Unconventional Federal Reserve Policy

[21:11:48] jordan: i am listen to Ben Bernake's speech and they are announcing the Fed is going to start buying treasury debt. So they are going to start printing money to cover the debt of the money they have already printed. geee that sounds like a solid plan!
[21:15:54] jordan: Ben is also saying that now foreign banks will borrow from each other. they will call it "swaps". They can borrow as much money as they want from each other and it provides "almost no risk" since they are the ones who create the money. He also said they are not sure if it is the Fed itself which is causing all of these problems through it's monetary policy. It is too soon to tell.
[21:16:15] bink: Hot potato, eh?
[21:16:29] bink: musical chairs
[21:17:02] jordan: grasping
[21:17:48] bink: I have confidence this will not blow up in anyone's face
[21:18:27] bink: I have also begun flapping my arms really fast while walking on my roof blindfolded
[21:18:54] jordan: most of my friends and family have lost at least 40% of their retirement savings. seems like it blew up in all of ours. you had me for a second!
[21:22:05] jordan: here is the link. listen carefully to what he says. Bernake on Econominc Challenges, Pt 1

Bernanke Highlights Unconventional Federal Reserve Policy

Bernank: Fed could Purchase Longer-Term Treasury or Agency Debt

Which means they Fed will print money to buy or debt and charge us interest for doing so.

Bernank: Fed could Backstop Liquidity in Other Financial Markets Outside of Banks

Does that include private hedgefunds?

Bernank: Swap Lines Pose No Credit Risk
Yeah free money, we heard that one before.

Bernank: Fed Liquidity Programs Have Failed to Return Private Credit Markets to Normal
Fed failed. End the Fed.

Bernank: Market Itslef Must Ultimately Address Financial Problems

So please get out of it's way and stop messing with it.

Bernank: Govt "Intervention is Necessary to Protect the Public Interest"
Please do not do us anymore favors!