This page has been archived and commenting is disabled.
20 Questions For Ben Bernanke
- Agency MBS
- Alan Greenspan
- Ben Bernanke
- Ben Bernanke
- China
- CPI
- Crude
- Equity Markets
- EuroDollar
- Federal Reserve
- Maiden Lane I
- Main Street
- Mark To Market
- Monetary Policy
- Monetization
- New York Fed
- notional value
- Open Market Operations
- Permanent Open Market Operations
- POMO
- Recession
- recovery
- San Francisco Fed
- Unemployment
A game of 20 questions with the Fed Chairman...
1. The rescue packages in 2008-2009 were all aimed at restoring CONFIDENCE to the financial system. Yet from 2001 to 2011 the DXY is down 41.5 and gold is up 473%. Does this not equate to a loss of confidence in the US monetary system? If not how would you explain this phenomena?
2. In March of 2009 you said the ONLY reason you care about Wall Street is because of the affect it has on Main Street. You wanted to become Fed Chairmen to make things better "for the average person". You have been Chairmen since 2006, do you believe you have accomplished your goal? And if so how?
3. In March of 2009 you stated that "many mistakes were made leading up to the crisis of 2008", chief amongst them was "enormous amounts of savings has flowed into the United States, and some other industrial countries. That savings has come from China and East Asia. It's come from oil producers. And it has-- and hundreds of billions of dollars, it has come into our financial system. And, you know, that would be great if we took that money and invested it wisely, and got a high return. But instead, our financial system-- didn't-- didn't do a good job" What has changed since you made that statement? Is money being invested wisely.....getting a high return?
4. You believe that confidence in the financial system, is one of the most if not the most important aspect in creating a lasting recovery. Yet 2 years after the recession ended and the banks have been stabilized, the recovery remains tenuous at best. Could this be because "average people" do not trust a regulatory system that did NOT hold banks and the people therein accountable for their bad/fraudulent behavior leading up to the financial crisis of 2008?
5. What do you consider to be the mandates of the Federal Reserve? Is the "wealth effect" not the 3rd mandate of the federal reserve?
6. You have stated that you believe high food and fuel prices to be transitory. Can you define transitory? And define what you believe to be a return to normalcy for food and fuel prices.
7. In March of 2009 you stated that for QE1 the Fed was printing money. However, you have stated that QE2 is not printing money. Can you define the difference?
8. The recession has been over for 2 years. Yet job gains have been anemic. Why do you think this is? And how long until Americans will see a more normalized unemployment rate?
9. The disclosed portfolio of Maiden Lane I assets includes various eurodollar and interest rate swaps indicative of hedging. Does the Federal Reserve hedge its broader $2.7 trillion SOMA Balance Sheet? And if so how? If not, why not?
10. Has the Federal Reserve ever invested in domestic or international equity markets? If so, which Wall Street broker does the Fed use to conduct equity market interventions?
11. In the June 2003 FOMC Transcript Vince Reinhart disclosed that the Fed had sold derivatives on instruments held by the Fed's balance sheet: "the Desk sold options on RPs for the weeks around the century date change that totaled nearly $0.5 trillion of notional value." Has the Fed since then engaged in selling of derivatives on RPs or any other Fed assets? If so, which Wall Street institution does the Fed use as a broker to transact through?
12. The president recently announced that he will pursue oil "speculators" blaming them for the nearly 50% jump in Crude. Yet a simple correlation shows that broad commodity indices correlate nearly 100% with the size of the Fed's assets. In light of this do you side with the president and blame speculators for the surge in energy prices, or believe this is some collusive cabal acting independent of the surge in free liquidity?
13. A quick look at your most recent balance sheet indicates that "Other Federal Reserve Assets" hit an all time high of $125.6 billion in the week ended April 20. Can you provide a break down of what these "assets" consist of?
14. A prevailing theme of over 80% of recent Permanent Open Market Operations has been the prompt refunding of Primary Dealer "On The Run" (just auctioned off) Treasurys back to the New York Fed, with the Fed purchasing up to over the old SOMA limit of any given CUSIP within a month of auction. Can you explain how this is substantially different from outright monetization of up to a third of any given issue? Can you also explain and quantify what the economic benefits to the Primary Dealers are from participating in such a process? Does the Fed keep track of how much in Mark To Market gains and losses are incurred by taxpayers as a result of the POMO reverse dutch auction? How much money have Primary Dealers made by "flipping" bonds from the Treasury back to the Fed?
