The main one is that, FWIW, the first round of QE was widely credited (blamed, if you believe in free markets) for two things:
1) the massive run up in stock prices (worldwide) since March of 09.
2) the relative stabilization of the housing market, by taking a trillion plus of Fannie/Freddie paper off the market and making a "market of last resort" in mortgage backed securities. Without this (and the Treasury backstop for Fannie/Freddie) we would have seem mortgages several points above where they are, and prices likely crash below long term trend lines.
Whether the interventions will help in the long run, are sustainable, or a good idea, is debatable. But they definitely had an effect on asset prices (stock, bond, real estate) in the last 18 months.
OK, that was bright, and sharp, and cute and scary as Hell.
ReplyDeleteThat thing is hilarious and scary all at the same time.
ReplyDeleteWe truly have arrived at the point where we examine everything through the looking glass.
There's only a few quibbles here.
ReplyDeleteThe main one is that, FWIW, the first round of QE was widely credited (blamed, if you believe in free markets) for two things:
1) the massive run up in stock prices (worldwide) since March of 09.
2) the relative stabilization of the housing market, by taking a trillion plus of Fannie/Freddie paper off the market and making a "market of last resort" in mortgage backed securities. Without this (and the Treasury backstop for Fannie/Freddie) we would have seem mortgages several points above where they are, and prices likely crash below long term trend lines.
Whether the interventions will help in the long run, are sustainable, or a good idea, is debatable. But they definitely had an effect on asset prices (stock, bond, real estate) in the last 18 months.
This damned computer. :-( It would only play 1:43 and now it's stuck.
ReplyDeleteThank heavens we're getting a new laptop soon. I can't stand this thing...
But what I saw was funny and very scary, lady red. I'll check back later and see if it will play the entire vid then.
Who's on first?
ReplyDeleteGreat video & yes, it's real....very real. Wake up America or lose it as history has shown that civilizations die from within.
ReplyDelete