BOHICA - QE3 is on!

[Zundfolge]

And so many of you still call Ron Paul a nut job.

I don't believe anyone here ever called Ron Paul a nut job because of his views on the Fed. In fact it's a big part of the reason why many of us gave him the time of day to begin with.

Those that disagree with him generally do so because of his views on foreign policy.

[Goodburbon]

Those that disagree with him generally do so because of their misinterpretation of his views on foreign policy.

FIFY

[Zundfolge]

Those that disagree with him generally do so because of their misinterpretation of his views on foreign policy.

FIFY

Yes, because anyone that disagrees with you is an idiot, it can't possibly be that they actually disagree with you or Mr. Paul on the substance of the issues.

THIS is why people dislike Paulians (y'all "debate" like libtards).

[Goodburbon]

Did I call you an idiot? Did I imply that you're an idiot? I had no idea whether or not you agreed with or disagreed with Paul's policies until you stomped around in a mini rant like I was calling you names or insulting your intelligence. I wasn't.

I was merely pointing out that an overwhelming number of people mis-interpret his stance on foreign policy. You then, called me a Paulian and insinuated that I debate like a libtard. Touche' I guess.

[ChunkyMonkey]

Yes lets look at what is in MBS! How do you do that?Source? These are good MBS? So the junk MBS generated during the "housing scam" have all magically disapeared and the fed is only buying good MBS? I would guess more buying of junk by the Federal reserve to keep their crony banksand a pension fund or three afloat.

I disagree and agree. Junk MBS are on their way out if not out already. However, we are in 'fair market price range' right now, the Fed/Obama Administration is about to inflate the housing price again... In the next bubble housing market burst, banks won't lose money - the taxpayers will!

[Pancho Villa]

I disagree and agree. Junk MBS are on their way out if not out already. However, we are in 'fair market price range' right now, the Fed/Obama Administration is about to inflate the housing price again... In the next bubble housing market burst, banks won't lose money - the taxpayers will!

Fed/Obama have been busy trying to keep the housing bubble inflated since it started deflating. Passes on paying, readjustment of terms for loans, pressure to start loaning again when banks in no way should have, you name it, they've tried it, except for this.

We're still a significant (double digit %) ways above what fair market prices would be. This will push them higher, and like all bubbles will eventually burst - leaving taxpayers with another $trillion+ loss. I think the hope is just it'll burst some time after Obama leaves office. Then it's the other guy's fault, whoever that ends up being.

[Singlestack]

Fed/Obama have been busy trying to keep the housing bubble inflated since it started deflating. Passes on paying, readjustment of terms for loans, pressure to start loaning again when banks in no way should have, you name it, they've tried it, except for this.

We're still a significant (double digit %) ways above what fair market prices would be. This will push them higher, and like all bubbles will eventually burst - leaving taxpayers with another $trillion+ loss. I think the hope is just it'll burst some time after Obama leaves office. Then it's the other guy's fault, whoever that ends up being.

+1 to this and the Chunkmonkey. This is another housing bubble, and the outcome is a foregone (bad) conclusion. Sure, house prices will rise, but the desired outcome (more consumer spending) will be negated by higher energy and food prices. The stock market loves this, but it is a severe hit on the US dollar. Bad for us.

Singlestack

[sbouslog]

Gone

[Sharpienads]

I think they should just print off $16T and pay off the debt. Problem solved.

[Pancho Villa]

These are not synthetic CDO's that they are buying. This will NOT cause another crash like we experienced in 2008.

Pushing housing prices artificially higher (which is what this will do) is what causes bubbles, and bubbles eventually pop.

The problem wasn't the synthetic CDOs, it was that the government (via the fed, which causes the easy money to flow, and the govt, which directs the easy money to industries that are politically favorable, like housing) first distorting loan markets (cheap money via the overnight rate by the fed encourages lending and discourages saving, the source of actual strong economies.) That is the source of all this bad lending and borrowing (since it costs money to save, due to inflation, and costs so little to borrow, you create a situation where it is foolish to save instead of borrow.) The govt laws and politically created orgs (fannie mae, freddie mac) directed that money to the housing market.

Now the govt wants to keep the easy money flowing (witness the still-historically-low fed rates) and still wants it flowing into the housing market (all the laws passed post-crash helping prop up housing prices, and now this.)

The problem though is that you can't borrow indefinitely, and eventually any bubble pops. You can reinflate it, but you jsut get a more violent (and costly) pop later.

You can't defy economic gravity indefinitely, is the bottom line, and the bottom line is that there's still too much easy money floating out there, and government support for housing.