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Some More Perspectives On The Global Bailout
Recently we presented our extended thoughts on how it was that the Fed first encouraged massive dollar-denominated, underfunding global positions, and subsequently, when funding became scarce, provided unprecedented capital bailouts to foreign Central Banks. The clip below takes the key theme we introduced and presents some of the political and social implications of this new and accepted doctrine of not just domestic, but global moral hazard, shepherded by the Federal Reserve.
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Tyler, I think they cut you out of this picture of Ben. Looks like you were sitting just to his left...
http://graphics8.nytimes.com/images/blogs/roomfordebate/bernanke.480.1.jpg
Dan Dicker at TheStreet.com actually believes we might have shortages in gasoline in the spring based on what oil is doing... err, the dollar is doing to oil, plus speculators with all their free money.
http://www.fundmymutualfund.com/2009/10/thestreetcom-oil-price-disconnec...
Won't that be a riot? Wait, that might not be the best use of words...
Always wanted to live the late 70s/early 80s as a child. Might just get my chance save the 12% mortgage rates of course.
Don't worry, you will be getting the 12% mortgage rates too, as we need to bribe people more and more to buy our debt.
And $3.50 gas for Christmas, perhaps $4, that should really help people out. Turn a weak Christmas season into a total disaster, is that priced in at 1090?
"Crude oil prices appear to have been divorced from the underlying fundamentals of weak demand, ample supply and high inventories,” DB ... said of oil
Stock Market prices appear to have been divorced from the underlying fundamentals of weak demand, ample supply and high inventories,” ... Thank you DB,BAC,GS,WFC,C
Fuck you congress, bush, obama, treasury, fed, all of you.
I hope the bastards (not you Cheeky) run the price of gas to 5 bucks a gallon. Nothing else seems to piss the sheeple off, maybe that will.
I'm with you on that, Screwball. I got a huge smile on my face yesterday as oil hit the $82 mark.
I've been rooting for a return to $150 myself
it appears the only economics the masses will understand is gasoline economics
sadly this will be blamed on oil executives rather than the snarky guy at the Fed
Getting my "Drill Baby Drill" placards ready... ahem.
agreed...sans placards but holding a pitchfork
Here's what's going to happen.
They'll move it up to 200, then down to 150. And everyone will be happy.
"Thank god the gas is only $150! now like before."
"The new normal"
It's been said that throughout history when civilizations begin to collapse, the people inside are the last to functionally react, by that time the constitutional republic's tools for self determination have evaporated. The patriot act, military commissions act, destruction of habeas corpus ,just a few
where the wild things are......
i wish as many people cared about this issue as actually saw the movie last weekend.
Sorry, lizzy36, but we live in a post-balloon boy world!
Wild Things was a suck ass movie and DO NOT take your kids. Pretty disturbing IMO. Now, the Alex Jones movie Fall of the Republic that the clip above is from - it ROCKS! IMHO of course.
ghost what is the tally on the MBS buys? The giovt will be forcing the dollar up or die trying to squeezxe the commodities - meanwhile talking up the slack etc...
Thecomments by the Head of Bsoton Fed about the dollar going down becasue of a healthy risk seeking behavior returning is beyond pathetic. Is this guy stupid?
The Fed isn't stupid, just corrupt.
These guys keep a running tab of the MBS buys. Scroll down, on the right hand side.
http://www.mortgagenewsdaily.com/mortgage_rates/blog/
941B and counting. About 20B a week. So 15 more weeks, although the Fed claims they will be slowing down (haven't really seen it yet, relative to issuance).
And you know all those treasuries the Fed is buying back? It looks as if they're using the Term Securities Lending Facility (TSLF) to, in essence, monetize the monetized treasuries. The special few can borrow money on Treasuries held by SOMA.
http://www.federalreserve.gov/monetarypolicy/tslf.htm
'The program offers Treasury securities held by the System Open Market Account (SOMA) for loan over a one-month term against other program-eligible general collateral. Securities loans are awarded to primary dealers based on a competitive single-price auction.'
