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Why Did The Fed Inject Banks With A Record Amount Of "Other" Cash In The Past Week?

Tyler Durden's picture





 

Update: as some claim, the "other" reserve move may have been sourced to satisfy GSE demands. That would be ideal and would indicate that FR banks are transferring excess reserves to fund GSEs consistently (and would also provide some curious accounting dynamics in the Fed's balance sheet). However, there is one small glitch. As a reminder, Fannie tapped the Treasury for $7.8 billion in Q3, while the quarterly Freddie Mac injection amounted to $6.0 billion. In other words the combined $13.8 billion cash draw need would almost explain the $88 billion weekly shift... if only it weren't for the other $74.2 billion. Furthermore, the balance is not explained by debt maturities or other transitory weekly cash needs. In fact, the YTD cumulative delta in the "Other" category is $115 billion, well above what the GSEs have publicly indicated they have received from the Treasury.

For all its obscurity, the Fed's balance sheet is relatively simple: on the right there are the liabilities such as currency in circulation (which is relatively flat at around $1.1 trillion but rising slowly (for now) every week), and excess reserves, at $1.5 trillion, or the money that is "parked" with banks and is the topic of so much consternation: will it ever spill out into the broader economy, won't it, and if not why not, and if yes, will it cause hyperinflation, and other such tangential ruminations. Then on the left we have the assets, or the "stuff" that backs the currency in circulation and excess reserves, such as Treasurys and MBS, which total $2.6 trillion, and which are the primary variable in every Large Scale Asset Purchase episode also known as Quantitative Easing: should the Fed "print", or said otherwise, "purchase" assets, then the excess reserve number goes up first, with a hope that it will slowly spill over into currency in circulation and other broader monetary aggregates. Lastly, there is also the Fed's capital account or "shareholder equity" for purists, but since the Fed can never in theory be undercapitalized by conventional definitions, this is merely a placeholder. Another broad way of looking at the Fed's assets is "factors that supply reserve funds" or "source of cash", and liabilities as "factors that absorb reserve funds" which is, logically, "use of cash." The key assets and liabilities noted above are the major components of the "flow" - they move glacially up and down, and are priced in well in advance of such moves. It is the marginal, or far small numbers that matter, and that fluctuate materially from week to week, that are not priced in, and are thus market moving. One such curious liability which we pointed out recently is the Fed's reverse repo agreements with foreign banks: in the week following the MF Global bankruptcy these soared to a record $124.5 billion. Basically, foreign banks scrambled to procure a record amount of US Dollars while repoing Treasurys and who knows what else with the Fed, an indication that other conventional liquidity conduits had frozen in the days following the Halloween MF massacre. Since then the Fed's Reverse Repo balance has moderated to more normal levels as Treasurys have gone out of repo with the Fed. Yet something more troubling has just been spotted. In today's one-day delayed issue of the Fed's H.4.1, literally the very last number on the very last subpage in the weekly update reveals something quite disturbing. Namely the Fed's "other" non-reserve based factors absorbing liquidity. And specifically, the actual number, which rose by an unprecedented $88 billion in one week to an all time high of $115 billion for the week ended November 23!

Why is this troubling? Because unlike reserves, this number is effectively not defined, and there is no clear transposition between assets and liabilities, not to mention that "other" could mean virtually anything. So in SOME ways this could simply be a plug to a plug (such as Fed Capital), and reading too much into it may simply be an exercise in futility.  On the other hand, what we do know, is that by the generic definition of factors absorbing liquidity, in the past week, a domestic financial institution (because unlike last time around, this was not a foreign-based need for cash) was the willing and ready recipient of an incremental $88 billion in "reserves" - read cold, hard cash. Because if it is a plug, what it is "plugging" is an $85 billion drop in F.R. bank reserves which declined from $1.575 trillion to $1.489 trillion, an $85 billion decline. Which leads us to the question: is the "Other" deposit merely a slush fund to convert "on the books" reserves into an "other" use of proceeds. In other words, the question is - just what event is it that caused the rotation of $85 billion in reserves into $88 billion in "other" liquidity absorbing factor, and what do Economics textbooks teach about massive swings in "Other" F.R. deposits? What - Nothing?

We wonder: in this day and age of trillions in fungible excess reserves, and discount window stigmata, just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?

Exhibit 1 and only:

Source: bottom right

And for those curious what comprises the "Miscellaneous Deposits" category which may or may not comprise the full "other" subcategory, we refer to the Financial Accounting Manual For Federal Reserve Banks, section 11.30 (220-400):

A wide range of miscellaneous deposit accounts are carried on the books of the Reserve Banks. The deposits arise from depositary responsibilities assigned to the Reserve Banks by law—such as accounts opened by the Federal Deposit Insurance Corporation to cover closed banks and checking accounts opened by government agencies. Deposits also arise from work in process at the Reserve Banks, such as payments received from employee subscriptions to savings bonds, funds received for the account of new depository institutions which have not as yet opened for business, and interest paid on securities held pending redemption in federal estate tax cases. Deposit accounts are also carried for purposes that are peculiar to only one or a few Reserve Banks. The Board of Governors, for example, maintains a general fund account at the Richmond Reserve Bank to cover general disbursements and another to cover payroll charges and the Federal Reserve Employee Benefits Office maintains accounts with the New York Reserve Bank. The individual accounts and balances comprising this account should be detailed on the Reverse of the form 34. The individual account descriptions should be adequate to identify the different types of accounts maintained under this heading. For example, "Employee subscriptions to savings bonds" is a sufficient description, rather than Miscellaneous Deposit account 1, etc.

Somehow, we don't quite understand how the above explains an $88 billion swing in one week.

 


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Fri, 11/25/2011 - 21:23 | Link to Comment fonzanoon
fonzanoon's picture

Okay what was it?

Fri, 11/25/2011 - 21:39 | Link to Comment AbelCatalyst
AbelCatalyst's picture

Looks like ZH just found the missing MF Global funds.... Go Tyler!! You da' man! Now, if you could only find the Madoff $ !!

Fri, 11/25/2011 - 21:43 | Link to Comment paarsons
paarsons's picture

The banks are toast.

They are sitting on so many piles of dog-shit that there ain't enough money in the world to save them.

Gotta let 'em fail.  Then re-structure.

http://fucklloydblankfein.blogspot.com

Fri, 11/25/2011 - 22:02 | Link to Comment SGS
SGS's picture

"just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?"

Assuming you are being 100% rhetorical. 

Fri, 11/25/2011 - 22:35 | Link to Comment nope-1004
nope-1004's picture

just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?

 

Insolvency!  Always has been, always will be.

Good bye BAC.

 

Fri, 11/25/2011 - 23:00 | Link to Comment Help Is Not Coming
Help Is Not Coming's picture

just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?

The banks have got to top off the tanks prior to the new "stress tests".


