Friday, March 29, 2013

Carola Binder — Potential Costs of Asset Purchases

How insiders think.

Quantative Ease
Potential Costs of Asset Purchases
Carola Binder | graduate student at UCAL Berkeley


Unknown said...

OK ... did anyone bother to ask what the difference between the purchase price the Fed is paying for these assets and their current Market Value? It is likely the Fed is blowing a bubble by paying more than Market for assets which gives their sellers more money than they had before ... so they can blow an asset-price bubble based on ... what? If that is the case, we should feel the price impact of the inflation as the asset-markets force producers to mark up prices based on higher priced raw-materials. One could suspect we're already seeing that in the price of gasoline.

Anonymous said...

do you mean inflation caused by speculation in commodity markets?

Six said...

He doesn't know what he means.

Matt Franko said...

Unknown those operations are made public at the FRBNY website.

They DO NOT OVERPAY, THEY UNDERPAY to 'get a good deal for the taxpayers'.

Any 'money they make' at the Fed is returned to the Treasury to help 'lower the deficit' which they proudly assert every chance they get.

They are morons.