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Federal Reserve Capital LLC; Ben Bernanke Earning Your 2 and 20 With Daily Short Covering Diligence

Tyler Durden's picture





 

Will someone audit these clowns already please?

From David Rosenberg's piece today:

"When people kid around that the Fed has become another hedge fund now that it is the lender of first, second and last resort — to mention the market-maker for everyone including RVs and mobile homes — it really is no joke at all. See NY Fed in Hiring Spree as Assets Soar. The New York Fed is seeking to bolster its staffing of traders — not research staff, but traders — by nearly 70%!! When will the Fed start hiring investment bankers? That is what we would like to know."

It used to be Loeb and Einhorn scheming and cross-posting on VIC (we jest, the politically correct word here is collaborating). Now it is Bernanke and Blankfein.

 


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Tue, 08/11/2009 - 10:51 | Link to Comment chunkylover42
chunkylover42's picture

Methinks you should apply for a trading gig at the NY Fed, Tyler.  Sometimes the only way to bring something down is from the inside.

Tue, 08/11/2009 - 11:33 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:02 | Link to Comment Anonymous
Tue, 08/11/2009 - 13:11 | Link to Comment VegasBD
VegasBD's picture

Im curious what job you have that affords you all this time? Will you be able to walk away from that job soon because of ZH?

 

Please tell me you make soap. =)

Tue, 08/11/2009 - 11:54 | Link to Comment Bob
Bob's picture

That would be the answer.  But can you find a guy who's both qualified and not for sale (if not already bought) anymore? 

Conscience, adventure and real public service anyone . . . ?

Tue, 08/11/2009 - 15:20 | Link to Comment handsofmoney (not verified)
Tue, 08/11/2009 - 12:36 | Link to Comment Gilgamesh
Gilgamesh's picture

This gig is only for ex-Goldman traders who somehow could not turn a profit of at least $1M per day - since returning a profit on taxpayer money is not an objective of the Fed.

Tue, 08/11/2009 - 10:51 | Link to Comment D.O.D.
D.O.D.'s picture

"Will someone audit these clowns already please?"

Now Tyler, you know the gov't doesn't want to politicize monetary policy, that could be bad for [the Feds'] Business.

Tue, 08/11/2009 - 10:52 | Link to Comment Assetman
Assetman's picture

It sounds like great subject matter for the next round of Congressional hearings:

"Mr Bernanke... why are you primarily hiring traders to support the growth of your institution?  What purpose does it serve?"

 

Tue, 08/11/2009 - 10:56 | Link to Comment JohnKing
JohnKing's picture

That sir, is proprietary.

Tue, 08/11/2009 - 10:58 | Link to Comment Assetman
Assetman's picture

Then, perhaps, we should ask the Russian Mafia. :)

Tue, 08/11/2009 - 11:04 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:59 | Link to Comment D.O.D.
D.O.D.'s picture

Bernanke - "blah blah blah derivatives, blah blah blah banking institutions, blah blah blah strong dollar policy.  Furthermore, blah blah blah consumer and investor confidence, blah blah blah stabilization, blah blah systemic fallout. "

Tue, 08/11/2009 - 22:29 | Link to Comment bbbilly1326
bbbilly1326's picture

u forgot:  "blah blah blah, remember these things are all very complicated".......

Tue, 08/11/2009 - 11:02 | Link to Comment glenlloyd
glenlloyd's picture

I can't speak for others...but i wasn't kidding around about this.

Tue, 08/11/2009 - 11:10 | Link to Comment MinnesotaNice
MinnesotaNice's picture

Maybe the Fed is gearing itself up to be the new competition for Goldman... I read that story earlier today and there are simply no adequate words to describe my feelings... perhaps Cheeky can think of a few words in his usual "cut through the BS style"... we have fallen down the rabbit hole...

Tue, 08/11/2009 - 23:02 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:03 | Link to Comment par4
par4's picture

Any ideas of what to call this economic system?

Tue, 08/11/2009 - 11:08 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:09 | Link to Comment D.O.D.
D.O.D.'s picture

Corporate Feudalism

Tue, 08/11/2009 - 11:09 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:40 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:55 | Link to Comment Anonymous
Tue, 08/11/2009 - 13:41 | Link to Comment Cheeky Bastard
Tue, 08/11/2009 - 15:32 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:09 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:11 | Link to Comment Bob
Bob's picture

No, it  couldn't be any clearer.  Too bad this cancer continues to thrive until the host dies.  And we will die before they release their grip.   

Unless the principled capitalist set (not necessarily an oxymoron) mans up to what's being done in the name of their own beliefs, stops mindlessly waving the flag of American Capitalism, complaining about sharing the wealth on health care and cars for fucking clunkers (the spectre of "socialism"), and confronts the banksters on their own turf, we are divided yet all completely screwed. 

The least we can do is to call them out as the bogus capitalists they are. 

Capitalism is such a potent term.  Why don't we exercise our right to revoke their memberships in this club?

Tue, 08/11/2009 - 11:11 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:22 | Link to Comment Assetman
Assetman's picture

Good point, but I look at the same thing on its side.