15. At the time QE2 is over, the Fed's balance sheet will be just over $2.8 trillion. The DV01 on that amount of holdings will be about $1.5 billion, or in other words a 1% rise in interest rates will be three times greater than the Fed's total capital of $52.6 billion as of April 20. Does the Fed only have a capital buffer for a 33 bps rise in rates? What happens if rates increase by more? What is the basis by which the Fed's total capital account is calculated?
16. As a result of rising interest rates, the principal repayments of agency MBS and agency debt (the mandate of QE "Lite") have ground to a halt. In fact, in the most recent POMO schedule, the QE Lite component was a QE2 low $17 billion. If rates continue to rise (an indication of QE2's failure according to some) the QE Lite mandate will be rendered irrelevant. Does the Fed model for what interest level will end the process of principal repayments on its agency portfolio?
17. The Fed is expected to continue the QE2 Lite mandate of keeping the size of its balance sheet constant, which means rolling maturing Treasurys. As of April 20, the Fed held $119 billion in Treasurys maturing in under a year. Assuming the full amount is "rolled" this is roughly one fifth of the full amount of of Treasurys to be purchased under QE2. If so, will replacement Treasurys be purchased in the open market and what maturities will the Fed be focusing on?
18. Recently the San Francisco Fed compared QE 2 to 1961's Operation Twist whose purpose was to halt the exodus of gold as an interest rate arbitrage vehicle from the US to Europe. Is the Fed conserned that gold is once again being transferred offshore? Does the Fed have a "fair value" estimate for what the price of gold should be under the Fed's current view of the economy?
19. The Fed focuses on CPI to inform its decision about the prevailing rate of inflation in the US. In the US, food and energy components of CPI are deminimis, accounting for under 20% of the overall inflation gauge. Other countries, particularly China whose currency is pegged to the dollar, and whose monetary policy has a major impact on the US as well, have a CPI where food and energy account for nearly half the overall inflation metric. Is it this discrepancy that the Fed will attribute the paradox of China tightening rates (and having done so for nearly half a year now) while the US continues to rely on a ZIRP policy and is still loosening via daily POMO operations? At what point will the Fed consider this parallel tightening and loosening for the world's two largest economies, whose currencies are pegged, problematic?
20. In prior FOMC transcripts, Alan Greenspan indicated that gold had historically been used by the FOMC to gauge inflation expectations. Is it still used in that capacity, and if so what does it tell the Fed about where the market believes inflation is headed?
21. Bonus question: Per Frank-Dodd, the Fed is now regulator of all banks. Yet banks are still allowed to circumvent Mark To Market accounting. How comfortable is the Fed that the financial information provided it by the MTM-exempt institutions is credible, the institutions are actually risk-free, and that the Fed is conducting prudent monetary policy in the absence of real time financial data?
22. Bonus Bonus question: the Fed's primary market-valued liability: the USD has plunged to multi year lows. Yet the Fed's primary market-valued asset: Treasury bills continue to trade in a range and as recently as some months back traded at all multi year highs. To what do you attribute this fundamental mispricing?
h/t Lizzie363
»
- 37537 reads
- Printer-friendly version
- Send to friend
- advertisements -
Q23: How did you get .gov domain while you claim you are independent?
1) The rescue packages helped a lot. It's basically only a 10 point drop from '07. Think of how much worse it would if we hadn't done that.
2) The average person is now much more likely to qualify for foodstamps.
3) Maybe it's not being invested that much more wisely, but we're doing our best to ensure it's getting a better nominal return. As long as people are investing in what we prefer.
4) Nah. Most people don't listen to anything I say anyway.
5) Man-date? I'm sorry, this isn't the forum for that sort of question.
6) Long cycles take a long time to correct. After a 40 year boom-period, we can optimistically expect a 20 year return to normalcy. It's taken a long time to achieve America's current obesity level--it'll take awhile to reverse it as well.
7) "Printing money" is not an adequately descriptive phrase for the process of ...uh...confident that it's fully reversible...uh...blah blah blah.
8) Unemployment is falling despite what you claim is "anemic" job creation. Retirement, imprisonment, and emigration will help resolve the unemployment issues, and we believe structural changes in the economic system may result in more Americans beginning to enjoy a life of leisure, thanks to the QE-engendered wealth effect and other trends.
