Wednesday, March 18, 2009

You can use those dollars to paper the wall or in the outhouse -- your choice

The Federal Reserve says, "to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months."

The Wall Street Journal sums that move up nicely: "With rates near zero, the Fed is now essentially printing money to increase the supply of credit in the economy."

Now where's my Econ 101 textbook? I want to see what happens to the value of any given good when you suddenly flood the market with a new supply ...



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