Posted on 01/26/2009 7:09:49 PM PST by sickoflibs
Aren't you sweet?
You are a laughingstock here, with your “Debt? What debt?
Did trying to answer the question make your little brain hurt? LOL!
perpetual Keynesian outlook.
Wrong again, not a Keynesian.
Maybe if you pulled your head out, you'd discover the difference between the Treasury and the Federal Reserve? Probably not. Clown.
When his ba*** are all over his ceiling from stepping on his own financial landmines we can look at him and say "Man, that must really hurt. Sucks to be you, dude."
Then we'll split up his gear.
I'll flip you for who gets to tell his widow what an a**hole he was.
L
Maybe you can help your boyfriend explain how a Fed purchase puts our children in debt? LOL!
For starters...Printing press issues..to print $750 billion would require them to print 7.5 billion $100 bills which they don't have the capability to do-in a normal year with full on printing they may get $30-$40 billion in new money (net isn't that high as old bils are withdrawn). If they actually started to print larger bills, the risk of massive inflation and US bond market dislocation is too great. So the banks may stay solvent in that situation but it would kill the rest of the economy.
I wonder if the Fed bought securities from the banks and GSEs if that would give the banks and GSEs more money?
If Roubini is even close to right, the banks have about another $2 trillion to right off--and his model only assumes 9% unemployment (I think it will go higher).
Who did the Fed borrow money from?
Ahem--fractional reserve system. Deposits from member banks.
They just added how much to their balance sheet? You think they bought it with $100 bills? LOL!
Who did the Fed borrow money from?
Ahem--fractional reserve system.
The Fed doesn't borrow using the fractional reserve system. Ahem--the Fed doesn't borrow.
Deposits from member banks.
Are held at the Fed. The Fed doesn't need those deposits to create new money.
I read an analogy back that placed GWB as Johnson, the war, space and the Great Society all without raising taxes. Led to 1970s stagflation. But there were unions and little foreign competition then.
Schiff always claims asia will dump dollars, because we can never pay them back
"In this crisis, the Fed's assets have grown much faster than its capital. The truth is that the Federal Reserve is itself a highly leveraged financial institution. The flagship branch of the 12-bank system, the Federal Reserve Bank of New York, shows assets of $1.3 trillion and capital of just $12.2 billion. Its leverage ratio, a mere 0.9%, is less than one-third of that prescribed for banks in the private sector. Such a thin film of protection would present no special risk if the bank managed by Timothy F. Geithner, the Treasury secretary-designate, owned only short-dated Treasurys. However, the mystery meat acquired from Bear Stearns and AIG foots to $66.6 billion. A writedown of just 18.3% in the value of those risky portfolios would erase the New York Fed's capital account. . "
Until they can stand on their own, they won’t sell. At some point—they can decouple—but not now. Japan is looking at a -12/15% GDP drop in Q4....China went effectively negative in Q4 from +10% 2 quarters ago..and this is just getting started.
Compound interest, Scooter.
L
Compound interest, Scooter.
Who does the Federal Reserve borrow money from, Goober?
Why don't you tell me, Skippy?
L
You finally understand what the Fed can do?
The truth is that the Federal Reserve is itself a highly leveraged financial institution.
The Fed owes no money, how leveraged are they really?
"Creditors of central banks...are at no risk of a loss because the central bank can always create additional currency to meet any obligation denominated in that currency,"
The Federal Reserve doesn’t borrow from anybody, Jethro.
Yep--Just tell that to Iceland, Zimbabwe, Weimer, etc!
Maybe you think the fed should just print off $100 trillion and mail it out—we’ll all be rich! LOL!
Yeah, inflation is terrible. I’m glad I could educate you about the Fed adding to money supply.
Won’t help real GDP. Money supply soared in 1931 also. How have those long investments you’ve been running doing? LOL
The fed using deposited reserves to buy assets just like its member banks. It does not have capital of 2.5+ trillion. I’m not changing the subject. You are just wrong and think they can print their way out of any problem. If it was that simple they’d have done that with BSC, Leh, etc and we’d still be riding around 14k on the DOW.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.