Comments for "Bernanke on Fed's Balance Sheet"
CRbot says:
This comment thread has been CRC-IZED by yagij (CRbot helped a little).
http://realize.org/cr/crcizer/phpCRCo.php?path=%2F3543259796850275363&ord=asc&csslayout=reg&topic=Bernanke+on+Fed%27s+Balance+Sheet
And for the stubborn old-timers... it's also been HALO-IZED by CRbot.
http://realize.org/cr/halokit.php?halourl=http://www.haloscan.com/comments/calculatedrisk/3543259796850275363
CRbot Fri Apr 3 11:23:40 2009 CDT #
mark says:
I'm going to need to unwind with a bottle of JD tonight.
mark Fri Apr 3 11:24:29 2009 CDT #
jo6pac says:
I'll just try a couple bottles of red wine, it will all be better on Monday right.
Parent Post
jo6pac Fri Apr 3 12:15:21 2009 CDT #
Guest says:
Wow, the comment system in 3 formats now. Way to try to polsh a turd.
Guest Fri Apr 3 11:24:48 2009 CDT #
CRbot says:
The Latest from Mish:
Jobs Contract 15th Straight Month; Unemployment Rate Soars to 8.5%
CRbot Fri Apr 3 11:28:37 2009 CDT #
Deferred Comp says:
CR Off topic AIG http://us1.institutionalriskanalytics.com/pub/IRAStory.asp?tag=351
Deferred Comp Fri Apr 3 11:29:28 2009 CDT #
Lawyerliz says:
I heard on NPR that they would going to do a segment today about how pawn shops have run out of cash. Scratching my head.
Lawyerliz Fri Apr 3 11:29:38 2009 CDT #
Anonymous says:
He apparently did not learn anything. Once liquidity is in place, taking it out results in crash in assets and an asset inflation dependent economy (applies much more to goverments & banks) can't withstand that shock. This is bullshit. Liquidity can not & will not be taken out in the next wave. For now we don't need to worry about it though.
Anonymous Fri Apr 3 11:30:39 2009 CDT #
Tim Geithner\'s Mom says:
" it could choose to sell some of its securities"
Like those "quantitative easing" MBSs the fed is buying with an effective interest rate of 4.5%...yeah, those will be easy to sell off in a 5.5% and above intereste rate world...
Tim Geithner\'s Mom Fri Apr 3 11:31:12 2009 CDT #
Lawyerliz says:
At a discount, mom, at a discount.
Lawyerliz Fri Apr 3 11:33:59 2009 CDT #
ghostfacedinvestah says:
BB is so full of crap. Who is going to buy Fannie/Freddie credit risk without the full faith and credit of the government?
With $15T in debt by that time, you think the government is going to hesitate to walk away from Fannie/Freddie, especially if a new housing finance scam is in place (e.g. expanded FHA)?
He is going to own those MBS until they run off. Which, at sub-5% mortgage rates, should be about 15 years.
ghostfacedinvestah Fri Apr 3 11:34:20 2009 CDT #
Lobbyi$t Ben Dover says:
"I heard on NPR that they would going to do a segment today about how pawn shops have run out of cash. Scratching my head."
Only government favored Pawn Shops get TARP money. Everybody else is on their own.
Lobbyi$t Ben Dover Fri Apr 3 11:34:28 2009 CDT #
Yalt says:
Dear Chairman Bernanke:
Defecation is not time-reversible.
Best regards,
Yalt
Yalt Fri Apr 3 11:35:26 2009 CDT #
ghostfacedinvestah says:
Like all of these government interventions, there is no exit strategy.
ghostfacedinvestah Fri Apr 3 11:36:55 2009 CDT #
Phaedrus says:
"... there is no exit strategy."
Well said ... there is only the "wall strategy" as in "hit the wall".
Parent Post
Phaedrus Fri Apr 3 12:09:15 2009 CDT #
Lawyerliz says:
Disgusting, but funny Yalt.
Lawyerliz Fri Apr 3 11:36:58 2009 CDT #
Michael says:
This kind of Citizen atitude is coming on a wide scale. This is how we beat them. Enough people stand up for their rights, they will get the message.
<h1>Ron Paul Supporter Beats Fascist Gestapo TSA Interogation 3/28/09</h1>
http://www.youtube.com/watch?v=WLXEeZYyK2E
HQ version;
http://www.youtube.com/watch?v=MEKQSRa-e3Y&feature=related
Know your rights so you can use them!
Red Beckman - Fully Informed Jury 2
http://video.google.com/videoplay?docid=7385583011526915030&hl=en
Michael Fri Apr 3 11:37:48 2009 CDT #
Lawyerliz says:
Money is fast losing its symbolic meaning, I think.
How are pawn shops financed anyway???
Lawyerliz Fri Apr 3 11:38:11 2009 CDT #
Uncle Billy, Mental Widget says:
Mobsters?
