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Kansas, Dallas Feds Request 25 bps Discount Rate Hike, As 10 Other Feds Prefer Status Quo
According to the just released minutes from the April 4 and 25 discount rate meetings, two Feds: the Dallas and Kansas City Feds, continued to request an increase in the discount rate by 25 bps from the current 0.75 bps. As a reminder the discount rate was first (and last) hiked back in February 2010, when the Fed, wrongly tried to telegraph the all clear on the economy, which was then hoped to have entered a virtuous cycle, only for everyone to realize it had only entered the conclusive phase of QE1. Since then it has held constant at 0.75 bps, even as it continues to be purely a formality, with just a few million dollars borrowed at the discount window by various banks who wish to avoid the Discount Window stigmata. Therefore, instead of actually determining interest on existing last ditch overnight liquidity requirements, any move in the Discount Rate would instead simply put more confusion on the path the Fed has set off on with regard to tightening/loosening. In other words, despite all the posturing by ever more Fed presidents, just two Feds are willing to put even one metaphoric cent where their mouth is.
More from Stone McCarthy:
At both the April meetings, "No sentiment was expressed in favor of considering the primary credit rate, and the existing rate was maintained."
In the Board of Governor deliberations on April 25, it was noted that, "most directors recommended that the current accommodative stance of monetary policy be maintained." However, those who wanted the 25 basis point increase continue to press the point that it would "move toward normalization of the primary credit rate in light of current and anticipated economic conditions."
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Kansas has the super highway from Mexcio to Canada.. the corridor where real estate has held its value and foreclosures are next to nill..
Use google, the facts are all there from .gov sites.
Yeah and I've also read that they're walling off huge stretches of it (you can't get off) and using CCTV to keep that all seeing eye on you.
Henry Kissinger soto voice:
Welkom to the New Vorld Order, Amerikans!
BTW, their CIA puppet president in Colombia (Uribe) as one of his last acts in office granted a no bid contract for building a superhighway through the densest jungles in the region which just happens to be in the inhospitable border region between Panama and Colombia. IOW, they're establishing the last link of the Panamerican Highway. They know the Russians, Chinese and Iranians have effective anti-aircraft carrier weapons technology being mass produced right now.
Fuck you, topcallingtroll and the other idiot with the China peeing kid avatar.
so now we can drive to Brazil? AWSUMZ
Who do, who do ya think yer foolin'?
http://www.youtube.com/watch?v=qA-yk4k14V0
that was a time machine! a nice one! Thanks!
What a joke, I am reminded of what Mark Faber said: "Bring on QE12, 13, 14 ... the Fed has to continue printing."
And by the way, did you know that Black social activist and university professor Cornel West calls out Obama as being a part of the oligarchy and challenges Americans to rise up like people in Europe and the Middle East are doing. Read here:
http://redpillfactory.blogspot.com/2011/05/cornel-west-calls-out-obama.html
Just what America Needs! More Koch Brothers Owned Government! The Tea party is a FUCKING JOKE!
I call out Cornell West as an idiot for his 365black mentality.
He needs to get real about the actual challenges facing his people.
Reminds me of the late 1990's when Fleck was documenting the madness in "Mania Chronicles".
Basically, the market shrugged off any and all rate hikes by Alan Greenspan.
Still true today.
A freaking shoe retailer like DSW is up 17% today, after rocketing from $8 to $45 in 2 years, and now tacking on another $7 today.
Yep, the consumer could care less about rate hikes. She's already paying 18% anyway, what harm is a 200 bp. rise in the Fed Funds rate going to do?
Nothing.
Exactly. Who gives a fuck?
Hilarious.
Multiple hedge funds are clamoring for the carcass of WaMu in order to get $5 billion in tax breaks....
LOL...
http://www.marketwatch.com/story/bankrupt-bank-to-become-giant-tax-break...
RobotTrader, the man behind the avatar
http://www.youtube.com/watch?v=ubpwmCai93g
You posted two comments, one right after the other, within a minute.
Trying to junk-whore, I guess.
A whole 25 bps, oh you HAWKS you!
But the U.S. Government and Team Obama/PlaceHolder got their evil oil speculators (hint, don't look for JPM or GS anywhere in the thick plot)!!!!!!!!
LMFAO
US Commodity Regulator Sues Oil TradersIt's a balloon, ready aim fire.....fizzzzzz
It would be great to ease from here till the econ turns. maybe my parents could actually get some interest $ to eat on
You know what interest is? It's someone ELSE's borrowing.
If your parents want yields, they are going to have to look outside of debt.
Good point, actually. You can't make money on money in terms of investing. While the Fed and others are manipulating the rates to favor borrowers (like virtually all Western governments) grandma and pa and all the retirement funds cannot safely grow their investments. They cannot throw off enough money to prevent eating into the principle. To me, that's the understated side of this artificial zero interest rate policy. You used to think about getting about a 5% safe return on money to fund a retirement. Not today. It's actually negative when factoring inflation.
"You're gonna hear a big sucking sound of savings going south !"....Monedas 2011 Hoarders get laid more on average ! http://trololololololololololo.com/
Yeah those evil speculators...wait until the kingdom quits taking $$$ who to blame then?
Here is the Worldwide economy and the view from the Fed - http://www.youtube.com/watch?v=azV5bC2br-Q
The Fed is simply looking back to the path that the economy has already traveled, like the rear facing camera of this video. Meanwhile the economy, like this train, is heading straight into a tornado. Everything seems fine as the train/economy passes into the abyss until it's not.
Bernanklecide's parents ALMOST gave him that as his middle name.
Ben Bernanke, the Great Man, Economist, Modeler & All Around Brilliant Guy"...with just a few million dollars borrowed at the discount window by various banks who wish to avoid the Discount Window stigmata."
Tyler - Are Discount Window borrowings public knowledge? I thought banks could borrow from the Discount Window without anyone knowing. Does the Fed disclose Discount Window borrowing on a regular basis, or does it only disclose that data when forced to by a lawsuit?
Normally a (commercial) bank will borrow overnight from others if they have a reserve shortfall. The agreed upon interest rate is usually at or near the intended fed funds rate. When one bank can't persuade others to lend to it overnight, it ends up at the lender of last resort, Fed's discount window. The Fed also being their regulator, this tends to raise all sorts of warning flags about the institution.
Are KC and Dallas stoned? WHAT improvement in economic conditions?
WTF metrics are these idiots smoking?
They perform the role of the pseudo-opposition on the fed board.
http://www.window.state.tx.us/taxinfo/salestax/
http://www.google.com/publicdata/home
http://www.socialsecurity.gov/cgi-bin/ops_series.cgi
That's Kansas CITY fed, not kansas.
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