Fed Undertakes QE3 with $40 Billion Monthly Mortgage Backed Securities Assignment

Fed Undertakes QE3 with $40 Billion Monthly Mortgage Backed Securities Purchase - Assignment Example My understanding is that the essay seeks to address the purchase of mortgage securities by the Fed; therefore the reason behind this purchase should come out before how the purchase was undertaken. The economic meltdown should first be explained, followed by the initial two quantitative easing programs and finally the QE3. The effects of the QE3 should then be addressed thereafter. The reasons behind the failure of the previous two QEs should also be stated so that the factors that led to the undertaking of the QE3 can be clearly illustrated. The essay should be a roadmap leading the reader to an inevitable conclusion, not properly ordering your ideas could obscure the meaning of the essay. After reading the essay, one can clearly see the efforts of the Fed in jump starting the economy after the economic downturn and that these efforts seem to be finally working. The paper however leaves one with the question of whether the Fed’s undertaking will work in the long run. Although the program has proved to be fruitful since its announcement, the QE3’s limitations and misgivings should also be included in the essay. In this aspect, the paper does not seem to be complete, as the aftermath of the program, both in the short term and long term, is an area that could be expanded upon. Although the essay is persuasive as it is detailed, the source of the information is not given, which brings about doubt as to the accuracy of this information due to the lack of evidence. The works cited during the writing of the paper should be stated at the end of the