On Tuesday, April 21, 2009, the Fox Business Network printed this on their website:
NEW YORK -- The Federal Reserve Bank of New York bought $7 billion in Treasurys on Tuesday, part of a program aimed at improving conditions in private credit markets and spurring lending. The debt bought included notes maturing between 2016 and 2019. Dealers submitted $26.8 billion in debt to be purchased. The Fed will continue its buybacks with another operation on Thursday, heading towards purchasing $300 billion in Treasury securities over the next six months. Ten-year note yields stayed down by 2 basis points to 2.82%.
Copyright © 2009 MarketWatch, Inc.
Isn’t this just moving debt from one pocket to another? I am not a financial guy or an economist but having to buy your own treasuries I wouldn’t think is a good idea. If anybody has any thoughts on this that are smarter than me it would be great it hear them.
Source: Fox Business Network