away the punchbowl. Instead, today the Fed bought another $18.8 billion net ($32.4 billion gross) in agency mortgage-backed securities, which represents the exchange of thin-air money for GSE MBS paper. So far, all that we know about is that the Fed is talking about how to take the punchbowl away but that bankers are warning the Fed to "go slow."

1 Comments in Response to

Comment by Lola Flores
Entered on:

 No, it won't.  Obama the Socialist will wipe his ass with all that extra green.  Oh, my green, I want MY green back!



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