Posted 3/18/2009 05:02:00 PM by Douglas

The FED, in attempt to pull out every page of their 1931 playbook to keep this economy in the shitter, has rolled out some more federal money. Not much, though, just another $1.2 Trillion.

With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy.

To do so, the Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

Fed Chairman Ben Bernanke and his colleagues wrapped a two-day meeting by leaving a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most — if not all — of next year.

The decision to hold rates near zero was widely expected. But the Fed's plan to buy government bonds and the sheer amount — $1.2 trillion — of the extra money to be pumped into the U.S. economy was a surprise.

So 0-0.25% Fed rate isn't working, yet the economy is still in the toilet. Guess what? They can't go below zero, can they? Holy shit, I think I just came up with the next idea!! Negative interest rates! Negative Interest Rates© consists of money the Fed gives you for taking their worthless fiat dollars off their hands and putting them down a stripper's g-string, so she can buy baby formula and meth. Not necessarily in that order.

What could go wrong? At least with a lap-dance, you kinda get something for your money, instead of giving it to those AIG Freddie/Fannie assholes that just watched it evaporate.