You know they saying "A trillion here and a trillion there and it starts adding up to real money"?

Here we go...
Federal Reserve to Buy $1.2T in Bonds, Mortgage-Backed Securities
By Neil Irwin
Washington Post Staff Writer
Wednesday, March 18, 2009; 2:47 PM


The Federal Reserve said today that it will deploy an additional $1.2 trillion to try to lower interest rates and stimulate the economy, an aggressive move aimed at containing the recession.
The central bank will increase its purchases of mortgage-backed securities by $750 billion, on top of a previously announced $500 billion. It also will double its purchases of debt in Fannie Mae and Freddie Mac to $200 billion. Those steps are intended to lower mortgage rates. The announcement of the previous purchases pushed mortgage rates down a full percentage point.
The Fed also said it will buy $300 billion in long-term Treasury bonds, a step it had previously considered but had been reluctant to act on. That move will lower long-term interest rates for the U.S. government directly and, Fed officials hope, will indirectly lower borrowing costs for businesses and individuals.
Following today's announcement, Treasury bond prices spiked and yields on those bonds declined, as traders anticipated the Fed bond purchases. At 2:30 p.m., 15 minutes after the announcement, the yield on 10-year Treasury bonds had fallen half a percentage point, to 2.53 percent.
The stock market also rose steeply, with the Standard & Poor's 500-stock index up 2.2 percent at 2:30 p.m.
Since the last meeting of the Fed's policymaking arm, "job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending," the Federal Open Market Committee said in a statement. "Weaker sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories and fixed investment."
"In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability," the statement said.
Since cutting the interest rate it controls to essentially zero in December, the Fed has had to find other tools to try to combat a rapidly deepening recession. At its policymaking meeting that concluded today, the central bank left that rate at a range of zero to 0.25 percent.
The vote was unanimous, in contrast to the FOMC's previous meeting, at which one official dissented.



I think these bailouts are now costing more than 25% of our total GDP!

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"I have no convictions ... I blow with the wind, and the prevailing wind happens to be from Vichy"

Current
Monika '74 450 SL
BrownHilda '79 280SL
FoxyCleopatra '99 Chevy Suburban
Scarlett 2014 Jeep Cherokee
Krystal 2004 Volvo S60
Gone
'74 Jeep CJ5
'97 Jeep ZJ Laredo
Rudolf ‘86 300SDL
Bruno '81 300SD
Fritzi '84 BMW
'92 Subaru
'96 Impala SS
'71 Buick GS conv
'67 GTO conv
'63 Corvair conv
'57 Nomad

When your grandchildren pay for it out of their household budgets.

It isn't, its just paper.

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1985 CA 300D Turbo , 213K mi

My Dad has a 100,000 Deutschmark and 500,000 Deutschmark bills from the 30s...

Like I told my Dad, Old Abe's face will be on the $500,000 bill shortly.

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When China takes a slice of our country as repayment.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

The ghost of Everett Dirksen is smiling on this thread.

Those where Reichs Mark.

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Reichs Marks? From the Weimar republic?

- Peter.

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2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S

Reichsmark was introduced in 1924
http://en.wikipedia.org/wiki/German_Reichsmark

Deutsche Mark issued in 1948
http://en.wikipedia.org/wiki/Deutsche_Mark

Before the Reichsmark there was the Papier Mark which had replaced the Goldmark with the begining of WWI.

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The Reich Mark had a good exchange rate, especialy with France. 2:1. Amazing what a few tank divisions can do for an exchange rate.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

50 Million right here ...



... or how about a Billion ...?

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