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Disclosure Of The Fed's Primary Dealer Credit Facility Warehousing Of Worthless Collateral Goes Mainstream
Ten days ago we penned "How Lehman, With The Fed's Complicity, Created Another Illegal Precedent In Abusing The Primary Dealer Credit Facility" in which we described in minute detail how the Fed agreed to collateralize borrowings in its Primary Dealer Credit Facility, basically lending facility of last resort, with paper that other rational parties, when engaged at arms-length negotiations, qualified as "bottom of the barrel" and "junk." Today, thanks to Ryan Grim, this topic finally gets a much broader mainstream exposure. As we have long argued, the collateral backing most if not every form of liquidity provisioning, not only by the Federal Reserve of the US, but by Central Banks globally, is likely totally and utterly worthless, which implies that the US taxpayer is on the hook for trillions of dollars should there be another risk flaring episode (which is an inevitability as the entire financial system is based on a house of corrupt cards), and all the collateral is exposed for the worthless garbage it is. In the meantime, the money the banks get by pledging worthless assets to the Fed is used to stage short squeezes in various equities, to gun the Dow to 36,000 in a straight line, and to keep the Treasury curve at its record steepness, thereby hoping to stimulate inflation so that bank balance sheets can be absolved of the 20% by some estimates of bad loans that still exist on bank books, and which make the entire US banking system insolvent in its current state. All this is happening with Ben Bernanke's blessing, which would be considered an act of treason... if only there was some way to confirm these virtual certainties. Which, of course, there isn't, as the Fed will first self-destruct before it opens up its book to the general public.
The key point from Ryan Grim's Huffington Post piece:
Without an audit, the Fed is able to conceal the specifics of what
it holds on its balance sheet. If the Lehman deal is any indication,
the Fed is hiding billions of dollars in toxic loans on its books."The Fed legally is forbidden from taking such assets. There's a
legal requirement that the Fed's assets be investment grade," Rep. Alan
Grayson (D-Fla.) told HuffPost. Grayson, who is the cosponsor of the
Grayson-Paul Audit the Fed measure that passed the House, said the
Lehman scandal shows precisely why such an audit is needed."The net result of this is we know the Fed knowingly bought assets
for more than they were worth -- substantially more than they were
worth -- and actually created a market for garbage that Lehman was more
than happy to push on the Fed because they regarded the public as the
suckers of last resort," said Grayson.
»
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Like any of this matters anymore.......
They could nuke New York and the market would rally on the news.
The stock market is no more. When was the last time anyone contemplated buying or selling a stock on Graham and Dodd fundamentals? Can you imagine what it would be like to be an equity analyst today?
Well, I did sell some (read ALL) stock last Friday. I just wonder about the poor dumb bastard that bought it (it's probably fine, though, likely just an algo). I'm out of the US markets permanently, and wouldn't consider a foreign market unless I planned on moving. Too much uncertainty, and too many things not making sense. I'm 100% long gold, silver, food, guns, and ammo.
Attaboy, Mosley!
Gold, guns, and gardens.
Not necessarily in that order.
Put some radishes in yesterday, more in about a week. Beans and peas soon (frost...). Anyone got favorite tomatoes?
Sure! I have put out Rutgers, Campbells, African Togo, Beefsteak, Roma, and Tommy Toe.
Wish me luck.
What zone are you in, and how do the Roma's turn out for you?
The market will rally on bad news, good news, and no news. And then the axe will fall, and turkey will be served for Thanksgiving dinner.
That's right "nolonger"...some asshat would come on a CNBS affiliate - look at the mushroom cloud and declare "Oh, this is BULLISH. BUY COPPERTONE! buy, buy, buy!!!!!"
The criminals are firmly in charge. It is a continuous irritation to me, as a saver, to get bassically zero interest on my savings while the greedy pigs get bailed out. Of course, I could put my money into the ponzi stock market (which is exactly what they want me to do). What a racket.
