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Name The Hedge Fund
Back in 2007, the issue of leverage in the investment banking community (which hadn’t mattered to anybody for many years) suddenly mattered to everybody and for the usual reason in such cases: people started to worry about losing money. Amazingly, having financial institutions levered 30x became something to fear seemingly overnight; and, of course, whilst things like that can go on for a long time, as soon as the fear takes hold, it’s game over...
NAME THIS HEDGE FUND
Its leverage is extreme to say the least...
And it's been building for 7 years...
ANSWER:
Today, in 2014, after the massive expansion of its balance sheet in the name of peacekeeping, the Fed’s leverage far exceeds what was enough to cripple the world financial system back in 2008.
* * *
Luckily, the people managing it have years of experience in managing massive portfolios, dealing with illiquidity, and trading markets... oh wait!
Source: Grant Williams
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Yellen is a Ninja Master at managing leverage risk. She just does not want to shove it in our faces.
Wonder why Bernanke quit? Here's your answer.
Who's going to give them a margin call? And even if they received a margin call, all they have to do is print moar money.
They also have the doomsday book as a secret weapon.
Makes sense since they are the back stop for all the banks.
Does the Doomsday book list releasing Ebola in Dallas, and threatening nations w/ the Samson option?
Well, now they can import Marburg from Uganda, and it can have babies with ebola that ride red horses....
http://theextinctionprotocol.wordpress.com/2014/10/08/ninety-nine-in-isolation-after-uganda-marburg-death-country-trying-desperately-to-prevent-an-epidemic/
Who are you kidding! The Fed doesn't have a measure for total capital...total capital = how much they can print which is INFINITY.
Exactly. Leverage is meaningless when you can just print more cash to cover your liabilities. The effects of that printing, however, are another matter and I'm not sure anyone can accurately predict how it will end...
she's a ninja master at getting in the front of the line at the buffet table.
The FED leverage myth is just noise.
-Janet
Yep, I mean, when you ARE the LEVER, there is no point in even talking about it.
I feel more like the fulcrum.
Fulcrum? Damned near killed 'um!
Answer: What is the Federal Reserve.....Alex.
WHAT !! ?? That damn IBM Watson beat me to the buzzer AGAIN ????
Jino Pino Morgano
Come on, the Fed doesn't exist. /sarc
What could possibly go wrong?
Look To The "Secret" Federal Reserve Toolbox/Manual/Scrolls!
#TheyGotThis
#SodaStreamNowTooBigToFail
WHAT DIFFERENCE DOES IT MAKE!
-HC
Meh only 80%
80 is the new 30.
As long as everything goes up, what is there to worry about?
JPM or The Federal Reserve.
you repeat yourself.
Well it's Federal. 80 x leveraged American babies should save the system. At least they know how to puke.
/s
Thank goodness for the generations down the road who will be paying for our excesses. If it wasn't for them we would be fucked.
Our kids are so special!
I believe "exceptional" is the word you are looking for.
Hey pal, I'm a soccer mom not a Doctor.
The debt is for the children.
So. - Janet Yellen
Well at least they owned ABS of future GPRO dividends.
Remember when Bernanke said the FED holds gold because its "tradition".. lol
It all about rates, if they lose control of the 10 year forget it, music stops playing. At the beginning of year 10 year was at 3, if it gets back there look out below.
Yes, but they have a capital "cushion" of 1.25%. lol.
Paraphrasing Jim Rickards: "On a mark-to-market basis, the Fed Reserve Balance Sheet is already insolvent."
There is a reason why dot gov has been kamikaze bombing every quasi-viable alternative to the dollar.
That is only the shit The FED admits to.
Add a few more zeros to that number and push that chart boner right off the computer screen and though the ceiling if you count the Interest Rate Swaps and other Derivatives...
BAC ?
According to the WSJ ates are down in the entire Treasury Complex sans the 30yr.
The 10yr yield is listed as 2.331%. Edit while I type: 2.328%. Edit while I type: 2.324%. ...2.322%.
Rates continue falling literally faster than I can type them in.
Starting to look rather panicky...
The FED jaw-boning and backtracking about raising rates is an implicit promise to keep backstopping speculation.
None of it makes any sense. Buy bonds! Buy stocks! By leveraged puts strangled to what our numerologists star gazers say is the timing of right!
I mean seriously the Fed just needs to stop talking period...let alone issuing forward guidance.
actually, the FR does a quarterly report
Go to Table 10
for 6 months ended june 30th ... FR had UNREALIZED gain of $144 billion on assets held
of course, last year FR suffered massive UNREALIZED losses on assets held
http://www.federalreserve.gov/monetarypolicy/quarterly-report-20140630.htm
how does one calculate leverage for a private bank with no real assets anyway?
fwiw, $56.3 billion in capital
what percentage of the current CDS "market" is that again?
So I wonder how much of this is gold short?
