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Political & Elections -> Political & Elections - 2014 -> Federal Reserve to "Come Clean" or "Cover Up"?
Post Info TOPIC: Federal Reserve to "Come Clean" or "Cover Up"?
Abyss


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Date: Dec 2, 2010
RE: Federal Reserve to "Come Clean" or "Cover Up"?
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longprime wrote:

Payne says< I don't see how the American populace can't be anything but extremely livid at this.>


80% of American populace own nothing of real value. Never did. Those 19.5% who lent money to the 80% should be livid that they got scammed from the 0.5%.
Pareto's Principle.

 


Guess I have to disagree. I'd say ~50% of our population have positive net worths. A positive net worth of 20K puts you in a very high percentile for the global population.

We might not have **** - we just have more than everyone else.

 



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Abyss


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Date: Dec 2, 2010
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BigG wrote:

All that cash and effort for foreigners and almost nothing for American families being evicted.

"Moral hazard", its just for the "little people".



What do you mean? Basically brand new houses are dirt cheap.

It's not like these new homes are built in Rhodesia. They're built right here. We're the ones that ended up with the final goods!

-- Edited by Abyss on Thursday 2nd of December 2010 12:49:56 AM

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Abyss


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longprime wrote:
The bonds could have been sold to China, et al.  Then they could have owned the home you live in and own the various US Governments entities. If you rent, your risk is even more exposed to the market.

-- Edited by longprime on Wednesday 1st of December 2010 06:35:35 PM

 


That's actually the great thing about having the physical property on your land. Except, of course, that we could just take back anything they "own" that's on US soil. It's pretty easy.

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Cardinal Fang


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Date: Dec 1, 2010
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There's a whole lot less to this than meets the eye. Normal healthy American companies, like McDonalds, and normal healthy foreign central banks, and normal healthy foreign companies with American offices, need to borrow dollars short term, to do things like pay the person who serves you your hamburger, pay insurance claims to Americans, pay the rent for American buildings. That is, to pay for normal business expenses.

In the usual course of things, they borrow from money market funds. But the money market funds weren't lending money, because of a run on money markets. So there was no money available in the credit markets for normal companies doing business. Should McDonald's not be able to pay its rent just because money markets had trouble?

No. So for a limited time, the Fed lent money short term in place of the broken credit markets. As they should have. This is not sinister, it is not a giveaway to foreign or domestic companies, and it didn't cost us money. Just because the credit markets are broken doesn't mean healthy businesses which had done nothing wrong should fail. It's like having a policeman direct traffic if signals are broken-- that's not a special government favor to UPS, it's just the government appropriately stepping in when there's an emergency.

(The mortgage-backed securities are a different matter.)


-- Edited by Cardinal Fang on Wednesday 1st of December 2010 09:04:34 PM

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BigG


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You know, I gotta wonder if there is "real cash" anymore.

When the FED just waves a magic wand and the stuff appears, how real can it be?

Can't raise funds by selling bonds, no one is buying. That's why the FED has to "print" money.

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longprime


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Thinking about it a bit more
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Payne says< I don't see how the American populace can't be anything but extremely livid at this.>

80% of American populace own nothing of real value. Never did. Those 19.5% who lent money to the 80% should be livid that they got scammed from the 0.5%.
Pareto's Principle.


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longprime


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""Moral hazard", its just for the "little people". "
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I have learned my lesson.

Never, ever, loan $$$$ to the little people either directly or indirectly through the financial market place.

a few tens of thousands of real cash, makes one real leery,


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longprime


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Federal Reserve to "Come Clean" or "Cover Up"?
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Payne said, "The Fed bought ~500B+ mortgage bonds (based on US mortgages) at overvalued prices from these banks (in fact this was the entire purpose of the 1.1T+ MBS program). This is effectively giving Fed money to foreign corporations. I don't see how the American populace can't be anything but extremely livid at this."

The bonds could have been sold to China, et al.  Then they could have owned the home you live in and own the various US Governments entities. If you rent, your risk is even more exposed to the market.


-- Edited by longprime on Wednesday 1st of December 2010 06:35:35 PM

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BigG


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All that cash and effort for foreigners and almost nothing for American families being evicted.

"Moral hazard", its just for the "little people".



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longprime


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Payne says< I don't see how the American populace can't be anything but extremely livid at this.>

Just think, If the foreign firms, banks, and governments failed or if USA loaned the $$$$ and they failed, Capitalist USA could have virtually own Iceland, Denmark, England, Scotland, and Ireland, and a bunch of other countries. USA created a bunch of crap, a SCAM, a bona fide PYRAMID-They bought it with out doing the sniff test and got what they deserved.  USA made a mistake in lending too much, to where these entities could recover.

I guess USA is too nice.

evileye


-- Edited by longprime on Wednesday 1st of December 2010 05:55:02 PM

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Abyss


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Date: Dec 1, 2010
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longprime wrote:

Try this link.


Even PIMCO, Calpers, Fidelity, etc

got first of many quarter MF statements, equity and income
10 year average annual total returns =3.07%
5 year .37%
1 year 0.55 %

SS looks good
evileye

 


I'm not sure this commercial paper issue is that bad. As that was merely a liquidity situation.

The Fed bought ~500B+ mortgage bonds (based on US mortgages) at overvalued prices from these banks (in fact this was the entire purpose of the 1.1T+ MBS program). This is effectively giving Fed money to foreign corporations. I don't see how the American populace can't be anything but extremely livid at this.

 



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longprime


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Date: Dec 1, 2010
Close it was, Very close.
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Try this link.

Even PIMCO, Calpers, Fidelity, etc

got first of many quarter MF statements, equity and income
10 year average annual total returns =3.07%
5 year .37%
1 year 0.55 %

SS looks good
evileye


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Abyss


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Date: Dec 1, 2010
RE: Federal Reserve to "Come Clean" or "Cover Up"?
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BigG wrote:

http://www.huffingtonpost.com/2010/12/01/fed-opens-books-revealing_n_790529.html

The Fed reluctantly admitted that foreign banks were the biggest beneficiaries of their largesse.


That is bull****. I can't believe we spent 500B+ propping up foreign banks.

 



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BigG


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Date: Dec 1, 2010
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http://www.huffingtonpost.com/2010/12/01/fed-opens-books-revealing_n_790529.html

The Fed reluctantly admitted that foreign banks were the biggest beneficiaries of their largesse. 

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BigG


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Date: Dec 1, 2010
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http://blogs.wsj.com/economics/2010/11/30/fed-to-release-details-on-lending-programs-wednesday/

Should be interesting to see who benefits from our grandchildrens' debt slavery.

I bet this gets delayed or blocked or they just plain lie.

-- Edited by BigG on Wednesday 1st of December 2010 06:47:33 AM

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