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EXACTLY As Claimed On Financial REALity TV Bernanke Bailed Out The Banks Through A MSM Aided Public LIE To His Fellow Countrymen

Reggie Middleton's picture




 

On or about September 12, 2012 Dr. Benjamin Bernanke, the Chairman of the US Federal Reserve, announced the 3rd round of Quantitative Easing (because the 1st two rounds worked out so well) under the auspices of attempting to reduce the unemployment rate by buying nearly a trillion dollars per year of MBS per year - ad infinitum!!! I posted the following article in response - Bernanke's Lying Through His Teeth and Not A Single Pundit/Analyst/Banker Has Called Him On It!!! The article clearly articulated how and why the man lied straight to the collective faces of MSM consuming America.

mbsvs unemployment

On September 16th, I took it upon myself to right the wrongs perpetrated by the mainstream media in not calling Dr. Bernanke and the US Fed's commented actions for the bold faced lie that it was, and streamed my own reality TV financial show, directly in front of the NY Fed, quoting data pulled directly off of the St. Louis Fed's website. For all of those who feel that there is no audience for the truth and REAL financial analysis, this short video received nearly 13,000 views and a 101:0 like/dislike ration in less than 48 hours with absolutely no promotion, production or advertising. It was simply.... the truth!!!

Now, for those who don't believe me and the machinations of this Bernanke Fed, let's simply fast forward two weeks to the present where we find interesting content...

From ZeroHedge: Fed's 'Trickle-Down' Policy Lines Pockets Of Mortgage Originators

This rally has reduced the spread between 'risky' MBS and supposedly risk-free US Treasuries to practically nothing as the Current Coupon 30Y MBS trades around 1.67%. However, where the real differential has occurred is in the spread between the risky wholesale rate that Main Street is charged on their mortgage and the government-sponsored wholesale rate they finance this debt at. The spread between wholesale and retail mortgage rates has never been higher (in absolute and ratio terms) providing a new ATM for all those banks and mortgage originators trying so hard to scrape by these days. We just assume the Fed's policy transmission-channel had modeled this trickle-down of mortgage banker bonuses (and taxes) into local Ferrari dealerships and Lafite wholesalers.

The lower pane shows the spread between the retail-facing mortgage rate that Main Street pays and the wholesale-facing cost of funds for those mortgages...

and given leverage and capital (and the now risk-free nature of MBS apparently) - perhaps a ratio of the two is more useful - and much more telling of the disconnect...

From the Confounded Interest Blog: QE3 (MBS): Mortgage Rates Decline But The Spread Is Captured by Mortgage Agencies

The results so far?

As of 9/28/2012, the Bankrate 30 year fixed rate mortgage average rose slightly after dropping on the QEternity announcement.

The spread between the Fannie Mae current coupon rate (paid on new Fannie Mae MBS) over the 10 year Treasury yield has risen to a positive spread after dipping into negative territory last week.

On the other hand, the spread between the Bankrate 30 year fixed rate mortgage average and the Fannie Mae current coupon is near an all time high indicating that the agencies are capturing rents from The Fed’s agency MBS purchases.

If the goal of The Fed is to help stabilize HUD, Fannie Mae and Freddie Mac, that is one thing. But if the goal is to lower rates to consumers, the Fannie Mae current coupon would have to fall. An alternative explanation is that lenders have captured the increased spread and not the mortgage agencies.

In the meantime, here is the subscriber content detailing the companies that we feel will be the initial victims of the Federal Reserve Bank catering to its TRUE constituency (the big money center banks) as they collaboratively sell the US worker, saver and consumer down the river.

There are four reports here - Consumer Discretionary with the remainder to be found in the Retail section. All who are interested in accessing this research can click here to subscribe. Those who have not heard of me should look into Who is Reggie Middleton?

 

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Tue, 10/02/2012 - 13:41 | 2848992 Atlantis Consigliore
Atlantis Consigliore's picture

Dr Strangebernank: http://youtu.be/ICPmZkK3PaY

the FED loves you, YAH Yah Yah, Ben loves you YA YA YAH, you know he cant be bad, so you shouldnt be mad, He loves you, YA YA YAH.

Inflation hurts you, Good, harder. yah yah yah!!! 

Tue, 10/02/2012 - 11:44 | 2848498 Meesohaawnee
Meesohaawnee's picture

why the msm isnt calling him out?? ahh come on reg. your much smarter than that. uh maybe cause they are on the payroll? i mean bubble vision is just down the hallway from the bens office. Its the PR dept.

Tue, 10/02/2012 - 12:15 | 2848629 LMAOLORI
LMAOLORI's picture

 

 

The lame stream media writes what they are told.  6 companies control 90% of the media. " We no longer have a free, independent media.

