THE Federal Reserve Thread pt 1 (merged)

[3aidlillahi]

Notify me when they start bringing guns.

[roccman]

Complete and utter waste of time.

We voted in a democratic congress because they said they would end the wars...well they did not.

Karl Denninger needs to include PO in his efforts if he wants to be effective.

But hey - these folks can actually think they did something when actually all they were pissing about was the fact they are losing boats loads of money trading this bear market.

I would guess some of those that showed up are the same ones on TF that say the greenies are to blame for oil, the rest of the world is gonna get it worse and , "how come we have not bombed Iran yet? Dam ragheads !!"...

Uh huh.

[Micki]

I applaude the initiative. Hope they have the stamina to continue and invite more people to participate.
Even the vietnam war protests started of small and fringe but eventually gathered good momentum.
I for one can't understand people who suggest we all just lie down and die (Roccman, I am disappointed. What happened? You used to be cool....)

Wash DC protesters (very large)

[oliviaharis]

Fed officials, with a few vocal exceptions, have stuck to their forecast calling for inflationary pressures to moderate as the economy slumps. Wages, a key linkage in any inflation spiral, have remained stagnant.
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oliviaharis
auto auctions

[Cashmere]

Linky Link

And raised the debt ceiling for institutions.

Unbelievable.

Essentially, the Fed is going to take any old crap as collateral in exchange for Treasuries.

It's like you walk up with a load of crap, dump it, and get a handful of gold in return.

This, to me, signals the end game is under way.

There are only 2 paths after this move . . .

1. Credit markets stabilize over the next 18 months, a few institutions fail, and banks slowly work their way back into the black, repaying the borrowed treasuries and restoring the Fed's balance sheet in the process.

2. Credit markets continue to tighten, many institutions fail, and a point is reached at which a complete or near complete nationalization of the banking sector occurs, whether that nationalization is called as it properly exists or is called by some euphemism.

Odds of 1 -

1 in 1,000.

Odds of 2 -

Well I said there were two paths, so 999/1,000.

I'm personally looking for a the government of the USSA to take over banks, either through "loans", "capital injections", "bond/loan guarantees", and so on within 12 months.


The only prayer for reviving the banks is reviving the housing market, which seems, to me, impossible; there are so many people under water and so few people who would be qualified to buy at any price near where the markets are at today.

[DantesPeak]

Essentially, the Fed is going to take any old crap as collateral in exchange for Treasuries.

It's like you walk up with a load of crap, dump it, and get a handful of gold in return.

This is just an expansion of the rules which allowed the banks/brokers to dump other crap since late last year.

They started with mortgage backed securities, then a $30 billion grab bag of unknown Bear Stearns' assets that no one wanted, and now this.

Essentially you go to the Fed with a bag of garbage, and they give you some nice gold plated US government debt certificates in return. Then you can sell the US securities if you want.

They said you have to take back the garbage eventually, but so far, no one has. I wonder why? [/sarcasm]

[smallpoxgirl]

So basically the federal government is making long plays in financial stocks on behalf of us citizens. Fantastic. Smooth move Ben. Just what I wanted for Christmas. 1000 shares of worthless financial stock and a gigantic tax bill.

[jdmartin]

It's a fucking bloodbath out there. What a mess. Maybe the whole point is to try and get the worst of the bad stuff out this weekend? Where's WaMu, anyway?

[smallpoxgirl]

Where's WaMu, anyway?

Just another skeleton in the closet.

[Cashmere]

So basically the federal government is making long plays in financial stocks on behalf of us citizens. Fantastic. Smooth move Ben. Just what I wanted for Christmas. 1000 shares of worthless financial stock and a gigantic tax bill.

Technically, as I'm sure you know SPG, the Fed is a private bank.

But of course, just like the Fed can't let big banks X, Y, and Z fail, the U.S.S.A govt. can't let the Fed fail.

In the end, it's going to be about the "full faith and credit"


of


you

and

me.

[Eli]

If foreign banks look at what the fed is doing and realize that they are accepting stok in exchange for treasuries, they will run from them and start dumping them.

Without foreign buyers of US debt they game is over and the US heads into full on mega financial collapse.

Go long guns, ammo and food, this going to get interesting.

[DantesPeak]

If foreign banks look at what the fed is doing and realize that they are accepting stok in exchange for treasuries, they will run from them and start dumping them.

Without foreign buyers of US debt they game is over and the US heads into full on mega financial collapse.

Go long guns, ammo and food, this going to get interesting.

This time, the Fed may have tried to cross a bridge too far.

The Fed will be under attack tommorow morning if this backfires. They may never regain credibility.

Even though I am a pessimist and discussed a dollar collapse for four years here, it's not something I look forward to happening anytime soon.

[Eli]

The dollar is already taking a dirt nap tonight .

Euro dollar was at 1.38 now at 1.48 and rising, dollar collapse imminent.

Watch a video where Roubinni said JPM, Goldman and all the rest were going down as in would either fail or be taken over.

The Fed may have finally pushed things too far.

[ReverseEngineer]

If foreign banks look at what the fed is doing and realize that they are accepting stok in exchange for treasuries, they will run from them and start dumping them.

Without foreign buyers of US debt they game is over and the US heads into full on mega financial collapse.

Go long guns, ammo and food, this going to get interesting.

Who could NOT se this is what the Ben & Henry show has been doing ever since Bear Stearns? Its obviously the back door into socialism, except in this case the Gooberment gets stuck with all the worthless assets while the few remaining standing banks hold whatever good ones are left.

Issue being of course, about NO assets are worth anything if people don't have money to buy the products. Fundamentally, most of the things we thought had value no longer really do, they are obsolete, they are dinosaurs. Suburban homes, SUVs, your collection of DVDs, all basically worthless junk.

All the paper out there signifying wealth and property ownership HAS to go up in smoke, because the real value behind it went up in smoke already.

It will be interesting to see how it plays itself out though.

Reverse Engineer

[heroineworshipper]

Housing prices have continued to double in most areas even as your government races to keep up with the asset prices from 2006. Small houses in Palo Alto are now $1.74 million. Interestingly, your government had $200 billion in "short term auctions" last week. With the frequency doubled, it's now $400 billion, backed by no collateral at all.

[Delphis]

Thought a refresher course on the Fed might be prudent based on recent events: link

Could it be possible that the Fed bailout business model has been revamped as a Fed Cartel buyout with a blank check from the FRB?
Hold on, it;s going to be a bumpy ride!

[Polemic]

A: To mislead people.

[Jotapay]

It's a huge racket to fleece the American citizenry.

[Carlhole]

It's just a name.

[mlit]

Because they are part owners (the valuable part)