Subprime This, Subprime That
So now that it is basically out of monetary options, the Fed is going to keep greasing the wheels by buying up more U.S. government debt. The dollar says, Ouch!
The U.S. dollar fell against the yen and pared gains against the euro on Tuesday after the Federal Reserve said it would begin reinvesting proceeds from maturing mortgage bonds into longer-term government debt to support a flagging economy.
The euro rose to $1.3170 EUR= from around $1.3110. It was still down 0.5 percent on the day, but well off its session low.
The dollar extended losses against the yen to 85.31 yen JPY= from about 85.80 yen. It was 0.6 percent lower compared to late Monday.
The Obama stimulus is not working, it’s just eating up a gazillion dollars. Fed pump-priming is not working, it’s just devaluing those gazillion dollars eaten up by the Obama stimulus.
Is there a Plan B, guys?