Fri, 11/25/2011 - 23:37 | Link to Comment a noun a mouse
a noun a mouse's picture

From unkle Ben... stress test reports are due in December 15th. But from section 1.2, the banksters are also supposed to report "Trading and counterparty positions should be based on balances as of the close of business,
November 17, 2011." So is it too late to top off?

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20111122d1.pdf

 

Fri, 11/25/2011 - 23:54 | Link to Comment Doña K
Doña K's picture

How about sovereign European debt?

Cover the banks before Monday?

 

Sat, 11/26/2011 - 02:56 | Link to Comment TuesdayBen
TuesdayBen's picture

Nice work. But note that it says 'should', not 'shall' or 'must'.

Sat, 11/26/2011 - 11:37 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Should, could, can, can't, won't..... I think these are words from the kitty of a person with a thinking brain.

Not psycopaths. A spycopath is really like that crazy animal, someone shareda video some time ago... Banker Psycopaths are like the NAstyass Honey Badger.

http://www.youtube.com/watch?feature=player_embedded&v=4r7wHMg5Yjg

What they want, they take. 

Now the next link is to my work on you tube...not quite as fierce as the honeybadger:

http://aadivaahan.wordpress.com/2011/11/23/aadividya-second-trailer/

ORI

 

Sat, 11/26/2011 - 03:34 | Link to Comment boattrash
boattrash's picture

just what was it that caused the junkie to stick the needle in his arm?

Sat, 11/26/2011 - 05:52 | Link to Comment Popo
Popo's picture

"just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?"

 

Bonus season?

Sat, 11/26/2011 - 09:18 | Link to Comment Big Slick
Big Slick's picture

I understand... In DEATH, a column on the Fed Balance Sheet HAS a name.  This column's name is SHADOW US-BANK BAILOUT.

Sat, 11/26/2011 - 09:49 | Link to Comment achmachat
achmachat's picture

i thought it was robert paulson...

Sat, 11/26/2011 - 10:12 | Link to Comment LongBallsShortBrains
LongBallsShortBrains's picture

This column's name is SHADOW US-BANK BAILOUT.

Sat, 11/26/2011 - 10:56 | Link to Comment h3m1ngw4y
h3m1ngw4y's picture

popo nice one

big slick crap

Fri, 11/25/2011 - 22:06 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

"Gotta let 'em fail. Then re-structure."

Any idea how much US debt, Corporate debt, consumer debt that these banks are sitting on?

Are you sure you don't want a few ounces of the shiny stuff paarsons?

If you let these banks fail, EVERYTHING goes down with them.

Fri, 11/25/2011 - 22:12 | Link to Comment i-dog
i-dog's picture

"If you let these banks fail, EVERYTHING goes down with them."

Versus....?

Fri, 11/25/2011 - 22:27 | Link to Comment strannick
strannick's picture

Versus letting them stand, and everything going down without them

Fri, 11/25/2011 - 22:40 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Versus....?

I could explain to you but I doubt your dim wits would recognize what the only option is at this point.

Fri, 11/25/2011 - 23:02 | Link to Comment i-dog
i-dog's picture

Have a go, anyway, Einstein! ... I'm sure all the others would like to hear, while I dribble over your "erudite solution". ;-)

Fri, 11/25/2011 - 22:59 | Link to Comment Arius
Arius's picture

enlighten us ...w/ a bazooka pls ... yeah we get it ... pointing the gun to your head - you get your way or the end of civilization correct?

Fri, 11/25/2011 - 23:28 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Extend and pretend. Tax, war, confiscation, print, death, enslavement. idog does not yet understand how it all works. The tribe will remain dominant.

The best 2 hours history lesson you'll ever get.
http://www.youtube.com/watch?v=swkq2E8mswI

Sat, 11/26/2011 - 00:05 | Link to Comment i-dog
i-dog's picture

 

"Tax, war, confiscation, print, death, enslavement."

So, this is your definition of everything NOT going down? Wow ... Erudite, indeed! How could I have missed such a simple solution to the current problems of tax, war, confiscation, printing and enslavement?!

zzzzzzzzz.....

Sat, 11/26/2011 - 00:29 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

So, this is your definition of everything NOT going down?

When the fuck did I ever say it was MY definition of everything NOT going down.

Read the print. Do NOT overlay your perverted thoughts on top of what you read.

You like to argue with others by telling them what they said.

Stupid fuck. Ask Tylers if you can take a few days off and rest.

Sat, 11/26/2011 - 00:34 | Link to Comment i-dog
i-dog's picture

Ahhh ... more insults?! ... the refuge of the intellectual cripple ... the bastion of the immature child....

Well done, Einstein! When you've finished doing your homework, and put your toys away, come back with something of value that we adults can chew on.

Sat, 11/26/2011 - 08:23 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Well played, i-dog.  But you only get 1/2 a win for that, as it was obviously a non-conference, pushover game. ;)

Sat, 11/26/2011 - 12:04 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

Last time I checked the folks in Iceland are recovering nicely after their monster banks failed. You get an 'F' in History, Carlyle Groupie.

Sat, 11/26/2011 - 13:53 | Link to Comment BurningFuld
BurningFuld's picture

You guys just don't get it. The solution is very very simple.

Legalize Pot!  Doh!

Sat, 11/26/2011 - 00:14 | Link to Comment jcaz
jcaz's picture

Hey look-  Robo has a new screen name.......

Sat, 11/26/2011 - 01:55 | Link to Comment i-dog
i-dog's picture

No. This insidious troll is far more dangerous! He's a paid shill for the Vatican and expends most of his posts here trying to stir up violence and anti-joo sentiment. Check his previous posts.

PS. I'm as WASP as they come, but can see right through his MO.

Sat, 11/26/2011 - 02:03 | Link to Comment Cliff Claven Cheers
Cliff Claven Cheers's picture

Here is a good solution to the world wide debt crisis.

http://news.bbc.co.uk/2/hi/programmes/hardtalk/9641873.stm

Economist Steve Keen is one of the few economists to have predicted the global financial crisis and now he says we are already in a Great Depression. He says the way to escape it is to bankrupt the banks, nationalise the financial system and pay off people's debt.

Sat, 11/26/2011 - 09:58 | Link to Comment Escapeclaws
Escapeclaws's picture

I always thought that would be the way to go myself. It seems so natural and obvious.

I had gone to Steve Keen's website to see if he had anything to say about the latest installment of the European crisis and ran across this video that you post.  I had hoped to see the whole program but couldn't find a way to do that.  Steve Keen is one of the few economists in the world who is not part of the neo-classicist disinformation campaign and in fact, he sees right through them.  It used to be that the choice was between the Keynsians and the neo-classicists (and the Austrian school--don't want to leave them out), but now there is Steve Keen who is using a dynamical systems approach to the economy.  One of his great insights is that the neoclassicists leave money and debt out of their calculations!

I see him proferring this solution to give the people instead of the banks the money, but he must know that could never happen.

Sat, 11/26/2011 - 10:16 | Link to Comment tumblemore
tumblemore's picture

"but he must know that could never happen."

