- #36
BilPrestonEsq
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WhoWee said:Normally when you puchase debt - you try to purchase it at a discount - correct?
That is not the strategy here.
http://dealbook.nytimes.com/2011/01/11/the-feds-qe2-traders-buying-bonds-by-the-billions/
"They are buying hundreds of billions of dollars of United States Treasury securities on the open market in a controversial attempt to keep interest rates low and, in the process, revive the economy, Graham Bowley reports in The New York Times.
To critics, it is a Hail Mary play — an admission that the economy’s persistent weakness has all but exhausted the central bank’s powers and tested the limits of its policy making. Around the world, some warn the unusual strategy will weaken the dollar and lead to crippling inflation."
I think it says it all right there.