$2 Trillion Argument - Glenn Beck Find's the Pro's and Con's From the Experts

On Thursday the Feds bought up $1.15 Trillion in Securities... They bet the farm without asking "You"

March 20, 2009 - 12:29 ET

Is the fed's 'bet the house' strategy going to be effective? If not, what happens? Glenn talked about this on TV last night and because it's such a confusing issue, he wanted to present the best arguments on both sides of the issue. Here they are:

PRO Government “Bet the House” Spending Plan arguments

• ‘Rambo Fed’ Will Buy Treasuries to Combat Crisis
  By committing to buy Treasuries and double his purchases of mortgage debt, Federal Reserve Chairman Ben S. Bernanke signaled his determination to avoid a repeat of the Great Depression and his willingness to pump as much cash into the economy as needed to end the current crisis.
• Fed launches bold $1.2T effort to revive economy
  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.
• Fed in Bond-Buying Binge to Spur Growth
  Dramatic Plan to Purchase $300 Billion in Treasurys Causes Biggest Drop in Interest Rates Since '87; Perils of Printing Money

CON Government “Bet the House” Spending Plan arguments

• The Fed End Game
  People are rightly outraged about the AIG bonuses but the amounts involved in that are tiny compared to the size of our problems.
• Dollar Rally Crumbles as Fed Ramps Up Printing Press
  The rally that pushed the dollar to the highest levels since 2006 is in danger of crumbling as the Federal Reserve starts buying Treasuries and ramps up its purchases of mortgage debt, adding to a flood of greenbacks.
• The Fed's Futile Move
  In an effort to promote liquidity and boost the economy, the Federal Reserve announced plans to grow the money supply by another 50 percent to 60 percent.

Source:  GlennBeck.com