I think it could happen in small doses as long as you didn't state what you were doing as that would mindfuck people. For example, a government stepping in as house prices collapsed and nationalising and freezing mortgages as an emergency measure and then under the cover of that paying x thousand off of every home mortgage and the equivalent sum to anyone with a paid off mortgage to make it "fair".

Sat, 11/26/2011 - 12:15 | Link to Comment CPL
CPL's picture

If you read it, digest it, you'll understand that it's nothing but another trickle down economic plan.  Didn't like Keen in the 80's, 90's or now.  Reagan sock puppet if there ever was one.

 

Completely worthless, but don't let me stand in your way of wasting your own time.

Sat, 11/26/2011 - 11:06 | Link to Comment spinone
spinone's picture

I think that it could happen, if the banks are nationalized.  Unpayable debt has tobe written off and the assets marked to market. Clear out the dead wood. In addition, the rule of law has to be applied to the financial system, arrests made and justice done.

Then, the economy can rebuild.

But politically, this can't happen because the politicians and regulators are beholden to the financial system and the money it contributes.  The financial system meaning the primary dealer banks and those connected with them.  So the money that influences politics comes straight out of the FED.

Sat, 11/26/2011 - 11:44 | Link to Comment Are you kidding
Are you kidding's picture

"He says the way to escape it is to bankrupt the banks, nationalise the financial system and pay off people's debt."

Sure...great for the "little people"...but do you really think the rulers of the world...the bankers...are going to let you take away their banks?  Good luck with that without a REAL revolution.  The bankers put the lawmaker there...it'll never happen.

Sat, 11/26/2011 - 10:38 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Feel the need to tell us that you are oh-so WASPy? For clarity or for credibility or both? ASLMH lil buddy?

Don't you hate these anti-message guy's Mr. WASPy?

Dr. Norman Finkelstein
http://www.youtube.com/watch?v=A5drXEXkf9s

http://www.realzionistnews.com

http://electronicintifada.net/blog/nora/hollywood-actors-visit-israel-tr...

They first need to be controlled, and there's a long list of them. Then come after the others.

Jeesh, all this awakening is going to cost Papa Murdoch lots of shekels.

http://www.youtube.com/watch?v=O1nalV9tlyM

Sat, 11/26/2011 - 12:07 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

There's no apostrophe in guys, nitwit.

Sat, 11/26/2011 - 10:04 | Link to Comment SMG
SMG's picture

He is here to disrupt, but not for the Vatican, as you keep incorrectly insisting in many of your posts, but for the Luciferian Illuminati or some of their agents.

Sat, 11/26/2011 - 10:36 | Link to Comment i-dog
i-dog's picture

Exactly the same thing (since the Jesuits took over the papacy in 1878). Who do you think started the Illuminati? and politically controls the Sabbateans? ... a couple of bearded, head-nodding rabbis in Jerusalem? Get real.

Sat, 11/26/2011 - 10:57 | Link to Comment jm
jm's picture

So... if I understand you, one guy above blames Jews and you now blame Catholics... for something nameless but terrible. 

And with that, the comment section just gets more and more paranoid.

 

 

Sat, 11/26/2011 - 11:42 | Link to Comment i-dog
i-dog's picture

I didn't say Catholics, I said Jesuits ... big difference. Read up on the Jesuits and Sabbateans and their relationship ... long before Rothschild came on the scene (even though he is a Sabbatean, not a 'jew'). Or don't ... I could care less. I'm interested in solutions, not blame - but the solutions do require some knowledge of the causes.

Sat, 11/26/2011 - 12:04 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

The israeli type is the cause dummy.

We are the chosen people, all others will be our captures our slaves.

Strong men must rise up and end this elitism once and for all!

Sat, 11/26/2011 - 12:15 | Link to Comment jm
jm's picture

How hypocritically deluded you fringe types are.

The stupid conspiracy theories such as the ones I read in this post do nothing but assess blame on large groups most of which have no more connection to the problem than the first person you and I. 

The problem is collective.  The cause is too much debt given and taken. The solution is time and shared sacrifice.

If Jews, Sabbateans, luciferians, rastafarians, illuminaries, Keynesians, <insert fringe conspiracy blame group> weren't around, the weak-minded would seek blame some other group for problems they are partly responsible for. 

The song and dance of problem, cause and solution would be exactly the same.  This is the true and sad lesson of history that I despair that we will never escape.

Sun, 11/27/2011 - 04:12 | Link to Comment i-dog
i-dog's picture

 

"How hypocritically deluded you fringe types are.

The stupid conspiracy theories such as the ones I read in this post do nothing but assess blame on large groups most of which have no more connection to the problem than the first person you and I."

Thanks for the compliments, but it is you who is deluded! ... and deliberately mis-stating my position. When I blame "the jesuits", I'm not including all novices and adherents - any more than someone blaming "the government" is blaming all junior congressmen and administration clerks, or someone blaming "Exxon" is blaming all clerks and oil riggers. The blame lies at the controlling boards, steering committees and willing subordinate activists (or 'initiates', in the case of secret societies).

In the case of the Jesuits, the ideology, mission and strategies are managed, refined and passed to each new generation of elected activists through the decades and centuries ... just as Exxon Corporation and its 'corporate culture' will survive David Rockefeller and continue the mission.

You are only confusing yourself, while burying your head in the sand.

Sat, 11/26/2011 - 12:14 | Link to Comment SMG
SMG's picture

I wish all of this wasn't true and it was all just me being paranoid, but unfortunately we have to deal with the world the way it is. 

Here's your solution.  The world is ruled by a committee of people from Illuminati royal families, including the Rothschilds. There's your cause. They've been rigging the system for a massive collapse, using people's weaknesses against them, distracting them, brainwashing them, terrifying them, and they are the ones who must be held accountable for this evil.  

You can blame the Jesuits or whoever all you want, but they are just tools for the ruling committee. One of the Illuminati techniques is to blame all kinds of other people, jews, jesuits, whatever, so that when horrible things happen, they don't get blamed and escaped unharmed.   

Don't spread misinformation for them, they are evil.  Thanks.

Sat, 11/26/2011 - 12:21 | Link to Comment jm
jm's picture

Did the "Illuminati" really make Greece and Italy take take on too much debt?

Did the "Illuminati" make banks issue ninja loans, and debtors take out the debt?

What, pray tell, did they stand to gain by an unsustainable increase in debt?  Revolution?  Trust me people that have don't want revolution.

Want to blame something?  Blame interest rates that have been too low too long.  Not evil, just human hubris and stupidity.

Sat, 11/26/2011 - 14:14 | Link to Comment SMG
SMG's picture

And who sets interest rates?

The Illuminati control the world banking system, and are in control of the Federal Reserve and other world central banks.  The same federal reserve who controls interest rates.

The also control the governement of Italy and Greece, look who's in charge now for goodness sake in Italy.  A Council on Foreign Relations member.  And what the hell is a Technocrat anyway?  Doesn't sound very democratic to me. 

