I thought it was a way of robbing the Chinese.
Cheers, ken
Blog: http://kenthink7.blogspot.com/index.html
Blog: http://kencan7.blogspot.com/index.html
________________________________
From: michael perelman <[email protected]>
To: Progressive Economics <[email protected]>
Sent: Monday, April 23, 2012 5:40:55 PM
Subject: Re: [Pen-l] Paul Krugman, Steve Keen and the mysticism of Keynesian
economics
Wasn't another goal the devaluation of the dollar?
On Mon, Apr 23, 2012 at 7:21 AM, Sabri Oncu <[email protected]> wrote:
> Jim:
>
>> I don't think that QE is about that (increasing the money supply).
>> It's about trying to maintain the stability of the banking system and
>> to get long-term interest rates (and the real effective cost of
>> longer-term credit) to fall more in line with short-term nominal
>> rates. That's why the Fed has bought risky and/or long-term assets
>> from banks.
>
> QEI+QEII+Operation Twist (QEIII) and mortgage purchases are about
> saving the real estate market. That is why the Fed bought/did those
> things. And we can say that so far so good. I have never seen the 30
> year fixed mortgage rate this low in my life before. Had they not done
> this, even in Manhattan the house prices would have been way below.
> However, with or without what Fed does, long term rates are bound to
> come down further. Whether this can save the real estate market or
> not, only time will tell. I have serious doubts though. See the US
> mortgage issuance from here yourselves to reach your own conclusions:
>
> http://www.sifma.org/research/statistics.aspx
>
> Best,
> Sabri
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--
Michael Perelman
Economics Department
California State University
Chico, CA
95929
530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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