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QE3 -- you've got questions, we've got answers

Article by: RAMESH PONNURU , Bloomberg News
Updated: September 25, 2012 - 6:45 PM

Some of the worst things being said about it aren't quite right. If anything, the Fed was too stringent during the recession.

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pumiceSep. 25, 12 7:53 PM

I think this may be the first time I agree with Ramesh Ponnuru. According to the LATimes, the Federal Reserve "plans to buy $40 billion worth of 'agency mortgage-backed securities' (packages of loans created by Fannie Mae and Freddie Mac) each month, along with about $45 billion in monthly exchanges of shorter-term debt for longer-term debt, until the employment situation improves 'substantially' ... The goal of the purchases is twofold: to reduce the interest rate for mortgages by increasing demand for securitized versions of the loans, and to encourage banks to make more loans by adding cash to their balance sheets." Sounds like the way Congress intended TARP to work. Back when Congress was willing to do its work, that is....

gogogomez6Sep. 26, 1212:19 PM

"increased prices offset by increased wages" - that doesn't give my dollar any more buying power than it has today so why will this work the third time around?

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