Ben Bernanke just re-elected the President.

[scheming daemons]

QE3, which will buy up mortgages and pull the housing market out of its depression, was just announced.

The Dow will be over 14000 by the end of next week.

By November, unemployment will be 7.9% or lower... a significant level emotionally.

[Drunken Irishman]

1. Well I think he was reelected long ago, but this doesn't hurt.

[Honeycombe8]

48. When Joe Scabby said "Game, set, match" after the Dem.Convention, I figured Obama had it....

unless something bizarre happened. And sure 'nough, the polls went up for Obama, and September polls among likely voters are pretty telling.

But now something bizarre has happened. The whole arab world is violently protesting and killing people. Israel's leader has made it clear he doesn't want Obama and wants Romney.

This is truly a bizarre string of events.

[brewens]

2. Ya think the right-wingers are gonna freak out over this? I hope so! Should be fun. n/t

[Raven]

3. WE will reelect President Obama but

Ben will have made the job a little easier.

[Cali_Democrat]

4. It appears the right wing meme now is that Bernanke is trying to get Obama reelected.

Well maybe if Romney didn't diss Bernanke, he wouldn't have done this

[JDPriestly]

22. Romney is just not a politician. He doesn't understand how to motivate people.

[ladjf]

28. I believe that Romney said publicly that if elected, he would fire Bernake. If that it true,

then once again, Romney has shot himself in the foot.

[EmeraldCityGrl]

45. He said it. CNN showed the clip earlier today.

What a dumbass.

[Ilsa]

51. Yep, it was a stupid, rookie mistake on Rmoney's part. nt

[FreeJoe]

5. You are seeing someting I'm not seeing

I don't see anything that indicates that QE3 will be all that much different than QE1 or QE2.

[scheming daemons]

6. QE1 brought us out of recession, QE2 prevented a double-dip

You are wrong.

[dmallind]

17. Nope

Given your statements, it will make it harder, as more money will be available to compete with you for the same housing. Buyers, especially frequently outbid bargain basement buyers, want house prices to go down. Owners/sellers want prices to go up. Pumping more money in raises prices. People who own homes get happier, as do banks with foreclosed homes. First time buyers get less happy.

[Glitterati]

18. Thanks for your answer

I deleted my post because I was worried about giving away personal information on a message board.

I appreciate your answer. That's what I was afraid of.

So, investors are really going to start buying up homes now.

[MissMarple]

41. Realtors have been doing that a bit here.

They are renting them with the intent to sell when the market improves. They know the neighborhoods that will rebound, and that they may even want to safeguard. I don't think they are doing this on a large scale individually, and they aren't looking at a big resale number, just a tidy profit.

[mopinko]

21. compete? the market is glutted.

and housing is about more than supply and demand. vacant homes are a drag on so many things. they need to get sold and occupied.
first time buyers are still in a better market than before the crash.

[dmallind]

23. then is s/he being outbid if there is no competition? Before the crash yes, after QE3 no.

[Glitterati]

25. No, not in my area.

Here's what is happening here. There's plenty of homes in my price range - but they're garbage, unlivable. For example, a summer cottage with 2 bd, 1 ba, and propane heat. I'm on a fixed income. I can't buy a full winter's heating at once. That house is not livable for me.

But, it's not rentable for investors either, so it sits on the market and the price gets dropped once a month and now, no mortgage company will bother with the $29,000.00 price tag. So, the only potential purchasers ARE investors. Who don't want it.

Once a week, they release ONE new property and watch the vultures fight over it. Right now, selling price is $15K OVER the asking price. And, even though I bid it, the investors are standing there taunting the bank with cash. 15 day deal. For me, with a standard mortgage it's 45 days to close.

I can't win.

on edit:
Let me give you just a few statistics in my area. In July, there were 73 properties auctioned in foreclosure in my price range. Of those 73 properties, not ONE has been put on the market. Not ONE. Foreclosed in the 2nd Tuesday in July.

[ohheckyeah]

56. Keep trying...

my friend just bought a pretty nice, but small, house in Sacramento, CA for $53,000. It had a new roof, new a/c, hardwood floors (which needed refinishing), a detached garage, etc. Pretty nice place for the price.

We looked for a house over a year before we found what we wanted and could afford. It was right at the end of the housing explosion and the owner had to sell because he was in jail. I found it the day it hit Realtor.com....viewed it within a couple of hours and put a bid on it that night. We got the signed agreement the next day.

The house appraised for over $10,000 more than we paid.

[mopinko]

46. then you keep looking.

buying a house is not the same as buying a pair of shoes.
housing is a central component of the economy. in fact, the housing bubble kept the economy afloat for several years. that first time buyer was screwed a couple years ago. bubble are always bad, and bursting bubbles, tho painful, is very necessary.

[Glitterati]

50. I haven't stopped n/t

n/t

[reformist2]

10. QE1, 2 and 3 help banks and prevent crashes, but do next to nothing for people.

We need better fiscal policies that will put money in people's pockets, and businesses need to start taking risks again.

[Bernardo de La Paz]

20. Preventing crashes is a huge benefit to people, unless you consider 8 % unempl. no better than 25%.

[girl gone mad]

30. But quantitative easing does not prevent crashes.

Are people seriously this economically illiterate?

I give up.

[reformist2]

32. QE does prevent a crash in the bond market, which would be disastrous.

[reformist2]

31. True - basically, the economy is on life support.

[girl gone mad]

29. Oh, goof grief.

It did nothing of the sort.