Mr. Durden,
I really enjoy your site--even though your negative slant on things has influenced me a bit to stay in cash and miss a great rally--but when you start using Alex Jones to make your points, you scare me. Alex Jones is an IDIOT, who exploits people's worst fears to make himself popular and make money.
Just let me know...do you also agree with his take on 9/11? Your answer will help me decide how much time I should spend here.
Thanks
Interesting "Frontline" a couple of nights ago, about how the misogynistic Larry Summers, the Rand-addled Greenspan and Robert Rubin (who needs an adjective?) ganged up on Brooksley Born and forced her out of govt. because of her silly insistence on regulating derivatives. First LTCM, now the destruction of the American economy, and essentially the same screwballs have Obama's ear. How much destruction do you have to cause in D.C. to get sent packing?
I looks like the next battle will be Summers - Volkers in the octagon. Volkers will need plenty of help as he wants to break up the big banks. Nate Silver predicts this is the next big issue for southside Barry.
http://www.fivethirtyeight.com/2009/10/issue-that-could-fracture-both-right.html
So apparently yesterday's "collapse" in the last half an hour was just another bear trap. How many people, many of them citizens of the US, is the Gang bankrupting purposefully?
Why bother playing this? The viewers don't relate!
Why is that? Market-minded "libertarians", NO!
Socialists? No!!
The majority of the motley crew still does not see feudalism as where they live. That includes millionaires who think they are above the fray!!
Max Keiser has it right!...the "haves" versus the "have yachts" is just beginning!
It will be very surprising to the "haves" just how fast they become poor.
40muleteam borax
What's Max' citizenship these days?...I say Max for President!
He is smart enough to understand the system and cares enough to rail against it.
Who are these people?
Anyone who posts a documentary that quotes a bunch of talking heads, shouldn't they at least attribute who the hell is talking? The foreboding music, dramatic voiceover, and uncredited talking heads is not very convincing...
But it's all so very DRAMATIC!! I smell an Oscar!
Inflation is like a neutron bomb. Wipes the wealthy, leaves me unscathed (I run an overall net debt, but close to zero).
Let the printing presses run! My physical gold and silver will be untouched.
Epic fail of the world!
These bankers know how to put on a really good dog and pony show!! Ride the bubble(s)!!!!
It's unbelieveable how much time CNBC has wasted talking about pay cuts for Wall St., and how gullible the public is that they think this is an important issue relative to else going on.
OT,
WTF happened to silver after the close?
Think about it from the perspective of a programmer. The market makers are basically bookies, collecting a fee and setting a price to match winners and losers, to maximize volume. In a saturated market, however, they have to put their own money back on the table to induce a return to trading. The more money they put on the table, the better for everyone outside the establishment.
Where it differs from poker is they can shut down the table at any time, and all the money on the table is theirs.(life isn't fair in the short term, but, sooner or later, the law of retribution rears its head)
You can bet any and all tables in any and all casinos, but you can only play each table once, and you must have an exit strategy for each. Always begin with a random portfolio of exit strategies, and don't be the Law Abiding Citizen. Never use the same exit strategy twice.
The programs are designed to track the net winners, and collect them in a behavior pool for later recycling. The key to beating Goliath is to take him to the cliff, for one and only one battle, where you get him to reach into the same bag of tricks one too many times.
The trick to beating a computer is to have it follow you into an infinite loop, then present it with an unexpected input. Goliath's own momentum will take him over the cliff. Of course Goliath will want to turn over the table and start over. Count on it in your exit strategy.
Goliath was presented with an unexpected input when so many of the unwashed masses got out and refused to get back into the "water".
(forgot my tag)
Think about it from the perspective of a programmer. The market makers are basically bookies, collecting a fee and setting a price to match winners and losers, to maximize volume. In a saturated market, however, they have to put their own money back on the table to induce a return to trading. The more money they put on the table, the better for everyone outside the establishment.