They want to blow everything up so they can rebuild things the way they want, child rape and all.

I would say they are about 99% responsible.   The point you are making is akin to blaming somebody who gets mugged while walking in the park saying it's their fault. It''s like you are saying 'She should have been never been walking there".  But really it is the EVIL mugger who committed the act, taking advantage  of a weaker person.

 

Sat, 11/26/2011 - 15:01 | Link to Comment jm
jm's picture

Who sets interest rates?   A man named Bernanke who has faith in his and other written economic articles and a body of theory, in conjunction with a committee of like-minded economists conditioned to think the same way.  Note that Fed chairmen and FOMC committess have been Jews and non-Jews with the same result either way.  It is the dominance of theory, not some "Illuminati".

You mistake the fact that there is no free lunch when you are a debtor as being evidence of some Iluminati control.  Italy and Greece governments screwed themselves by taking on too much debt.  As a result, the people that want to be repaid are taking steps to try and insure this by taking politicians that buck them out of the picture.  It is not democratic, but it is also not some "Illuminati" manipulation.  Everything is there to see if you look at the facts.

Anyone in control doesn't want to blow it all up and rebuild it.  They want to preserve the status quo.  If some "Illumniati" were so wise and powerful, then why would they let the situation get to this point.  It is true that politicians and people in control won't waste a good crisis, but this doesn't imply they created the crisis on purpose.  No one has the ability to foresee the effect of their actions even in the small much less on a global scale, much less manipulate desired ends.

Many fools place their faith in the presense of phantom groups and boogeymen because it is easier to blame some evil unidentifiable group than to assess one's individual repsonsibility for their failures.  Why does no one attribute decades of economic expansion to some "Illuminati" during those good times?  They only come out to focus balme away from oneself.

Do international groups exist that TALK about policy and the future?  Sure.  But people float in an out of those groups all the time, and their agendas and veiwpoints change with time as well.  There are competing groups that make the level of coordination needed to actually shape events impossible.  For crying out loud, people on ZH fear the US vs. Russia/China over a regime murdering people in Syria.

Wake up by looking at the facts.  There is no mysticism or "awakening" to it, just people that are trying to avoid responsiblity for their own bad decisions.  The peddlers of these false ideologies and faiths are jackasses and dupes.

Grow up by accepting that if someone can't pay tiher mortgage, it is their fault.  Some nameless 99% have little to do with it.

Sat, 11/26/2011 - 16:11 | Link to Comment SMG
SMG's picture

Is it not also the lenders responsibility to ensure they are making good loans?   I would say since they are the ones making the loans they hold most of the responsibility. And they should take the losses.

I would recommend reading "The Creature from Jekyll Island" by G. Edward Griffin this will help in your understanding.

Also this video explains it really well,it's pretty entertaining too.

http://www.youtube.com/watch?v=ZPWH5TlbloU

The reason those at the top want everything to collapse is two fold.

One is to depopulate, the Illuminati Oligarchy view us as "useless eaters" taking their resource, sort of like the master race view of the Nazi's, and the other is to tear everything down so they can rebuild it as they see fit.

The good times were a false prosperity based on debt used to leverge the system in order to destroy it.

The people can be identified,  Rockefeller, Rothschild, Warburg to start with.

I wish you were right about there being no Illuminati,   I realy really do. 

 

Sat, 11/26/2011 - 17:09 | Link to Comment jm
jm's picture

Indeed, creditors that didn't do their job screening credits need to take a hit as well, but it doens't take away from the need for debtor responsibility as well.   Anyway, this is just your opinion as to how losses should be shared, which you are entitled to.  It has nothing to do with a grand conspiracy.

If you wish to get rid of the Fed, fine.  I've read the Creature from Jekyll Island many times.  At its core, the message is that the Fed is an institution that acts as lender of last resort to banks because bank runs cause major disruptions in an economy. If one wishes to end the Fed or reform it, this would be the end of an institution, no more and no less.  Desiring an end to the Fed has no necessary truck with conspiracies or belief in some centuries old Illuminati that guides history to some explicit end.

Didn't watch the video, because I believe I've seen it all.  Seen it all many times.  You have to place faith in the "initiate" some dissavowed MI6 or CIA operative or other fallen angel.  This "messiah" has inside information and is willing out of the goodness of his heart to share the dark secrets that no one else can every know without his insight.  This insight is unsubstantiated and informs the belief that the world is made up of human sheep that are viewed by some boogeyman as useless eaters, and there are lots of nazi-like overtones that make for a good chilling tale.  There is no possible validation beyond your faith in the speaker.  But remember, the speaker isn't peddling his information out of the kindness of his heart.  He has bills to pay and needs to make his storytelling sensational to earn his keep. 

It is all quite like me trying to convince someone of the existence, or the nonexistence, of God.  Belief in some master group that has successfully hidden their existence from all but the enlightened few for centuries that guides and directs everything can't be validated or denied, because the reference to their existence depends on your faith in what somebody says about them. Validation can't be experienced because the very definition of the group ensures they willl remain secret except to the "faithful" to the messiah-nutjob that preys on them for money and reinforcement.  

The only things I can say is don't have faith in what I or any flase messiah says.  Look at facts that can be demonstrated by  independent sources and not dark and shadowy inuendoes.

Regarding your facts about Rockefellar and others.  These men were once very powerful, maybe the most powerful men in the world.  They are dead now.  Belief that heir descendants are the "Illuminati" requires blind faith.  How did these men get in power anyway if there is some centuries old group control everythign before them? It should be Mohammed's daughters or Chalemagne's children or Genghiz Khan's children if you want to be logical about the eternal stability of power.  Mongolia is one of the poorest countries in the world and has no powerbrokers.  Why are Jews and Jesuits or any of the others in the nut parade singled out?  None of this rubbish can be substantiated. 

 

 

Sat, 11/26/2011 - 17:42 | Link to Comment SMG
SMG's picture

Hey what's that creepy eye and pyramid on the back of the dollar?

oo look quotes:

 

"The world is governed by very different personages from what is imagined by those who are not 
behind the scenes." —Prime Minister Benjamin Disraeli of England, in 1844. 
 

    "The Council on Foreign Relations (CFR) is the American Branch of a society which originated in England ... (and) ... believes national boundaries should be obliterated and one-world rule 
established." —Professor of History Carroll Quigley, Georgetown University, in his book "Tragedy and Hope". 
 

"For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it." —David Rockefeller, from his own book, Memoirs.
 

   "Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." —Woodrow Wilson

jm,

Let's just talk as one person to another.   Your avatar and your posts on other threads give you away. Don't keep working for them.   They do unspeakable things to children, they lie, they torture, they enslave.   That's not going to change when they get what they want.  You may believe yourself to be a god, but try disobeying the people above you and see how much of a god you are. It's not too late for redemption. They are evil. They can still be stopped.

