The Fed itself has targeted the housing sector through monetary policy, buying residential mortgage-backed securities in order to push interest rates down and provide further relief to mortgage-holders.
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The Fed conducts traditional monetary policy by buying or selling short-term Treasury securities in the open market.
This tax, which has been proposed by the International Monetary Fund staff, is levied only on net proceeds of securities transactions.
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ChartObject Federal Funds Target RateAccording to Investopedia, quantitative easing is a government monetary policy occasionally used to increase the money supply by buying securities, such as U.S. Treasury Bonds, in the open market.
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The ECB has been buying sovereign bonds since May 2010 through its Securities Markets Programme (SMP), supposedly for monetary purposes but in reality to bring down yields in places like Italy and Spain.
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While total Fed earnings include fees for services like check clearing and wire transfers provided to depository institutions, the bulk of the earnings come from interest on loans and securities acquired as a by-product of its monetary policy.
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In the case of Singapore, it is the Monetary Authority of Singapore, and in Hong Kong, the Hong Kong Securities and Futures Commission.
"Both the US and Japanese stock markets are seen requesting a cut in interest rates to their monetary authorities, " said Hiroyuki Nakai, investment research manager at Tokai Tokyo Securities.
U.S. retail sales data, industrial output in China and the euro area, the ongoing Spanish banking crisis and possible further monetary policy easing in Japan will all be overshadowed by the Greek elections, said Nomura Securities analysts in a 16 page report on Friday.
Mr. Gross has shifted gears in recent months by buying Treasury bonds, mortgage-backed securities and some other high-quality bonds, essentially a bet the Federal Reserve's monetary stimulus will keep yields low.
It judged that for now, expanding its loans to banks and securities dealers, and broadening the collateral it accepts from banks, addresses the crisis better than looser monetary policy would, though it may yet decide further rate cuts are necessary.
The housing bubble and the promiscuous issuance of exotic junk securities would never have reached the level they did had the Fed not been so recklessly loose in its monetary policy.
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