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Bill Buckler Puts Things Back Into Perspective: "Of The Total US $15 Trillion Market Capitalization, The Fed Provided About Half Of That"

Tyler Durden's picture




 

On a surprisingly quiet night, during which many, chief among them the President of the US, were expecting some fireworks, it is easy to get lost in all in your face political farce, while ignoring, and even blissfully forgetting, the real financial details behind the scenes. Luckily we have Bill Buckler, whose latest edition of "The Privateer" puts everything right back in perspective, and reminds us that "in the period between December 2007 and July 2010, the Fed parcelled out $US 16.1 TRILLION in emergency loans to financial entities all over the world. Almost half of this - a total of $US 7.75 TRILLION - was loaned to four US banks. They were Citigroup, Morgan Stanley, Merrill Lynch and the Bank of America. In July 2010 (the cut off date for this “audit”), total US stock market capitalisation was $US 15 TRILLION. The Fed provided about half of that." And here we are, haggling over $30 billion here, and $50 billion there...

The Last Remission

 

According to the official figures put out by the US government, the economic “recovery” in the US celebrated its second anniversary on June 30, 2011. The “fuel” burned in this “recovery” is immense. Mr Obama’s presidency has ushered in the era of $US 1 TRILLION plus annual deficits riding on top of 0.00 percent controlling interest rates from the Fed. It has also ushered in the era in which almost nothing istraded on the paper markets which is not - explicitly or implicitly - guaranteed by the government.

 

The fuel to keep the global financial system functioning does not stop at the borders of the US. The “Dodd-Frank Wall Street Reform and Consumer Protection Act” has just produced the first ever “audit” of the US central bank. It reveals that in the period between December 2007 and July 2010, the Fed parcelled out $US 16.1 TRILLION in emergency loans to financial entities all over the world. Almost half of this - a total of $US 7.75 TRILLION - was loaned to four US banks. They were Citigroup, Morgan Stanley, Merrill Lynch and the Bank of America. In July 2010 (the cut off date for this “audit”), total US stock market capitalisation was $US 15 TRILLION. The Fed provided about half of that.

 

This inflationary explosion is unprecedented in any era. It represents the biggest ever effort to rescue a debt-based system from the ravages caused by its own debt issuing excesses. It has, at best, provided a “remission” for global paper markets. The cost has been devastating for REAL economies everywhere.

 

A cancer patient who goes under the knife gets the malignant disease physically removed. If all traces of the malignancy are removed, the patient will recover. If all goes well, the recovery will be permanent with no “remissions”. A life-threatening malignancy is NOT fought or cured by doing everything possible to increase its power and potency. Yet that is what financial authorities in the US and everywhere else have been doing in regard to the life blood of their economies. As this stark fact becomes ever clearer, Washington DC and Wall Street stand helpless before the fact that they can only cure the economy at the cost of killing the financial system which is feeding on it. It’s that simple.

 

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Sun, 07/24/2011 - 22:33 | 1489498 kito
kito's picture

as they sing it to the fed:

 

The hot summer night fell like a net
I've got to find my baby yet
I need you to soothe my head
Turn my blue heart to red

Doctor, doctor, give me the news
I've got a bad case of lovin' you
No pill's gonna cure my ill
I've got a bad case of lovin' you

A pretty face don't make no pretty heart
I learned that, buddy, from the start
You think I'm cute, a little bit shy
Momma, I ain't that kind of guy

Doctor, doctor, give me the news
I got a bad case of lovin' you
No pill's gonna cure my ill
I got a bad case of lovin' you
Whooaaa

I know you like it, you like it on top
Tell me, momma, are you gonna stop?

You had me down, 21 to zip
Smile of Judas on your lip
Shake my fist, knock on wood
I've got it bad, and I've got it good

Doctor, doctor, gimme the news
I got a bad case of lovin' you
No pill's gonna cure my ill
I got a bad case of lovin' you 

Mon, 07/25/2011 - 01:55 | 1489846 redpill
redpill's picture

I think Danzig is a bit more appropriate...

 

Sold into slavery down in New Orleans
Goddess
Of the bayou light
Black dog's head on the killing bed
Severed
And left to bleed
There on fire
In the corner of the world
There in misery
There on fire
In the corner of the world
Left for God to see

Do you want to take a life
Do you want to cross that line
Cause it's a long way back from hell
And you don't want to go with me

Poison father of the human race
God
Of the tainted blood
Malevolence
Sneaking up the spine of the world
Ready for the bastard son
There on fire
In the veins of man
There in misery
There on fire
In the veins of man
Left for to see

Do you want to take a life
Do you want to cross that line
Cause it's a long way back from hell
And you don't want to go with me

Do you want to take a life
Do you want to cross that line
Cause it's a long way back from hell
And you don't want to go with me

And it's a long way back from Hell
And you don't want to go

Mon, 07/25/2011 - 06:21 | 1489981 Instant Karma
Instant Karma's picture

Tyler I forwarded you a tweet that was released by Senator Jim DeMint on Friday with this information. It was based on an audit of the FED that had just been released. Friday. Senator Demint. Fed Audit. Twitter.

Guess you missed it. 

I try.

Here's the tweet from @jimdemint : Audit: Fed gave $16 Trillion in emergency loans, $3 Trillion to foreign financial institutions

 

Sun, 07/24/2011 - 22:34 | 1489502 Larry Darrell
Larry Darrell's picture

What I would like to know is where is the rest of the actual 7.75 trillion floating around??

After all, if the market is a measly 15 trillion face value, the real dollars underlying it are only 1 trillion at a 15:1 leverage ratio, which would not be absurd to these fucktards by any stretch.

