the very presence of obama and his wacky, communist nature is killing the markets as liberals divert your attention to arab's in the middle-east killing our people

since the obama administration has gone to so much trouble planning riots and even causing unplanned deaths in the middle-east to make sure the media is not covering what the fed did, i need to make sure i explain it to everyone.  i've heard numbers ranging from $40 billion to $80 billion but with those big numbers what difference does it make.

each month, the federal reserve will buy mortgage debt.  they won't actually buy the house or lien attached to it.  they are buying bonds that have a higher standing than the lien..so if they have to, they can take the house..but probably won't.  they aren't in the home ownership business.  they're in the putting us in debt business.  fnma and gnma will still continue to own the paper (lien).

these billions of dollars given to fnma etc are supposed to end up with lenders.  lenders are then supposed to loan to people so they can buy houses.  when people buy houses...that's supposed to crank start the house building industry.  the house building industry is one of the "true" leading indicator's of how well the economy is doing.  another is the stock market and several others.

however, if the history of the last four years is any clue of what will happen it probably will.  the other boosts given that were supposed to do this (qe1 and qe2, not even including the stimulus) went to banks.  due to strict obama administration regulations and uncertainty caused by the wacky policies administered by the obama administration...banks and other industries have been reluctant to lend.

the money they took in, they put it in the stock market.  wall street traders love this.  they will make tons of money trading.  people who have 401k's and other retirement investors tied to the stock market, will also see an increase in their portfolio's.  one thing though.  none of it is real.  the banks are just parking the money there until certainty returns and then they'll pull it out and start lending.

the problem?  obama's still in office.  certainty will not return and qe3 will end up back in the stock market again.  that's why the stock market did so well today.  everyone that knows whats about to happen thanks to qe3, is rushing to get back in to the stock market like hogs to the trough.  another reason besides uncertainty for banks and lenders to not loan is because people will not be able to borrow due to bad credit issues, job issues and their own amount of personal uncertainty.

many won't take the risk of buying now.  the money will be parked in the stock market.  when obama leaves office...it will be taken out of the stock market and the stock market will drop to where it should be.  401k portfolio's will also drop.  the party will be over on wall street...just as the party is starting back up on main street and won't that be nice.  just the very presence of obama and his wacky, communist nature is killing the markets...all of them.