And Now For Some Good News

Good news! Federal Reserve Chairman Ben Bernanke announced today that the fed will begin a third round of quantitative easing, except this time the fed’s bond-buying will remain open-ended until they are satisfied with the pace of recovery.

(Reuters) – The Federal Reserve launched another aggressive stimulus program on Thursday, saying it will buy $40 billion of mortgage debt per month and continue to purchase assets until the outlook for jobs improves substantially.

In a significant shift in the direction of U.S. monetary policy, the Fed has tied its unconventional bond buying directly to economic conditions, a move that is likely to be controversial among central bank critics. [...]

The new move is even bolder than many investors had anticipated given its open-ended nature and clear links to unemployment.

According to Bernanke himself, QE2 contributed as many as 600,000 jobs to the economy. QE3, because of its open-ended nature, seems to be more aggressive.

Why is it a big deal that this round will be open-ended? Because stimulus is being tied directly to economic performance rather than it being a fire-and-forget mechanism. Because of this, QE3 may not end any time soon.

I wouldn’t say this is a magic lever you can pull that will deliver re-election to the White House, but this will undoubtedly help.

Republicans are going to come unglued and unhinged over the next several days as they attack Bernanke for daring to help the economy.

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  • Ipecac

    Yep. Prepare for Republican outrage in 3 — 2 — 1 –

    • Ned F

      Oh, it started hours ago when there was just a tiny hint of Bernanke’s announcement, because you know they’re in the tank for Obama.

      • D_C_Wilson

        I just can’t imagine how it must be, to hate someone so much you’d rather watch the entire country burn then see him stay in office.

        • Victor_the_Crab

          “Some people just want to see the world burn to the ground.” Alfred Pennyworth from The Dark Knight

          Republicans are the Joker. And not the Ceaser Romero version from the 60s TV series.

        • http://www.politicalruminations.com/ nicole

          I say that to myself every day, DC. I do not understand it, but I know that these so-called right wing “patriots” are actually treasonous scourge…..the founding fathers would have tarred and feathered them and run them out of the country.

  • Chris Andersen

    This is good news, and not just because it might help Obama’s chances (though I suspect that any effect it has on economic indicators will come after the election). It is good news because it means we will finally be getting another round of stimulus (stimulus we should have had a year ago).

  • http://twitter.com/BlueTrooth Rich Baska

    This move will also ease that nagging “uncertainty” excuse we hear so much from the Republican Congress.

  • http://phydeauxpseaks.blogspot.com Bob Rutledge

    They’re really gonna have to try real fucking hard to be more unglued and unhinged than they have already been.

    I mean, there’s got to be some kind of point beyond which they’ll all just dissolve into puddles of foul-smelling goo.

    • http://drangedinaz.wordpress.com/ IrishGrrrl

      there’s got to be some kind of point beyond which they’ll all just dissolve into puddles of foul-smelling goo

      Oh, stop teasing me with such a dream!

      • stacib23

        x2

    • http://www.politicalruminations.com/ nicole

      I keep waiting. Alas, no movement yet.

  • BaRockObummer

    Yes because massive inflation is such a wonderful thing. Who cares if the poor cannot afford anything anymore because prices go up and up. We can just give them food stamps. I honestly cannot believe this site is serious.

    • Victor_the_Crab

      We can’t believe anyone with a fence post shoved up its own ass is serious, and yet hear you are!

    • http://www.politicalruminations.com/ nicole

      “I honestly cannot believe this site is serious.”

      That’s only because your iq is obviously somewhere in the vicinity of 70 (a fact you established for us by your choice in user names).

      You have no idea what you’re talking about, but if you’d like a primer on inflation, go read Krugman.

      Dumbass concern troll…

      • BaRockObummer

        I dont read that moron who has been disproven by high schoolers and owned by Canadians.
        http://www.youtube.com/watch?v=Fexz8Ij-OBQ

        I know that when prices go up in the supermarket, thats not a good thing. As I said below, the government has been lying about inflation since Reagan. But its there. Everything is going up. You cannot just print money and expect nothing to happen. This has been proven over 50 times in real life.

        Are you just that in love with government that it cant ever do wrong? I kinda hope Romney wins so we can see how hypocritical you are when he does the same stuff Obama does, but you oppose it.

  • http://www.politicalruminations.com/ nicole
    • BaRockObummer

      Stock markets dont mean anything. Its all psychological. Its not the real economy, with real people in it. Its the rich bags you want to scrub for money. Thing is, they dont really have any money.

  • http://pulse.yahoo.com/_GBIVNAB22HG2SDMXDZM4KZLSQE Bohica

    QE3 is just like QE1 & QE2 and will continue to reduce your buying power on any of your assets, investments or cash. It is like a tax … because your current paycheck now buys less. This will be the 3rd round of inflation.

  • JMAshby

    The cry wolf story should be replaced with cry inflation. The inflationists have been predicting doom since we left the gold standard.

    • BaRockObummer

      Lo and behold, a gallon of gas costs 38 times what it did in 1933. Food is up. Everything has gone up significantly since FDR acted like Hitler and took everyones gold (Hitler took gold from Jews and other enemies). Have you seen food prices lately? Its going up by 10 and more percent. I know the GOVERNMENT inflation assures us that inflation is only 2%, but anyone who actually buys things knows otherwise. The fact is that the GOVERNMENT rigged the inflation formula to hide their spending and money printing. This was under Reagan I think, so you can be the partisan hacks you are and hate it.

      http://www1.eere.energy.gov/vehiclesandfuels/facts/2005/fcvt_fotw364.html

  • http://www.politicalruminations.com/ nicole

    BaRockObummer…….you are a bloody stupid delusional dope.

    That is all.