So, what happened to the others 6.75 trillion dollars?

Sun, 07/24/2011 - 22:38 | 1489507 Samual Adams
Samual Adams's picture

high class hookers, gambling, bribe money, hush money, monopoly money

or  ;)

The moon is hollow as I'm sure you're well aware of,  but there is an ongoing concerted effort to fill it up with FRNs!

Sun, 07/24/2011 - 22:37 | 1489511 Larry Darrell
Larry Darrell's picture

After re-reading the post, I see that it does say there is 15 trillion in capitalisation.  Sorry for the earlier post

 

Sun, 07/24/2011 - 23:57 | 1489702 markmotive
markmotive's picture
  • Reserves held on deposit with the Federal Reserve.
  • US Treasury and agency debt.
  • Paychecks and bonuses.

How's that for a start?

 

@planbeconomics

Mon, 07/25/2011 - 01:42 | 1489767 Fed Supporter
Fed Supporter's picture

Off setting debt destruction.  Look at the reduction in the size of the Shadow Banking.  Look at the write offs at the Banks.

 

Mon, 07/25/2011 - 08:57 | 1490200 Widowmaker
Widowmaker's picture

Easy, record bonuses in off balance sheet accounting fraud, stashed for a rainy day called deferred income.

Sun, 07/24/2011 - 23:19 | 1489506 Juice Box
Juice Box's picture

We must be brave little communists now.  Lets just buy everything with TARP II, III, and IV.  Remember our leaders say that if we do not continue this madness the bottom will fall out.

Meanwhile Iceland is enjoying growth without debt.  They let it default and returned to living within their means.

Mon, 07/25/2011 - 00:19 | 1489735 sun tzu
sun tzu's picture

They don't have a monstrous welfare state and a gigantic military waging three wars at once. They also don't dish out tens of billions in foreign aid each year.

Mon, 07/25/2011 - 00:46 | 1489771 Fed Supporter
Fed Supporter's picture

I might read your posts if you get rid of the dude in the thong.

Mon, 07/25/2011 - 02:13 | 1489863 Buckaroo Banzai
Buckaroo Banzai's picture

Oofa. No kidding.

We need a double-dose of Pladizow to compensate.

Sun, 07/24/2011 - 22:36 | 1489508 Long-John-Silver
Long-John-Silver's picture

I think I found a visual representation......

http://www.funnyhype.com/files/funny-pictures/2010/snake-ring.jpg

Sun, 07/24/2011 - 22:38 | 1489514 Dr. Engali
Dr. Engali's picture

I find myself torn between; hurry up and burn so we can rebuild a better system , and we need to keep the system alive. I fear that same people who ravaged this country will probably have there hand in rebuilding a more diabolical system.

Sun, 07/24/2011 - 22:42 | 1489518 Samual Adams
Samual Adams's picture

I fear that same people who ravaged this country will probably have there hand in rebuilding a more diabolical system.

 

The trick is, as I have read and researched over history is, and get this....Make sure that the 'same people' don't make it past the Burn phase and into the Rebuild phase.    

Take your pick,   Guillotine,  Rope, Big Bangs and smoke, Lead....

Stockholm Syndrome is a bitch though....for the plebs and proles and slaves

Liberty or Death!

Sun, 07/24/2011 - 22:58 | 1489552 Everyman
Everyman's picture

NO, I go with a public PIKING of these criminals for the damage they have done and to deter others from even considering this again.  Shove a 4 inch somewhat sharpened wood log from taint to throat and let then slid down it.  That goes double for lying congresscritters.  I am so done with this ilk that is in charge of the country and the finances.

I fear a real revolt is not far away.

Sun, 07/24/2011 - 23:10 | 1489576 Samual Adams
Samual Adams's picture

Ah, courtesy of Vlad the Impaler.   I like your style.   Very classy.  

Vlad did it right.  aka, Dracula.  OG.     

http://www.youtube.com/watch?v=LHQ7J4IbW8I

 

+1776

Sun, 07/24/2011 - 23:32 | 1489638 nodhannum
nodhannum's picture

Everyman, tell me how you really feel.

Sun, 07/24/2011 - 23:39 | 1489654 Everyman
Everyman's picture

Can't do that nod, I would then be put on a "list".

Sun, 07/24/2011 - 23:49 | 1489682 AssFire
AssFire's picture

So delicate and subtle a solution. I like your style..I'm gonna keep an eye on you.

Mon, 07/25/2011 - 02:10 | 1489861 NumNutt
NumNutt's picture

Only problem is Barney frank is into the Piking thing.......he would be yelling "YEAH MOTHER FUCKER..GIVE ME MORE!!!!!" damn fags..

 

Mon, 07/25/2011 - 09:11 | 1490213 ibjamming
ibjamming's picture

He wouldn't say it like that...  He'd be more gay...with a lisp...  Probably mostly just a soft moan...like he likes it.

Sun, 07/24/2011 - 23:02 | 1489567 AUD
AUD's picture

Killing the financial system will destroy the lives of millions because millions have all their 'money' in the bank. If bank credit deflates to its real value, which is a fraction of what it is currently marked to myth at, millions will lose everything but the shirt off their back.

It's not just the 'elite bankers' who will lose, though they might lose their lives first, at the hands of someone with only a shirt to his name.

Sun, 07/24/2011 - 23:37 | 1489648 RockyRacoon
RockyRacoon's picture

The consolation being that everybody will suffer in accordance with their life-style.

I can go with that.

The rich have fewer lattes and the guy living under the bridge has to move to a smaller refrigerator crate.