Parent Post
Uncle Billy, Mental Widget Fri Apr 3 11:38:49 2009 CDT #
abprosper says:
Pawn shops charge insane interest on loans and if/when the loans fail sell stuff for high markup. Also more legitimately they buy and sell stuff straight out . Right now the kind of crap (except probably guns) that pawn shops have just isn't selling. As to what Uncle Billy said, well sometimes they are used to fence goods and launder money.
Parent Post
abprosper Fri Apr 3 12:09:00 2009 CDT #
PTDBD says:
The little plucker is starting to tap dance.
I think they got their beat for retreat from China.
Dance you little varmint. Dance.
PTDBD Fri Apr 3 11:39:17 2009 CDT #
Pavel says:
Message should not exceed 3000 bytes, it tells me.
Pavel Fri Apr 3 11:39:41 2009 CDT #
warlock says:
He's still assuming that the reserves control the amount of lending performed by the commercial banks, even when the Federal Reserves own statistic's show that this isn't the case. How long do these people have to pull on an elastic band until they realise it's not a string?
*sigh*.
-- w
warlock Fri Apr 3 11:41:40 2009 CDT #
Lobbyi$t Ben Dover says:
"How are pawn shops financed anyway???"
Just like any business. Some may have a line of credit and some may be self funding. It appears to me the the incoming inventory (pawns) have eaten up available cash and the buyers are not buying this inventory. Balance of transaction is off.
Lobbyi$t Ben Dover Fri Apr 3 11:43:57 2009 CDT #
CRbot says:
The Latest from Jesse:
US Dollar (DX Index) Hourly Chart
The Net Asset Value of Certain Gold and Silver Trusts and ETFs
CRbot Fri Apr 3 11:47:49 2009 CDT #
Wisdom Speaker says:
Does anyone besides me smell an exhaustion of the rally? The loose chart this week, wide gap yesterday, and (so far) lack of follow-through today seem rather suggestive. On the other hand, it could just be that folks are prepping for Spring Break and the upcoming Easter festivities and taking it lightly today... Hmm...
Wisdom Speaker Fri Apr 3 11:50:12 2009 CDT #
Uncle Ar says:
Question about last thread: If the banks are going to buy each other's crap (at inflated prices, non-recourse ) why did they force the FASB change? BAC buys junk from C at 90 cents on the dollar, C does the same from BAC. Both get to now mark up the crap they had marked at 80 cents, which was really worth 30 cents. Earnings jump! Economy is saved. Right?
Uncle Ar Fri Apr 3 11:52:27 2009 CDT #
MS says:
"Raising the interest rate paid on reserves will encourage depository institutions to hold reserves with the Fed, rather than lending them into the federal funds market at a rate below the rate paid on reserves."
here's what it should say:
........rather then lending them out to consumers.
Until that changes we will continue to have our "mexican strategy"
Ciao
MS
MS Fri Apr 3 11:56:17 2009 CDT #
Confuscius says:
Bernanke says look at all my pretty credits.
Confuscius Fri Apr 3 11:59:17 2009 CDT #
Phaedrus says:
Bear's Bear:
http://business.theglobeandmail.com/servlet/story/RTGAM.20090402.wrgordon02/BNStory/SpecialEvents2/home
Phaedrus Fri Apr 3 12:01:40 2009 CDT #
JimPortlandOR says:
Seems like Bernanke is aware of 1936 but hasn't internalized it. The first sign of Fed tightening will set off a major market panic and retrenchment. He doesn't have the freedeom he thinks he does because he's thinking of mechanisms as smoothly shifting tools instead of stop/start indicators. It's the Greenspawn Fed as All-Powerful Dictator thinking all over again.
JimPortlandOR Fri Apr 3 12:02:55 2009 CDT #
Phaedrus says:
Maybe Bernanke can control interest rates and maybe not.
http://www.contraryinvestor.com/imagesCImain/forpurchUSassets032109.png
Phaedrus Fri Apr 3 12:03:56 2009 CDT #
kharris says:
Pawn brokers ain't stupid. If the stuff they take as collateral won't sell, then as collateral, it is worth less. "Borrower" will get less cash for their stuff. Pawn shops do a mix of collateralized lending and outright purchase of used goods, as well as selling of new overstock. If the mix is shifting from the lending business to the purchase of used stuff, that too will lead to a decline in the cash that the client gets from the pawn broker. Simple little business, but you have to know your market, the client and the economy. And no leg-breaking, which is nice.
kharris Fri Apr 3 12:04:54 2009 CDT #
Cinco-X says:
But the value of the collateral always goes up!
;)
Probably made the same mistakes the banks did.....
Parent Post
Cinco-X Fri Apr 3 12:48:00 2009 CDT #
scone says:
"The large volume of reserve balances... could complicate the Fed's task... if inflation expectations were to begin to move higher." -Ben
Either he really thinks he can keep hyperinflation at bay, or he wants to signal that to the market. Is the doctor telling you the truth about your condition, or is he telling a feel-good lie to keep your immune system up?
scone Fri Apr 3 12:06:43 2009 CDT #
el lurko says:
Seems to me a pawn shop in a deflationary environment is pretty difficult to run unless you're an accurate forcaster. And we all know how many of those are out there.
el lurko Fri Apr 3 12:09:59 2009 CDT #
Barley says:
CA pawn shops are heavily regulated and policed. They are great places to finds deals.
