Posted on 09/16/2008 4:49:39 PM PDT by BGHater
Comparing avionics to financials isn’t really a sound comparison.
They were dealing in abstractions. Not sound business, but not illegal.
“It takes that paper across the street to the Federal Reserve, which buys them from the Treasury”
Except there is no real money exchanged. The Fed gets to GUESS how much the economy might have grown recently and create that money out of thin air. Then they get to further that fairytale and create many times that amount as “credit”, which the Fed sells to the markets, such as banks, which then loan that fictitious money to you as a mortgage or car loan.
ALL of the US Currency, the Federal Reserve Notes known as the dollar, are created out of thin air and are not based on anything except the Fed deciding what to create.
The Fed has to bail out these failing institutions as they are tied directly into them. This isn’t about the economy, this is about the Fed.
The Fed does not buy securities from the Treasury.
Let me put it this way. Which course of action will yield a better return for you:
While true, no one wants the contraction to happen on their watch because the public has been fed the belief that the business cycle can be conquered and that recessions are the work of malevolent politicians. So we keep kicking the can down the road.
“the public has been fed the belief that the business cycle can be conquered”
How short are our memories? Don’t we remember what the government said last time every time some new bust looms? Where are the historians to tell us that there was no business cycle before we had a central bank?
The purpose of this liquidity facility is to assist AIG in meeting its obligations as they come due.
The press release goes on to say...
This loan will facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall economy.
This means, the $85 billion loan is to assist AIG in meeting its debt obligations as they come up and preventing their bankruptcy. Having prevented outright default by lending $85 Billion to cover their debts, AIG can sell assets in an orderly manner. To say I was wrong in my original statement is flat false.
Bump to that.
“The Fed does not buy securities from the Treasury.”
This is something else I’ve never understood. I know that the Treasury prints the notes that the Fed ships out. I also know that the major assets of the Fed are its gold and its securities. I’ve never precisely understood from whom and with what the Fed buys the securities. It occurs to me that if the Fed owns Treasury securites, and I believe it does, it must have bought the securities from the Treasury.
You can cherry pick quotes to tell yourself whatever you want.
I am telling you what it will be.
If you are, then you must have seen this:
“113 ETF’s were suspended in UK trading” was posted in the comments thread at the site. This is the only news report I found that talks about ETF’s and AIG but not about the suspension.
http://www.investegate.co.uk/invarticle.aspx?id=58393
If you are, then you must have seen this:
“113 ETF’s were suspended in UK trading” was posted in the comments thread at the site. This is the only news report I found that talks about ETF’s and AIG but not about the suspension.
http://www.investegate.co.uk/invarticle.aspx?id=58393
Opps.
I wasn't aware I used that word.
Uh, no. I will not wait.
Where is your evidence saying "the $85 billion goes right out the door..."?
That statement belies the basic facts of the deal.
Glad to be of help - say “woof” to your poodle for me ;).
Another in a long list.
I know that the Treasury prints the notes that the Fed ships out.
The Bureau of Engraving prints notes. The Fed creates money without printing notes.
I’ve never precisely understood from whom and with what the Fed buys the securities.
The Fed buys Treasury Securities from Primary Dealers using newly created money.
It occurs to me that if the Fed owns Treasury securites, and I believe it does
You are correct.
it must have bought the securities from the Treasury.
Bzzzt, you are incorrect.
**113 ETF sercurities products suspended**
NOW, I found it: http://www.investegate.co.uk/invarticle.aspx?id=52375
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