Fed's Bernanke: Fed may buy Treasuries, agency bonds to stimulate economy

What type of insanity is this? The Fed is going to buy Treasury Bonds, with what?

While, admittedly, the Fed is a PRIVATE BANK that is primarily owned by foriegn international banks, what are they using to buy the Treasury bonds? With the international banks being in as bad or worse condition as the Amreican FIs, where are they getting the money for these purchases? Or, are they buying these bonds with Bailout monies that they have received (but that have not been disclosed to the American public). it appears that our economies have become a "shell game".

It appears to me that this is all like some "check kiting" scam . . . to keep economic activity flowing. Until the promised FULL DISCLOSURE and TRANSPARENCY is provided, there can absolutely be "no faith and confidence" in these markets.

If it all crrashes, the economic chaos is practically inconceivable. As optimistic as I try to be, there just seems to be no end to the government's, and the financial industry shennanigans. Our nation got inot this unprecedented economic debalce because of the "sophisticated" "creative accounting" that turned out to be nothing less than just plan FRAUD by pyramid and Ponzi schemes . . . is this new "investment scheme" just a scam also. Paulson and Bernake need to address these matters to the American people.

This all just smells of a phony scam . . . and more duping of the American people. (Somehow, I suspect that they are buying these bonds with Bailout money.)

There is a "flip side" of the "low interest rates to get the market 'moving'":

Yes, low interests rates generally are good for borrowers; but in this case, with so many people not being in a positon to borrow money that they ALREADY cannot afford to repay, how much of a stimulas is that for the economy.

However, IF investors receive a minimal, almost "nothing" return on their investments, which happens with very low interests rates, then doesn't the extremely low interest rates undermine peole's incentives to "invest in risky markets"? . . . . Where is the point where the potential "returns" become commensurate with the risks?

Am I the only person who perceives this apparent disparity in what is being done? It simply does not make rational or common sense to me personally.

Those pwople who are already over extended can't afford and couldn't qualify for the "credit" could they? And are those who do have money going to be so foolish as to invest in investments with virtually "no return" on investments, are they? If the prime interest rate is 0.5%, then a "saver" would be lucky to get 0.1% interests, right?

I simply cannot folow the logic of what Paulson and Bernake are doing . . . can anyone else? To me it just appears that they are trying to keep some type of economic activity, trying to buy time until somehow people will think that the market has bottomed out, and they will hopefully start to spend and invest . . . but ins't this all a gigantic "shell game" that they are trying to maintain with additional wasteful "investments" of hundreds of BILLIONS of dollars???

Congress conned the American people by promising FULL DISCLOSURE and FULL TRANSPARENCY . . . none of which has been provided. That is what scares the hell out of me . . . they can't afford for the American people to see and understand what is going on. Meanwhile they are just digging the economic holes deeper and deeper.

Lastly, let us not forget that Paulson, Bernake, and the Fed WERE key players who helped to develop this entire debacle and economic melt down . . . and so was Bush and Congress.

Now we have these scoundrels leading the "recovery"? And so far they don't seem to be able to do anything right in addressing the problems. I simply don't have much "faith and confidence" in what they have done o date, or might do anytime in the future.

And for all of Obama's promises for "CHANGE", he is appointing the same type of people to his cabinet and other positions.

It has not taken a rocket scientist to know that all Bernanke and Paulson had to do with the $700 Billion Bail-out money was to pay off the mortages at the banks and lending institutions for every American who's homes had been foreclosed on, or was in the process of being forclosed on that would have given the financial institutions liquidity to keep their doors open. The Government could have reworked those high interest mortgages so that people could have stayed in their homes or returned to those empty foreclosed houses that will only sit and deteriorate and bring the neighboring property down. What they did with the Tax payers money was distributed to the friends and Wall Street cronnies. We will evenually be paying for foreclosures 2-3 times depending on how much money that is being handed to the banks.

As a taxpaying American I feel it is only fare that we see the 22 Banks and Financial Institutions Portfollio's who where forced to close, and the Portfollio's who where handed money from Henry Paulson Jr.,. Paulsons ex-employer Goldman Sachs should not have been given one penny because it was a conflict of interest and they where not facing financial difficulties. Paulson would not bend the rules for Lehman brothers but he bent over for GS.

I confess my ignorance here -- how on earth is this supposed to help anything? I see that we are trying to artifically drive up the price of treasuries by taking some off of the market. However, the government is in debt, so the money to buy those treasuries is going to have to come from selling debt obgligations, otherwise known as Treasuries!

Can someone explain how this puts any real money into the economy, other than by faking out treasury buyers?