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Originally Posted by randallscott35
Bzzzzzzzzzz. They are now buying treasuries. That is printing money and is incredibly inflationary. Infation does not make you wealthier. It steals wealth. The market went down today in real terms. And buying treasuries is a sure way to end in Weimar Germany like situation, aka government changing.
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They are buying $300 billion of long term treasuries. The majority of the $ they are talking about is buying Mortgage backed securities in an effort to keep mortgage rates low to allow people to refinance their current mortgages into lower rates and or help stimulate the purchase of new homes. The Fed has already purchased $250 billion approximately of MBS and they will buy another $1 trillion in MBS which will make $ for the government. I agree that inflation scares the living crap out of me, but I don't think it is as bad as people think.