Mon, 07/25/2011 - 06:01 | 1489973 Sudden Debt
Sudden Debt's picture

The rich will find a way to profit even more from what's comming. It's the common working man that doesn't stand a chance.

 

Mon, 07/25/2011 - 03:25 | 1489905 NumNutt
NumNutt's picture

bullshit, people need to find out now where the big bank CEO's live, make note now. Spend as much time one day as you do playing WOWC to find out the names and addresses of bank Execs then post it on the web. Then when TSHTF you go right to their house and burn it down. Make these fuckers afraid of the future just like the rest of us.

Mon, 07/25/2011 - 07:23 | 1490041 Ricky Bobby
Ricky Bobby's picture

Go Long the Prison Industrial Complex.

http://themodulator.org/archives/New_DallasSWAT01_800x600.jpg

Mon, 07/25/2011 - 06:45 | 1490003 Incubus
Incubus's picture

Don't count on the cattle-masses to do what's required when the time comes.  TPTB will just toss a few bones to 'em and they'll influence who they need to when it comes the reconstruction phase.

 

THe masses are mindless because of an inherent reluctantness to face reality.  If you've got the right people buttering them up at the right time, you're just going to end up with the same old shit as what we just tried to get rid of,  only now, they'll be able to loot without so many people getting pissed off, because it'll take another handful of decades for the system to fall apart, again.  If you're amongst the first ones in the shiney new temple, then go for it, dude.  The commoners are so busy with the "new car" smell, they won't see you runnin' past em with armsful of loot.

 

Sun, 07/24/2011 - 23:06 | 1489574 BlackholeDivestment
BlackholeDivestment's picture

...did he just un-Buckler the black hole? http://www.youtube.com/watch?v=zQVfOguNWBw

Sun, 07/24/2011 - 23:08 | 1489579 whiskeyjim
whiskeyjim's picture

Mr. Durden,

It is this modeling that should form the central thesis of any modern economics in evaluating the economy.

Unfortunately, the analogy at the end of the post is slightly off center. The debt is the cancer to the economic patient. The interest rate is the heroin administered by the Fed in order to keep the patient alive while giving it a chance to recover. Either will eventually kill it.

Since significant reduction in debt has NOT occurred in pretty much any sector, including private, we suggest that the patient is only becoming addicted to heroin.

I refuse to apologize for sounding like a broken record. TARP was the worst legislation ever enacted. For only bankrutpcy had a chance to revalue debt and real estate which drives stagflation and hovers like a large cloud over the comatose patient. The system by now cannot survive without the structural transfers from the poor to the rich inherent in fractional reserve banking, evidenced by the outsized profits the financial community earns as a percentage of total economic output.

A free market system is self-correcting. We are now seeing the inevitable result of allowing banking institutions the ability to print money. For no out-of-control politicians could ever enter into so much debt without bank printing presses; much less painful self-correction would have occurred years ago if even a vestige of the market was still in operation.

 

 

 

Sun, 07/24/2011 - 23:44 | 1489669 wisefool
wisefool's picture

<sarc 120% on> I thank you for the application of justice. You are right, in that you have correctly identified the evils in this world as the banking institutions. TARP has nothing to do with covering up a 3 way between Bill Clinton, Monica, Barney Frank and a stimulant called CRA. </sarc>

 

For the non sark stuff, Dont tell your babies to be goldsmiths. Tell them to be tax LLMs and such. Washington is not suffering any declines in housing. Timmay will (in fact) move his family there. Niether timmy or the bernake has an LLM tax. And that is why they fail..

Sun, 07/24/2011 - 23:09 | 1489581 Royal Fleming
Royal Fleming's picture

wow...thank god for cut and paste...lol

Sun, 07/24/2011 - 23:09 | 1489582 RobotTrader
RobotTrader's picture

U.S. is on the brink of default and the 5-yr. yield is at 1.52% and the dollar is unchanged.

I'm flabbergasted.

Sun, 07/24/2011 - 23:12 | 1489592 Samual Adams
Samual Adams's picture

Wiley coyote also kept running, or trying to even though he already went past the cliffs edge.

btw.  where is "RobotTradersMom"

You can't eat Tbills/bonds.  U can wipe your ass with them, so there is some utilitarian use. 

Cheers!

Sun, 07/24/2011 - 23:19 | 1489603 Hulk
Hulk's picture

Kinda of reminds one of Worldcom or Enron, doesn't it?!

Sun, 07/24/2011 - 23:24 | 1489614 Problem Is
Problem Is's picture

[X] Enron

Now in this fraud-hole... who's our Jeffrey Skilling and who's our "Kennie Boy" Lay?

Mon, 07/25/2011 - 01:32 | 1489824 Re-Discovery
Re-Discovery's picture

who isn't

Sun, 07/24/2011 - 23:27 | 1489617 Problem Is
Problem Is's picture

Double Post -- The "new" and "improved" system is full of annoying glitches...

Sun, 07/24/2011 - 23:52 | 1489686 Yen Cross
Yen Cross's picture

That was "Earthworms & Grubs"   This is "GODZILLA vs GHIDRAH....

Sun, 07/24/2011 - 23:09 | 1489584 2discern
2discern's picture

ASTOUNDING INSANITY: the CONgress negotiates with an illegal impostor. http://www.thepostemail.com/2011/07/23/the-coup-detat-on-january-21-2009/

Why in the world would barry soetero even matter? The show goes on...can you spell puppet?