 

Sat, 11/26/2011 - 18:03 | Link to Comment jm
jm's picture

These quotes and such only indicate the there are powerful people that have their day in the sun.  Agreed.  And then they are dead.  There is no enduring group that can be verified and their stated aims do not ensure that they can do anything about them.  So masonry was common in the early United States, and the symbolism was weaved in the symbolism of the new state.  That doesn't mean masons control anything now.

If you would be honest with youself, your characterization of me should signal that you are grasping at straws now. I don't want you to know who I am and what I do because ZH is about ideas, not blind faith, or following someone that looks less idiotic today than he was yesterday or will look tomorrow.  I have no god delusions. Just think about the fact that there is another point of view that doesn't rely on bogeymen and blind faith.  I am just a guy trying to get those blinded by ignorance and a sense of helplessness to see another point of view that allows responsibility and action.

You talk of redemption with the same messianic tones of a true believer.  They are ultimately empty when talking about human matters.  I say in contrast "pull your head out of your ass and stop chasing shadows."

Sat, 11/26/2011 - 18:19 | Link to Comment SMG
SMG's picture

I don't feel helpless, I like to try and inform as many people as possible about the Illuminati Oligarchy.    Maybe in that small way here I can make a difference.  Still some hope the horrible things that are planned won't happen and can be stopped. 

Conspiracy or not, you have to admit that high ranking people in our society are getting away with terrible crimes and misusing their power, and they must be brought to justice. 

Trying to deflect blame from them as you are isn't right.

Have you ever considered though you also may possibly be misinformed/ignorant/wrong? 

In the near future we will see if you were right or I was.

Sat, 11/26/2011 - 18:35 | Link to Comment jm
jm's picture

I don't disagree with the fact that high ranking people in our society are getting away with terrible crimes.  I would only say that the electorate should demand that they be punished in a court of law.  Many people would rather "blame the Jews" for what Blankfein does because it is easier.  Not saying you do, but I hope understand the example as relevant to conspiracy theories.

Of course I could be wrong.  I am wrong all the time, try not to make the same mistakes again.  Wrong about gold, learned it is totally correlated to Fed Balance sheet expansion and negative interest rates.

But consider this... what good does it do if I am wrong about some conspiracy theory?  If they are really as powerful as you think, there is nothing you or I can do about it except go live in a cave.  I will say again, the observed facts are that any supposed overlords screwed themselves as much as everyone else the last few years. If they are there, they are as clueless as the rest of us.

I would wish you luck, but I think you are on the wrong track.  All the best.  Here's hoping you rid yourself of blind faith and following false messiahs.

Sat, 11/26/2011 - 19:11 | Link to Comment SMG
SMG's picture

Being wrong about the oligarchy can have a few harmful effects.   

If you and the electorate don't think they are there, they will get away with any crimes they have done.  Even worse some other people or group who are actually innocent might be persecuted.  That would cause great injustice.

If it is true they do want to try and kill us off, since you don't believe that, you won't be prepared.

I also wish you luck and hope you can one day see the world as it is.

Sat, 11/26/2011 - 08:27 | Link to Comment Quinvarius
Quinvarius's picture

There is good information in that video, but the basic premise is off.  That guy wants the US government to just print endless paper money and not borrow from the Fed.  Then he basicly lies about how well it worked in the past.  It never worked in colonial America or anywhere else.  It caused several currency deaths and hyperinflations, even before the British did their counterfeiting.  He has the part about getting rid of the Fed right, which I assume is what you were going for.  But the only real solution is a gold standard, which he just does not factually address. 

Sat, 11/26/2011 - 08:42 | Link to Comment Fred C Dobbs
Fred C Dobbs's picture

Yes watch video "The Secret of OZ".  

Sat, 11/26/2011 - 18:56 | Link to Comment SwingForce
SwingForce's picture

Last 30 minutes of video was excellent! Why do we borrow money into existence, agree to pay interest on it, then give it away free to the banksterz to earn interest for themselves? It IS lunacy. More than that, its criminal, its TREASON to be taking advantage of Americans this way. If only they had a brain...

Fri, 11/25/2011 - 23:58 | Link to Comment Michael
Michael's picture

That's the idea. I thank God every day for the complete and total collapse.

Sat, 11/26/2011 - 03:02 | Link to Comment Michael
Michael's picture

To the previous one, join the game. All is not what it seems.

 

Sat, 11/26/2011 - 03:15 | Link to Comment Michael
Michael's picture

The nuvo 9/11 defense contractor carpet bagger riche don't want to give up their carpet bagger gains.

Sat, 11/26/2011 - 02:09 | Link to Comment Piranhanoia
Piranhanoia's picture

That is what the sewer is for.  

Sat, 11/26/2011 - 09:18 | Link to Comment dcb
dcb's picture

The long term const of keeping them alive (death by a thousand cuts) is much worse than the quick death with protections of depositors. the culling will allow banks to revert to their true lending function instead of this insane off balance sheet financial system and trading houses. Plus it will get rid of a lot of moral hazard and the banks are be less likely to leverage up in the future and lend so carelessly. Hence the creative destruction of capitialism is in fact required to protect the capitialist system in this country. of course it mean the 0.1 % get screwwed the most, because they have the most, and they will keeping saying what you say over over over to get fools such as yourself to believe it.  I have  a briodege to seel you, Iraq caused 9/11, and they have wmd. Man you are in so deep you are beyond help

Oh, if you don't believe me ask how it has worked out for Japan

Sat, 11/26/2011 - 09:25 | Link to Comment CH1
CH1's picture

Agreed, dcb, aside from the banks' "true function" part. The true function of central banks is to skim away our surplus while keeping politicians fat and happy.

Sat, 11/26/2011 - 09:42 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Carlyle Groupie uttered these amazing words:

If you let these banks fail, EVERYTHING goes down with them.

Hopefully so.

 

Sat, 11/26/2011 - 11:00 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Just a casual observation from watching Kyle Bass interview videos.

He'll get hit with a barrage of questions all at once and in the cluster is the underlying theme: "do you want EVERYTHING to go down with them?" Sovereigns, banks, and the like. The bedrock of society.

I think it's the one exposed/raw nerve that Kyle has and all those interviewers try to touch.

They use this in an attempt to radicalize him. A fringe nut job who hordes guns and gold and uses his wealth to weaken the markets. [They use tactics similar to our own i-dog.]

Study his answers. In these answers you will find a glimpse of what to expect in the future.

Sat, 11/26/2011 - 01:44 | Link to Comment ToNYC
ToNYC's picture

They already did fail. Dr. Frankenbernanke is doing what he can to re-distribute the haircuts away from the friends of FED, just so you know.

