Greg Mannarino discusses the Federal Reserve’s goals in it’s QE3 MBS purchase program scheme in this excellent update.
Mannarino states that Bernanke is currently Public Enemy Number 1, as he is INTENTIONALLY creating bubbles and distortions in the markets by debasing the US dollar.
Mannarino states that while QE 1&2, and Operation Twist have been largely successful in re-inflating the securities bubble post the 2008 market crash, severe down-turn in the market is imminent, and even QE3 will be unable to prevent it.

Greg states that QE∞ is all about re-capitalizing the INSOLVENT TBTF banks by guaranteeing the banksters profit on any and all risky loans as they can immediately roll them over to The Fed.  This will serve to re-inflate the housing bubble (banks can once again essentially underwrite any loan at ZERO RISK) as well conduct a STEALTH BAILOUT of out the insolvent banks.

Mannarino concludes by stating the Fed’s desperate actions will not be enough to stave off the coming systemic collapse, and that investors must IMMEDIATELY PROTECT THEMSELVES FROM THE FED BY PURCHASING PHYSICAL SILVER AND BECOMING THEIR OWN CENTRAL BANK.

  1. This whole targeted QE3 thing to MBS got me wondering. Why in hell do we want to restart the housing bubble? I’m still in school on a lot of this, but could it be to prevent a MBS derivative collapse? What if things behind the curtain were getting to the point that a few trillion in derivatives were about to pop?  Yesterday, my local newspaper, front page business section headline was “Region’s banks in hunt for borrowers”. Right next to it was an article “Homes up; spending may follow. Wealth effect expected as property values rise.” I don’t see this as coincidence.

  2. If QE3 wasn’t helpful, then QE4, QE5, QE6 to infinity will arrive to solve the problem which it won’t. Then after QE3, high inflation will happen and then with the rest of the QEs, hyperinflation will be born. All fiat currencies have collapsed right after the hyperinflation state so why not the US dollar?

  3. Derivatives market is a ticking bomb that will be the death of the stock market. With a lot of the derivatives mortgage based it ties into another collapse of the housing market. I no longer trust even my local bank because when you dig deep it is partly owned by one of the TBTF banks. Keep the minimum in the bank needed to pay bills, stash cash and silver/gold with the leftovers. Make sure you have a food supply and water. And get out of the big cities!

    • Great advice, Mary, but I would add that for those who still need a few banking services, a local credit union is the way to go.  Locally owned and operated, most have no exposure to the financial sewage oozing through the “banking system” these days, and their by-laws prevent most of the abuses that banks are into these days.  While nothing has perfect safety, I feel MUCH better to have some of my money in our local CU than in ANY bank.
       

  4. The author misses the point. It’s not about re-inflating the real estate bubble. QE3 is about the Fed acquiring control of real assets before the financial crash.

    The Fed could just purchase Treasuries, but in the end they would be holding worthless paper and they know it. Connect the dots. The Fed buys the mortgages from the financial institutions. The banks take that money and on orders from the Fed purchase Treasuries to keep the whole fiat money scheme going a bit longer. When the Fed owns all the mortgages, it’s game over. That’s when sky high inflation forces you to decide between making your mortgage payment or feeding your family. The banksters will foreclose and rent you back your own house.

    End result….Fed controls most all the real estate. And what did they pay for it. Nothing. Money is just a computer click to them.

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