Joint Statement By The Fed, The FDIC, NCUA And OCC

Tyler Durden's picture

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zorba THE GREEK's picture

I guess what they are implying is that there is no risk of not getting your money back in treasuries or anything else backed by the good faith of the U.S. government because they have printing press and they will print you up some pronto, no matter how worthless the dollar becomes.

trav7777's picture

this really IS the Fed telling SP to fuck off.  There is no force or effect from this downgrade other than SP was making a political statement

Pay Day Today's picture

How many grades are there under AA+? Methinks that S&P has more rounds left in the clip. How about Turbo Timmah and the Bernank?

Hulk's picture

Its A's all the way to the bottom...where there are B's...

Ahmeexnal's picture

 

 

War is PeaceFreedom is SlaveryIgnorance is Strength, Debt is Money, Bankruptcy is Wealth, Death is Life, God is Satan

 

TBT or not TBT's picture

Fiat is gold, gold is a barbarous relic

Cursive's picture

@TBT or not TBT

Time to get long barbarians.

El Viejo's picture

One of the very first taxes imposed by this country was the Whiskey Tax. At that time Whiskey was Money.

Hulk's picture

Silly!

-Feynman...

caerus's picture

you no like turtles?

Tidewater's picture

It's not so much lower ratings from S&P -- this downgrade was and is monumental -- as other ratings agencies like Moody's tagging along. Could put weeks' worth of pressure on. Fitch might stay put/certainly won't be first to tag along.

But nardshark. S&P moved the rotten camembert. I'm gonna roll watching Bob Pisani spin this. Can't hardly damn wait.

StychoKiller's picture

Earlier today, Standard & Poor’s rating agency lowered the long-term rating of the U.S. government and federal agencies from AAA to AA+. With regard to this action, the federal banking agencies are providing the following guidance to banks, savings associations, credit unions, and bank and savings and loan holding companies (collectively, banking organizations)

Our conclusion:  "We still got 2 out of 3 ratings agencies working, and that ain't bad!"

http://www.youtube.com/watch?v=VepS-IyKOLE&feature=related

Mentaliusanything's picture

Not once has it been said..... anywhere .. It HAS NOT BEEN SAID ....get it.... NOT been said !!!!!!!!!

This is the Worlds Reserve Currency !!!!!!

It has been defiled, Fucked, screwed with, lost its Purity, raped, Buggered, slut fested, gang raped, cherry popped, defiled,  debased, royally screwed with, NOT to be Trusted, Not to be tied with, a Whore and a plaything of unclean people.

Oh Baby you are in so Much trouble.

Thanks to ;;

Timmay

To big to fails

Helicopter wanker nankie

Wars

Lobbists (fuck I hate them)

Whats in it for me Congress

Wall st wally wankers.

and a crowd of a thousand hanger on blood sucking Tossers.

Welcome to HELL come Monday.

You are so Fucked!!!!!

 

IBelieveInMagic's picture

You forgot to include yourself and all of us.

j0nx's picture

Amen brother. Things like this could never happen without the consent and apathy of the people. Americans seem to care for naught except for whether or not they can marry their gay lover Raul or what those zany kids on Jersey Shore are up to this week. We will pay dearly for that apathy at some point soon.

ejmoosa's picture

The good Germans let Hitler come to power.

The German people paid the price.

 

The good Americans have let the government take power.

We AMericans are going to pay the price.

 

 

 

ejmoosa's picture

The good Germans let Hitler come to power.

The German people paid the price.

 

The good Americans have let the government take power.

We AMericans are going to pay the price.

 

 

 

john39's picture

Sock puppet show. This is all planned.

MM76mm's picture

Planned it is. They will say we restore the AAA rating if you raise taxes.  Raising taxes they will.

Yes_Questions's picture

 

 

Right.  And guess where the money is.

I'll give you a hint: it ain't with the shrinking in ranks middle class and cutting SNAP, UE, SSI or Medicare is a non-starter in this political season.

Bobbyrib's picture

It will come from the working middle class, or it won't come at all. You can't raise taxes on corporations and the wealthy, the Republicans would never go for that.

-Michelle-'s picture

You can't raise taxes on corporations and the wealthy because the wealthy are rich enough to exploit loopholes and the corporations pass the taxes on to their customers.  So, yes, it will come from the working middle class any way you look at it.

Mesquite's picture

 I thought Egypt was a profound event...

How appropiate to happen in the cradle of civilization there..

Hmmm. 

diesheepledie's picture

Yup, Timeigh and the Bernanke are such f'n geniuses. It is all planned with in concert wih Soros and the rest of the Bilderberg. We are mere mortals they are teh genius. Yea ... lol. Timeh!

CrashisOptimistic's picture

Oh, there most certainly is an effect that can extend past this communication.

Munis are tied to Ts.  THEY may have to downgrade somewhat automatically and a great many of them will then become ineligible for purchase by pension funds and mutual funds.