Sat, 11/26/2011 - 02:04 | Link to Comment eatthebanksters
eatthebanksters's picture

The banks are toast...tell me what their cuurent investment strategy is to achieve 30+% yields...carry trades are gone, equities see ya, real the real estate bubbe popped and the fraud schemes are over.  Except for changes in accounting rules  the banks are insolvent.  I looked at our local MLS for real estate and counted the number of short sale and REO properties currnetly for sale in our county.  Then I looked at the number of REO's not on the market in our county.  The ratio of REO not on the market to REO for sale plus short sales was 11:1.  I looked at properties scheduled for a Trustee sale and the ratioo was 20:1.  The number of properties with a recorded notice of default (not including distressed) was 21:1. I gave my house back to the bank at the end of October;they called me this week and ASKED ME IF I WANTED TO BUY IT BACK!!!  What does this tell you?  Let me know cause I'm real curious.

Sat, 11/26/2011 - 03:03 | Link to Comment Right-on Left-off
Right-on Left-off's picture

The banks are toast...tell me what their current investment strategy is to achieve 30+% yields...carry trades are gone, equities see ya, the real estate bubbe popped and the fraud schemes are over.  Except for changes in accounting rules, the banks are insolvent.

There is downright stealing as in MF Global and I think the stealing was well early of margin call and in the time frame of placing the positions.

It's only a question of when.  Currently they are worried about bonuses and needing to fire/layoff another 50-100k employees.

 

Sat, 11/26/2011 - 03:40 | Link to Comment Tom Green Swedish
Tom Green Swedish's picture

Mf Global had problems back in 2008.  They were sort of like UBS and Soc Gen with rogue traders, but then again isn't Wall Street entirely composed of Rogue Traders?  Or does Europe have all the super rogue traders? 

Those London Crackheads, Soc Gen and UBS all are leverage 50 to 1. (Major Cause of Great Depression Bad Margin Calls)

MF Global had big problems dating back to early 2008.  Check it out from Yahoo dated back from 2/28/2008:

 

NEW YORK (MarketWatch) - Leading global and over-the-counter markets operator IntercontinentalExchange ICE +0.41% said Friday that futures and options exchange MF Global MFGLQ +7.41% continues to meet all its obligations to the bourse despite recent revelations that the company will take a $141.5 million loss on bets made by a rogue wheat trader. "MF Global continues to meet all obligations at its U.S. and Canadian futures clearinghouses," ICE said in a statement, adding that ICE has a pre-trade credit filter built into its own in-house matching engine. MF Global took a bad debt provision of close to 6% of its equity Thursday after a trader dabbling in wheat futures in Memphis, Tenn., greatly exceeded his daily limit and was fired immediately. MF Global fell more than 20% on the news in Thursday trading and has since hired a third-party risk consultant to examine its relevant order entry systems.

Sat, 11/26/2011 - 02:00 | Link to Comment knight99
knight99's picture

ZH,

You guys catch info no one else on earth even looks for!! You guys better be careful if you guys keep turning over all these rocks uncle sam might come for you guys. Keep up the great work.

Sat, 11/26/2011 - 09:29 | Link to Comment Smiddywesson
Smiddywesson's picture

Maybe yes, maybe no.  It looks like there was a similar spike in 4/2010, but the use of this vehicle really took off in June of this year and switched into high gear in August.  Was MF Global an issue in June and August?  I don't know enough to even hazard a credible guess, but thinking back to June and August, I would think this money went to prop up banks in Belgium and Greece.  Bank of America was in crisis at that time too, so maybe they used the money to stop that bank run.

Fri, 11/25/2011 - 21:45 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

".......just what was it that caused US Banks to demand a record amount of effectively under the table cash from the Fed?"

 

Bonuses?

Fri, 11/25/2011 - 21:58 | Link to Comment SnobGobbler
SnobGobbler's picture

liquidity, fixed it for ya...

Fri, 11/25/2011 - 22:08 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Liquidity to retain talent.   There fixed it for ya.

Fri, 11/25/2011 - 22:47 | Link to Comment TuesdayBen
TuesdayBen's picture

The talent that steered nearly every large bank into insolvency. These banks should be liquidated, come what may.

Sat, 11/26/2011 - 02:10 | Link to Comment Piranhanoia
Piranhanoia's picture

There is evidence of extreme mental illness, but there is no talent.

Sat, 11/26/2011 - 08:26 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

The ability to line one's pocket beyond what the world seems fair is a talent all its own.

Sat, 11/26/2011 - 02:11 | Link to Comment eatthebanksters
eatthebanksters's picture

It's Christmas and Dimon, Pandit, Blankfein and Moynihan fucked ya!

Sat, 11/26/2011 - 09:37 | Link to Comment ZippyDooDah
ZippyDooDah's picture

"Talent."

Ahh, haha haha haha ahhhh.

Fri, 11/25/2011 - 23:11 | Link to Comment Believable-Hypocrite
Believable-Hypocrite's picture

No it is black Friday they went out and did some shopping, you know big screen tv's and such. Gotta make the next days news , that the shoppers put everyone in the black. Let the good times roll, the recession is over.

Sat, 11/26/2011 - 01:16 | Link to Comment Stack Trace
Stack Trace's picture

So much crying over who gets to keep all the toys.

The $88 billion is for Ferraris to save Italy.

Fri, 11/25/2011 - 21:56 | Link to Comment RMolineaux
RMolineaux's picture

It is probably is not relevant to this discussion, but back in the 50's when I was an undergraduate there was an item called "Treasury Currency" on the Fed's balance sheet.   These were the silver certificates and US notes in circulation at that time.  They were gradually being withdrawn from circulation until Kennedy issued his famous executive order to the Treasury to issue new silver certificates.  The order was not carried out before his assassination, and Johnson cancelled it.  Many believe this was ONE of the factors that motivated the CiA plot to kill him.

 

Sat, 11/26/2011 - 03:55 | Link to Comment deKevelioc
deKevelioc's picture

The Fed is supporting the euro.  What would happen if the euro did implode?  A rush to dollars, a rising dollar in the global race to the bottom which could easily create a destablizing situation for French and German banks, creating another post-Plaze Accord fiasco in equities markets, globally.  Then we have a reverse of the 1907 Panic, originating in Paris this time, not in NY.  And what's left over from the Fed's "other" account contributes to the bogus stress tests and return of MF Global' empty accounts and Jeffries' nightmare--all in easy Fed installments.  Call now.

Does the Fed really disire to have the USDX breakout meaningfully above its 40-month moving average as it threatens to do so now?  I think Rickard has it right regarding the three-ring circus of the dollar, euro and RMB.  No less-weak dollar against the pathetic euro.  Now the Fed needs to allow gold to rise a bit from here to prevent an explosive gold price down the road--which is inevitable, anyway.

And how about the nice window of opportunity to blast Iran during the chaos in the Arab League's lynchpin, Egypt
(probably just a long shot to keep the petrodollars flowing)?  A funding issue for Treasury of more than $800 billion may get some help soon from the US 51st state, while the euro is supported by the Fed through aforementioned installments to Europe.

But, then again, all of this merely highlights all the issues we already know.  What a mess!

 

 

Sat, 11/26/2011 - 09:24 | Link to Comment midtowng
midtowng's picture

In the big picture this doesn't matter...unless the trend continues.

