it still shows the glaring idiocy that you have in your belief the govt doesnt buy bonds....
It shows you know nothing about how continuing buying them is going to help replace the equity lost in the housing market like you claimed. It shows you have a basic and I use the word lightly grasp of economics.
you can bitch and moan all you want about GDP calculations, one could argue that b/c they leave out under the table transactions, black market etc that they are understated...Im not making that argument though just showing the otherside of the coin.
No matter what you use as a barometer the FAAACCCTTTTT REMAINS, the govt will have to begin to tapper sooner or later to help limit inflation.
youre dumb ass wants them to keep buying indefintely and you dont understand the reasons why thats a horrible fucking idea.
THE FED IS NOT GOVT.....are you 6? My 5 yr old can grasp this but you can't.
"It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress".......they can't even audit it.
http://www.federalreserve.gov/faqs/about_14986.htmIf the fed stops buying bonds 1 trillion leaves the GDP, can you grasp this or do you need your team to analyze this. The treasure spends the trillion the fed spends to buy bonds and counts the expenditure in the GDP......then the treasury send interest payments to the fed not a gov agency.
The asset purchase program of the fed plus the backstop guarantee of the FDIC who gets their funding by the fed via the treasury proxy is designed to replace the equity as is the back door sales of mortgage back securities and low fed window rates for banks forcing low rates for new borrowers, until trillions of equity are replaced the fed will pump and pump and pump...
And you're too inexperienced and naive to see Bens statement was to let some of the air out of the market....before the bitch explodes with a 40%+ correction taking the economy into hell.