The Golden Truth: Operation Twist? What The Hell Is That?

``In a "twist" on the methodology used by the earlier Fed, which sold short term Treasuries and bought long term Treasuries, I'm surmising that the Fed this time around will try to pull down interest rates and flatten the curve solely by buying the longer paper. I say this because it already has in place a zero-interest short term rate policy thru 2013, and thus I do not expect the Fed to be unloading short term paper. You will hear some fancy lingo like "increase the duration" of the Fed's Treasury portfolio, which simply means the Fed is letting the shorter term holdings mature and it's rolling that money into intermediate/long Treasuries.''