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View Diary: BREAKING: Fed Launches $40-Billion-a-Month QE3 Stimulus (129 comments)

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  •  $40B a month is chicken feed, and (1+ / 0-)
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    just because they buy $40B a month of MBS' it doesn't necessarily mean that $40B a month of new housing will get built.

    A lot of this is going to depend on the banks losing up their lending standards.  Interest rates are already incredibly low, and yet new housing is still in a depression.  So the FED may end up buying MBS, that other investors would have bought anyway.

    It would have been FAR better had the FED bought treasuries, and the Government increased it's deficit by an equal amount by creating a huge jobs program.

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