Fed Might Buy $500B In Treasuries

The Fed sent out signals that it could be making a major new move as soon, which experts think could take the form of buying back up to $500 billion in Treasury Bonds. They could decide as soon as their next meeting on November 2nd, which also happens to be Election Day.

Fed signals next move could come soon [CNNMoney]

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  1. costanza007 says:

    The real question is, are they going to use existing “currency” or make new currency to buy the bonds?

  2. fsnuffer says:

    All this is like shuffling deck chairs on the Titanic.

    • DH405 says:

      Perhaps in an alternate timeline where the Titanic sank very quickly, almost hit the ocean floor, and then rose slowly, making its way back toward the surface.

      Then sure, shuffling the deck chairs on the Titanic.

      • madmallard says:

        only if you, like popular opinion of the Titanic’s day, also think that the United States is unsinkable…

        • PSUSkier says:

          Now there’s an invalid argument. The truth of the matter is while yes, the US is certainly sinkable, there’s nothing that indicates that is what is going to happen at this point in time. Could it happen? Yes. Will it happen? Highly unlikely.

      • egoods says:

        Wait it didn’t do that? I really should’ve paid more attention in school.

    • captadam says:

      There’s an original statement.

  3. McRib wants to know if you've been saved by the Holy Clown says:

    Flail. Twitch. Flail. Twitch.

    I almost pity them. :/

  4. milkcake says:

    One of the ways to offset the weakness of dollar caused by this spending is to invest in stocks since the stocks seem to move inverse of that. Or you can also buy chinese Yuan to offset as well since Yuan since the part of the move is to increase the value of Yuan. Both of these methods seem bit risky although I have much money in stocks, but it wasn’t for the purpose of devaluation of the dollar. You can also sell dollars in the forex market, but that is the most risky move. Need some kind of hedge position that is rather stable. Any other ideas?

    • nova3930 says:

      commodities priced in whatever currency you’re concerned will be weakened are a good inflationary hedge most of the time. As they value of the currency depreciates the price of the commodity will increase to compensate.

  5. joshwillis says:

    Hmm…the bankers make some very bad decisions and the taxpayers have to bail them out via TARP. When that’s not enough, the non-Federal Federal Reserve is simply going to help its members out by diluting the dollar.

    The country is currently being run by criminals, and no one seems to care.

  6. NydiaGeben says:

    Print money, buy back bonds…. nice trick

  7. MrEvil says:

    so the Fed is using money that the government doesn’t have to buy back treasury bonds that were issued because they needed the money.

    Am I the only person that sees anything wrong with this?