Where it differs from poker is they can shut down the table at any time, and all the money on the table is theirs.(life isn't fair in the short term, but, sooner or later, the law of retribution rears its head)
You can bet any and all tables in any and all casinos, but you can only play each table once, and you must have an exit strategy for each. Always begin with a random portfolio of exit strategies, and don't be the Law Abiding Citizen. Never use the same exit strategy twice.
The programs are designed to track the net winners, and collect them in a behavior pool for later recycling. The key to beating Goliath is to take him to the cliff, for one and only one battle, where you get him to reach into the same bag of tricks one too many times.
The trick to beating a computer is to have it follow you into an infinite loop, then present it with an unexpected input. Goliath's own momentum will take him over the cliff. Of course Goliath will want to turn over the table and start over. Count on it in your exit strategy.
OK, so this is called fight club and this may be a topic that has come up at some point but nobody has had the courage to discuss it.
I stumbled across this article from the LA Times that I found to be interesting, and as you all know I am particularly objective and like quotes, information, and facts straight from the source - right from the horses mouth. http://www.latimes.com/news/opinion/commentary/la-oe-stein19-2008dec19,0... An interesting excerpt:
"(I have never been so upset by a poll in my life. Only 22% of Americans now believe "the movie and television industries are pretty much run by Jews," down from nearly 50% in 1964. The Anti-Defamation League, which released the poll results last month, sees in these numbers a victory against stereotyping. Actually, it just shows how dumb America has gotten. Jews totally run Hollywood.)"
Well, this surprised me because for whatever reason I too wasn't let in on the secret (this is not really advertised) and learned that I and my fellow citizens are considered too dumb to know that "the movie and television industries are pretty much run by Jews". Now, before you rush to judgment and call the author ignorant and an anti-semite, please understand that the author is actually Jewish and was taking pride in the fact that his group were leaders - clearly nothing wrong with that and I am not upset by it. He goes on to prove his point by showing in detail all of the important leaders of the movie and television industries. So this is purely an intellectual exercise and your response so far says more about you and less about me, so I hope you can still follow the reasoning.
OK, so the author established that the media and movies are led by his group and they are very influential. This made me curious to see if his group was influential in other areas, and indeed I found that his group is very successful indeed. With 25% of nobel prize winners in the US, 20% of US CEOs, roughly 50% of Vanity Fair most influential lists, somewhere between 20-40% of billionaires, and within the Finance services industry (federal reserve, banking, and key government finance posts) it was closer to the quote in the LA Times. Remember, this group represents 2-3% of the population so it is clear that they are indeed over-achievers.
Next, I ran into a very entertaining article from the Jewish Journal that addressed a hypothesis that Ashkenazi Jewish people have higher IQ's because of genetic traits. It also mentioned that Jewish people are over-represented in a number of fields and this was an attempt to explain their success. http://www.jewishjournal.com/opinion/article/smarty_pants_20090423/
Right now the population is furious with the state of affairs and is trying to understand how we found ourselves in this predicament. I think it is only fair that if a particular group is totally running finance and the media (previous authors stated this) that we ask them. That brings us full circle and why we want to audit the fed, because we asked and they won't tell us. You have heard me talk about the friends of the printing press and wanting to push for more information regarding who received funds overseas from the US treasury (for US citizens).
I believe in diversity, and find many of the most ignorant comments come from those that have never had friends or interacted with people outside of their group. There are a number of possibilities for the over-representation of a group of people, including being the chosen people, having a higher IQ, or even ethnocentrism. The last is my concern, because our founding fathers worked hard to balance power and not concentrate it. I don't believe in crony capitalism, nepotism, connections trumping merit, or discrimination of any kind - I believe in diversity, fairness, and a meritocracy.
The danger is that if you have a free printing press, wouldn't you be tempted to give some to your friends here and overseas if there is no accounting for it - no checks and balances?
