Wednesday, June 20, 2012

Fed Will Not Add Reserves

Instead, the Bernanke bunch will continue "Operation Twist", a looney program that results in the Fed buying long term Treasury securities, while simultaneously selling short-term securities.

Given that money supply (M2) has already been trending lower, the likelihood of another major crash in the manipulated stock market and economy has increased substantially. Such a crash will, of course, be a major problem for President Obama in his election bid.

The full Fed statement is here.