The economy and financial markets are really complicated. But there's always an easy fix for complicated things: Simplify!
Right now, the simplified logic on what the Federal Reserve is doing to the economy goes like this: By buying up hundreds of billions of dollars of Treasury bonds, the Fed is pushing interest rates down. And by scooping up those Treasury bonds, the Fed is financing the federal government's massive budget deficits.
Both are true, but only kind of. Simplifying doesn't tell us the whole story. �
Take interest rates.
The Fed has�played around with quantitative easing for the last four and half years. But during that time it's gone in fits and starts, engaging in QE, then stopping, then starting up again. There have been several periods since 2008 when the Fed has purchased huge amounts of Treasuries and mortgage-backed securities, and several periods when it purchased no bonds all, leaving the market to itself.
5 Best Blue Chip Stocks To Buy Right Now: Sun Life Financial Inc.(SLF)
Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada.
5 Best Forestry Stocks For 2014: LaPorte Bancorp Inc.(LPSB)
LaPorte Bancorp, Inc. operates as the holding company for the The LaPorte Savings Bank, which provides commercial banking services to individuals and small businesses. The company?s deposits include savings accounts, health savings accounts, NOW accounts, checking accounts, money market accounts, certificates of deposit, and IRAs, as well as commercial checking accounts for businesses. Its lending portfolio includes one to four family residential loans, mortgage warehouse loans, commercial real estate loans, construction and land loans, commercial loans, home equity loans and lines of credit, and consumer and other loans. The company also offers trust services. It operates through eight branches in LaPorte and Porter Counties, Indiana. The company is based in LaPorte, Indiana. LaPorte Bancorp, Inc. operates as a subsidiary of LaPorte Savings Bank, MHC.
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