If it really is a one-off liquidity issue then this is a non-event. But if its a start of something bigger, like 2007-2008 were full of "one-off liquidity issues", then we are seeing one of the first pebbles that cause the landslide.

Sat, 11/26/2011 - 10:40 | Link to Comment Elwood P Suggins
Elwood P Suggins's picture

Bernanke wanted to do some heavy Black Friday shopping.

Fri, 11/25/2011 - 21:24 | Link to Comment AmazingLarry
AmazingLarry's picture

Go long BAC.

Amirite?

 

Fri, 11/25/2011 - 21:46 | Link to Comment lunaticfringe
lunaticfringe's picture

Fucker is so full of shit that clip is hard to watch. Keep thinking Moynihan will just splatter the screen. When he talks about assets he must be valuing Mozilo's 3 homes homes at 34 billion and fractionally counting Warrens dough at 9-1.

Fri, 11/25/2011 - 22:56 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

When the Moynihan hits the fan?

Sat, 11/26/2011 - 09:47 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

The Moyni-fan flings what BofA brings.

 

Fri, 11/25/2011 - 23:29 | Link to Comment Johnny Yuma
Johnny Yuma's picture

Moynihan has bounced around within BofA for years as Ken Lewis' lap dog managing different lines of business to failure. Then he became the CEO... It is very clear that this company has been set in ghost ride mode. The powers that be knew it was game over and threw the clown at the helm to steer the ship to ruin. Game over... BK is imminent at this point and the Fed/Treasury are already making plans for it...

Sat, 11/26/2011 - 00:13 | Link to Comment Doña K
Doña K's picture

I and other Zerohedgers have been predicting that CITI or BAC will eventually fall into Goldman's lap for pennies. Once the market hits bottom, Goldman will unload all junk assets of GS and BAC to the FED and go private since its stock will be super cheap.

GS will then be the largest bank and the largest investment bank in the world and do god's work. 

 

Sat, 11/26/2011 - 04:56 | Link to Comment cossack55
cossack55's picture

I would think GS is already there.  Afterall, they just opened branches in Italy and Greece. HHHmmmm...actually the branches ARE Italy and Greece.

Sat, 11/26/2011 - 01:55 | Link to Comment ToNYC
ToNYC's picture

Trading down a quarter would force a shipload of funds to dis-own the troubled old advanced decrepitude that is BAC post-Tanman.

Fri, 11/25/2011 - 22:03 | Link to Comment navy62802
navy62802's picture

Dick Bove, is that you?

Sat, 11/26/2011 - 01:19 | Link to Comment Stack Trace
Stack Trace's picture

If he has shit spewing out of his mouth, yes.

Sat, 11/26/2011 - 01:46 | Link to Comment ToNYC
ToNYC's picture

Go bye BAC.

Leaverite! (there)

Fri, 11/25/2011 - 21:24 | Link to Comment opencircle
opencircle's picture

what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?

can this be restated as to which primary dealers or select 4 or 5 banks needing so much cash?

Fri, 11/25/2011 - 21:32 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Paralysis by MF Global.

Fri, 11/25/2011 - 23:15 | Link to Comment ToNYC
ToNYC's picture

Jon Corzine's salami is being hidden, with the aid of his buds at the FED.

Fri, 11/25/2011 - 23:40 | Link to Comment azusgm
azusgm's picture

When was the last Corzine siting? Where was the last Corzine siting? Does he sleep with da fish or is he a guest of Ken Lay? Anyone seen his wife lately?

Sat, 11/26/2011 - 00:16 | Link to Comment Doña K
Doña K's picture

Is it true that a Russian mob is after him? Anyone 

Sat, 11/26/2011 - 01:53 | Link to Comment ToNYC
ToNYC's picture

Jon is being Air-boarded for matters of national security at an undisclosed location..as if he were a UFO. It's a Bubble-wrap thing you know. Protective custard.

Sat, 11/26/2011 - 11:37 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Gee. Do you think maybe a lot of that cash went as hundred dollar bills to the PIIGs?  Anyone check 747 freighter schedules?  If you lived in Greece and thought your country was going defunct and the Euro was doomed how would you like to store your wealth?  Remember, some people aren't smart enough to buy PMs.

Fri, 11/25/2011 - 21:25 | Link to Comment Dr. Engali
Dr. Engali's picture

The U.S. banks are experiencing a bank run by European banks. That's why the Euro held up as assets were being repatriated. My question is how long before BAC is forced to do a reverse split and another capital raise?

Fri, 11/25/2011 - 21:33 | Link to Comment gmrpeabody
gmrpeabody's picture

They don't need any more capital.

Oh.., wait...

Fri, 11/25/2011 - 23:35 | Link to Comment Johnny Yuma
Johnny Yuma's picture

Good point. If BAC were to do a reverse split/capital raise, it would be a catastrophe as share holders (or lack there of) would be heading for the door and the cap raise would be stuck with the underwriters. I doubt anyone takes this company serious anymore and the only net longs are index funds which are oblivious to this kind of stuff. 

Sat, 11/26/2011 - 02:14 | Link to Comment Piranhanoia
Piranhanoia's picture

If your BofA, your MF'd.

Fri, 11/25/2011 - 21:26 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

...unlike reserves, this number is effectively not defined, and there is no clear transposition between assets and liabilities, not to mention that "other" could mean virtually anything.

Comforting, no?  

My guess?  BofA.

Sat, 11/26/2011 - 02:06 | Link to Comment RockyRacoon
RockyRacoon's picture

This was not the only spike, just the largest one.  There was a previous "highest spike" but no mention of that one and the one back to 4/14/2010?  What explained those other spikes?   Why are we suddenly interested?   This spike is a hummer fer sher, but only in comparison to past spikes.   Why now the interest?

Sun, 11/27/2011 - 01:07 | Link to Comment infinity8
infinity8's picture

RR, that's what I see (more than once today) - earlier spikes to worry about/quetion. I don't know dick but my eyes work, and it looks to me like a "problem" cropped up in the summer. Last week spectacular? - sure! But, not news. This news came earlier and unnoticed. However, noone but ZH is talking about it so. . .

Fri, 11/25/2011 - 21:26 | Link to Comment nathan1234
nathan1234's picture

Bank runs on their way

Some event around the weekend coming up.

Fri, 11/25/2011 - 21:27 | Link to Comment lunaticfringe
lunaticfringe's picture

The FED simply has gobs of assets lying around gathering dust. The 16 trillion it used for overnight loans in 2008 was a perfect example. The assets don't exist except as some electronic zeroes tacked onto the trailing part of some whole number. We hear about them- problem is- nobody's ever actually seen them. Like the gold in Fort Knox.

Fri, 11/25/2011 - 22:37 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

or kinda like the elusive "side" quark? is that it ...or is it the "top" quark? "ya know he's there, b-b-but......