And nobody listened to Al Capone...
Even the casino guys weigh in on the racket.
" If the government is playing a straight game, then I'm Mary Poppins. "
----Steve Wynn
I am just waiting until they open the fed window to all US citizens. I am going to mark my house as a billion dollar asset.
I am a 100-trillionaire though, so even a billion dollars doesn't mean much to me.
(OT- Chrome didn't recognize the word "trillionaire" yet. I went ahead and added "quadrillionaire" while I was at it.)
Might want to add quintillionaire while you're at it. That will probably start getting annoying pretty fast.
collateral elligibility list: CLOs, not-meant-to-be-marketed CLOs, trader's used sandwich wraps, fast food coupons, toilet papers (wet and dry) ...
www.RevokeTheFed.comMarch 2008
WHEREAS, Article I, Section 8 of the Constitution of the United States of America authorizes Congress "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures";
WHEREAS, on December 23rd, 1913 the US Congress enacted the Federal Reserve System;
WHEREAS, the Federal Reserve System is considered an independent agency within the federal government, with oversight of Congress and containing appointed public officials on its board of directors;
WHEREAS, the Federal Reserve System Controls the Federal Reserve Note, the official currency of the great nation of the United States of America;
WHEREAS, there may be controversies regarding the legality and constitutionality of the Federal Reserve System, it is recognized that the said system has operated continuously as the central banking system of the United States since the inception of the Federal Reserve Act of 1913;
WHEREAS, the Constitution of the United States of America granted Congress the authority to create the current Federal Reserve System, it also does grant Congress the authority to modify or revoke the Federal Reserve System;
WHEREAS, the actions of the Fedreral Reserve System represent the credit and currency of the United Stated of America to the citizens of this great nation and to the world;
WHEREAS, the Federal Reserve System, acting independently within the federal government allowed, supported, and even promoted parasitical and non-productive uses of the money and credit of the United States of America;
WHEREAS, the United States and likely the entire world's financial system is undergoing massive de-leveraging of the said parasitical and non-productive uses of the credit and money of the United States of America (as well as other nations' currencies);
WHEREAS, the US dollar, the "Federal Reserve Note" is declining in value due to these parasitical activites, as well as potentially other causes;
WHEREAS, it is recognized that the citizens of the United States and other nations did willingly participate at some level in the creation and propogation of said parasitical activities;
WHEREAS, it is also recognized that the United States of America, a sovereign nation, has the legal, moral, and God given authority to take actions to benefit its citizens and to protect its good name, credit and money in times of difficulty;
WHEREAS, it is recognized that the current time is such a time of great difficulty;
WHEREAS, it is recognized the parasitical financial institutions and their activities are at odds with citizens of the United States of America and the good credit and money thereof;
WHEREAS, the current indications are that the Federal Reserve System is acting to preserve the financial system currently flooded with the parasitical activities;
WHEREAS, the current indications are that the neither the Federal Reserve System, nor the Congress of the United States, nor the people of the United States have access to the books of the institutions being preserved by the Federal Reserve, and therefor the degree of inter-connectivity and risk associated with the institutions and other entities cannot be determined;
WHEREAS, the Federal Reserve System is accepting non-performing assets as collateral for credit with ultimate taxpayer responibility to entities not under its legislative mandate;
IT MUST BE CONCLUDED, that the Federal Reserve System is not acting to the benefit of the people of the United States of America, its credit, money, and good name;
WHEREAS, it is recognized that the political will and capability of the government of the United States of America may not be up to the task of prosecuting this proclamation ; It is also recognized that this may be the only hope for the continued survival of the United States of America as the great nation as it has historically existed.
NOW THEREFORE, it is PROCLAIMED by those supporting this Proclamation that the Congress of the United States of America FULLY NATIONALIZE the Federal Reserve System, and take full control of the credit and money of our great nation; The Congress must take whatever action necessary to seperate out, sequester, disown, or otherwise neutralize the effect of the parasitical financial activities which led to the current crisis; The Congress of the United States of America must reorganize, replace, or terminate the Federal Reserve System as appropriate; or otherwise devise a system for creation of the national currency.