I want everyone to understand why it is so important to audit the fed, because a group is giving money to their friends overseas and looting our treasury. You have to ask yourself who owns the central banks around the world (the answer is not all the Jewish people by the way). I think it is important that we talk about real human behavior that impact the real world and get them out in the open for discussion.
The reality is that any successful person that adds value in the economy should be proud of themselves and applauded for their accomplishments - many successful entrepreneurs have made it based on their merit in all groups. My fear is that unsuccessful people will gunnysack envy and then unleash (historically speaking) jealous vigilante action on people that had nothing to do with it - remember many of Madoff's victims were Jewish. There are good and bad people within every group. Good people, don't rush to defend bad people before you know their character.
We should ask the JDL and AIPAC what their position is on RP's audit the fed bill, because there was mistaken support at first for Madoff and they missed a huge ponzi scheme just by dismissing the accusations as anti-whatever. We can't rush to the fed's defense until we know if they are good or bad, by opening their books.
And for any group running the show in these important industries, please show your leadership by committing to a more honest and transparent model in both media and finance, I fear a populist backlash from the dumb americans that are sick of being lied to and stolen from - and I love Jon Stewart's Daily Show, so please don't take it away from me. To whom much is given, much is expected - a few perp walks would help and not just a sacrificial Ken Lewis.
In an international survey, the countries least respected in the world were the US, Israel, and Iran. I would like to see that changed.
missed the macroeconomic outlook?
sharks are cannibalistic.
Would any of you hire Banana Ben as a personal financial adviser? How about Turbo Tim? How about any of them? Strange isn't it? And somehow these guys will determine our future.
Conclusion: We are fuc@ed.
sharks are cannibalistic
"When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
Thanks for sharing, our fouding principles are too often ignored.
I think 99 percent of the world population fits tha category of being under Despotism...US population is being robbed, but we have had it so much better than most others, who have been under the thumb their whole life. We regular folks are all getting screwed by our various regimes in various amounts of economic slavery and political tyranny: US, Russians, Nigerians, Iranians, Tibetans, Chinese, Egyptian, Argentinians, Iraqis, North Koreans, Zimbabweans, we all have parasites sucking away most of our hard work and subverting our democratic rights. Maybe Norwegians have it okay...
the rest of us all need to declare independence...
"But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
To some of the doubters of the video who posted here:you are falling in the trap of the MSM of discussing the messenger instead of the message. The question to discuss should be:is what they are saying is true or a lie?and I think even msm and even congress are not denying those facts. So what difference what Alex Jones or anybody else say or do to make a name(or money for that matter)for themselves?
This is on topic and William Black was featured in the video. This is a good one. I have not read his book, but it is on the TODO list.
http://www.pbs.org/moyers/journal/04032009/watch.html
The real issue is how to bring down this house of cards. Will HrR1207 really do anything to stop this...don't know. It will illuminate the activities of the Fed outside of the Federal Reserve Act, but will it do anything to bring the system down.
As Mellon said, we need to purge the rottenness from the system, and right now there's a rank odor flowing out of DC.
Close a system off, and it will consume itself to death. The greatest empire ever built requires a little time, especially when misguided mom and pops keep feeding the banks.
The history books specifically hide "the secret" that capital must chase talent, or it will become inert. Mom and pops built reserves and sent their kids to college, only to find that they were being liquidated, but they couldn't see through the misdirection, which has evolved over thousands of years. Their kids catch on after being used by the system a few times, opt out, and the parents freak.
Little by little, people are walking out of that cave, and the ones that refuse will be left behind.
As they see when they walk out of the cave, we live in a world of abundance, not one of scarcity. Unfortunately, many are bred to only work on the basis of threats. Self-regulation is going to take a little work.
Fortunately, less than 25% of current human capacity is employed toward a productive end, so the switch-over will not be overly difficult, and human capacity is about to increase by an order of magnitude. Depending on how old you are, your kids or your grandkids will be toolin' around in space before you know it.
TD...don't waste my time with this black helicopter rhetoric. You can do better.
If I want some entertainment I'll go piss on the corner and watch peoples reaction.