Perhaps, we are seeing a test of another sort.  If the equity markets are in "engineered selloff" mode, what is the effect on Treasury yields (and secondarily, the USD)?

It hasn't been tested as of yet, but so far the trade is working pretty good.  Good enough, in fact, to take off QE for a little while.

Maybe.

Tue, 08/11/2009 - 11:17 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:37 | Link to Comment svendthrift
svendthrift's picture

Blah. More insider preference. Capitalism is dead.

Tue, 08/11/2009 - 12:11 | Link to Comment zeropointfield (not verified)
Tue, 08/11/2009 - 12:17 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:36 | Link to Comment Anonymous
Tue, 08/11/2009 - 16:31 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:31 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:26 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:33 | Link to Comment andrew123
andrew123's picture

Tyler, is your last sentence about Loeb and Einhorn cross posting on VIC from credible sources?  I always had the impression that Einhorn was a straight shooter.  Were they sandbagging (pumping positions they wanted to exit) or merely talking about how wonderful each other's ideas were?  I know both alternatives have the same effect of getting the stocks or bond ideas higher, but the former is obviously a lot more objectionable.

Tue, 08/11/2009 - 11:45 | Link to Comment Tyler Durden
Tyler Durden's picture

it was a joke of course. As I have exactly 0 equity interest in Gotham, I have no clue who is behind the ids. Merely meant to indicate how useful a medium like VIC is to intelligent posters (and Bernanke) who may or may not have an interest in the movement of a certain stock.

Tue, 08/11/2009 - 11:54 | Link to Comment andrew123
andrew123's picture

Got it.  I guess I am so jaded at this point that every suggestion of manipulation seems more likely than not to be true.

Tue, 08/11/2009 - 11:35 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:36 | Link to Comment George the baby...
George the baby crusher's picture

Maybe, just maybe, they're getting ready to unload some toxic waste on an unsuspecting public in the middle of a bull run.  No, that couldn't be it.  That would be nasty.  Sorry, edit out my comment please...totally unfounded.

 

I deserve a spanking.

Tue, 08/11/2009 - 11:38 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:40 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:43 | Link to Comment tahoebumsmith
tahoebumsmith's picture

Every traders dream?

The ability to control any givin market in conjuction with printing presses in the back room. Give me a flippin break.

Tue, 08/11/2009 - 12:14 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:33 | Link to Comment texpat
texpat's picture

I am beginning to suspect that Bernanke has always dreamed of running an investment bank.

Tue, 08/11/2009 - 11:59 | Link to Comment Anonymous
Tue, 08/11/2009 - 13:07 | Link to Comment Milton
Milton's picture

 "...banana republic also typically has large wealth inequities, poor infrastructure, poor schools, a "backward" economy, low capital spending, a reliance on foreign capital and money printing, budget deficits, and a weakening currency."

4 out of 5 ain't bad.

Tue, 08/11/2009 - 12:05 | Link to Comment Anonymous
Tue, 08/11/2009 - 20:47 | Link to Comment Hephasteus
Hephasteus's picture

You should watch "The Money Masters". During the attempted indebting portion of the german screw over money was a play toy. Kids would actually take big piles of it and make forts and stuff out of it. It would literally litter the streets.

Tue, 08/11/2009 - 13:27 | Link to Comment Milton
Milton's picture

The Fed should hire Sergey, oh wait, then he'd still be working for Goldman. I guess he wouldn't have to worry about violating a non-complete clause.

Tue, 08/11/2009 - 14:36 | Link to Comment michigan independant
michigan independant's picture

We assumed "forwarded" firewall ad hoc swf for the context that government given is the most unethical people in business are goverment, I will check notes when we observed but it is obvious. It's not that government has lacked information needed to fix the problem. It is institutionally incapable of bringing about the desired result, since the principles of profit and loss, private property and contract, enterprise and entrepreneurship, do not exist in government. Any Government operates with an eye to its own short-term survival, and those of its connected interest groups, and nothing else -mises- . And we are building value in what area to be discerned by end 3qtr.  Really, it would not matter who is in the white house imo overall to debt mining industries and looting the public simply since avarice in any context of time is debased. When will it change? With the voter base walking in circles we can only watch the looters until total collapse now. IMO 

Meanwhile, Uncle ben is trying to get the Kids to set up a bonafide SWF. It really starting to get painful given the scope of the issue we face gentlemen. I wrote my Senator and it was such a waste of time but we taxpayers must bring them so much joy in there cool aid party's up high. Sat May 16, 2009 2:28 am

Tue, 08/11/2009 - 14:28 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

First blush at PPIP and thought that ' the banksters will be able to launder legacy/toxic/crappy assets back to themselves and in doing so they will pump up the value of them'.

Now I'm realizing that's the Federales strategy with their leveraged JV between Fed and the Treasury...  with the dollar as the crappy asset.

Of course the irony through my lens is that cash will be over the near term the best appreciating asset , its' fiscally bubblicious.

Tue, 08/11/2009 - 15:20 | Link to Comment handsofmoney (not verified)
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