how quantitive easing helps the rich and soaks the rest of us

http://reason.com/archives/2012/09/13/occupy-the-fed

I was up trading , always at odd hours of the day and night.
Soooo...
The FED is buying Mortgage Backed Securities (MBS).
OK... so what does that mean?
I'm going to give a simple explanation.
What's going to happen is the FED will end up owning most of the homes in America.
40 to 1 (sometimes higher) leverage ratio in dollars on MBS, a derivative.
The artificial Zero Percent Interest Rate Policy (ZIRP). The FED will eventually have no choice but to raise interest rates to where they should be, in the near future.
The dollar devaluation that was already accruing. As the inflation rate keeps rising, eventually most people won't have enough dollars (purchasing power from devalued dollars) to pay their Mortgage, kinda like 2008 but it will be much worse. When will all this take place? Remember in 1997 Clinton dismantled the Glass Steagall Act allowing the commercial and investment banks to become one, once again. That's when the whole scam started. MBS, NINJA Loans, No Income No Job No Assets. Adjustable Rates, then the MBS were maxed out, Troubled Asset Relief Program (TARP) of 2008. But, the next day the 2008 TIME Magazine Person of the Year Henry Paulson changed his mind. Remember he said the money was not going towards the bad loans, and well yall know the rest, hopefully. While 90 plus percent of the American people were against TARP... everyone thought our elected officials were finally listening! The nays have it!
Senate , WTF...
But, after the congress was threatened with Martial Law in America, TARP passed. Bloomberg - TARP May Reach $23.7 Trillion

I know how financial criminals think.
In my past life, not long ago I worked with some.

Bernanke needs to go.

The bubble has popped to the surface.

You can always tell when you post something the other side can't argue with (both sides.)

Those facts get us every time. And these facts are better than most facts because you literally can't argue with one single word.

Randyforcandy, can you argue with this thread? I'd sure be happy to listen, and I'd sure hope you were right. Anyone? Please?

They are ALWAYS going to help the rich, even when they pretend they aren't. They are wholly owned subsidiaries of Wall Street and the Defense industry.

You can always tell when you post something the other side can't argue with (both sides.) Originally Posted by LovingKayla

Kayla, virtually no conservative or libertarian-leaning individuals are in favor of large quantities of QE -- but even most on the left express clear reservations, if not outright opposition.

About the only well-known zealous proponent of massive QE is Paul Krugman, and almost no one in the financial world takes him seriously. Famous economist Joseph Stiglitz is about as far to the left as you can get without actually being named Paul Krugman, but he has been voicing opinions in opposition to QE for two or three years now.

One of the key reasons for this is that large doses of QE clearly increase income and wealth disparity, and the transmission method by which this happens is fairly obvious and easy to understand.

It's been said that one of the putative reasons for additional QE is that it may give a psychological "boost" to the economy. However, that may backfire, since statements that the Fed intends to continue ZIRP and QE virtually forever suggest that policymakers are in full-on panic mode.

Another thing that I think needs to be pointed out is that even when the Fed is not overtly doing QE, the financial sector is engaging in what we call "financial repression."

Here's an interesting short article from last year:

http://www.economist.com/node/188342...ry_id=18834259

Since the Fed has guaranteed near-zero short rates (ZIRP) for at least three more years, the banking system can borrow at near zero percent in REPO and other overnight markets and use the proceeds to buy large quantities of such things as 10-year treasury notes. Since the U.S. government stands behind those assets, the only risk assumed by the banks is interest rate risk, and the too-big-to-fail banks all know they'll be backstopped by Treasury and the Fed if anything goes awry. This is called the "carry trade." People who think Dodd-Frank fixed much of anything are living in a fantasy world.

All of this helps profligate big spenders in congress finance our budget deficits, and gives banks the chance to fatten up bonus pools for top traders and executives to unprecedented proportions. That's a big reason why so many people in the financial services industry pocket 8-figure annual incomes while producing nothing of value to anyone else. Needless to say, they can afford the most expensive lobbyists known to man.

Many political decision makers, as well as those who finance their campaigns, benefit enormously from this type of crony capitalism, so don't expect anything to change any time soon.

(Note: Most of the above was excerpted from draft copies of stuff I wrote just within the last ten days.)