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Federal Reserve Balance Sheet Update: Week Of September 16
Stocks may rise and stocks may fall (not likely) but one thing is certain: the Fed's $2.3 trillion balance sheet will never stop growing. Time for the weekly update.
- Securities
held outright: $2,050 billion, an increase of $2.5 billion from the week prior.- Total Treasury holdings increased
from $788 billion to 792 billion, as the Fed bought another $4.5 billion in
USTs as part of QE Lite. The Fed bought more Treasuries in the past week than China ($3 Billion) did in all of July - MBS holdings declined by $1.6 billion to $1.102 trillion.
- Agency holdings were also flat at $156 billion.
- Total Treasury holdings increased
- Net
borrowings: unchanged at
$60 billion. - Float,
liquidity
swaps, Maiden Lane and other assets: $186
billion, an increase of $1 billion. FX liquidity swaps are at $61
million as the same bank that is experiencing a USD funding crisis
continues to have no EURIBOR/LIBOR acces. The "value" of Maiden
Lane I was at $29.0
billion. Maiden Lane II was at $15.8 billion, Maiden Lane III at $23 billion while AIA Aurora was $25.7
billion. - The monetary base was $1.983 trillion (even as M2 jumped once again in the past week. More on this shortly)
- Reserve balances with banks: $1.026 trillion, a decline of $4 billion from the prior week.
- Foreign holdings of USTs and MBS at a new all time high of $3.21 trillion, this was the first decline since May.
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Benny and the Inkjets Bitchez!
nice.
That term is so funny. "Balance sheet", referring to an entity with the ability to counterfeit.
Just imagine my "balance sheet" if I could print money.
That's some serious sheet.
I
God, I wonder what it's like to be that rich. And they do so it so effortlessly, as if out of thin air.
Just keep paying your taxes and all will be okay..well, kinda...we're toast...
imagine you ran , say, $5Billion. Not small but not that big. You collect management fees of what - 50-100 mil. Some years you are up big - ya collect 20% of the gains . Say your pet monket accidentelly pressed the big red button and you acidentally made a 20% return on the fund. You collect 20%X20% which would be 4% on 5Bil. That would be 200 Mil. So that year you made 300 mil total split between say 3 or 4 regular guys . Not to shaby. next year your pet monkey presses the big red button and you lose 80% of the fund's capital. You write a nice memo( Ivy league comes in handy here)- full of irony and wit. Then you either renegotiate the high water marks or shut the sucker down.
Now - you might imagine that a disgraced fund manager whose monkey pressed the big red button at the wrong time - might be - umm disgraced. You would be wrong. Such fund manager can now raise even more capital - due to the wit and wisdom / not to mention world weary irony displayed in his parting leter on the previous episode. now all the Florida State grads who run the pension funds and such - are so smitten they give hime even more money. Such fun. So bizarre.
This is fine as it's not real money... is it???
looks like the inversion of the peak oil fall-off. funny...
http://www.chathamhouse.org.uk/publications/papers/view/-/id/891/
http://www.jfcom.mil/newslink/storyarchive/2010/JOE_2010_o.pdf
Well well if you get out in front of it and front run DO NOT LOOK BACK.
God, I wonder what it's like to be that rich. And they do so it so effortlessly, as if out of thin air. -- SayTabserb
What "The 25 Most Expensive Homes" Reveal About the U.S. Economy (September 15, 2010) | Charles Hugh Smith
"The 25 Most Expensive Homes in Hawaii" reflect an economy based on financial speculation whose wealth is concentrated in a parasitic financial sector.
The glossy Mid-Pacific yuppie advert vehicle Honolulu Magazine recently ran a cover story (the September 2010 issue) of irresistible real-estate pornography titled "The 25 Most Expensive Homes in Hawaii" that unintentionally revealed the true nature of the U.S. economy.
The homes, valued in the $30 million range, were typically located in exclusive coastline enclaves: no big surprises in either the locations or the bubble-economy valuations.
What might surprise anyone who still clings to the quaint belief that America's great wealth is generated from actually producing goods or services of global value is who owns the vast majority of these villas: investment bankers and hedge fund managers.
A grand total of three of the 25 made their wealth in technology--software, computers, etc. One Japanese multinational (Toyota) made the list (unsurprising, considering Hawaii's decades-long appeal to wealthy Japanese), as did one Japanese female whose source of wealth wasn't identified. There was one artistic outlier, and the rest were all financial parasites: investment bankers, hedge fund managers or other denizens of the speculative FIRE (finance, real estate, insurance) economy which has come to dominate profits and wealth accumulation in the U.S.
In years past, the list would probably have been dominated by people who made fortunes in energy, technology or some innovative business with global reach. While it is likely that robber-barons would have been heavily represented in The Gilded Age (1880s-1890s), at least the businesses represented--railroads, mining, trade, etc.--offered widespread benefits in the real economy to citizens in the form of jobs and new goods, resource and services.
Financial parasites, in contrast, skim fortunes from the real economy. Hedge funds are restricted to the top 2% or so of U.S. households, so the gains skimmed from manipulation and speculation act to further concentrate the already high concentrations of wealth in the U.S.
While it can be argued that "financial services" creates jobs just like technology, railroads, etc., the entire industry is fundamentally parasitic in nature: the credit- real estate bubble revealed that its widely-heralded "innovations" were essentially embezzlements and frauds taken mainstream.