IT IS FURTHER PROCLAIMED, that the Congress of the United States of America in cooperation with the Executive of the United States of America contact allied nations and any other nation willing to participate in the overhaul of the failing and parastical financial sytem currently in operation and create new treaties and alliances as necessary to create a sane and productive system of finance with the express goal of supporting a productive national, and by extension and through voluntary cooperation, world economy;
FURTHERMORE, it is PROCLAIMED that it should be the goal of such an international effort to maintain fair international trading practices allowing for protection in national interest of labor, resources, and productive capabilities;
WHEREAS, it is recognized that such a move on the part of the United States of America may result in the necessity of an isolationist policy IF the other developed nations do not follow our lead; If such occurs, so be it.
SO HELP US GOD!
Tomorrows headlines today:
US Treasury Auction Fails - Dollar Collapses, Stocks Soar
Goldman calls for 36,000 Dow by Friday.
Can't tha Squid and tha Dancing Hippos just buy tha treasuries with vapor money...unlimited reserves?
Thanks, Cpt Obvious.
Like I wasn't sayin this back when they opened the facility.
Tried to get people to open their eyes...that the IBs were not swapping AAA paper, it was garbage, CDO squared shit and mezz tranche and things BUILT to go to zero.
Shit, most commentators are still acting as if these were real mortgages! THEY WERE THE FUCKING TRANCHES THAT THE BANKS COULDN'T MOVE QUICKLY once the music stopped. That's what got stuck in their conduits!
95% of the reporters, commentators, and posters on financial sites like this DO NOT understand structured finance nor synthetic debt.
How much is a super senior tranche composed of a bunch of equity tranches worth? It's AAA!!!
How are you Trav? You can say it many, many times and most will still not understand what you are saying. Even here at ZH with a higher level of understanding than the general population (no offense to anyone).
As for the masses, in my experience once it gets too unbelievable for people, they freeze up and "can't imagine" those in charge would take assets worth nothing and give them cash for it. But those same people have blank stares at the term QE, think the Fed is part of congress and that congress can order the fed to print, or stop them from printing. They do not understand the magnitude of the wealth transfer TO the cabal that is wall street. But I will say this, to those bastard banksters who giggle at $50 billion evaporating at LEH and think the masses are peeons that are so far beneath them, my preference is to see them at the guillotine.
Not only do we here at ZH "get it," we said early and often. This is not news here, but it remains unknown to most.
You see anything changing the IB's support of the treasuries?
The first time I read a description of the composition of CDO squared products I laughed so hard I couldn't see. mezz = 75% AAA. It's magic!
Oh but it gets WORSE.
Ask me about synthetic debt sometime.
If you look at them the right way, CDSs look like reverse bonds except without any capital. Any payment stream can be securitized.
People out there have no clue wtf has been going on to drive credit growth...even the big fin bloggers like Douchinger and Mish couldn't connect the dots. I ghostwrote a post on TF and he locked it in "Gold" and then cribbed it for a ticker lol
At the core of these AAA rated instruments is shit of literally zero worth, by design. How much is a mezz tranche of synthetic debt worth if the underliers hit trigger? They sold QUADRILLIONS of this shit under the assumption that nothing would ever trigger.
Debtmoney demands it...if the real economy cannot drive credit growth due to resource peaks, make up an economy
I think this was explained quite clearly last week: In Dodd We Trust
http://www.thedailyshow.com/watch/wed-march-17-2010/in-dodd-we-trust
I think it was explained quite clearly over 175 years ago...
http://en.wikipedia.org/wiki/The_Emperor's_New_Clothes
much interesting material here. Hmmm....
(1) Fed is extra-corporate US, so officers can not be accused of treason.
