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|Didn't Ben Bernanke promise that another round of bond purchases would lower unemployment and boost economic growth?
We think he did, which is why we're wondering why all the benefits from QE3 appear to be going to the banks. According to Bloomberg News:
'The Federal Reserve's latest mortgage bond purchases so far are helping profit margins at lenders including Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) more than homebuyers and property owners looking to refinance'
Since the Fed's Sept. 13 announcement that it would buy $40 billion more securities per month, the rates offered for new 30- year loans have fallen by just 0.11 percentage point, compared with a drop of more than 0.6 percentage point for yields on the bonds into which the loans get packaged.' ('Fed Helps Lenders' Profit More Than Homebuyers:Mortgages', Bloomberg)