Sun, 07/24/2011 - 23:16 | 1489596 Samual Adams
Samual Adams's picture

+ 1776  * Lead + Rope + Red Pill = Freedom/Liberty

Mon, 07/25/2011 - 12:48 | 1490945 Diogenes
Diogenes's picture

The fix is in and there is nothing you can do about it. They can even publish an obviously photoshopped birth certificate and laugh at all the birthers who go ballistic, thinking there is a law in America. There isnt. At least, no law the rich and powerful need to worry about.

Sun, 07/24/2011 - 23:22 | 1489588 cranky-old-geezer
cranky-old-geezer's picture

QE is TARP in disguise. 

Hank Paulson got the ball rolling with his 700 billion, then Benokio took over, buying up trillions in worthless trash paper, including wortless trash treasury debt (with a AAA rating), paying full mark-to-myth price for it.  

Wall Street takes the money from sale of their worthless trash paper and puts it in the stock market.

Treasury takes the money from sale of their worthless trash paper and spends it in the economy.

And it will go on and on. The debt ceiling will be raised, then raised again, then raised again, till it's 100 trillion ...and keep going.  Fed's balance sheet will grow and grow till it's 100 trillion ...and keep going.

But the US dollar will steadily lose value along the way as Bernokio keeps the presses running ...or its computer equivalent which is way easier.   

Bernokio is single-handedly stealing all the wealth from the American people, giving it to Washington and Wall Street.

That's what haapens when you let a central bank control the nation's currency ...as Mayer Amschel Rothschild said long ago.

Sun, 07/24/2011 - 23:54 | 1489693 Yen Cross
Yen Cross's picture

 Throw a tarp over that Avatar... Thank you Ed; we are here to trade financial in- struments

Sun, 07/24/2011 - 23:22 | 1489607 dogismyth
dogismyth's picture

forget the system.  its their system, let them have it.  Why is everyone so reluctant to turn their backs on these idiots that claim to be leaders or governors of our society.

you guys worry to much about their system and you have hardly any facts, if any at all, and you have no idea what really is going on.  Why would you give one iota about trying to rediscover such a corrupt system, let alone trying to salvage it.

They are only in charge because you and I continue to play the game.  However, I have for the most part removed myself from the game.

You want to spend night after night trying to figure this shit out??  Haven't you had enough shit crammed down your throat in the past 2.5 years???

Ya really think that's gonna change from within the system?

Stop feeding the monster and ignore it like you would some imbecile.

Sometimes I think you guys are like little old ladies watching their daily soap operas on TV.  They live it and can't wait for it the next day.

Sun, 07/24/2011 - 23:41 | 1489658 Kali
Kali's picture

Yet here you are.  I believe this site serves many purposes.  One of the more important ones is to teach people who are just waking up.  Congratulations, if you have successfully repudiated the system, be grateful. 

Mon, 07/25/2011 - 00:07 | 1489709 Prometheus418
Prometheus418's picture

There's some truth to that, but only some.

I never gave a crap about macro-economics until they intruded into my life, and the more I look, the less I like it.  I learn plenty of new things here, but mostly, it's a matter of knowing when the time comes to stay home from work and lock-and-load to protect my family.  This is the fastest, freshest news source availible to plebs like me.

Also, when you're an insominac who doesn't watch tv, you need to do something in the hours when everyone else is sleeping, and quiet falls over the house.

And I like to argue.

Sun, 07/24/2011 - 23:22 | 1489612 island
island's picture

"As this stark fact becomes ever clearer, Washington DC and Wall Street stand helpless before the fact that they can only cure the economy at the cost of killing the financial system which is feeding on it. It’s that simple."

Amen.  (And so it is.)

Sun, 07/24/2011 - 23:25 | 1489615 Snidley Whipsnae
Snidley Whipsnae's picture

No government/central bank has gone quietly into the night when printing more fiat was still working to stave off collapse... Do not expect different behavior from current govs/central banks... for nominal (devalued) dollars will work to save a bank... but not a person in the supermarket check out line... Nor a long term bond holder... nor a person holding equities long term... nor a person facing sharply increasing taxes on real estate or farms.

"My friend, debt is the very essence of fiat. As debt defaults, fiat is destroyed. This is where all these deflationists get their direction. Not seeing that hyperinflation is the process of saving debt at all costs, even buying it outright for cash. Deflation is impossible in today's dollar terms because policy will allow the printing of cash, if necessary, to cover every last bit of debt and dumping it on your front lawn! (smile) Worthless dollars, of course, but no deflation in dollar terms! (bigger smile)" A blog entry from FOA in ~2000...

http://fofoa.blogspot.com/search?updated-min=2011-01-01T00%3A00%3A00-08%3A00&updated-max=2012-01-01T00%3A00%3A00-08%3A00&max-results=34

 

 

 

Sun, 07/24/2011 - 23:56 | 1489698 Yen Cross
Yen Cross's picture

 I thought you got " Fiated" ?

Sun, 07/24/2011 - 23:41 | 1489647 Caviar Emptor
Caviar Emptor's picture

 

And here we are, haggling over $30 billion here, and $50 billion there...


Yes, the "pure of debt heart" in Congress are hoping to weedle a few billion out of grama, people in wheelchairs, retirees and future retirees. 

The demarcation of power between the haves and have-nots has never been more stark in the US since the Federalist Papers. 


 

Sun, 07/24/2011 - 23:41 | 1489660 candyman
candyman's picture

i woke up late, are there supposed to be fireworks today?

Sun, 07/24/2011 - 23:43 | 1489664 Caviar Emptor
Caviar Emptor's picture

Just waitin to hear that we've been bailed out again. But of course, we must also hear how tough tough tough they're going to be on us because of it

Sun, 07/24/2011 - 23:43 | 1489665 indio007
indio007's picture

I can't believe anyone takes this kabuli seriously.

