PolicyMic: On Thursday, the Federal Open Market Committee announced that the Federal Reserve will purchase $40 billion a month in mortgage-backed securities indefinitely (MBS) from financial institutions, will keep interest rates at zero percent until at least 2015, will make additional purchases if the employment picture doesn't improve, and in general will maintain an stimulative policy for a "considerable time."
CNS essentially reiterates this, adding that "this third round of easing differs from the previous two in that it is an open-ended commitment by the Fed to inject money into the economy, rather than a promise of a fixed amount of easing as seen in the past."
So basically, while the wizards of wall street smarts dive into the shallow end of the pool head first (and who can really blame them for trying to rally before the bottom falls out, if the inflationary wave doesn't take us out first), with every sheet that rolls through the presses, our monetary system incrementally plummets that much more. Comforting.
