Fed to pump 1.2 trillion dollars of 'extra' money into the economy - ITS MAGIC

[debbierlus]

Snip

Fed Chairman Ben Bernanke and his colleagues wrapped up a two-day meeting by leaving a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most - if not all - of next year.

The decision to hold rates near zero was widely expected. But the Fed's plan to buy government bonds and the sheer amount - $1.2 trillion - of the extra money to be pumped into the U.S. economy was a surprise.

............

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/19/BUNB16IVOS.DTL&feed=rss.business

They are printing MORE money. The dollar is going to go :nuke:

165 million dollars in executive bonus is nothing compared to this story.

[OhioChick]

1. They can pump all the $$$$ they want into the economy...

Not a damn thing will change until people have....JOBS.

No Jobs = No Recovery

[Better Believe It]

2. 1.2 trillion for a real job stimulus would put everyone too work for the next 3 years!

But no, this money is designed to increase lending by lower interest rates for home buyers and other purchases.

But, people aren't having a real hard time borrowing money .... they just are hanging on to their money because of unemployment and the fear of layoffs!

The job market must come first.

A trillion, a trillion there down the rathole. No problem with that!

[Tierra_y_Libertad]

3. And, the Treasury Bubble continues to grow.

This ain't gonna turn out well.

[TexasObserver]

4. Wheeeeeee! We're buying our own debt!

Hey, whatever it takes.

I wish there were a better alternative, but right now, there isn't.

[Motown_Johnny]

5. buy euros or australian dollars asap

[spanone]

6. whatever it takes

[denem]

7. It's called creating credit. The private sector does it all the time.

A bank gives you a loan - money is created. You can't pay - money vanishes.

[Life Long Dem]

8. Let me get this straight.

So what didn't exist, now exist as 1.2 trillion? Okay.

[denem]

9. How about $300 billion that appears on the Stock Exchange in one week?

Magic? Economics 101. A bank gives you a loan, it creates money.