 

This debt system has come down to being an elaborate game of musical chairs. Everyone owes each other "money" and they are all waiting for someone to pay up so they can pay their own debts. 

Sooner or later the musical will stop. 

The PTB tried to take homes but they failed.

They are just going down the list of easy to acquire capital.

Sun, 07/24/2011 - 23:44 | 1489668 High Plains Drifter
High Plains Drifter's picture

with all of those funds going to just 4 us banks, can we bring up the issue with derivatives again?  why would these banks need so much ?

Sun, 07/24/2011 - 23:48 | 1489680 Yen Cross
Yen Cross's picture

They don't HPD! Good catch. You can see where "Chair Satans" Fail Safe is...

Sun, 07/24/2011 - 23:45 | 1489671 zebrasquid
zebrasquid's picture

 I can't believe how docile the American people are as this unfolds in front of them.

How many young people, in their 20s and 30s, still talking getting pregnant, and buying a new house, and planning to just live the life of their parent's generation.

You try to talk to them about it, about the idea of putting those plans on hold, buying a little gold, hunkering down, and they look at you like, go away old granddad, you are out to lunch, old man.

Well, we'll sure see how was out to lunch.  Not their fault, the cluelessness is the product of too many fat and happy decades of America, and too many teachers that told them what was important about America was everything that was the opposite of what actually is(was).

Sad, sad, sad.  Maybe the generation AFTER this new one will rise up again, kind of like the post-Depression people.

Just hope there is still something civilized here to re-start.

 

 

Sun, 07/24/2011 - 23:48 | 1489681 Kali
Kali's picture

You made me cry.  :  )

Mon, 07/25/2011 - 00:00 | 1489704 AssFire
AssFire's picture

"Just hope there is still something civilized here to re-start."

This country will unfortunately take many more years to fall apart. We are still in the first few chapters in Atlas Shrugged. We know how it ends- with everyone on the gov. dole and no intelligence or ambition.. but in our case I fear that the educated people will not exist who can restart the engines of individualism and self sufficiency.

Mon, 07/25/2011 - 09:49 | 1490283 hangemhigh
hangemhigh's picture

TO: Ass Fire                                                                                       Mon 7/25/2011

 

"We are still in the first few chapters in Atlas Shrugged"

 

af:  ayn rand = john galt = easy al= bernankenstein= dr strangelove

Mon, 07/25/2011 - 00:29 | 1489746 Midas
Midas's picture

Have some sympathy for 'em zebrasquid. I think they talk of starting a family because they are "in their 20s and 30s." That is when people have kids. You have hope for the generation AFTER this one, but how are they doing to get here if people in their 20s and 30s don't have kids?

Cheers.

Mon, 07/25/2011 - 01:51 | 1489843 Milton Waddams
Milton Waddams's picture

In general people extrapolate trends linearly.  

Stupid people ascribre to it and envision life in a series of predetermined milestones that, if not achieved, equate to some sense of triba/societall failure.  

Mon, 07/25/2011 - 10:45 | 1490415 MrSteve
MrSteve's picture

Well Zebra, you and I will just have to put a few ounces away in a special allocation to help those younger people out. Didn't someone help you? Job skills, a job, a loan, a place to stay, watch the kids so you could make ends meet.... Tomorrow the need will be for some capital to start a small business or grab an opportunity of a lifetime.

You the MAN! so prepare to MAN UP and help the young people who are going to need it, from far-sighted wise old cheifs. May your tribe increase!

Sun, 07/24/2011 - 23:45 | 1489673 Clowns on Acid
Clowns on Acid's picture

Gotta live within the "system"...ok...the US has the best bankruptcy system in the world. Let it begin.

Oh wait a minute....bankruptcy doesn't happen for GS, Citi, AIG (although they offered but that meant GS was broke...can't let that happen).

Sun, 07/24/2011 - 23:47 | 1489677 gwar5
gwar5's picture

Collapse? And it's right on que....

Maurice Strong, UN operative, messianic billionaire:

In 1990, a small, round faced Canadian described a scenario to a reporter. He envisioned a small group of world leaders concluding that the rich countries were the “principle risk to the Earth.” This group then created a plan to get the rich countries to “sign an agreement reducing their impact on the environment.”

When the rich countries refused, the group decided “the only hope for the planet” was for the industrialized civilizations to collapse. He pondered, “Isn’t it our responsibility to bring that about?”

http://www.allamericanblogger.com/2667/maurice-strong-and-the-collapse-o...

Maurice Strong + George Soros = bad times

Reality is, they don't care about the planet, they just intend to move their operations from the West to the East. They are ultra-rich locusts, moving on, but they have to collapse Western demand for resources to be able to appease and plunder Asia. We are the flies in their soup.

Strong goes on elsewhere to admit global warming is a PR scare campaign to create a movement to shutdown developed countries.

Sun, 07/24/2011 - 23:59 | 1489689 candyman
candyman's picture

Aaaaahhh, stretch , clear eyes, the new normal is here folks,  green shoots are back again. All is great the outook cant be greener. It cant be worse than this so BTFD. Amerika the land of the great. We will live on for etermity as a great society. Rome, you had it all wrong, our ipods and android phones bring us closer to real time and we can manage every collosal mystake with the touch of the finger. Booyaaah.

Sun, 07/24/2011 - 23:57 | 1489699 r101958
r101958's picture

Bankruptcy does work.....if they would let it.

