No, it's not Christmas time, but I guess the government feels like it's time to spend again. Do you have a spot in line for your handout? The economy is not growing quickly enough, so the economists and the Federal Reserve feel the need to spend more. Besides, there is good fear of deflation and the need for keeping prices higher. So what is Quantitative Easing? - Quantitative Easing from wikipedia - And we have been through this before. when the government spent an initial $600 billion in November of 2008. Four months later, the Fed added another 1.8 trillion.
So the government is spending $600 billion more on U.S Treasury securities, after spending 2 trillion the first time around. But wait, the federal Reserve has announced that they will be spending another 250 to 300 billion on more U.S. Treasury securities. This other spending is from the proceeds of its mortgage portfolio. Great Scott Bat World... will this work?
From the Bloomberg article, many have said... "that the plan won’t boost growth, half said it will help avoid deflation. That may be more important to Bernanke because a general decline in prices makes consumers and businesses less willing to invest." More from Bloomberg.. "A total of 75 percent surveyed in the Bloomberg poll said the securities purchases will have little or no effect on joblessness."
I am sorry my fellow Americans, but wasn't a lot of what we were fed over and over, telling us why we were spending so much, was to create jobs? Yet more than70 percent are saying that this next spending won't have an effect on our unemployment situation? Yes, many jobs were created, but within the government. And don't these kinds of jobs cost us more money? Shouldn't we be focusing more on small businesses, more incentives so they can hire more. I know the government just started to talk about this prior to the elections, but my common sense tells me that this should have been talked about 1 1/2 years ago.
Hey, I am not a Harvard graduate with a MBA in Economics. I know many of us don't like bad news. And I am hearing many reports that state that we are turning it around, that we came out of a recession back in the summer, yet we need to spend more money. I just want us all to understand what is happening around us, and don't think just because it seems to be getting better, more so by the news, that we will end this soon. My prediction, a good three more years or more. Someone told me a few weeks ago that the NAR says 2011 will be the 4th best year in real estate in the last 15 years. Let's not forget people, just because you might be making more money, doesn't mean all of America is comfortable. How about the fact that we have more than doubled our national debt in the last 2 years.
Overall... you need to watch this video. Not only do I think it's spot on, but there was some humor to it, especially at the end.... enjoy...
I presume that this will be a hot topic this week and until the end of the year. I just read this by Leslie Ebersole - QE2 is not a cruise ship
How about the news when we were finally out of the recession - Yippie, we are out of a recession !!! - I wrote this on 9/24.