(2) If you wish to cry "Constitution" until you are blue in the face I hope you enjoy the aerobic workout as that is all that will get you. It has no force for you, you are not "We The People" (the signers, who protected their thieving asses with it, are.)
(3) As far as stocks going to the moon, read Economics of Inflation by Costantino Bressciani-Turroni, in which he discusses the Weimar Inflation. Stocks were one of the later asset classes to be repudiated and followed the money supply quite well until the stampede and repudiation. Of course the almighty dollar was still backed by specie at that time and was the (cough cough) gold standard. Entire blocks of Berlin were purchased at the height of the inflation for a single ounce of gold.
yes, unfortunately. the guillotine for the banksters.
http://www.biblebelievers.org.au/przion1.htm
Seriously, please stop that.
Slightly dated---but you get the picture....boy, they hate FACTS.
Here are the five members of the Federal Reserve Board of Governors:
Benjamin S. Bernanke - Jewish
Donald L. Kohn - Jewish
Kevin M. Warsh - Jewish
Randall S. Kroszner - Jewish
Frederic S. Mishkin - Jewish
FRB of Boston: Eric S. Rosengren - Jewish
FRB of New York: Timothy F. Geithner - Jewish
FRB of Philadelphia: Charles I. Plosser - Jewish
FRB of Richmond: Jeffrey M. Lacker - Jewish
FRB of St. Louis: James B. Bullard - Jewish
FRB of Minneapolis: Gary H. Stern - Jewish
FRB of Kansas City: Thomas M. Hoenig - Jewish
FRB of Dallas: Richard W. Fisher - Jewish
FRB of San Francisco: Janet L. Yellen - Jewish
FRB of Cleveland: Sandra Pianalto - gentile
FRB of Atlanta: Dennis P. Lockhart - gentile
FRB of Chicago: Charles L. Evans - gentile
Go ahead and flag as junk.....for posting FACTS.
I take it you don't know many jews Johnny. If you did, you would know that all of us get our "World Domination" card in a black enveloppe at our bat/bar mitzvah. It's essentially like the Amex black card, except there is no limit on it, and you never have to pay it back. It's awesome...
Get a clue; the money changers ruling class, even if a lot of them are jewish, don't give a rat's ass about judaism. They only care about one thing; M-O-N-E-Y.
I have been to a few of those Mitzvas actually.....Ed Walder's and Andy Eisenberg's....and also a few weddings where they break a glass in a napkin for some reason!
I guess the question is, when will the real Jews turn on the Prentenders that give them a bad name?
We won't. It's an insider's club that happens to be jewish, not the other way around. See Faustian Bargain's reply below. The rest of "us" common folks (the non F.U. money people) don't get to sit at the big boys' table, whether we happen to be jewish, christian, black, or female. Same old tried and true "conquer & divide" ruling class tactics. You do know about confirmation bias yes?
Next time you're at one of those "Mitzvas," look for that black envelope! That might be your in to the club without having to do all the work required from the "Mitzvas'" process.
I think we all are on the same side...it's just the wrong one!
Disclosure: Raised Catholic...now a Truthist.
You do absolutely nothing for your case by reductio ad absurdum.
There is ethnic nepotism everywhere. This isn't about a religion, it's about an ethnicity.
As I said below, this level of concentrated ethnic homogeneity in an industry renowned for fraud, scams, and economic destruction is very dangerous.
I guess diversity is only for anglo saxons.
It's ok to have only jewish voices in finance and jewish voices in media production, right? Don't question the orthodoxy.
Very well said Trav.
"As I said below, this level of concentrated ethnic homogeneity in an industry renowned for fraud, scams, and economic destruction is very dangerous."
Very true. And the destruction is far from over which means the danger is increasing.
Speaking of logical fallacies, you seem to be confusing cause and effect. Yes, there are many jews in high finance posts. It certainly doesn't mean that jew=master overlord. That association is one that I personally find very dangerous
jeez. Selective facts can be as misleading as outright lies.