Mon, 07/25/2011 - 00:13 | 1489701 TruthInSunshine
TruthInSunshine's picture

I'm being very serious here, so please grant me some leeway, and you also may find that you've also wondered the same thing -

I consider myself reasonably intelligent. I think I have the basics down regarding how TARP, TALF and Quantitative Easing were implemented, and I have studied quite a bit of that which I formerly had little interest in (mainly what the Federal Reserve Bank truly is, how the gold standard restricted what really is a debt and fiat fueled expansion of a true Ponzi & Confidence Game that we call our 'economies' in developed nations, and how fractional reserve banking works (or doesn't work, if you will) at a fundamental level.

But there's a big 'thing' that I don't understand, don't know where to look for accurate data in attempting to understand it, and it really, really bothers me.

Simply put, it's my general understanding that the debt that the Federal Reserve monetized (by purchasing treasuries in the secondary market), as well as the money that the Federal Reserve AND the U.S. Treasury used to buy assets or guarantee loans (i.e. act as the fail safe in the event of default) from financial actors during the TARP & TALF programs, all turned into money doled out, in one form or another (discount window at de minimis interest, direct purchases of assets, no matter how toxic, etc.) to financial actors.

Now, given that we've experienced the sharpest equity market rally in history since the 2009 bottom in terms of such a short interval and such steep gains, and given that market volume has been relatively low when contrasted with the past decade, and given that there are fewer retail participants in the markets now than during past sharp rallies, is there any reliable method of accurately tracking how much, whether in terms of a % or a absolute dollar figure, of this rally off the 2009 lows has been directly or indirectly the result of money that was doled out by the Federal Reserve or the Treasury Department?

Charles Biderman, who is the founder of TrimTabs, and whose company tracks the flow of fund into equities, has repeatedly stated over the past 20 months or so that he can't explain where the money that has been used to purchase equities is coming from, in larger part than ever (he can account for some or even a good deal of the purchasing of equities, but he can't for another deal of the market action). He even has gone so far as to at least insinuate that the Federal Reserve has been directly involved in providing 'risk free' or 'low risk' liquidity that has driven the equity markets higher.

Many of here and elsewhere assume that the Fed & Treasury have had the strong intent to see equity markets rise, and that they have somehow rigged the markets to the upside, but I've yet to come across anyone who has stated and can prove a direct funding relationship between the actions of the Federal Reserve or Treasury Department rising equities.

I'm not sure how direct a cause and effect relationship can be drawn, due to a lack of transparency, but even if someone were to be able to provide support for the contention that, 45%, just as a rough example, of the rise in equity markets over the last 24 months or so is the direct result of Fed Reserve or Treasury action, and then be able to trace the route of the funds, that would be useful knowledge for me (at least).

Mon, 07/25/2011 - 01:10 | 1489804 Caviar Emptor
Caviar Emptor's picture

Keep in mind they want to keep you baffled. That way you don't watch what the left hand is doing while they distract you with the right. 

The feature of this market that stands out as compared to prior ones are the stats (well-published) on who is actually holding shares and for how long. The stats are shocking. Nearly 75% of all share volume is program trading (read HFT bots trading to one another all day). Only about 10% of the volume is held for longer than a day. The rest is daytrading. 

What this indicates is that shares are being priced increasingly at the margin, with few shares actually changing hands and few dedicated buyers. To stretch the point, that means the same 100 shares of XYZ are traded back and forth all day long, only 10 are bought to hold and the remaining 90 just make a round trip back to where they originated. The ultimate Ponzi. If you and I agreed to trade poor attempts at drawing back and forth and published the results, you could fool some into thinking the prices are real and that there's a market for those drawings. There isn't. 

The Fed has simply financed this entire operation through their intermediaries on Wall Street by loaning them money risk-free and by allowing them to flip bonds back at a premium to purchase price. The Fed is both paying for cooperation and demanding it in return for exapnding its balance sheet to hold the stuff that would otherwise ahve made the banks insolvent, and for the special programs. 

Mon, 07/25/2011 - 08:20 | 1490124 TaxSlave
TaxSlave's picture

I think you've nailed the crux of the biscuit there.

If I hadn't already pulled my measly retirement out and taken the tax hit before the crash and bought silver with it, I would do it now.

Mon, 07/25/2011 - 01:18 | 1489809 Yen Cross
Yen Cross's picture

  Good post! Break it down... Keep it short and sweet. Yen.

Mon, 07/25/2011 - 02:09 | 1489860 Bear
Bear's picture

... And how much has been used to keep Silver and gold under wraps. It takes so little (in FED terms) to control gold and silver.

Mon, 07/25/2011 - 03:03 | 1489893 Raymond Reason
Raymond Reason's picture

I assumed the rise in equities would be fueled by capital from the excess reserves held by the commercial banks, via the purchases of toxic assets, compliments of the Fed.  I may not have completely understood your question, because i think you have a deeper understanding of this shit than i do. 

What i don't understand is the significance of the Fed paying interest on the excess reserves.  My gut tells me this must somehow discourage loans, and encourage speculation?   

Mon, 07/25/2011 - 04:08 | 1489930 css1971
css1971's picture

Money is fungible. What is it, $1.6 trillion in excess reserves?

 

Mon, 07/25/2011 - 00:02 | 1489706 HowardBeale
HowardBeale's picture

...they can only cure the economy at the cost of killing the financial system which is feeding on it.

"Something" needs to get killed on Wall Street; the sooner our Norwegian steps forward, the sooner the country can begin to heal and rebuild itself and its reputation among the millions of victims around the world.

Here Norwegian, Norwegian. I've got a street full of criminals that want to fuck your life up so they can add more zeros to some electronic ledger somewhere.

