Posts Tagged ‘Fed’

The Fed may go bankrupt

Friday, November 5th, 2010

Full story here from Jim Rickards. Of course, the Fed is already morally bankrupt and acting like a bunch of clown-ass gangstas. What will really be the pants-downer moment that makes all the sheeple realize what’s happening? Janis Joplin has the answer.

Disasters sometimes sneak up in small steps, each of which appears unthreatening at the time but which cumulatively spell collapse.  The Fed is leading the United States to ruin in ways that are claimed to be well intentioned and benign viewed in isolation but which take us finally into a locked room reminiscent of the Sartre play “No Exit.” (more…)

QE2 unveiled a/k/a Return of the Night of the Living Zombie Bankers

Wednesday, November 3rd, 2010

Full story here from ZeroHedge.

For immediate release

Information received since the Federal Open Market Committee met in September confirms that the pace of recovery in output and employment continues to be slow. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls. Housing starts continue to be depressed. Longer-term inflation expectations have remained stable, but measures of underlying inflation have trended lower in recent quarters. (more…)

S&P estimates of Dodd-Frank TBTF now at $22 billion

Tuesday, November 2nd, 2010

Full story here from ZeroHedge. Billion? It should be TRILLION if we’re really going to be honest.

S&P has released its first official estimate of what it believes the cost of Donk will be on the Too Vampiric To Fail. In a nutshell, the range of various costs could be as high as $22 billion, due to a drop in debit fees, lower derivative income, FDIC DIF replenishment, prop trading, and new compliance expenses. Additionally S&P expects another $85 billion in additional required Tier 1 Capital (which is a joke compared to its Tangible Common cousin). (more…)

Still stepping in the Bernanke

Monday, November 1st, 2010

Full story here from Mike Whitney via CounterPunch.

On Friday, The Bureau of Economic Analysis (BEA) reported that 3rd Quarter GDP rose by 2% meeting most analysts expectations. The real story, however, is hidden in the data. Inventories added 1.44 percentage points to the 3Q real GDP, which means that–absent the boost to existing stockpiles– GDP would be well-below 1%. If it wasn’t for Obama’s fiscal stimulus (ARRA), the economy would be sliding back into recession. (more…)

The Fed bought mortgage fraud

Monday, November 1st, 2010

Full story here.

In the wake of the financial meltdown of 2008, the Federal Reserve announced it would buy mortgage-backed securities, or MBS.  The January announcement by the Fed said it would buy MBS from failed mortgage giants Fannie Mae and Freddie Mac in the amount of $1.25 trillion.  At the time, the Fed said in a press release, “The goal of the program was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.” (Click here for the full Fed statement.)It did provide “support” to the mortgage market, but did it also buy fraud and cover the banks that sold it?  The evidence shows, at the very least, it bought massive amounts of fraud. (more…)

Most sobering lecture on our future

Sunday, October 31st, 2010

Full story here.

Fed is trying to force surge in commodities

Sunday, October 31st, 2010

Full story here from ZeroHedge.

A Fed paper released in September, which we luckily missed as otherwise it would have led to the collective death through uncontrollable foaming in the mouth of the entire Zero Hedge staff, was “Oil Shocks and the Zero Bound on Nominal Interest Rates“, in which author Martin Bodenstein (an econ Ph.D.) argues that oil price shocks (i.e., surges in the price of oil such as the one we are about to experience courtesy of a fresh trillion in liquidity about to be unleashed by the Fed) are… wait for it… beneficial to GDP and stimulative to the interest-rate sensitive parts of the economy. To wit: “In fact, if the increase in oil prices is gradual, the persistent rise in inflation can cause a GDP expansion.“. Yes you read that right. (more…)

The tipping point has arrived

Thursday, October 28th, 2010

Full story here from ZeroHedge.

The Tipping Point has Arrived

Our age is retrospective.  It builds the sepulchres of the fathers.  It writes biographies, histories, and criticism.  The foregoing generations beheld God and nature face to face; we, through their eyes.  Why should not we also enjoy an original relation to the universe?  Why should not we have the a poetry and philosophy of insight and not of tradition, and a religion by revelation to us, and not the history of theirs?  Embosomed for a season in nature, whose floods of life stream around and through us, and invite us, by the powers they supply, to action proportioned to nature, why should we grope among the dry bones of the past, or put the living generation into masquerade out of its faded wardrobe?  The sun shines today also.  There is more wool and flax in the fields.  There are new lands, new men, new thoughts.  Let us demand out own works and laws and worship.

- Ralph Waldo Emerson, Nature (more…)

The US has launched a new financial world war

Monday, October 11th, 2010

Full story here from Michael Hudson via CounterPunch.

What is to stop U.S. banks and their customers from creating $1 trillion, $10 trillion or even $50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 per cent interest cost? This is the game that is being played today. (more…)

Gold strong as Fed stuck at permanent 0% rates

Thursday, September 23rd, 2010

Full story here from Jim Willie.

Japan has proved without confusion that 0% is a permanent stuck position. The United States will repeat the path, but with a vast mudslide. Japan has had the advantage of a strong industrial base, a sizeable trade surplus, and no war budget. Thus it has been capable of funding much of its own deficits. It does possess a big debt burden. But the US has $1 of new debt for every $1 in government revenue. The US war budget is almost as large as its total revenue. The US depends upon foreign creditors, many of whom have been thoroughly alienated. (more…)