Friday, September 14, 2012

QE1 & QE2

Found this website (http://www.bankrate.com/finance/federal-reserve/qe3-financial-crisis-timeline.aspx) tracking the amount of money from QE1 and QE2 inject into US economy.  In summary Q1: USD1,425 billion Q2: USD600 billion => Total USD 2 trillion. Do you know how many zeros are there for a trillion? hahaha.......just to give us a perspective how much is USD2 trillion: Malaysia 2011 GDP is USD278 billion. The amount injected to US economy will be around 7 times of Malaysia's economy. The Fed has just created 7 economy of Malaysian size out of thin air. There are more to come after QE3 is announced.

Mortgage rates and the Fed

 

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