"Back in 1983, approximately 0 corporations controlled the vast majority of all news media in the United States. Today, ownership of the news media has been concentrated in the hands of just six incredibly powerful media corporations. These corporate behemoths control most of what we watch, hear and read every single day. They own television networks, cable channels, movie studios, newspapers, magazines, publishing houses, music labels and even many of our favorite websites.

 The six corporations that collectively control U.S. media today are Time Warner, Walt Disney, Viacom, Rupert Murdoch's News Corp., CBS Corporation and NBC Universal. Together, the "big six" absolutely dominate news and entertainment in the United States. But even those areas of the media that the "big six" do not completely control are becoming increasingly concentrated. For example, Clear Channel now owns over 1000 radio stations across the United States. Companies like Google, Yahoo and Microsoft are increasingly dominating the Internet.

But it is the "big six" that are the biggest concerns. When you control what Americans watch, hear and read you gain a great deal of control over what they think. They don't call it "programming" for nothing."

Take a look at who they donate to a good example is Fox since everyone assumes they are in the bag for conservatives.

Donations by Media Companies Tilt Heavily to Obama

snip

All the major media companies, driven largely by their Hollywood film and television businesses, have made larger contributions to President Obama than to his rival, former Gov. Mitt Romney, according to the Center for Responsive Politics, a nonprofit, nonpartisan Washington-based research group that publishes the Open Secrets Web site.

The center’s numbers represent donations by a company’s PAC and any employees who listed that company as their employer.

Even companies whose news outlets are often perceived as having a conservative bias have given significantly more money to Mr. Obama. Rupert Murdoch’s News Corporation, for example, has contributed $58,825 to Mr. Obama’s campaign, compared with $2,750 to Mr. Romney. The conglomerate, which owns Fox News, The Wall Street Journal, The New York Post and the 20th Century Fox studios, gave roughly the same amount to Mr. Romney’s Republican primary competitors Rick Perry and Ron Paul as it did to Mr. Romney.

in full http://mediadecoder.blogs.nytimes.com/2012/08/22/donations-by-media-companies-tilt-heavily-to-obama/

Anything the owners don't like to hear about obama they ignore

ABC, CBS & NBC Blackout! Major New Findings in Fast & Furious Scandal Ignored [UPDATED]

Tue, 10/02/2012 - 11:33 | 2848466 Billy Shears
Billy Shears's picture

Who's the black private analyst
That's a death machine to all the banksters?
Reggie, ya, damn right

Who is the man that would risk his neck
For his brother man?
Reggie, can you dig it?

Who's the cat that won't cop out
When there's danger all about?
Reggie, right on

They say this cat Reggie is a bad mother ...
Shut your mouth
But I'm talkin' 'bout Reggie
Then we can dig it

He's a complicated man
But no one understands him but his readers
Reggie Middleton

Tue, 10/02/2012 - 11:22 | 2848431 azzhatter
azzhatter's picture

just an engineered reduction in the standard of living for all the serfs in america. poor people are much easier to manage

Tue, 10/02/2012 - 11:53 | 2848532 Redstone
Redstone's picture

“No one has a natural right of the trade of money lender but he who has money to lend.” -- Thomas Jefferson

The banking cartel and Congress have joined in unholy alliance: the cartel collects interest on money it creates out of nothing while Congress spends the money created out of nothing and taxes the people through inflation,

Tue, 10/02/2012 - 12:14 | 2848626 bigkahuna
bigkahuna's picture

When I first heard about QE 3 - I was so angry that I almost went DOWN there to visit on chairsatan. I am not typically an angry person either. 

Tue, 10/02/2012 - 10:45 | 2848308 LiesAreTheOnlyTruth
LiesAreTheOnlyTruth's picture

You MUST inflate assets, forget about the net effect on food, gas, utilities, taxes ... you MUST inflate!  Inflation, if you factor in lower portions/amounts of canned goods and others, is more like 30%.  I noticed some "reems" of paper are now 400 sheets which was 500 ... with a 5% reduction in price, that's 15% on just one item.

So it MUST continue ... the endless reduction in purchasing power so those in power can benefit from increased asset prices ... it is just a FACT. 

No correction coming, no drop coming, it is endless money ... remember, brokerage firms, now just a form away from 'fed charters' can borrow unlimited from the Fed at .5% and invest, so they'll keep buying and making 5-10% on .5% money.

If ever there was a controlled, both media and political, ponzi scheme, this is it!

