~ Picture of the day! ~

[Copper Catcher]

Bernanke will announce in mid December that the Fed will purchase 85 billion dollars worth of bonds each month (once operation twist ends this week). According to Bloomberg this represents 90% of all NEW BONDS. In 3 years, the Fed will own close to 60% of the entire treasury market (bonds and bills) and according to Mark Grant (and I think that he is correct), the Fed will purchase not 90% of new bond issues but 100% i.e. they will monetize all new gross issuance of bonds. This means that the Fed will now own bonds equating to 24% of GDP. Why is this important? Because once the Fed rewinds, it must subtract 24% of GDP..an impossible event.

In reality what is Bernanke stating? Basically, it takes 85 billion dollars per month just to keep the USA stock market from imploding.

Source: http://harveyorgan.blogspot.com/

[Sheikh_yer_Bu'Tay]

I don't know what to say except: We are so freaking screwed!

Keep stackin'!

[John_doe]

I don't know what to say except: We are so freaking screwed!

Keep stackin'!

This sums it up well.....

[NDFarmer]

I think we all better be saying a prayer. We are going to need it!!!

[twentybux]

I think we all better be saying a prayer. We are going to need it!!!

Amen brother!

[BamaJoe]

My question would be "Who is he praying to?" Willing to bet it's not the same God I pray to.

[John_doe]

My question would be "Who is he praying to?" Willing to bet it's not the same God I pray to.

Lord Keynes

[John_doe]

between this and the student loan bubble, next year could be a very bumpy ride.

[rickygee]

Things are a mess and getting worse. Hard to be joyful this Christmas season. I'm depressed, I admit it.

[NDFarmer]

I'm depressed, I admit it.

You are not the only one.

[NHsorter]

Cut it out guys! You are making me depressed Go down to the bank and get some halves and pennies. Maybe that will cheer you up.