HILSENRATH SPEAKS - Bernanke's Mouthpiece Hints At New 'MBS Buying Program': "QE3 Is Likely In September"
Bernanke's favorite reporter, the Wall Street Journal's Jon Hilsenrath, breaks down yesterday's Fed statement on PBS Newshour, and hints that the next iteration of QE will be a new MBS purchase program to begin in mid-September.
Note to Ben:
Mortgage rates are at absurdly low levels already. Anyone who can qualify is already in the process of refinancing, or purchasing. Knocking 2 tenths off a 30-year fixed won't help, but a new trillion-dollar MBS QE program could easily spark more global commodity inflation. Corn and wheat are already spiking. Shall we add crude oil, precious metals, and the rest of the complex to the mix?
If you really want to help the economy, make it rain. No, not with newly-printed, pretend money. With wet stuff. You know, actual rain. Indianapolis-Bloomington, not normally associated with the Sahara, has received less than 5 tenths of an inch since May 15. We haven't mown the lawn, the entire lawn - not counting the flipping weeds still growing - in 9 weeks. The beige grass cracks like dry kindling with each step. It is audible.
If you are so powerful, like your Hilsenrath minions say, cook up some thunder and lighting, and send it our way.
Otherwise, lawn and landscaping businesses are probably gonna need a bailout. Think about it next time you're up in the QE 'Copter dropping cash over college towns, cruising low over swimming pools, spying on co-eds in bikinis.
Don't deny it. We've seen you at Kilroy's.