Fri, 11/25/2011 - 22:52 | Link to Comment IQ 101
IQ 101's picture

Here, I will send you some zeroes, 000,000,000,000,

please send me some zeroes back,

you can put any number you like in front of your zeroes, between 1 and 9,

If you send me some zeroes please make it enough for a house on Maui.

I will be using the 9. Let us agree that this is OUR ECONOMY,

Others may join, if they wish to accept my zeroes on the belief that my zeroes represent value in Beaver pelts.

Fri, 11/25/2011 - 22:57 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

Justin Beaver?

Sat, 11/26/2011 - 01:12 | Link to Comment IQ 101
IQ 101's picture

Yes I was, are you Psychic?

Sat, 11/26/2011 - 01:21 | Link to Comment Stack Trace
Stack Trace's picture

Justin Beaver meet Justin Cider

Fri, 11/25/2011 - 22:01 | Link to Comment Mactheknife
Mactheknife's picture

Ahhhh...because they stole it? Because they can't meet Dec deliverys? To keep the CRIMEX from defaulting?  Just a wild ass guess. Nah...the Morgue wouldn't do that.  Sort of like that old rumor about them selling a trillion of counterfeit T-bonds...proof of which was in WTC bldg 7.  Tin-foil off.

Fri, 11/25/2011 - 23:16 | Link to Comment ToNYC
ToNYC's picture

Justice for them, just us for the rest of us.

Sat, 11/26/2011 - 03:39 | Link to Comment boattrash
boattrash's picture

their bone us is in. (ball deep)

Sun, 11/27/2011 - 13:21 | Link to Comment Bolweevil
Bolweevil's picture

Feed us a fetus.

Fri, 11/25/2011 - 21:31 | Link to Comment catch edge ghost
catch edge ghost's picture

Wow. Was only about 10 years ago $80 billion would fund almost a whole year of illegal war in an oil rich nation.

 

Fri, 11/25/2011 - 21:31 | Link to Comment Conrad Murray
Conrad Murray's picture

Did any of you slaves get some free money from Ben Shalom Bernanke and the gang for the holiday? Of course not. You worthless, nutless peasants. Stuff your fat faces with more pie while we rape your country. HAHAHAHAHA!

Fri, 11/25/2011 - 21:33 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Now Conrad, that was not nice.

Fri, 11/25/2011 - 21:56 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Yeah that had anti-semenetic undertones.   I bet he's a pro-choicer too. 

Sat, 11/26/2011 - 01:46 | Link to Comment AssFire
AssFire's picture

Seems pointless they sent you to jail Dr. Murray.

Sending you to jail won't bring back Michael; and it won't kill LaToya or Jermaine.

Fri, 11/25/2011 - 22:03 | Link to Comment papaswamp
papaswamp's picture

Shot my own turkey and grew my own pumpkin...Ben can suck My Dr. Kenneth Noisewater...and the Octogon.

Fri, 11/25/2011 - 21:31 | Link to Comment Granangry
Granangry's picture

BAC, MS, C all have one foot in the grave and the other on a banana peel.

Fri, 11/25/2011 - 22:00 | Link to Comment WonderDawg
WonderDawg's picture

Good. I hope someone gives C a shove.

Fri, 11/25/2011 - 23:19 | Link to Comment ToNYC
ToNYC's picture

When they go to that grave, the FED wants Them to take You with them. When They slip on the banana peel, You fall. Got it?

Fri, 11/25/2011 - 21:32 | Link to Comment bugs_
bugs_'s picture

there is *another* window labelled "Other"????

whoda thunk?

Fri, 11/25/2011 - 21:36 | Link to Comment RobotTrader
RobotTrader's picture

Soaring bond prices and plummeting U.S. Treasury yields means one thing:

The Fed has been grossly negligent

Here we are, sitting at 50-year record low borrowing costs and the Fed is simply not printing fast enough.

If the Fed were doing its job, we would have a $25 trillion deficit with the 10-yr. yield at 5.5%, not 2%.  The economy would be booming and unemployment would be down to 6%.

Fri, 11/25/2011 - 21:42 | Link to Comment Tyler Durden
Tyler Durden's picture

Here's a thought experiment: take MMT to its "logical" extreme - all the US needs to do is issue an infinite amount of debt, which will by implication collapse interest rates to 0%, and send economic growth to infinity.

Right?

So why doesn't the US Treasury announce this is the plan tomorrow?

After all isn't the weakest point of every economic theory taking it to its theoretical absurd, and pushing it just one inch further. 

Or maybe, just maybe, it is the market reaction that is not accounted for in theoretical textbooks, as in the breaking point at which the market says: "enough with this idiocy."

One thing is certain - that breaking point will come well before the "infinite" amount of debt is issued.

Fri, 11/25/2011 - 21:48 | Link to Comment lunaticfringe
lunaticfringe's picture

My brain hurts.

Fri, 11/25/2011 - 21:49 | Link to Comment Dr. Engali
Dr. Engali's picture

Ugh. Tyler of all the people to respond to, not this guy. His sole purpose is to stir the pot. To him black is white and down is up all for the sake of grating on people's nerves.

Fri, 11/25/2011 - 21:52 | Link to Comment Tyler Durden
Tyler Durden's picture

He brings up a great fallacy. What better opportunity to respond than now.

Fri, 11/25/2011 - 21:57 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

IOW, the market has wheels.    Unfortunately Robo's brain does not.

Fri, 11/25/2011 - 22:28 | Link to Comment i-dog
i-dog's picture

Robo - like MDB and Hamy - illustrates the thought processes of sheep, for all here to see.

Far better to respond with an argument (or a downtick) than with vitriolic insults. Other readers might learn something.

 

PS. Thank you, Tyler, for the simple explanation of the Fed balance sheet and your refutation of Robo. ZH rules!

Fri, 11/25/2011 - 22:37 | Link to Comment BigDuke6
BigDuke6's picture

For once i'm with the dawg.

Robo is often a relief from the guns n ammo boys

Fri, 11/25/2011 - 23:06 | Link to Comment LowProfile
LowProfile's picture

Comic, I hope. 

But with you it's not, which is gonna suck hard for you.

Sat, 11/26/2011 - 01:09 | Link to Comment DaveyJones
DaveyJones's picture

Tyler is doing what we all need to do. Take these fraudulent, self destructive, criminal systems out to their logical conclusion. While most people here understand them, most people don't. Tyler's doing doing a historic service. The more who catch on, the sooner we will shut them down.  

Fri, 11/25/2011 - 23:05 | Link to Comment LowProfile
LowProfile's picture

Yes, except Robo is serious, and the other two are satirical.

Sat, 11/26/2011 - 13:52 | Link to Comment blunderdog
blunderdog's picture

One thing RobotTrader is NOT is "serious."

He's a joker.  I don't understand why anyone would let him rile them up--it's all just a joke.

Fri, 11/25/2011 - 22:21 | Link to Comment web bot
web bot's picture

This guy is a piece of shit... Tyler's simply smearing it around so we can all get a better look.

Do NOT follow this link or you will be banned from the site!