Mon, 07/25/2011 - 00:35 | 1489723 candyman
candyman's picture

+1:

 Well put, after 35 years I have never seen anything like this, Ive been wondering  the same thing, and can only see the Elliott wave, momo and the hft guys pumping this  casino higher. The problem is that you analyze fundamentally when the new Wharton School  says BtFD bitchez. Think like children and you will make a fortune. All is great nothing can possibly go wrong. All this build up about the debt and a lousy 120 pts lower,  give me a fucking break. Begin thinking like a PM, get that 20% or bust.

Mon, 07/25/2011 - 00:58 | 1489787 sbenard
sbenard's picture

Calamity is certainty! Plan and prepare accordingly!

Mon, 07/25/2011 - 01:08 | 1489797 Arch Duke Ferdinand
Mon, 07/25/2011 - 01:24 | 1489816 wisefool
wisefool's picture

If silly valley wanted to make a mint, and captivate on the "Buerocracy of love" reported on NPR (regarding gay marriage in NY), They should start a dating site for people who want to be dominated by the 60,000 pages of the tax code. Google and MSFT could easily and righteously "fund" it.

Mon, 07/25/2011 - 01:11 | 1489805 Yen Cross
Yen Cross's picture

 There goes that 23.6 fibi in e/u... I can't wait for london!

Mon, 07/25/2011 - 01:26 | 1489818 candyman
candyman's picture

There is no chance in hell 1303 will be broken, remember think like a child, oh no, we cant go below 1303. Markets are run by children so think like them!

Mon, 07/25/2011 - 01:45 | 1489835 tahoebumsmith
tahoebumsmith's picture

The big cover up continues while a nation focuses on Casey Anthony and a debt ceiling dog and crony show. At this point what's another 2 Trillion dollars anyway? Now that the FED and their lap dogs have burned through about 13 Trillion trying to bury their terd, we have come to a point where nothing matters anymore. They have covered up their lies with more lies and now it's full fledged survival mode. The money is gone, it has been stolen just like it was intended to be stolen. The money was used to cover the truth and bury the real ticking time bomb like the derivitive exposure the banks mentioned above are exposed to. It won't be long now before their ability to hide the truth with ponzi economics catches up with them. We don't have another 13T to bury the next pile of shit that wall st. will leave us with. Nothing you see is real, you are totally in the dark, it is only a matter of time now...

Mon, 07/25/2011 - 05:50 | 1489962 Snidley Whipsnae
Snidley Whipsnae's picture

 "We don't have another 13T to bury the next pile of shit that wall st. will leave us with."

Ahhh grasshopper, but we DO have another 13T, and another, and another, etc...

You are not understanding... They will print until the currency collapses before they will allow a system collapse. Throughout history this has happened and this time will be no different!

In the end the financial system WILL collapse, but only AFTER the dollar has been printed into oblivion and a dose of hyperinflation has destroyed the dollar. The Fed/Gov will never allow a deflation of assets in NOMINAL dollar terms. A deflation of assets in NOMINAL dollar terms would mean an immediate failure of BANKS and that will never be allowed.

IOWs, the current banking/financial system will be saved at the expense of a destroyed dollar.

Think about it...

 

Mon, 07/25/2011 - 02:14 | 1489866 folletto
folletto's picture

http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-6206...

The Fed Audit

July 21, 2011

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression

http://sanders.senate.gov/imo/media/doc/GAO%20Fed%20Investigation.pdf at page 256 Mr Scott Alvarez, yes Mr Scott the one you can find here:http://www.dailypaul.com/166514/ron-paul-questions-the-fed-we-dont-own-a...

Il Folletto

Mon, 07/25/2011 - 03:01 | 1489892 bk1037
bk1037's picture

The 2 political parties are dysfunctional now, as has been pointed out in several media reports this weekend. There is a reason this has been one of the least prolific Congresses in history, the 2 groups have incentive in their own power base to act pigheaded to each other. It's a frustrating business I'll bet, never being able to implement anything because of unyielding pigheadedness on both sides. Why would anyone run for public office, it is so inconsequential. Look at how utterly little they have accomplished since the debt crisis made the mainstream news. Look how little they have accomplished since 2009 when Obama took office. Sad commentary on American politics.

Obama has a backup plan I am still convinced, ready to come into play once Congress confirms it is unable to discharge its responsibilities on Aug. 3 (actually May 16 and $300 billion in the hole later which has to be dealt with). The 14th amendment about satisfactory debts is about to be invoked because Congress can not pass anything that is agreeable to Obama. That sums up the dysfunction. And tell me how it all changes because the atmosphere is so toxic now that little more will be accomplished before the next election and we repeat this garbage all over once more. Americans are so naive to think elections really change a great deal, as long as both parties keep getting elected, expect more of the same.

 

Mon, 07/25/2011 - 05:31 | 1489952 Sathington Willougby
Sathington Willougby's picture

Like anything they've ever done has been an accomplishment.  An accomplished thief is still a thief.

Nothing will be right until the people accomplish one thing, GET A ROPE. 

Mon, 07/25/2011 - 03:46 | 1489916 herrysam
herrysam's picture

Phentermine...

nice post thanks for sharing.

http://www.PhentermineHome.com/

Mon, 07/25/2011 - 03:50 | 1489918 CD
CD's picture

While a little basic in its presentation of the finer fiscal policy details, this is actually quite good in expressing the appropriate emotion (F**k the Fed):

 

http://www.youtube.com/watch?v=-6Fpoebz2LE

 

I was surprised to see that Mr. Fox had not yet run across ZH, perhaps we'll see him around.

