What do you guys think of what the Fed announced today?
The central bank announced today that it will embark on another round of Treasury purchases of $45 billion a month to replace the expiring Operation Twist program. This means the Fed will buy over $1Trillion in treasury debt and high risk mortgage debt per year.
Are they just printing money to do it?
The Fed
Re: The Fed
well, they did make ~$20b off of aig, but that is only half of their commitment. country is in trouble, big time imo!
Re: The Fed
What is the “Fiscal Cliff”?
It has six components, all of which are bad news for a struggling economy:
1. The “Bush Tax Cuts” expire on December 31 and federal income taxes go up for everyone.
2. Major spending cuts known as “Sequestration” become law on January 3.
3. A temporary 2% cut in payroll taxes expires December 31, so workers paychecks go down.
4. The new taxes associated with Obama’s Affordable Care Act kick in on Jan. 1. < Over $200 Billion
5. Federal funding for extended unemployment benefits end on Dec. 31.
6. Bonus depreciation on capital equipment ends on December 31. < Big hit to small business owners
Why is this all happening at the same time? Because this Administration and Congress wanted to push everything out past the last election. “Kicking the Can down the Road.”
It has six components, all of which are bad news for a struggling economy:
1. The “Bush Tax Cuts” expire on December 31 and federal income taxes go up for everyone.
2. Major spending cuts known as “Sequestration” become law on January 3.
3. A temporary 2% cut in payroll taxes expires December 31, so workers paychecks go down.
4. The new taxes associated with Obama’s Affordable Care Act kick in on Jan. 1. < Over $200 Billion
5. Federal funding for extended unemployment benefits end on Dec. 31.
6. Bonus depreciation on capital equipment ends on December 31. < Big hit to small business owners
Why is this all happening at the same time? Because this Administration and Congress wanted to push everything out past the last election. “Kicking the Can down the Road.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group