Citi's Buiter Says Fed Repo Actions Will Need to Be a Daily Event

Sep.23 -- Willem Buiter, special economic adviser at Citigroup, explains why he sees the Federal Reserve's interest rate cuts as a temporary relaxation of liquidity. He speaks on "Bloomberg Surveillance."

[jaym]

Last week FED printed $300 billion for big banks and promises $75 billion per day until Oct 11th. Who says there is no Santa Claus for the rich.

[Ty-lziz]

Calling this anything other than quantitative easing is insane. Calling it something different is simply a distinction without a difference.

[Kuzyapso]

There's a point when the people will lose faith in the dollar if the fed keeps doing QE

[generalyan]

Debt monetization...on a daily basis...to artificially suppress interest rates...in a fiat system...what could possibly go wrong?

[nickl]

That small mess is worth $400bn.

$400bn worth of assets that for some reason other major banks did not consider was worth their stated value.

[tangobayus]

The amount of margin debt is greater than the value of the S&P 500. Corporate balance sheets are loaded with debt taken on to pay for buybacks. What could go wrong? What is that sucking sound?

[Mikesorrento]

• “Paper is poverty, ” Jefferson in turn observed in 1788. “It is only the ghost of money, and not money itself.” In 1817, the author of the Declaration of Independence wrote that paper money’s “abuses also are inevitable and, by breaking up the measure of value, make a lottery of all private property.”

Printing money out of thin air is why we are where we are at.

QE was supposed to be “temporary”. 10 years later, QT has failed, and we have a bloated $4, 000, 000, 000, 000 on the balance sheet and are adding more to it every day.

Keynesian economics has failed.

Proof is right before your eyes.

[deweywatts]

It's no big deal that we absolutely must act to prevent liquidity problems into the foreseeable future

[farmerdude]

When Government talks, think the opposite.