 

 

Taku's picture

Full release:

(translation)

Agencies Issue Guidance on Federal Debt

Earlier today, due to temporary insanity, some rogue analysts broke ranks with consensus estimates. With regard to this, listen carefully.

All you need to know is that everything is backed up by your Bernank. As such, there's no risk at all you will not get paid back. No risk. Please continue marking to fantasy. However, if you believe otherwise from this official statement, don't even think about trying to do something about it.

DeadFred's picture

The Fed may have some say with the banking community this directive this was aimed at but Despite what they may think they are not gods and the US is not the universe. I don't think Europe and China aren't going to kowtow to the Fed's wishes and we already know how little Russia thinks about the Bernank. This will provide the cover for them to do whatever they want in the currency wars and credit it to the downgrade. Monday we will see one way or the other.

msamour's picture

If the rest of the world corners the United States, I have no problem believing the Unted Stated Elites will start a world war just to keep the pressure off them, and the banking system. Hell I would not be surprised they used nukes. After all the only country in history to ever use nukes is the U.S.

Flakmeister's picture

It takes 2 of 3... S&P actually covered their ass. Very Machiavellian if I do say.

Sophist Economicus's picture

It was definitely a f-you. But, I think The S&P downgrade is the start of something big.

First, they told Barney frank where he could shove his letter, yup, the gerbils will have some paper to play with now

Second, they are now off the hook for any future liabilities regarding USA debt ratings -- nothing politicians can use to dangle over their head

Three, they've taken a stand against the status quo. I think others will now soon follow. Government intimidation falls apart in the face of large numbers. We might be at the bottom of the rebellion s-curve

Time will tell, but this could be the 'next shot heard round the world'

supersajin's picture

all it takes is for a few cracks in the system

Squid-puppets a-go-go's picture

if im not mistaken, there are hard and fast repercussions - intra-American lending wont acknowledge the premium for the downgrade, but do you reckon china/european entities looking to lend to the US will accept repayment terms that arent reflective of an increased risk?

Winston Smith 2009's picture

"There is no force or effect from this downgrade other than SP was making a political statement"

As far as US banks and other institutions under direct Fed cartel control, correct.  As far as the rest of the world is concerned, incorrect.

MsCitizen2's picture

Exactly right, IMHO.  Just like the Tea Party Congressmembers were making their own "political statement" - - FRESHMEN all!   Nice work, morons.

blunderdog's picture

...but it's worse than that anyway.

The Treasury market can't really run into *serious* trouble until there's competition.

In principle, it's time for the Eurozone to launch it's "Euro-wide" bonds now.  Or China.

There are no other players who'd have even the slightest hope in hell of doing any direct harm.  There's noplace to roll $20 billion to overnight.

max2205's picture

Dark pool trading is open all weekend with huge blocks sold bought and hedged. Ts may see a pop then drop because all these trades will hit the tape Monday at 3:59:59

ZeroPower's picture

How fucking stupid are you?

dukeland's picture

FED is playing the same game it did during GFC - suspending the Mark-to-Market and replacing it with Mark -to- Nothing. Then we will pretend to be blind and give you full dollars (as worthless as green toilet paper) for these 'no-faith' treasury notes as collaterals.

Why live in real world when the la-la banana land is a paradise!

MarketTruth's picture

What is the difference between a bankster and a counterfeiter?

 

BTW: Call the FDIC and ask them if they can guarantee the VALUE of your dollars. They will answer "No", as the FDIC only guarantees the dollar quantity, yet not the buying power as obviosly the Federal Reserve Note (dollar) devalues every year.

dehdhed's picture

if prices and rates are bound to fluctuate, it seems the only way to promise no change in risk weights is if they already plan further easing

almost feels like the fed just showed it's hand

silvertrain's picture

Is Turbo Tim going to keep his job still?

Long-John-Silver's picture

 

He's seeking asylum on a Caribbean island with  his off shore bank account tonight.
Milton Waddams's picture

From Wikipedia:

"As a Treasury official, he helped manage multiple international crises of the 1990s in Brazil, Mexico, Indonesia, South Korea, and Thailand."

Anyone sensing a trend here? Perhaps he finally bag that big game he has always aspired to?

Stepping in to his private jet, Treasury Secretary Geithner waved his hand to the press corps that had gathered to cover the event. Before finally vanishing into the aircraft, Geithner chuckled to the onlookers "America, we hardly knew ye". No details were released on the the Treasury Secretary's destination nor any details about the trip.

urbanelf's picture

The American taxpayer: the deadliest game of them ALL!!!

MM76mm's picture

Ssaw on CNBC this early morning that the Politicians in Europe were too busy sipping cocktails on the Riveria,  I laughed.  If only they sipped more cocktails on the Riveria and stayed away from their best job of screwing the market up Royally.

tom a taxpayer's picture

No problem, don't listen to downgrade. Just stick finger in ear.

http://cache.abovethelaw.com/uploads/2010/11/Obama-Big-ear.jpeg

SDRII's picture

Let them eat iPod.....