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Federal Reserve Payments to Banks Trigger Largest Ever Operating Loss
Breitbart ^
| 01/15/2024
| John Carney
Posted on 01/15/2024 9:12:01 AM PST by ChicagoConservative27
click here to read article
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Soft landing or something right? 🙄
To: ChicagoConservative27
Does the Fed still own a boat load of Mortgage Backed Securities…because those would be rupturing value if “marked to market.”
2
posted on
01/15/2024 9:16:09 AM PST
by
Vermont Lt
(Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
To: ChicagoConservative27
As long as the Fed can (virtually) print as much of the stuff as it wants, does it ever truly “lose money”?
To: Vermont Lt
To answer my own question: “ US Assets - Mortgage-Backed Securities Held by All Federal Reserve Banks is at a current level of 2.432T, unchanged from 2.432T last week and down from 2.641T one year ago.”
Ouch. Those are costing the Fed billions of dollars in lost value if they had to price them like a company.
4
posted on
01/15/2024 9:18:51 AM PST
by
Vermont Lt
(Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
To: ChicagoConservative27
"All your savings are belong to us."
5
posted on
01/15/2024 9:19:31 AM PST
by
moovova
("The NEXT election is the most important election of our lifetimes!“ LOL...)
To: ChicagoConservative27
The FED, and the IRS horse it rode into town on, is not long for this world.
6
posted on
01/15/2024 9:26:48 AM PST
by
C210N
(Mundus vult decipi, ergo decipiatur.)
To: ChicagoConservative27
It’s a back door bailout of the banks.
7
posted on
01/15/2024 9:27:14 AM PST
by
glorgau
To: ChicagoConservative27
What a joke!
There is no such thing as the fed losing money. How can you lose money when you can make all you want?
If a real bank were to be that much in the hole there would be an immediate run on the bank, like it happened with Silicon Valley Bank last year. Is there a run on the Federal Reserve BANK?
And who are the depositors? Commercial banks. Do you see any of them pulling the money out of the fed? Of course not, they know they’re fully covered.
It’s all a charade!
8
posted on
01/15/2024 9:42:21 AM PST
by
aquila48
(Do not let them make you "care" ! Guilting you is how they control you. )
To: Vermont Lt
Does the Fed still own a boat load of Mortgage Backed Securities…because those would be rupturing value if “marked to market.” They still own about $2.4 trillion of MBS.
They already mark to market.
To: Vermont Lt
They do price them like a company. They are losing billions.
To: Vermont Lt
The Fed is going bye bye.
11
posted on
01/15/2024 9:47:09 AM PST
by
Georgia Girl 2
(The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
To: aquila48
There is no such thing as the fed losing money. How can you lose money when you can make all you want? They lose money when they earn 3% on their bonds while they pay banks 5% on their reserves. They also lose because those bonds are worth less.
To: Georgia Girl 2
The Fed is going bye bye. LOL!
To: Toddsterpatriot; Vermont Lt
Marking asset values to market isn’t meaningful unless you are actively buying and/or selling them.
This article is about the Fed’s operating losses, which are a separate issue entirely.
14
posted on
01/15/2024 10:09:50 AM PST
by
Alberta's Child
(If something in government doesn’t make sense, you can be sure it makes dollars.)
To: Toddsterpatriot
Yes but it’s just pretend book keeping with monopoly money.
So, tell me, what are the dire consequences of such an epic “loss”?
The depositors (commercial banks) sure ain’t losing sleep over it? They love it, they keep getting 5.5% risk free on the huge reserves they have at the fed.
15
posted on
01/15/2024 10:30:24 AM PST
by
aquila48
(Do not let them make you "care" ! Guilting you is how they control you. )
To: ChicagoConservative27
There’s a lot more money supply than ever, so everything is a record in hard numbers. Meaningless.
16
posted on
01/15/2024 10:54:06 AM PST
by
SaxxonWoods
(Are you ready for Black Lives MAGA? It's coming.)
To: aquila48
“They love it, they keep getting 5.5% risk free on the huge reserves they have at the fed.”
So am I, on T-Bills. This isn’t a problem.
17
posted on
01/15/2024 10:55:34 AM PST
by
SaxxonWoods
(Are you ready for Black Lives MAGA? It's coming.)
To: 9YearLurker
As long as the Fed can (virtually) print as much of the stuff as it wants, does it ever truly “lose money”?
______________________________________________________
Nope they can’t...They only exist to manage the money supply. They could literally forgive the Federal government of all its bond payments (interest and principal), and not lose a minutes sleep over it.
18
posted on
01/15/2024 11:07:03 AM PST
by
Bishop_Malachi
(Liberal Socialism - A philosophy which advocates spreading a low standard of living equally.)
To: Toddsterpatriot
The Federal Reserve:
1. Its not Federal
2. It has no reserves
19
posted on
01/15/2024 11:26:28 AM PST
by
Georgia Girl 2
(The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
To: aquila48
So, tell me, what are the dire consequences of such an epic “loss”? Not dire. The Fed turns over their profit to the Treasury. They'll have none to turn over this year, or any year, until they make up for this loss.
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