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Welcome back is launching a new round of stimulus.
In order to help boost the economy it's known as QE3.
And the question is is this that -- and the in the housing crisis.
Here to break it down his personal finance expert -- Gibbons could -- Jeremy had a hot pace of the government is spending for both.
Fourteen billion dollars -- money -- who knows how long they're basically fine mortgage backed securities and a lot of banks and all of that.
But it basically means that the government prints money -- -- they're doing this indefinitely until they see signs of -- -- the -- to flood the economy with money.
Get consumers and businesses borrowing and spending again get the job market back on track in -- the weak jobs report that we sat previously is really what prompted the Fed to.
Actually go ahead and watch -- -- -- but this is just going to serve to increase the debt.
Yes it is so there's growing controversy as to what -- actually do over the long term but clearly something needed to be done we've been over 8% on the in unemployment front -- -- about a year now wait too -- -- the -- -- -- jump in and take action -- and that risque as it could increase inflation -- could writes about the big -- big problem too but it's better than dealing with deflation which is which is a more serious -- OK let's look at the positive -- thinks this could actually serve to help homeowners.
Right so that interest rates that the -- is committed -- but actually keeping interest rates nice money could even -- even lower than they currently are so this could inspire some buyers and off the sidelines by a comment your refi to a second -- switch from a thirty or ten or fifteen year -- for example -- That's all good low interest rates -- -- some activity which would obviously help with the recovery but the issue is that.
It's not about low interest rates right now right happening people are buying for other reasons that yeah.
He'll likely keep hearing this only it's going to get battered housing market is going to get better more people get off -- -- -- -- -- -- propel the housing market further is you know.
The employment picture right that have to improve people have to have jobs economy -- got much faster pace okay is this QE3 going to do anything for the unemployment situation here.
There's growing controversy over that too will it help you when a situation where it would not number thank you would argue that we got a couple million jobs have been -- last round.
But I think he'll initially gonna help the employment picture would be a change in policy companies are hiring not because of interest -- not hiring because -- when you see what happens in an election.
You know coming in -- it -- see what happens on that front.
There's a lot of uncertainty -- out there were just holding companies back okay and -- are asking if the move on the part of Ben Bernanke and the -- it was in any part political did give the economy a boost to -- -- the election what do you think of that book clearly something had to be done I mean there is people are there are people saying that he had to do something he wants to -- -- hang in there he wants to make it.
A name for himself and that -- have a thing but.
I think we're at a point now where really where -- We needed something from him needed something to get it done -- -- unemployment still a big issue -- -- Thanks so much -- -- I personal finance expert QE3 ninety consigned extra Smart about -- -- -- I thank you so much Ainsley.
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