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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (23181)12/10/2004 12:29:16 PM
From: Colin H  Read Replies (1) | Respond to of 110194
 
"Of course, in lieu of tax cuts or increases in transfers the government could increase spending on current goods and services or even acquire existing real or financial assets. If the Treasury issued debt to purchase private assets and the Fed then purchased an equal amount of Treasury debt with the newly created money, the whole operation would be the economic equivalent of direct open-market operations in private assets."

Is that a helicopter drop? As I understood it, by becoming the willing player that may at some point be absent from the scenario, they're making a guarantee on the value of my house. <g>