The Federal Reserve Board announced an open-ended $40 billion per month purchase of mortgage backed securities today. The intent, according to Chairman Bernanke, is not to facilitate the re-election of President Obama, but to "stimulate" the economy by making housing easy to purchase, and letting Americans feel their home values are rising.
How superficial, how naive, how corrupt! Besides making the savings of fixed income families incapable of drawing purchasing power interest, the purchase of mortgage backed bonds will relieve the very financial institutions which caused the housing crisis from the burden of maintaining ownership of toxic assets. Instead, the American taxpayer, again, will bear the burden of Wall Street's perfidies.
Readers here will remember that there have been no penalties imposed on Wall Street for its financial crimes. Now, the Government of the United States subsidizes Wall Street, prints money it hasn't earned, promotes inflation, and rewards the very people who caused the housing disaster which has helped destroy the US economy.
Personally, I believe this is a political move to curry favor with Wall Street, and a cynical manipulation of the financial future of the citizens of the United States.