9) I'm sorry, the sponsors say we're out of time.
USD is at all times lows Asia trading, meaning = Will keep buying until the US implodes and Asia implodes.
my (google)ads just switched from silver/gold to china etfs.. wtf? money?
If I was the biggest criminal in the world (making Madoff seem like a school yard punk) I would be asking myself, where in the world am I going to hide myself where the victims can't find me and how much for 24/7 protection in that country - THAT's the question I'd be asking myself Bennie boy.
Maybe think about (1) plastic surgery if you choose to run, or (2) the honorable way the Japanese take when they have fucked up; seppuku.
In addition to a gold watch, upon retirement he gets a suite in some luxury bunker in the middle of the City of London.
What is your DXY tar/get Mr. Bernanke? Coming from a Hawk to a Dove. Timmay is looking like a snack to this Hawk right now. All Plump and Marinated in QE sauce!
forget Bernake (for the moment) Shanghai B-share stocks fell 6.65%! An index that also has a large weighted of foreign owned shares. Something is up in China.
Yep! Corruption. Broken Bullet trains, and ghost cites. Book cooking that would draw envy from the GAO! Oh wait they(PBOC) got their training from the GAO.
One question Ben: http://www.youtube.com/watch?v=qPE7evFnwMg&feature=related
Kaddafi’s song…
Aren’t we a pair?
Me here at last on the ground,
You in mid-air.
Send in the tanks.
Isn't it bliss?
Don't you approve?
One who keeps tearing around,
One who can't move.
Where are the tanks?
Send in the tanks.
Just when I'd stopped revolution at the door,
Making my entrance again with my usual flair,
Sure of my lines,
No one is there.
Don't you love farce?
My fault I fear.
I thought that you'd want what I want.
Sorry, my dear.
But where are the tanks?
Quick, send in the tanks.
Don't bother, they're here.
Isn't it rich?
Isn't it queer,
Losing my timing this late
In my career?
And where are the tanks?
There ought to be tanks.
Well, maybe next year.
Mr. Bernanke, what exactly is the secret to the Fed's delicious iPad Casserole? Mine always seems bitter and too expensive.
Enjoy. the link should work. http://www.presidentsusa.net/campaignslogans.html
Or google it, it's really Funny!
European banks are struggling with Q1 profits. Need higher interest rates.
@ 1.4700 the euro is ugly. When Hyundai guarantees buybacks, that makes me SHIT my SHORTS!
Why is the CEO, CFO, et al at the TBTF's, exempt from crime and punishment laws?
Tea Leaf Pickers Required To Be Virgins & Have C-Cup Breasts
http://www.chinasmack.com/2011/pictures/tea-leaf-pickers-required-to-be-virgins-have-c-cup-breasts.html
Chinese Pig Farm On Landfill, Pigs Fed With Garbage
http://www.chinasmack.com/2011/pictures/chinese-pig-farm-on-landfill-pigs-fed-with-garbage.html#comments
“Beef Extract” Additive Used To Change Pork Into “Beef”
http://www.chinasmack.com/2011/pictures/beef-extract-additive-used-to-change-pork-into-beef.html
ben is a ho workin for chief pimp Rothschilds and queen biatch of UK who actually made the usa think they won the revolution but enslaved us with debt slavery with banking ever since.
Sun Tzu in "The Art of War' says the master general wins battle without fight but by using mind control to let the sheep think they free when they slaves to debt.
Damn China man was a smartt dude.
USD is on a big time bid!!!!!!!!!!!!!!!!!!!!!!!!!!!! UPDATE 10:00 G.M.T. GBP slammed the EURO into the dirt! Well done!
My question would be: When the Tarp was paid off why was the Money received not used to pay off the Debt it created. Instead of expanding the FEDs balance sheet.
Same with QE1 and 2. Why was the interest and the Money from the runoff of the assets purchased by the FED not applied to the outstanding National Debt. Why was that Money indirectly given the Banks.
Now the FEDs balance sheet has been bloated from all of the Debt created for the FED to buy assets, why cannot the FED either sell some of those assets and use the Money to pay down the Debt. How about all of the interest and money received from the Mortgages bought being used to pay down the Debt.
It is like Americans have had a loan that has been paid off yet they still owe the Debt as the Bank fails to release the lein. Just like the Tarp was paid off yet we still owe the Debt for the Tarp.
