Bernanke Chat Here at Bankrate

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#1 Wed, Jun 22, 2011 - 2:19pm
agauinvest
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Bernanke Chat Here at Bankrate

Edited by: agauinvest on Nov 8, 2014 - 5:06am
Wed, Jun 22, 2011 - 2:23pm
SilverTree
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My chat comments wont go

My chat comments wont go through...indecision

Wed, Jun 22, 2011 - 2:27pm (Reply to #2)
agauinvest
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Your comments

Just got through :)

Wed, Jun 22, 2011 - 2:40pm
agauinvest
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Silvertree

I wish someone would ask Ben your questions! Stuttering would become a new art form.

Wed, Jun 22, 2011 - 3:08pm (Reply to #2)
SilverTree
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fun

Well That was fun!

Wed, Jun 22, 2011 - 3:42pm
BASEBALL 13
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Stealth QE3

Bernanke already said he'd have QE3, but of course not call it that:

"Committee will continue to reinvest principal payments from its securities holdings going forward."

Wed, Jun 22, 2011 - 4:36pm (Reply to #6)
agauinvest
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Not QE

People will believe what they want to believe, but reinvesting princ. is not QE, because it does not increase the balance sheet and therefore does not increase the monetary base. The quantity remains constant, i.e. not "eased" any more than previously, through the reinvestment. 

If they didn't reinvest the principal, that would be tightening because the balance sheet would actually shrink.