"My companies I keep long term and close to my heart".
Well, the main idea behind these bond purchases is to keep long term interest rates low.
By buying bonds, particularly mortgage bonds, the Fed has tried to keep long term interest rates low to spur housing activity and encourage investors to spend, rather than save, their money.
Why not invest in something that you'll keep long term and can be a "multi use" item?
And note during World War II, the Fed was entirely accommodative, much like the the Fed is today, buying Treasury securities to keep long term rates low.
More recently Darren's storylines have seen him form a relationship with Nancy Hayton Jessica Foxx) that "came out of nowhere" but was kept long term as the pairing was popular with the serial's audience.
This stability is vital in attracting the business and international investment that delivers growth and jobs, and which keeps long-term interest rates low.
But as Mr. Rubin and Mr. Summers could have told you, the prospect of long-run fiscal irresponsibility keeps long-term interest rates high.
The Fed's bond purchases have helped keep long-term mortgage and other rates low.
The action is intended to keep long-term interest rates down and to stimulate borrowing.
Central banks' strenuous efforts to keep long-term interest rates low are depressing bond trading.
