The purpose of this post is to explain Operation Twist via a discussion of another innovation from the 60's, namely, the pouf, bouffant or beehive hairdo. While the goal with this hairdo is to puff up the hair, the goal of Operation Twist is to flatten out the yield curve so as to encourage spending and strengthen the dollar.
Here are photos of these similar, iconic hairdos. This is not what the yield curve will look like:
Jackie Kennedy "generously teased bouffant."
Why do you consider Snooki's hairdo a 60's updo? Because obviously, it is a timeless, classic bouffant, nothing more and nothing less.
How can you say Snooki and Jackie Kennedy in the same sentence? Because they are both public people who manage(d) their image and brand extremely well and had teased, puffed up hair.
How can I get this hairdo?
For your reference, here is a handy hair video. I mention this video and not one of thousands of others from youtube, because Channel4Beauty tweeted it at me! They know how to get noticed! I will continue reading their well-organized website and you should too. Thank you Channel4! Also, you can learn a lot from pixiwoos, Samantha and Nic Chapman, who made the video for Channel4 Beauty.
A few final comments of no consequence: This style is much more versatile than you may think, and can be used to add height to any, otherwise flat, style. Also, don't think for a moment puffed up hair is new. I think Snooki would have fit right in with that crowd (quid Romae faciam? Juvenal 3.41-48)
Oh I see. But, what will the FOMC do to flatten out the yield curve? They don't have a straight iron as part of their dual mandate, do they?
That is correct. NPR discussed this in detail. The Fed owns lots of medium-term treasuries, bought during QE1/QE2, that will be coming due in the new three years. They will sell the short-term debt and buy longer term government debt, that is, lengthen the average maturity of its bonds. If you look at this on the yield curve, you'll see the the twist in action (but don't be mislead by that metaphor, historically, this is not where the groovy name comes from!) The spread between the 2 and 10 year yield, flattened, as it did back in the 60's. The goal is to lower interest rates even more to promote spending, strengthen the dollar and to avoid the inflation that comes with just printing money.
To sum up: This maneuver is one form of QE, that does not involve printing money, a stealth QE.
Everyone else on the street and in magazines has straight hair. Should I flatten my hair?
Just because Ben Bernanke does something doesn't mean you should too. Full disclosure: I own both a flat iron and one of these as research instruments. No one should ever flatten their hair. Puffed up hair-done without bumpits or accessories-is more natural looking, does less damage to the hair and generally has a more vibrant, elegant look than strung-out, straight hair. Go back to the '70s!