Tue, 10/02/2012 - 13:41 | 2848986 LMAOLORI
LMAOLORI's picture

 

 

It's not Ben's fault he said so shocked to see ZH's don't believe him (sarc)

Bernanke admits low interest rates hurt retirees, but blames recession


Tue, 10/02/2012 - 11:00 | 2848358 JR
JR's picture

Yes. For whom the Fed Bell cha-chings; it is not for thee little man:

“The closing of this past third quarter represents Wall Street’s best Q3 since 2010 after global, coordinated central bank actions led to a reversal in equity markets as they announced ‘QE until…the economy gets better’ in attempts to stave off the open-acknowledgement of a Second Great Depression.“

According to Reuters, the S&P 500 climbed 5.9 percent over the past three months as central banks geared up to boost liquidity to markets and kick-start their failing economies.  The move had lifted the benchmark as much as 17 percent this year, recently pushing the S &P to its best level in five years – but, remember, quantity, not quality, defines new markets. ‘The reality is that the fundamentals of the market certainly don’t support a 17-plus-percent run-up year to date, but with all the QE (quantitative easing) action, that has had a huge, huge impact,’ said Oliver Pursche, president of Gary Goldberg Financial Services…” ---from ? Financial Anarchy

http://silvervigilante.com/

Tue, 10/02/2012 - 12:51 | 2848781 mktsrmanipulated
mktsrmanipulated's picture

fed buying sp futures?????? ...could they be buying the sp futures as well they do expire in cash so the securities wouldnt need to be transfered....are the fed books open to audit???....just a thought..."get the market higher make the sheep believe everything is ok"

 

why not they are manipulating everything else....bonds mbs currencies why not equities 

Tue, 10/02/2012 - 10:02 | 2848159 JR
JR's picture

"Mortgage rates dropping actually saw new hires collapse and an increase in unemployment. Bernanke is lying to the ignorant masses when he says he’s suppressing interest rates to help unemployment. He’s bailing out banks again, Stealth mode!!!" – Reggie

His speech is scholarly, the clean white shirt and tie, the air of wisdom: all are a mask for a destroyer. And yet, he’s only the front man, the salesman for the Ponzi scheme, the man who takes orders from the cartel, the bagman for the mob, the professor who steals.

This is Bernanke.

And his purposes are not what he says. The economy lies broken and bleeding and he’s ordered to wound it yet again, while it’s down. The very people, companies, industries and programs that would have made this economy well again are his targets: small businesses, savers, conservative investors, wage earners, and would you believe…the unemployed.

At the bottom, the Fed represents a system which creates money from the air, loans money that it doesn’t have and replenishes that store from the economy that had earned it.

This is the tragically absurd money system Bernanke is protecting, in reality a form of modern serfdom.

Edward Griffin explains the fallacy of the system: “If the money we are borrowing was earned by someone’s labor and talent, they are fully entitled to receive interest on it. But what are we to think of money that is created by the mere stroke of a pen or the click of a computer key. Why should anyone collect a rental fee on that?”

Reggie, as always, you are right on. I honestly don’t know what we would do without you.

Tue, 10/02/2012 - 13:13 | 2848878 Quinvarius
Quinvarius's picture

Wait until Congress tries to stop Bernanke from bank welfare payments.  If you think you have seen printing now, just wait until he thinks he might lose the power to print freely.  That is when he will just completely recap the banks with fresh credits all at once.

Tue, 10/02/2012 - 13:38 | 2848978 LMAOLORI
LMAOLORI's picture

 

 

That's why Ben did QE now to give it plenty of time to build up the banks money before the election in case obama is voted out he knows he would be replaced. QE3 isn't just the MBS buying he has said he will expand it as he see's fit it is open ended it's QE4ever or until he is given the boot.

Tue, 10/02/2012 - 12:26 | 2848677 LMAOLORI
LMAOLORI's picture

 

 

Bernanke doesn't care what we think he doesn't even care what congress thinks and the Fed is only around because of congress. What this tells me is the politicians use the Fed as a smoke screen to enable the spending and redirect the anger that rightfully belongs to them.

"Once you understand the details of modern central banking, you are able to step back and see that it truly is a way for the government to use the printing press to pay its bills." FULL ARTICLE by Robert Murphy

Bernanke admits low interest rates hurt retirees, but blames recession

http://dailycaller.com/2012/10/01/bernanke-admits-low-interest-rates-hurt-retirees-but-blames-recession/

Republicans Not Buying Bernanke’s QE3 Defense

http://blogs.wsj.com/economics/2012/10/01/republicans-not-buying-bernankes-qe3-defense/

 

Bernanke Warns Congress: Don’t Change Law To Review Fed’s Policy Discussions

http://washington.cbslocal.com/2012/10/01/bernanke-warns-congress-dont-change-law-to-review-feds-policy-discussions/

Tue, 10/02/2012 - 09:31 | 2848044 WALLST8MY8BALL
WALLST8MY8BALL's picture

MANBERNKRUG!

Tue, 10/02/2012 - 13:43 | 2848982 jeff montanye
jeff montanye's picture

i may misunderstand but the part of zh that reggie quotes has the 30 year current coupon mbs at 1.67%. the 30 year treasury has been above 2.4% and closed yesterday at near 2.8%.  the ten year?

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