GOLDMAN: Wake Up, This Was Full-On QE3 That We Just Got

September 22nd, 2011

FAKE NEWS for the Zionist agenda

Joe Weisenthal
Business Insider
Sept 22, 2011

Very important point from Goldman’s Dominic Wilson on yesterday’s “Twist” announcement. Essentially he argues that the part of the operation where the Fed is going to sell $400 billion of short-dated bonds is irrelevant. Only the buying part really effects anything:

Despite the discussion of whether QE3 will follow, for all intents and purposes, QE3 has already begun with yesterday’s shift. While the Fed has been careful to frame the latest shift as a “twist” that leaves its balance sheet neutral, as we have described before the policy is economically more or less equivalent to outright asset purchases. This is because the decision to sell short-dated securities in exchange for bank reserves – the additional transaction relative to the prior purchase program – is largely irrelevant given that the two are very close substitutes when interest rates at the front end of the treasury curve are close to zero (the US 3-year yield is only about 35bp).

So yesterday’s policy announcement is not materially different in economic terms from an announcement to buy $400bn of longer-dated USTs through “printing money”. And in fact, given the tilt towards longer durations, the size of purchases is not meaningfully different from QE2.

A d v e r t i s e m e n t

As for why markets have reacted to negatively:

But the darker possibility is that markets are becoming more worried about the capacity of policy to affect the outlook. Since the asset markets themselves are part of the mechanism by which unconventional policy should operate, there is some circularity to that view. We wrote last week about the limits of central banks (Global Economics Weekly, September 14th) t they may lack the boldness to act, particularly given the backlash to their current policies, but also that fiscal policy may be a more effective instrument at this point.

You can’t blame the markets for losing faith in Fed policy. Even Bernanke has basically acknowledged the the efficacy of monetary policy is over.

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16 Responses to “GOLDMAN: Wake Up, This Was Full-On QE3 That We Just Got”

AND…. The circle jerking continues….

Captain Ron Reply:
September 22nd, 2011 at 9:49 am

My pops used to tell me…

“If ya can’t plead ignorance… baffle em with bullshit”

What we have here is a very bad case of the “green and runnies”.
FKEN DUMBASSES.

HAD THEY JUST GAVE EVERY AMERICAN 25 GRAND, WE’DE HAVE SPENT OUR WAY TO RECOVERY 3 YEARS AGO.

Matzo Man Reply:
September 22nd, 2011 at 12:51 pm

I guess that’s why they didn’t do it… no money in it for Wall Street crooks.
was that demonic will’s son?

dhsn Reply:
September 22nd, 2011 at 9:07 am

Took me a while to figure that one out.

Kwai Chang Reply:
September 22nd, 2011 at 9:52 am

they are NOT clever…
just greedy

ringo stark Reply:
September 22nd, 2011 at 12:45 pm

kwai chang kane, how the fuk did you make it back from the dead after that jerk off fiasco? shit man, nothing can keep you down..pun not intended.

shizzle ma whizzzllee…..mooofffoooossss!!!!!

Kwai Chang Reply:
September 22nd, 2011 at 1:25 pm

because you need me???
I just checked the gold and silver prices at 1:13 PM EST Gold $1734 OZ and silver $36.94 OZ. I do not need to see articles telling me the FED and Wall Street fucking with the markets. Every time they do it the gold and silver goes down then it will sky rocket up. I know this because I have been tracking this for 6 years. Watch it will hover around this price then it will climb back up possably over $2000 an OZ.

Kwai Chang Reply:
September 22nd, 2011 at 11:37 am

manipulated and hollow…
The IMF was looking for about 400Bil. this must be a smoke screen to sent our money to Europe to bail out the banks over there, sheeple we need to stop this now….

Matzo Man Reply:
September 22nd, 2011 at 1:57 pm

You can do whatever you want when you can’t be audited. We know they are keeping the Ponzi scheme going so their foreign owners can collect fat bonuses. They just add it to the national debt.

And Obummer wants to raise your taxes to pay these crooks!

This has to END.
Remember, it’s not about the action, it’s about what you CALL the action. “Quantitative Easing” has become a pilloried phrase, so we simply give the same old action a new name, and PRESTO! It’s something different! Besides, how many people can really explain specifically what the process of QE is? Probably not very many. (I recognized it for what it is as soon as I read the details of the “operation”.)

It’s not unlike how “war” became a “kinetic military activity”.

Operation Twist is QE3.
This is RICH! Goldman, the Zionist company that more than any other company, caused the financial mess we’re in, telling us that we’re being screwed! What f***ing gall.
Hey we were here before… with QE1 and QE2. And weren’t those demonstrated FAILURES? So we do it again?

This sounds crooked. AUDIT THE FED