[femrap]

38. Take a look at this:

Last edited Wed Oct 3, 2012, 10:56 PM - Edit history (2)

[DippyDem]

7. IIRC some time ago GOP House and Senate threatened Bernanke not to do QE3. n/t

[dawg]

8. With all due respect ...

I think Mitt Romney just re-elected the President with his buffoonery.

QE3 will help, but only a little. The market will love it though.

[a kennedy]

37. and thus my retirement fund will love it also.

and that is all I get to live on, unless I were to go out and try to find a job. A 62 year old trying to get a job. Like that is ever gonna happen. NOT.

[freshwest]

11. The only QE3 I can think of hasn't happened yet. QE = Queen Elizabeth. Please insert words for the

Financial-speak challenged.

For me, QE1 & QE2 are people or ships.

Pardon my ignorance. TIA.

Although anything that increases the price of housing for those in the market doesn't seem to be a good thing in some ways, it might spur a boom in construction or sales if people think they'll be able to secure loans for them.

[obnoxiousdrunk]

13. QE3 is a new

laxative. Quantative Easing 3 ....

[cthulu2016]

12. I don't expect an employment effect before the election, but the stock market, yes.

[JoePhilly]

14. all Obama needs is a down tick of .2 ... very doable.

[cherokeeprogressive]

54. Zactly. n/t

[Wellstone ruled]

15. 10-4 good buddy!!!!

[abelenkpe]

16. All true

Gold and oil also went up in reaction. I would expect food prices to as well further down the line so some will claim inflation. Not that interest rates will go up or salaries. Good for housing though!

[WI_DEM]

19. My guess is it's too close to the election to see any real impact, he should have done this

last spring.

[Iliyah]

24. If only the GOPpers in congress just passed that darn Job's bill.

Instead, almost 40 repeal votes for ACA. Numerous bills attacking women's parts and rights. They just voted to block, which mind you, were requested by the GOPper governors - allowing each state to determine thier own welfare situation. Still nothing concerning job creation nor infrastructure repairs for America. Nada. Nope, nothing. GOPpers are now beating the war drums, I mean they are not working for America but only for the 1-2%. SHAMEFUL

[JBoy]

26. By next week, Romney will be taking credit for the idea.

[Redford]

35. I hope so because this is not a good idea

[Hubert Flottz]

27. GREAT!

Allan Greedspoon never cared about inflation when Clinton was president.

[girl gone mad]

33. Uh... no.

The Fed is swapping bonds for mortgage-backed securities on banks' balance sheets, not "buying up mortgages".

Good luck if you think this will have any effect on employment or home prices. My guess is it will do absolutely nothing to help the real economy, but it will boost prices of risk assets (including commodities and oil, you know.. things people have to buy on a daily basis) just like every prior asset swap. Banks are not lending and businesses are not hiring because there is no demand in our economy.

We need fiscal solutions. Monetary stimulus has and will continue to be less than worthless.

[Redford]

34. My degree in Economics agrees with you, girl gone mad

Time to get out of the stock market before it crashes again. The dollar will buy less and prices will go up.

[porphyrian]

36. . n/t

[Yavin4]

39. As A Holder of Physical Precious Metals

I salute you Mr. Bernanke!

[DallasNE]

40. Romney Has Already Said He Will Not Reappoint Bernanke

So this may be a little payback by Bernanke. Romney has already said he thinks easing is wrong, apparently believing that another depression will cure what ails the American economy. Way to poke him in the eye Bernanke! Bernanke also added certainty by announcing that interest rates will be kept low into 2015 (which is beyond Bernanke's current term). Oh, the sub-plots! Obviously, Romney will double down -- as he always does and stick the foot ever deeper into his mouth -- the mouth that roared.

[Laura PourMeADrink]

44. interesting. obviously you answered my question. He liked him before he didn't like him. Just

saw a flip-flop list and that was among them.

[Laura PourMeADrink]

42. romney liked Bernanke, and then didn't like him. Or, was it the other way around?

[jethro_troll]

43. Fuck him!

[DCBob]

49. Goodby Aqualung..

there's snot running down your nose.

[DCBob]

47. I think you are right.

This is significant. The economy appears to be on the verge of finally breaking out to a decent recovery.

[ldf]

52. ok, i'm dumb as a doorknob about this economic stuff...

but buying up mortgages sounds like it helps......

the banks.

they are supposedly sitting on a ton of cash right now, and they haven't made a move to loosen up credit for people. they are tightening it.

if the bad mortgages are bought by the feds, they (the banks) are once again rewarded for lying, cheating, and fucking people over.

if the feds want to help the economy they should use that money for a huge infrastructure jobs program. the country needs the infrastructure, the people need jobs, they will once again be able to buy goods and products, they will once again be able to buy homes, which generates all the added need for everything that goes into a home.... more will be able to buy cars... it is a ripple affect, all started by helping reconstruct the infrastructure. a double win...

at the same time, invest some of the money into new, innovative and green concepts. we will have to sooner or later, and this will provide more jobs to people who will buy stuff.

but rescuing the banks again by bailing them out of their smoke and mirror scams.....

and this could all have been done the week after obama was elected.

again,

but what do i know, i'm just a doorknob.

[MFrohike]

53. What a joke

The Fed is buying MBS, not mortgages. It would be far more beneficial if they bought the underlying loan pools and negotiated down the principals. This is nothing but a stealth bailout. It's reminiscent of Arthur Burns' easy money policies under Nixon. Sure, times were great for a year or two, but the result was terrible. This is simply another way to avoid regulating finance.

[B Calm]

55. The market always does better under Democrats.

Looks like I'll be able to retire next April after all!