Quantitative Easing: Fed to buy $600 billion of U.S. government bonds to drive down long term interest rates

Comment:

Such a waste!
This is a very costly way of dragging down long term rates. As I have noted on many earlier posts, it once more makes me thing how much most cost-efficiently the fed could control long term rates with interest rate BICs that replicate the whole interest rate curve

See earlier posts on the topic:

http://kongtcheu.blogspot.com/2009/03/fed-will-inject-1-trillion-more-into.html
http://kongtcheu.blogspot.com/2009/04/ftcom-comment-opinion-let-central-banks.html

http://kongtcheu.blogspot.com/2009/07/op-ed-contributor-great-preventer.html

News References:

http://online.wsj.com/article/SB10001424052748703506904575592471354774194.html?mod=WSJ_hp_LEFTWhatsNewsCollection
http://www.nytimes.com/2010/11/04/business/economy/04fed.html?_r=1&ref=business

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/03/AR2010110305412.html