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What Will The Fed Buy Next?
Submitted by Tyler Durden on 11/13/2010 14:46 -0400
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Agreed, and I strongly doubt the Fed wants to swallow that elephant unless implementing fully funded fiscal policy.
The tea party GOP in the House will not be able to stomach a state bailout authorization. So it will have to come from the Fed. It will. But it will be debt, not the grant that Congressional authorization would be.
These people are all delusional. They are all "hold on until we get back to normal." They can't accept that this is forever. It's never going back to what it was. Ever.
Oh really...Have you been living in a cave? Bernanke said fuck dollars, the next stimulus he will be dropping free barrels of oil from his choppa.
/sarc
The markets are beginning to price Berskanke into irrelevance, the one trick pony show has been over for a while now.
MUNIS are getting there ass handed to them...
What is a "there ass" ?
is it anything like a "their arse" ?
An Ass is like a Donkey right?
Or is it one of those especially stupid words that people use, because they don't wont to use the real word ???
You know, like saying Heaven-O, because you can't say Hell-o.
And we wonder why stupidity, ignorance and doublespeak is rampant in the financial industry.
Its a pure reflection of society.
one way to overcome our voting down the local taxes is to simply make them federal further centralizing the power
I agree on muni's, can't have defaults on the state level.
BTW - Can someone loan me (not give) a billion or two? I promise to pay taxes, interest, and put some people to work taking care of me.
Muni's heres why
http://www.bespokeinvest.com/thinkbig/2010/11/12/municipal-bonds-get-crushed.html
And the Wathchamajigger Program ("Huh?") expires in January or some time in the first quarter. That's the one where the federal gubamint was forwarding funds to the states to pay for federally mandated programs that the states were supposed to pay for but couldn't so they were just gonna not pay anything so the matching federal grants would likewise disappear and since the feds didn't want the program to cease, they advanced the funds to the states and the states are supposed to pay it back, but can't.
(Really. Honest. I don't remember which program it was what with all the acronyms and all, so for the sake of this exposition, we'll just refer to it as the Huh? program.)
And so once Huh? expires, then the states'll be on the hook for some outrageous humongoloid knob, which they can't pay, so the federalies could, for example, start buying (ah-hem, say 30 year deals) muni bonds to monetize the muni deficits just like they're doing with treasuries.
BUT
As per "them", the ubiquitous "they" (the Fed) they're not really monetizing the debt, because they're not buying it from the treasury, but from primary dealers who buy it from the treasury.
(Oh, now I understand. We let Wall Street in the middle to front run the Fed's buying program, taking taxpayer money to make money off of taxpayer debt that they could of bought directly from Treasury anyway, that Wall Street makes huge money off of.... Oh never fucking mind.)
So, by buying the Muni-o-s (figure for Wall Street it's sorta like eating free candy, the delicious, non-carbonated, alcohol free, nutritious, natural and organic as the linen the deniro's printed upon "Mini-o-s") they'll go through Wall Street again.
And have you folks got Any Fucking Idea of the Bid Ask Spread in the Muni Market?
Fucking Humongous.
So, once again, everybody who counts'll be happier than a frog's butt-hole in warm mud which John Q.Public gets to pay for, because the Feds didn't want to stop the program which they mandated that....
And Wall Street Makes a Killing Off the Public, Again.
Same Time, Same Bat-Channel.
Who ever said Pay to Play had been eliminated?
Agreed. It's a backdoor bailout to the local level, which Obama couldn't get through Congress normally, as I've mentioned before. But honestly, Bernake will pass out cash to everyone except the poor and middle class. No pulse required.
TD: why is "unicorns and rats' asses not an option"? please advise
You are so right: why not a write-in option? May be Benny Boy is reading ZH, looking for ideas, and I would love to sell him my used car ...
municipal bonds are easiest to enforce, you serfs... :)
most people will pay their local dues for fear of loosing immediate services.
GM cars? used cars? Ben would make a good car salesman
RoBoTrader is THAT you?????? Did you change your name??? I mean that IS your picture. Where have you been, we all missed you comments.
Why are you stealing avatars, asshole?
Because he is JonNadler, performance artist troll.
i was asking the same question about pints of baby blood.
My "other" vote is for "all of the above".
Whatever is in the best interests of the money center banks and multi-nationals = all of the above, in staged intervals.
Catherine Austin-Fitts: The Looting of America
http://www.youtube.com/watch?v=u9dGHuRExiM
Thank you so much for posting this. This explains concisely what is repeteadly discussed here on ZH. I posted this to my FB page, and I posted it to the FB pages of Libertarians and economists I am friends with. I encourage every ZH who is on a social network like FB to post this to your profile and urge your friends and family to watch it. Actually, it appears to be four part. I am now watching part two.
her decentralization argument in the beginning is powerful.
"America is 3,100 counties."
thanks for sharing this.
I second all of the above. Don't forget FDIC debt, and state bonds have got to be coming up very soon.
my "other" is for Ipods / Ipads.
My other is for cabbage patch dolls. Just imagine the number of these "toxic assets" sitting on the household balance sheets of Middle America. A buy program from NYFRB would do wonders to the "wealth effect"
i wanted to say beanie babies....same as garbage patch kids
second choices: robots/robosigners
Finally, I can unload my stash of Tickle-Me-Elmo dolls.
Other: Sovereign debt to keep their blow up from blowing us up. Also to get them to STFU about our level of fraud.
other:
Eye of newt, and toe of frog,
Wool of bat, and tongue of dog,
Adder's fork, and blind-worm's sting,
Lizard's leg, and howlet's wing,--
For a charm of powerful trouble,
Like a hell-broth boil and bubble
Other: Whatever everyone else is selling.
Other - Some new bull, of course ...
http://www.youtube.com/watch?v=3IlW9velocM
If the 30yr bond market starts to gain momentum to the downside, the exits for market participants will shut quickly. Velcome to d'hotel Kalifornia... the first in the series of collapses to come. This is a State totally run by Unions that voted for Brown in the hope that spending cuts would not include union jobs.... they balanced the budget based on a 6billion deficit and are now finding out that the real deficit is $25billion. Pass the maalox please.
How about the 80 Billion Euros Ireland is now supposedly asking the EFSF for. Gotta add to the bond supply somehow, or further currency debasements, either way eventually sending bond prices tumbling and yeilds rising. Good luck with those rollovers - in California, Ireland, and eventually, the U S of A.
You're probably right, but I still favor "all of the above."
ALL OF THE ABOVE! ditto
other: all of the above options but not this option :-)
It might be easier to list what WON'T the fed buy next.
That would be option D.)
D.) is always "all of the above"
This is multi-guess right?
BROOKLYN BRIDGE PAID IN FULL TO NIGERIAN, PAUL ASOTHO. THANK YOU IN REPLY.