Re: Operation Twist
Bernanke revealed the Feds revival of Operation Twist similar to a 60s policy which long story short is designed to lower long term interest rates.
The problem as far as I can tell is not that interest rates are too high and people are not borrowing as a result, the problem is employment is super bad, housing value is down, and the general fear of another recession sweeping in and re-destroying everybody's retirement/equities/401K/IRA's etc account is real and tangible. That's why nobody is borrowing.
Given all that with mortgage rates presently around 4% for a 30 year fixed, it looks like even that could get improved upon in the next few months. Hey 3% and I am definitely going to re-fi provided I can or could.
CNN: Federal Reserve launches Operation Twist
The intent is to thereby push down interest rates on everything from mortgages to business loans, giving consumers and companies an additional incentive to borrow and spend money.
2 comments:
Jobs? Jobs? Ben is thinking , "Hey wait a min. I have a great job/career doesn't everyone? They don't? Well what do u think about that? Maybe, I'll look into this unemployment thing, didn't they have problems like that during the Great depression?" DOH!
Yea - not sure how reducing long term interest rates is going to help this whole mess where it counts. Its almost a cherry for the rich who might own a 3rd or 4th house.
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