Fed to buy up to $300B long-term Treasury bonds
1. Fed will buy up to $300 billion of long-term government bonds – in normal language this means money printing.
2. … [FED] will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. – this does NOT necessary means money printing, but is inflationary.
3. In addition, the Fed said a $1 trillion program to jump-start consumer and small business lending could be expanded to include other financial assets. – this does NOT necessary means money printing, but is inflationary.
They do not kidding and will start printing presses!!!
2 trillions – This is MASSIVE !!!
(…but what are 2 trilloons between friends?)
I am expecting now the buddies from ECB to join the party and to begin monetization too. BOE already joined (see below). From week or two Swiss Central Bank is into the game as well.
EUR/USD – jumped 4.5 cents up in 1-2 hours.
USD/BGN – down 5 stotinki.
GBP/USD – jumped 2.5 cents.
USD/CHF – down 4 cents.
USD/CAD – down 2 cents.
Gold – jumped from $880 to $950 in 10 min.
Oil – WTI jumped $3 (from $47 to $50)
Dow Jones – jumped 300 points in 1 hour.
MFN (Minefinders Corp) – from 6.50 to 7.50 in 1 hour
BOE Votes Unanimously to Print Money
Stocks jump after Fed says it will buy Treasurys