Monday, November 1, 2010

$1.73 Trillion in 20 months...Now another $62 Billion in the last 2 months = 2% GDP growth and 9.6% Unemployment. Wow!

Below is an article from Bloomberg-
Put in perspective- This is $86.5 Billion per month from Jan 1 2009 to August 1 2010.
Then another $31 Billion for August and September.
And it clearly states( highlighted) the money was used to support securities.



The Fed bought about $1.73 trillion in government debt and mortgage securities in a 2009 program to keep interest rates near record lows, support securities prices and bolster the housing market. Since Aug. 17, it purchased another $62 billion of Treasuries, and has been weighing more monetary injections as its Beige Book business survey released Oct. 20 reported that the economy grew at a “modest pace” in September.
Elections tomorrow may divide power in Congress, helping the market, Fisher said. There’s a 92 percent chance Republicans will take control of the House of Representatives, helping them block President Barack Obama’s policies, according to bets on Intrade, a Dublin-based online prediction market.
“The stock market is just showing that maybe it’s not as bad as what a lot of people think,” said Liz Ann Sonders, the New York-based chief investment strategist at Charles Schwab Corp., which has $1.5 trillion in client assets.
To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net Whitney Kisling in New York at wkisling@bloomberg.net .
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net .
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