What is QE2? A sequel worth watching!
In case you haven’t heard, the Federal Reserve promised to buy $600 billion in Treasuries over the next eight months at a rate of $75 billion per month in the hopes that giving commercial banks more reserves would encourage them to lend more and, therefore, stimulate the economy. I’ll let the economist in you debate with others whether that makes economic sense, but you should know that the whole process is being referred to as Quantitative Easing 2, or QE2.
If the sequel is anything like the original (in 2008), expect more than $600 billion to be purchased when it’s all said and done. The first time around, that same amount was originally planned but three times that amount was the end result.1 I’m not sure if any of it has helped lending practices, but at least you know your government has some dough to throw around. If only they’d pay some bills.
Get The Wall Street Journal for 75% off!
Read on:
IBTimes.com – What exactly is QE2?
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment