Thursday, September 22, 2011

The Twist


Monetary policy is twisted. Operation Twist is supposed to push bond yields closer to zero, which should reduce mortgage rates and revive housing activity. QE-1.0 was supposed to do the same thing. But it didn’t work. Housing remains in a depression even though the Fed purchased $1.24 trillion in mortgage-related securities from November 25, 2009 through the end of March 2010. Operation Twist is supposed to force investors to buy riskier securities, especially stocks, with the expectation that will somehow stimulate economic growth. QE-2.0 was supposed to do the same thing. But it didn’t work either, which is why the Fed is doing the twist.

Ten-year Treasury yields and mortgage rates were already at record lows before yesterday’s Operation Twist announcement. Yet housing remains depressed. The mortgage applications index for both new and existing home purchases remained at the lowest levels since 1995, based on 4-week average. It is actually 8% lower than a year ago and 42% lower than two years ago despite the drop in mortgage rates. The housing problem can’t be fixed with record low mortgage rates.

Actually, the Fed isn’t sure how Operation Twist will work to boost the economy. And how do we know this? The Fed said so in its FAQs: “The maturity extension program will provide additional stimulus to support the economic recovery but the effect is difficult to estimate precisely."

49 comments:

  1. Hi, I think your website might be having browser compatibility issues.
    When I look at your blog in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. Can Someone Do My Homework I just wanted to give you a quick heads up! Other then that, amazing blog!

    ReplyDelete
  2. Hey guys! If some of you really need help with essay and homework you can use this beautiful service for essay and homework! This guys really know how to do it, and you will be so happy about it! Check mba personal statement this professional thesis writing service and enjoy! Good luc kamy friend!

    ReplyDelete
  3. It is problematic to allocate at least some time for a walk when you are overwhelmed with work, especially for a schoolboy with a lot of homework. But there is a way out, on this site https://www.nursingpaper.com/our-services/nursing-reflective-journal/ you can order various written works.

    ReplyDelete
  4. Our Customer Experience Team is here to ensure your smooth user experience. Our job is to collect and persuasive essay topics for high school analyze customers’ feedback, come up with new features, and work hard to improve the website.

    ReplyDelete
  5. When preparing a custom writing paper, it is always good to read through several papers to note the format and the contents that previous writers followed in doing their job. Many people who are involved in custom essay writing are experts in preparing any custom writing paper pay someone to write your essays and they have wide experience on the same.

    ReplyDelete
  6. Investigate the wide Battlestar Galactica Warrior Viper Pilot Jacket Collection: from the notorious track coats to the puffy vest. Shop Men's Jackets at evo. Best determination, true surveys, and supportive people.

    ReplyDelete
  7. concentrating especially onEarthwork service texas in houston understanding the underlying dangers and challenges.

    ReplyDelete
  8. Of course, it was possible to get excellent grades, so I can someone to write my essay for me, it helps me in some subjects, which makes any essay of any complexity a good helper.

    ReplyDelete
  9. This is wonderful news for everyone, but especially for Newcastle students. If not, I hope you will visit this service because it is tailored to you. I hope you are aware of assignment writing service in newcastle. where you can get help as a student you will like this news.

    ReplyDelete
  10. For the advantage of our clients, we offer rapid, easy, and straightforward Public & private Notary uae notary services and procedures.

    ReplyDelete
  11. Operation Twist is supposed to push bond yields closer to zero, which should reduce mortgage rates and revive housing activity. Visit my site:
    Wyld Nightclub Guest List

    ReplyDelete
  12. Beautiful content really useful for us thanks to post this article . and we provide great law support for like traffic , sex crime etc., if you want please visit our site. thanks . Reckless Driving Hanover VA

    ReplyDelete
  13. The discussion on monetary policy and its effectiveness raises valid concerns about the impact of measures like Operation Twist and QE on economic growth. Despite the intended objectives, the outcomes have been mixed. Just as the effectiveness of these policies is debated, exploring the diverse range of chocolate bar in Riyadh offers a delightful escape, allowing individuals to savor the rich flavors and indulge in a moment of pure enjoyment amidst economic complexities.

    ReplyDelete
  14. I like the helpful information provide in the articles.
    A Lawyer For Bankruptcies also known as a bankruptcy attorney, is a legal professional who specializes in providing legal advice and representation to individuals or businesses considering filing for bankruptcy.

    ReplyDelete
  15. Explore the intricacies of monetary policy and the fascinating concept of Operation Twist. Just as chemical injection in UAE plays a crucial role in optimizing processes, understanding monetary policy and its nuances can have a significant impact on economic stability. Dive into the world of financial strategie

    ReplyDelete
  16. Monetary policy can indeed have its complexities and challenges, just like the intricate process of operation twist. Similarly, the field of demolition requires expertise and precision, and having a demolition expert in Edmonton ensures a smooth and controlled execution of projects.

    ReplyDelete
  17. Wonderful blog found to be very impressive to come across such an awesome blog.
    A Abogado De Trafico En Virginia is a legal professional who specializes in representing individuals facing traffic-related offenses and violations in the state of Virginia.

    ReplyDelete
  18. Operation Twist is a monetary policy tool aimed at influencing interest rates and bond yields. While the financial world navigates these strategies, visit the Best Barber Shop in Canadafor a grooming experience that will leave you feeling sharp and confident. 💲💈📈

    ReplyDelete
  19. FierceHealthIT and select a current/famous topic of the week that might influence their NR 505 Week 7 Evidence-Based Practice Project Proposal Outline.

    ReplyDelete
  20. Outcomes can be measured in a NR 537 Week 5 Rubric Development of ways, including DALYs, child maltreatment reports, and high school dropout rates.

    ReplyDelete
  21. Complete this design by nurs fpx 4060 assessment 2 community resources around the completion of Week 6 and submit it to your teacher for scoring. Carefully read the Course Assignment Accomplishment 3 Principles and Rubric preceding completing your format.

    ReplyDelete
  22. Drug botches in nursing and clinical benefits are a troublesome issue that impact patient prosperity and the idea of care. This piece revolves around an expected solution for drug botch issues, which is the education and getting ready of nurs fpx 6103 assessment 2 applying the tripartite model nurses on genuine medication handling It in like manner examines the ethical examinations that would be connected with this proposed game plan, similar to freedom, value, and handiness.

    ReplyDelete
  23. Publius Yardeni showcases an impressive depth of knowledge and insights in the field of economics and finance. With a reputation for accurate market analysis and forecasts, Yardeni's work proves invaluable for investors and professionals seeking informed perspectives. His ability to distill complex economic trends into accessible content is commendable, making "Publius Yardeni" a go-to resource for those looking to stay ahead in the ever-evolving financial landscape. Through his writings, Yardeni consistently offers a valuable blend of expertise and clarity.
    Accidente de Conductor de Semirremolque
    Abogado de Lesiones Accidentes Camiones

    ReplyDelete
  24. Hello, I found your website via Google while searching for related topics, your website came up, looks great. I have bookmarked it in my google bookmarks. Percetakan 24 jam jakarta timur I can't leave your site before saying that I really enjoy the standard information you provide to your visitors? jasa print murah jakarta timur Will be back often to check for new posts.

    ReplyDelete
  25. Maintaining your health and fitness is more vital than ever in the fast-paced world of today. Due to their low-impact yet excellent full-body workout, best elliptical 2023 machines have become incredibly popular among the numerous exercise equipment options. You're in the right place if you're thinking about buying an elliptical. To assist you in making an informed choice, we'll review some of the greatest elliptical available in this post.

    ReplyDelete
  26. Exploring the intricacies of a twisted monetary policy, like Operation Twist, unveils the complexity of economic strategies. Just as financial landscapes evolve, industries adapt with innovative solutions such as the Industry Leading Degassing Solution Keep your operations sharp and efficient, ensuring a smooth twist in your industrial processes.

    ReplyDelete
  27. Exploring the twisted nature of monetary policy, like Operation Twist, unveils the complexities of economic strategies. Just as financial landscapes evolve, complement your contemplation with the convenience of coffee delivery dubai A well-brewed cup can add clarity and energy to understanding the intricacies of economic twists.

    ReplyDelete
  28. The use of a collective pseudonym like Publius was strategic and, in some ways, revolutionary. It allowed these authors to present their ideas on the Constitution without the potential biases or preconceived notions associated with their individual names.
    virginia uncontested divorce procedure

    ReplyDelete
  29. "The Twist" is a popular dance move from the 1960s, originating from Chubby Checker's hit song. It involves a 360-degree hip rotation and has become a global sensation. Embracing people of all ages, it remains a symbol of carefree fun and is a staple at dance parties, weddings, and retro-themed events. Its enduring popularity reflects its timeless appeal and cultural icon status. Abogados de Divorcio Bronx Nueva York

    ReplyDelete
  30. Dancing to 'The Twist' is like embracing the joy of a timeless classic. Just as we groove to the musicchemical injection pumps in Dubaii quietly dance to the rhythm of industrial processes, ensuring a flawless and efficient performance. The beauty lies in the harmony of movement, whether on the dance floor or in the machinery that keeps our world running. Here's to the enduring magic of music and industrial precision!"

    ReplyDelete
  31. How does Salesforce Data Cloud support multi-cloud data integration?
    Salesforce Data Cloud offers tools and services, like MuleSoft's Anypoint Platform, to facilitate integration across various cloud environments, ensuring data consistency and real-time insights.

    https://www.thesims3.com/myBlog.html?persona=h3swy37v1egh
    https://www.findit.com/oiofjhqfddtbnmj
    https://www.findit.com/ovaxyydoybqttys
    https://commiss.io/listings/1aNZ
    https://commiss.io/listings/abXM
    https://30seconds.com/raynickson/
    https://30seconds.com/raynikson/

    ReplyDelete
  32. I learned to dance "The Twist" from my parents, and it's been a hit at family gatherings ever since. It's one of those dances that's easy to learn and perfect for all ages. The nostalgia associated with "The Twist" is something special, and your post captures that beautifully. Thanks for sharing this blog! divorcio de mutuo acuerdo virginia beach va

    ReplyDelete

  33. It's clear that monetary policy tools like Operation Twist and QE haven't had the desired impact on housing and the economy. The uncertainty around their effectiveness is a concern for policymakers and markets alike.
    Ley de Divorcio de Nueva York Pensión Alimenticia

    ReplyDelete
  34. Appreciation for sharing tremendous substance from in this blog.bancruptcy lawyer near me. || bankruptcy lawer near me.

    ReplyDelete
  35. Unser engagiertes Team steht Ihnen mit Fachwissen und persönlichem Service zur Seite. Wir verstehen, dass jede Anforderung einzigartig ist, und bieten maßgeschneiderte Lösungen, um Ihren individuellen Bedürfnissen gerecht zu werden. Investieren Sie in eine pv wechselrichter kaufen nachhaltige Zukunft und vertrauen Sie auf Arbitrage Solar Systems als Ihren verlässlichen Partner für hochmoderne Photovoltaik-Systeme und Zubehör. Wir freuen uns darauf, gemeinsam mit Ihnen die Welt der erneuerbaren Energien zu gestalten!

    ReplyDelete
  36. Delving into 'The Twist' unfolds a narrative that captivates and intrigues, adding a unique spin to the creative landscape.Executive catering services in Monahans Texas, let our catering services mirror this innovation, ensuring every event is as dynamic and well-crafted as this artistic endeavor. Just as 'The Twist' adds a layer of creativity, our catering services add a layer of culinary excellence, bringing a twist of flavors to events in Houston.

    ReplyDelete
  37. Trusted SEO Company USA has solidified its position as a trusted SEO service provider, known for its unwavering commitment to delivering results and fostering client success. What sets this company apart is a combination of key attributes that instill seo optimization companies in businesses seeking reliable and effective SEO solutions.

    ReplyDelete
  38. Step into the realm of innovation with 'The Twist' – an architectural marvel that captivates with its unique design. As this structure redefines conventional spaces, brighten up your interiors withEglo electrical lighting. Explore their diverse designs to complement the modern aesthetics of your home, creating an ambiance that mirrors both sophistication and illumination.

    ReplyDelete
  39. Your blog about 'twist' is thought-provoking! The concept of a twist can add so much depth to storytelling. king george traffic lawyer
    I enjoyed reading your take on 'twist'! It's fascinating how a simple element can transform a narrative.

    ReplyDelete
  40. The macbook 12in m7 offers impressive power in a compact design. With its Intel Core M7 processor, it delivers smooth performance for everyday tasks and multitasking. The sleek and lightweight build, coupled with a high-resolution Retina display, makes it an ideal choice for productivity on the go without compromising performance.




    ReplyDelete
  41. Future Style by Nida Faysal's Benedetta bags radiate sophistication and elegance thanks to their exceptional workmanship and opulent materials. These bags, which combine traditional charm with contemporary refinement, are a monument to Nida Faysal's iconic style.

    ReplyDelete
  42. Have you heard of ruticotv? It's this cool streaming platform where you can watch all your favorite shows and movies. I love how easy it is to navigate and find new stuff to watch. Definitely recommend giving it a try if you're looking for something new to binge-watch!

    ReplyDelete
  43. Hi, Nice Post!
    Do you want to see Instagram Stories anonymously? Pixwox is the solution! It's this cool new app that lets you create custom photo collages with all sorts of funky filters and effects. It's perfect for jazzing up your pics before posting them on social media. Plus, it's super easy to use and totally addictive. Give it a try and see for yourself!

    ReplyDelete
  44. In managing hyperthyroidism, doctors commonly prescribe medications to regulate thyroid hormone production or release. Treating the underlying cause, such as removing nodules, may also be considered

    ReplyDelete
  45. Unwind in Massage Center in Karachi, offering a haven of relaxation amidst the bustling city. With skilled therapists and a tranquil ambiance, experience personalized treatments to soothe your body and rejuvenate your spirit.

    ReplyDelete
  46. Bei LegalLease Solutions sind wir eine angesehene Anwaltskanzlei, die sich der Bereitstellung erstklassiger Rechtsberatung und unerschütterlicher Interessenvertretung für unsere Mandanten verschrieben hat. Mit langjähriger Erfahrung und einem starken Engagement für Gerechtigkeit steht Ihnen unser Team erfahrener Anwälte zur Seite, um Ihre Rechte zu schützen, komplexe rechtliche Angelegenheiten zu navigieren und maßgeschneiderte Lösungen zu bieten, die Ihren Bedürfnissen entsprechen.

    ReplyDelete
  47. The Twist! What a timeless classic!
    Thankful to your great informative blog! Looking forward to more blogs like this..
    car accident lawyer chesapeake va

    ReplyDelete