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Ben Bernanke Capital May P&L: ($115) Billion
For all the attention paid to the 1.9% drop in PIMCO's $293 billion Total Return Fund in the month of May following one of the worst months for bonds in a long while, perhaps a far more important question is what happens when one mixes the world's largest actively managed, fixed income portfolio, that of the $3.4 trillion hedge fund located at 33 Liberty Street, and its DV01 of over $2.5 billion, with the 46 bps move in the 10 year in the month of May, and gets a P&L of ($115) billion, or double the said hedge fund's total capital.
The hedge fund in question is of course the Federal Reserve Bank.
While no LPs, aka taxpayers will be concerned at the biggest ever monthly "loss" of 3.5% just yet, because it is simply on "paper", at what point will that most precious of central bank commodities - fiath that the bald man behind the curtain knows what he is doing - start running in short supply? And, even worse, how long before the Fed has to start paying ever more and more reserve interest to the same banks (the majority of which are foreign) so reviled for being bailed out in the first place, until one day, it goes cash flow negative and has to request a bailout from the US Treasury and thus, the US people?
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I would share this post, but it needs some editing and some elucidation.
Corzine will hepl...and poof, its gone
Poof, its gone.
Me & Spitzer got zapped...that was interesting...lol.
Holy fuck..
I was first.
I saw it...and I was second.
Probably one of the Ty's thinking its absolutely crucial that everyone understand Benny & The Inkjets are holding up this sham of a market...lol.
yeah I was just being a jackass cuz what else is there to do at this point ?
Thats about it, in this casino.
I noticed if you make an edit you move down in position.
Look at Treasury yields, MBS prices and duration since May 2nd. All are going in the crapper.
http://confoundedinterest.wordpress.com/2013/06/01/treasury-yields-rising-mbs-prices-falling-mbs-durations-increasing-will-the-fed-ride-to-the-rescue/
game set match
We'll Kill the Dollar!
The social media [iAPPS] contingency program is to create new laws to silence combative motives in protecting the Free Republic and the Constitution of the United States.
Revolution Come
All FED "losses" are nominal, not real, as it cost them nothing to print the mioney to buy the assets. But since there is no free lunch, someone has to pick up the tab. (Hint: look in the mirror).
Recall: FED losses are now termed "deferred assets".... meaning they're still assets, just underwater right now. LoL
If Bennie really was running a hedge fund he'd go long on TBT.
What's the difference between a bucket of shit and Bernanke?????
The Bucket.
One is an asset....
Suggested fix....
You should use one to fertilize your garden. The other should be dumped out and disinfected because buckets will be useful during the hyperinflation.
Ben needs to better allocate OUR portfolio by buying higher quality debt. such as Greek, Italian and Spanish bonds. afterall, then the ecb would have ben's back who has the ecbs back in the best circle jerk ever concocted.
As posted before, Central Planning Policy is approaching a diploma of multi complexity breakdown. Who'd of thought the hatched plans can be often destroyed by commonsense and math concepts?
Chaos Theory
you idiots still think the fed operates like a hedge fund? come on, that's soooo 2009
Let me try to recall, Dimon loses $4 bln in a quarter, while other wise generting $6 bln, net is only $2 bln. Congress moonbats go crazy and want to hear why his bank is nor ready to fail.
Bernacke loses $115 bln in one month and no one asks if his bank can fail.
I don't understand Greek.
The FED's exit strategy is to let the Treasuries mature. How ironic that the FED only has 'paper losses'.
in related news: astro scientists name giant asteroid that may wipe out earth "QE2"!!
http://www.guardian.co.uk/science/video/2013/may/31/qe2-asteroid-pass-earth-close-range-video
Also known as Privatizing Profits and Socializing Losses - Part Nine. I wonder if Hank Paulson will return for a cameo role in this episode as the old curmudgeon with experience who seeks to guide the newly appointed Treasury Secretary on their quest. Maybe we’ll have a female TS by then with some T&A too. Then they can play to the audience with a side story of a father-daughter relationship, or perhaps a May-September affair. Those are always big sellers, not to mention good distractions from the fact that the main line isn’t really a drama but a horror story.
These satanic assholes are truely OFF THE FUCKIN HOOK!!
"Time for honoring themselves shall soon be at its end"
- General Maximus Decimus Meridius" - 10B.C.
The Devil's a tricky motherfucker, brother"
- Richard Pryor - 1978
MARGIN CALL!¡!¡?¿?¿= SELLOUT!¡!¡!¡