To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.
Game Over.
It is only a matter of time before Bernanke becomes the only market for Treasury and GSE products. Once he puts the bid out in to the market you get what happened with the BOE today - 7 offers to sell for each one bid to buy. IOW, when the .Gov becomes the only buyer, or a buyer willing to purchase ANY asset class at above market rates, everyone stampedes for the door to sell first and get the money and put it to a better use.
This goes far beyond a Super-Depression. This nonsense will end up destroying - and I mean that in every sense of the word - the U.S. economy and Political System.
And you thought that being out of work and worrying about a Depression were the worst of your worries?
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