Mon, 07/25/2011 - 03:53 | 1489921 wisefool
wisefool's picture

Photos showing all volumes on shelves proving that one complete set occupies over 25 feet of shelf space

http://extent-of-regulation.dhwritings.com/

And that is just the "we are going to tell you what to do before we tax your stuff laws" not including the "We are going to take your stuff anyway laws" tax code.

 

So I ask you bk1037. What more do you want them to accomplish?

Mon, 07/25/2011 - 05:51 | 1489923 Sudden Debt
Sudden Debt's picture

It sure does put the debt in prespective.

If you sold every company to the Chinese, you'de just break even. IF you sold now. In 6 months from now, you'll be short 2 trillion...

No wonder world inflation is getting out of control with that kind of money spread over the world. And I bet it's going to get a lot worse in the comming years as it's clear Europe will have to do the same after Greece defaults in 1 or 2 years.

Mon, 07/25/2011 - 05:36 | 1489953 Sathington Willougby
Sathington Willougby's picture

 

This country stinks like SHIT!!!

 Who FIATED? 

 

THE FED

Mon, 07/25/2011 - 05:54 | 1489966 Sudden Debt
Sudden Debt's picture

Just imagine all that money would be printed in 1 dollar bills... THERE WOULDN'T BE ENOUGH TREES IN THE WORLD TO PRINT THEM ON!!!

And if you would coin them on 1 dollar coins, THERE WOULDN'T BE ENOUGH METAL IN THE WORLD TO DO SO!!!

 

Mon, 07/25/2011 - 06:14 | 1489978 PY-129-20
PY-129-20's picture

That's why they use 'air' - it's cheap, it's everywhere (at least until now). Wanna have an air coin? Wanna change it for a gold coin? ;)

Mon, 07/25/2011 - 06:17 | 1489982 twotraps
twotraps's picture

what can we do about it?  What action is anyone taking to protect what they have in the bank or any other paper assets?  I did not expect anything like TARP or TALF bla bla bla...........one comment was outstanding reminding us that so many banks were not allowed to fail so why the fuck would the govt follow the rules and fail??  

 

The critical emergency for the govt, as I see it, is how to maintain the illusion that there is actually a 'system' and not just a Pretend Account that has no basis in reality and proceeds without any real ecomonic consequences.  They are pissed because they ruined their own game, and now stupidity and lack of respect for what can go wrong could kill the game once and for all.

 

Now, what can we do about it to protect ourselves?

Mon, 07/25/2011 - 07:25 | 1490043 max2205
max2205's picture

Comments/Reads = 1%. ..... Just saying

Mon, 07/25/2011 - 07:32 | 1490058 goldinpenguin
goldinpenguin's picture

Speaking of Fiat - they control Chrysler now, two drowning men embracing each other!

Mon, 07/25/2011 - 07:32 | 1490059 theprofromdover
theprofromdover's picture

Little Timbo played his 'we can raid the pensions' card too early, didn't you Timmay.

(Or did a light finally go on in that little curly-haired head of yours)

Mon, 07/25/2011 - 08:00 | 1490100 arkm
arkm's picture

Sorry, I am maybe a bit ignorant about debt (...well, I'm Italian!!), but there's a thing I don't get about the conclusions of Mr. Buckler, that Tyler mentions. Pretty relevant, I think...

total US stock market capitalisation was $US 15 TRILLION. The Fed provided about half of that.

Is debt going into mkt capitalisation? I was convinced it didn't...

Ciao!

Mon, 07/25/2011 - 18:08 | 1492243 TruthInSunshine
TruthInSunshine's picture
Money As Debt

 

So, with Fractional Reserve Banking practices, money really and truly does = debt, and debt = money.

Mon, 07/25/2011 - 09:27 | 1490230 proLiberty
proLiberty's picture

Our liberty and property are being purchased from us by a government that creates "money" by printing paper whose value comes by theft through dilution of the wealth held in the existing stock of its currency.  This government, through its agent, the Federal Reserve Corporation, has succeeded in placing all US taxpayers in debt-servitude to the shareholders of that corporation, the member banks in proportion to their capital. 

All your wealth are belong to us!

 

Mon, 07/25/2011 - 09:53 | 1490293 HitTheFan
HitTheFan's picture

Is the ZH system down today? There have been no posts at all?

Also, I am very confused by the new rating system, as I can't see any buttons to add a plus or a minus to any comments?

Is it just me? (It often is!).

Mon, 07/25/2011 - 09:53 | 1490294 HitTheFan
HitTheFan's picture

Is the ZH system down today? There have been no posts at all?

Also, I am very confused by the new rating system, as I can't see any buttons to add a plus or a minus to any comments?

Is it just me? (It often is!).

Mon, 07/25/2011 - 10:39 | 1490407 MachoMan
MachoMan's picture

If the FED's efforts represent an unprecedented attempt to stimulate the animal spirits via printing with reckless abandon, then at least we should be able to put to rest the notion that these types of stimulative efforts work in situations of "balance sheet" depressions.  Obviously some other asshole/lunatic will pick up the torch in a few generations, but we should at least get a respite for a while...  not that it will be of much consolation...

Mon, 07/25/2011 - 11:43 | 1490656 Doyle Hargraves
Doyle Hargraves's picture

 

Imminent default in the US and bonds haven't really budged? WTF?

The fed bitchez are working overtime on this shit for sure that is the only way this is happening.

So much for those bond vigilantes.

Tue, 08/23/2011 - 23:24 | 1593526 karmete
karmete's picture

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