As Fred Flintstone so eloquently said: "Ya just can't trade this shit !"
i stay far far away from stock market now
i was (heavily) short on that day back in october 2008 (TARP passage?) when DOW gained almost 1000. Hung in there and got (most) of my money back, but the stress that day off the chart
he also said..... BET BET BET BET BET BET BET
...& Doozy Dodo squawked: "Frantic City! Frantic City! Doctor is a plumber! Whoo hoo!"
Guillotine the Fed!"
An American, not US subject.
can't keep King Dollar down (for long)
DXY hit a low of 85.21 ... climbing (85.38)
Let's see. Banks are prone to failure, so let's create a reserving mechanism that will "be there" when it all goes wrong. Hmm, how about we take the "reserve fund" and make it...(drumroll)...MORE leveraged than it's member banks!
Ha Ha ha ha ha HA HA hAhAHAHA
Assholes
Don't forget FDIC lol.
hahaha ha ha HA HA HAA!!
FDIC, that's a good one. An insurance company with no reserves.
(throws up on self)
It's the mysterious Hedge Fund X
10yr @ 2.313
took out 52 week bottom in yield
That's no hedge fund...
(Star Wars)
It's too big to be a hedge fund.
I have a bad feeling about this....
(actually, had that feeling for several years now.)
Bullish.
Have you thought about that the more American taxpayers heads we loose in the Middle East the more debt you'll have to carry!
Damn!
Don't see how it applies to a central bank. They can just magic stuff.
The Great Mistake
The underlying structural cause of present economic problems : see
http://andreswhy.blogspot.com/2014/02/humans-should-have-been-22-richer-...
They should diversify into Gartman's fund!
Stop it please. I can already hear Putin's laughter all over Alaska.
The FED, owners, employees, shareholders, and other griffter hangers on.
You are, going to be served justice. This shit is a game too far.
You are, going to be held accountable for ruining the western world. You were warned some time ago about doing the unthinkable, and you lot didnt think and still done so. You are not walking away from this mess boys.
Far too many people know what, just exactly what you have done to us. You might have gotten away with your games 100 years ago, but not now you cunts.
If I am going down, as you want, at least one of you comes with me. Times that by a multiple, you clever fucking cunts. There aint just one awake 96, and we by far out weigh and out number you.
Your time is up.
Didnt have to be this way did it? Remember you lot did this, not us proles. And you will get exactly what you deserve.
See what greed does? See what absolute power does? It does this, it makes people like me, and not just me, furious, not just angry, but enough filth has passed us by to bury these cunts tweleve times over. You were given the trust of the people and you fucked them, just like them before you.
No more.
You will, at some point be held accountable. This really is enough.
The people have had enough, we say no. Not in my mother fucking name. You cunts will be hanged like the dogs you are.
No more.
;-(
LOL, you're funny and cute.
You're also right, but if they going down, we all go down. Which would be about time.
Cute?
Bubenthauser, so be it. We all stood by and did nothing. Thats a price we should all be prepared to pay.
We, as a whole, didnt stop them. So be it.
This will end. As it always does.
:-)
Goddamned....I hope you are correct!
First we kill all the Banksters!
Jesus. Every day another chart reminding us just how fucked things really are.The thing that amazes me is that there are still metrics, like this one, that surprise me or blow me away with the magnitude of the deviation from normal.
Is there any doubt the present financial system will collapse spectacularly?
I was going to say the private Federal Reserve Bank Corporation system because I saw an interview last night which said the FEd is now leveraged 77-1. (True, it was an interview with Rickards).
Can I peak now? Hey, I was right!
A glutonous, corrupt private bank full of sociopaths leveraged 77-1 and backed up by the full faith and credit of the taxpayers they are raping, imagine that!
I mentioned this before, but the Fed made an accounting change in 2011 so that they will never be technically insolvent. If they take a gain or loss on assets, instead of increasing or reducing the value of assets and capital, they will still modify assets, but change a liability account instead of their capital account. That liability account is "the amount the Fed owes the Treasury".
Normally that liability account is a positive number, meaning they owe the Treasury money for the interest they've collected on Treasuries and MBS. But now if their losses get big enough, the liability account will become negative. A negative value in that liability account would mean that the Fed owes the Treasury a negative amount of money, or said the same way the Treasury owes the Fed money.
You didn't think the bankers would let a minor detail like them becoming insolvent stop their operation, did you? You can read a more detailed explanation here: http://mises.org/daily/5057/
Citadel?
The Fed's days are numbered, but they aren't going down without a fight. Someone commented if the Fed goes down so does everyone else. No doubt that's true. Although the future will be bleak if they are destroyed, it is so much more bleak if they are allowed to continue to exist.
http://www.globaldeflationnews.com/the-creature-from-jekyll-island-the-e...
...leveraged against German gold.
“It's all a joke! Everything anybody ever valued or struggled for... it's all a monstrous, demented gag! So why can't you see the funny side? Why aren't you laughing?”
Said it once, i'll say it again. Mark this post - by aborting creative destruction in 2000's, the mafia ruined America and even the possibility of a better life for all but the top.
Symptoms are is easily seen in plain sight, such as TARP, TBTF, and no rule of law for money and "business." This chart only confirms it.
Run.