Bernocchio's nose will grow today like a chi-pet on miracle grow. If I was helicopter Ben, I'd call in sick today. Maybe he could call Tax Cheat-Timmy to fill in for him. That would be a nice substitute.
One Simple Question!!
How will the Fed fund the Govt. Fiscal Deficit, assuming of course, the limit is raised??
That deficit is runnning at about 120 Billion per month, and whatever is not bought by domestic and international outside sources must be made up by the Fed??
All occurring in an environment of a devaluing dollar.
Can someone explain??
I honestly see no reason in asking a criminal about their actions or why they did it. It's like asking someone who stuck up a liquor store why they killed the clerk. It's not going to bring life back to the clerk. Asking Bernanke about why he killed the economy isn't going to bring it back either.
Deer-in-the-Headlights question: Some in economics circles are speculating that the economy is once again beginning to contract, after 3 trillion in liquidity, tarp, cash-for-clunkers, first time home buyers tax credits, GM and Chrysler bailouts, zero percent from the FED interest rates and a collapsed dollar against all major currencies, what do you propose the Obama Administration do now to stimulate the economy?
Deer-in-the-Headlights question 2: Ford Motor Company posted its best quarter in almost 12 years while GM and Chrysler have lagged far behind and now some say may even cost tax payers billions in lost money for loans to them should the govt. sell its stock in GM, in hind-sight, would it have been better to leave these companies, as well as the banks and hedge funds, to fend for themselves?
Again, when GM stock is sold why is that Money not being used to pay down the Debt. What about all of the Stock and Warrants the FED got with all of the Banks. Why was that Money not used to pay down the Debt?
Why does the FED put the Financial Burden of all of its activities on the backs of Tax Payers yet when there is a gain they do not reduce those burdens by applying the proceeds directly against the Debt created to facilitate these efforts?
Should these questions stay on top today, I think we'll cross the 1,000 thread barrier. You go ZH!
The fed is already discussing the management of financial economic repression, now they have the right guy to sell it, they only need to figure out the media format and the proper dosage to the American sheeple so they don't get to stirred up about the gooberment heisting there hard earned savings in the IRA and 401-k. Banks and other Investment companies will be required to purchase Treasury securities with sheeple savings in order to keep the Fed alive and keep the sheeple in daily gruel. They will tell you that their is no other way, don't believe it, their is, give the Fed it's Pink Slip today. It is called "financial economic repression" and it is what the Fed is attempting to structure right this very minute in order to keep there big charade going long enough to usher in the NWO.
FINANCIAL ECONOMIC REPRESSION coming soon to an AMERICA near you
http://www.youtube.com/watch?v=HB5gfFG25BY
At some point, the decline in USD has to end. I believe Bernanke’s speech tomorrow will be read as bullish for the USD.
http://www.hedgefundlive.com/blog/eurusd-analysis-bernanke-effect-on-equities
"At some point, the decline in USD has to end."
Actually the FRN has to end.
RIP: US dollar.
RIP: Bernanke.
RIP: FederalReserve.
RIP: FederalGovernment.
The Yen, and Japan, raising cash to pay for the reconstruction of the country, is already on the path of Yen appreciation and will be assisted in their efforts by the other central banks. By acting in a co-ordinated fashion they will begin to reverse the worldwide race to the bottom.
car loans
compound annual inflation rate, the appropriate term to measure this year over year inflation measurement? This level of inflation will make it difficult for people to properly value the products they buy relative to the products value in silver.. A value buying guide might be a useful tool going forward.
cheapest car insurance
"[T]here are known knowns; there are things we know we know.
We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns – the ones we don't know we don't know."
Spider Mite Spray
The Yen, and Japan, raising cash to pay for the reconstruction of the country, is already on the path of Yen appreciation and will be assisted in their efforts by the other central banks. By acting in a co-ordinated fashion they will begin to reverse the worldwide race to the bottom.
florida home insurance
Yo, Benjamin, dude...now i'm not tryin' to be funny now with y'all but we all know it's all about da benjamin's...an' ur da biggest, baddest, benny o' dem all...
Find a Dentist
Geithner or Obama can answer them. The puppets will do and say only what their masters want them to do or say. Nothing more nothing less.
rattan patio furniture
Could you explain how this is not perjury since the answer you gave was from very clear concise questioning?
personal loans for people with bad credit
Has the Federal Reserve ever invested in domestic or international equity markets?
payday loans