As millions of now-underwater homeowners discovered, the "wealth" created by highly leveraged, debt-based speculative "innovations" was illusory except for the billions of dollars of commissions and fees generated by the churn and stripmining of assets on a global scale.
Beneath the bogus propaganda of "free market capitalism" is an economy in which the real money is skimmed day in and day out without risk or benefit to the real economy. Investment banks generate profits of $100 million a day without interference of mere probability, which would suggest an occasional losing day.
Vast industries practice a highly-refined type of crony capitalism which can be characterized as "Federalized entrepreneurship," in which a revolving-door between captured regulators and goverment managers and private cartels insure a highly profitable "partnership" channels profits to the National Security State contractors, the sickcare cartels (insurance, pharmaceuticals, etc.) and other industries dependent on Federal largesse.
At the top of this foul heap of phony capitalism--in effect, a partnership of the State, a monopoly with exclusive power to collect trillions in taxes and borrow trillions more, and corporate cartels which act as monopoly-capital in their industry--rests the ultimate parasites of the financial "industry": producing nothing but skimmed profits for the Plutocracy and its loyal army of high-caste technocrats, enforcers and factotums.
The $30 million estates in Hawaii are second or third homes. My sources on the Kona Coast report that the Kona airport is congested with private jets, and recent buyers of $10 million+ homes along the Kona Coast of the Big Island are simply adding the homes to their private portfolios of homes to enjoy a few weeks out of the year.
Beneath the real-estate pornography of bloated McMansion estates lies the ugly subtext of what the list reveals about the nature of wealth creation and concentration in the hollowed-out, credit-dependent, financial-speculation dominated U.S. economy.
Those touting the regenerative powers of U.S. "innovation" and the U.S. economy should ponder who can afford $30 million third homes, and what their great wealth has added to the citizenry of the U.S.
If you drive around these enclaves, what you find is a modern Plantation economy of the sort I have described in Survival+ and in previous entries: an economy fundamentally based on extraction and the domination of the State-corporate partnership.
http://www.oftwominds.com/blogsept10/most-expensive-homes09-10.html
If its the same Japanese female - heh heh - I CAN identify the source of her wealth.
EDIT:
FIRE (Finance, Insurance, Real Estate,)
FIRE (finance, real estate, insurance)
are you done? good. crawl back into your cave.
You just got to see this
http://video.yahoo.com/network/101149635?v=8244494&l=5144241
Incredible.....
Thanks for the link!
Yes the village chieftain has the biggest Yap Stone. Its as big as the moon. Ordinary mortals cannot see it - its deep at the bottom of the ocean. Now sleep children - the chieftain is very rich and will take care of us . Hush little baby.
LIGHT!
THE JESTER
http://williambanzai7.blogspot.com/2010/09/market-jester.html
If laughter is the best medicine, I'd recommend a BANZAI7 a day to keep the doc away. And, BANZAI, if ever you introduce a deck of Wall Street Crapitalism playing cards, The Market Jester has got to be the fool trump. It’ll make a million!!
Chart: ES
Stocks may fall: http://www.screencast.com/t/OTI0MjRhY
The problem is that fund managers are paid fees as a percent of assets. Why?? Is a country's prime minister paid as a percent of GDP? I mean why??
Fund managers should be paid based on performance - unrelated to the size of assets. then there will be justice. It should be like - OK you get a base salary of 100K if you perform in line with money market rates. And you get a % raise on that 100K based on your performance. Then we'll see whos laughing. these guys are the most ourageos example of a world that is truly mad. And they are nt that smart- not even their monkeys.
a pimply faced 20 something hedgie who , say, buys $/yen or some such and gets lucky - is an instant multi-millionnaire.
If he guesses wrong he is merely upper class - making say 300K/yr.
This is all made possible because the weenies who are in charge of big pools of money - like state pension funds - dont care . Actually - I retract that statement - they do cae - about getting box seats at the superbowl and things like that. They are the problem. Not the hedgies. the hedgies are merely clever litle buggers who scam the pension weenies.
And i think that Fannie and Freddie are not on the balance sheet because the FED claims conservatorship of 79.9 %. If it was 80 % by law they would have to add them. But as we can see that debt service is served.
And what about all the off balance transactions via central banks and the IMF? Take that 2.3 T and triple it! They control every market and can do as they fricken please. One little problem though, the people are finally on to the sum bitchez and will bring them down. What we are witnessing today is the same as someone driving home and seeing their house on fire. Run in and get what you fucking can before the whole thing comes crashing down!
Which is "the same bank that is experiencing a USD funding crisis [and] continues to have no EURIBOR/LIBOR acces" ??
Presumably, it's one of the seven that failed the (fake) stress tests:
ATEBank (Greece), Hypo (Germany), or one of the five Spanish bad boys: Unnim, Diada, Espiga, Banca Civica, Cajasur.
Anybody know for certain?
Powerful information in these posts, primefool, frankTHECOIN and tahoebumsmith!
All need to know is 1) we’re ruled by crooks, and 2) they’re going to lie to protect their situations.
In addition, Arthur Laffer points out that state, local and federal government spending consumes 38 percent of the GDP; federal spending alone is 27 percent. And “Total Public Debt Outstanding" is now approximately 93% of annual GDP.
The mixed conflicting market signals return. It reminds me of periods in 2007/2008 during the market uncertainty and dislocation in addition to market intervention or rumours of market intervention (like the QE chatter now).
http://stockmarket618.wordpress.com
I found lots of interesting information here. I love zerohedge.
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