All but two of those are men...? I wonder what their hair color is?
What did their parents do? Where did they grow up?
What year were they born? What month? (see M.Gladwell for the potential significance of this.)
What schools did they go to? What fraternities? What majors? What social clubs? What sports teams?
Where did they work?
Who did they know?
And yes, how does the culture of their upbringing (including jewish culture) affect their choices in life? Maybe the answer says more about the jewish work ethic and 'networking' than it does about some implied jewish conspiracy they may or may not be a party to.
Maybe they're all CFR, or Trilateral. That would be more meaningful to know than that they're all but 3 jewish.
Go down the list of the 5 major Hollywood Studios. Or the CEOs of the major banks.
I mean, you'd have to be idiotic to not find this preponderance of semites at the pinnacle of finance to be "mildly" coincidental.
No conspiracy, just concert of likeminded actors and clan nepotism. Any other ethnic group and someone would file an EEOC lawsuit.
And, you need to look into some history...founders of the BOE, Fed, the Weimar bankers...basically the banking clan since the 1600s has been not just predominantly but nearly exclusively jewish. And you find nothing but ACCORD here that this institution is evil and fraudulent. But as soon as someone points out "anomalies" in the ethnic composition of this kleptocratic bunch, the apoplexy reigns.
All these "banksters" people are railing against? You get another weimar and it leads in one direction. People aren't intelligent enough to understand that "all A are B" does not imply the converse. How many middle class lives need get destroyed in currency games and banking scams over the centuries before trouble erupts? There will be no consolation for scapegoats caught up looking too much like real culprits.
This level of ethnic homogeneity in an industry noted for fraud, scams, and the destruction of entire nations' finances is very dangerous.
Paulson a Roman Catholic I believe. Plutocracies are equal opportunity employers.
You do realize, he's outnumbered just in GS execs by jews like 100-1, right?
You guys would claim the Klan wasn't racist if they had one token mexican with a sheet on
http://100777.com/book/export/html/1071 this is what we're dealing with. not a bible thumper, or a racist, just a curious and avid reader. It's not the race, or religeon, but the caliber of character, that makes these individuals incompatible, with decent folk.
I don't mind if you want to discuss the homogeneity of the ruling class. It is very homogeneous, and that's just how they like it. We can discuss that topic as rational adults. What I objected to above is delacroix's posting of the protocols of the elders of zion. That is a crock of s%*^. I'm sure the Russians didn't have any ulterior motives in publishing this "information." Read the history behind the pogroms; it might just give you a different perspective.
First, i am Jewish and happily raised mostly orthodox. If i may, look at how many of them also hold Israel passports. This also includes many members of high government congress, etc). Like Congress said to Kashkari during questioning, it is not that Americans doubt they are working hard, it is who they are working for. Does the name Rothschild ring any bells?
Time to wake up and realize who the puppet masters are. It saddens me to know high treason is happening daily in America and they own the money, the financials, the politicians, mainstream media...
All your bases are belong to us.
Time to fight back is now.
**********************
NATIONAL STRIKE
April 15 to April 18TH
Tell Everyone You Know
POST THIS ON EVERY DISCUSSION BOARD
www.taxfree15.com
+++ Also ++++
Join The Civil Revolution
Watch and FWD THIS LINK
www.REVOLTstartsNOW.com
**********************
Matt Taibbi's latest:
The Big Takeover The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolutionBRILLIANT!
http://www.rollingstone.com/politics/story/26793903/the_big_takeover/1
Moneylaundering f*cks.
Uh check your date. That was 2009. Deja Vu all over again.
FED UP:
http://williambanzai7.blogspot.com/2010/03/blog-post_6165.html
Tyler is a phenomenon.
http://incogman.wordpress.com/2008/01/04/tikkun-olam-just-the-ticket-to-...
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