Barley Fri Apr 3 12:12:29 2009 CDT #
REBear says:
A gunman entered an immigration services center in downtown Binghamton [NY] on Friday, shot at least four people and took as many as 41 hostage, according to media reports.
http://news.yahoo.com/s/ap/20090403/ap_on_re_us/hostage_shooting
REBear Fri Apr 3 12:14:01 2009 CDT #
Anonymous says:
That stupid bastard
Anonymous Fri Apr 3 12:15:07 2009 CDT #
Feckless Ness says:
OT and probably posted already, but hoocoodanode that Jim the Realtor is also a crime fighter? Here's a fun profile from yesterday's LA Times:
The Hunter S. Thompson of Real Estate
http://www.latimes.com/business/la-fi-real-estate2-2009apr02,0,3496436.story?page=1
Feckless Ness Fri Apr 3 12:15:16 2009 CDT #
CRbot says:
New Thread: OCC: More Seriously Delinquent Prime Loans than Subprime
http://www.calculatedriskblog.com/2009/04/occ-more-seriously-delinquent-prime.html ( 0 comments ...You could be FIRST! )
I also post comments to an irc channel as they appear on haloscan. Click for a web irc interface: http://realize.org/cr (Or join the irc server directly: irc.realize.org:9996 #calculatedrisk)
CRbot is now proud to have the honor of introducing a NEW ERA in CR comments. With the JS-kit, but not below the JS-kit. A independent but integrated solution for all CR fanatics...
Brought to you by the hard work, dedication, and carpal-tunnel ridden fingers of your own yagij (and to a trifling amount your lovable CRbot code janitor, who will be flogged later)....
But first, let me don my ever stylish-- trendy but classic -- black mock turtleneck.
And now, introducing the revolutionary new innovative revolution that will no doubt revolutionize CR comments forever... ENDING the era of agonizing over long, carefully crafted comments only to lose COUNTLESS MINUTES when your comment is eaten by the JS-kit gremlins... CHANGING for all time the way you talk about mortgage pigs, hoopajoops, red and green colored muppets, and born and bred dopes...
With no further adieu... CRbot gives you... THE CRC-IZER!!!!!!!
You can also find a index of the 10 most recent threads, with mobile links at: http://realize.org/cr/crcizer/phpCRo.php
Ahem. Now the skeptical amongst you might consider this to be a joke since it IS April 1st. I find such lack of faith disturbing. Click and BELIEVE!
--Your much-more-db-enhanced bot
yagij and CRbot: Now with more CRC-ized posting power. You can worship us a little now, mortals.
CRbot Fri Apr 3 12:15:54 2009 CDT #
Black Star Ranch says:
Michael - GREAT post. "CASH IS PRIVACY!"
Since when can the TSA ask those kind of questions and threaten a citizen as such. That gentleman was a WHOLE LOT calmer than I would have been!
Black Star Ranch Fri Apr 3 12:17:11 2009 CDT #
Barley says:
"pretty difficult to run unless you're an accurate forcaster"
el lurko
Since most "loan" at 25-30 cents o the dollar, its not that tough. After 60 or ninety days the pawn shop becomes the owner. A good deal of business is done between owner to owner, based on their interest and customer profile and location. Also, they have a network of potential customers based on their customer's interest. I have left my name and num w/ pawn shops letting 'em know what I am interested in.
There is a discrete pawn shop in LA that is known to deal in exotic cars, six figure artwork, and high end jewerly. So its all not "seedy" by any means.
All that said if consumers are broke, the market shrinks.
Barley Fri Apr 3 12:24:07 2009 CDT #
The Middling Lebowski says:
He had me at "We have a number of tools"
The Middling Lebowski Fri Apr 3 12:29:34 2009 CDT #
mock turtle says:
even if specific insitutions are disqualified from participation in ppip it wont stop the bankstas from gaming the system...because
the entire system is DESIGNED to be gamed and ppip itself is a game
8 parts private, 8 parts treasury match, 84 parts fedrsrv non recourse loan (loan? hahahaha)
as most here know the real solution is to spread the financially transmitted desease around to all the sexual partners, uh i mean financial counterparties and we are all ultimatelly counterparties in a sense
the dilution solution...
the other alternative (besides do nothing and let it crash), is to nationalize the fallen intitutions but that is POLITICAL suicide because the right wing talking heads would call obama a communist (socialist) and americans dont like socialism
except for public roads, tax financed sports stadiums, police, fire, national parks, public beaches, clean air, clean water, accellerated capital depreciation... blha blha blha
mock turtle Fri Apr 3 12:48:37 2009 CDT #
Anonymous says:
Suspicious package found at NY bank
http://www.reuters.com/article/domesticNews/idUSTRE5324Y620090403
People are getting tired of the crap coming out of these thieves this type od stuff will only accelerate as things get wrose.
Anonymous Fri Apr 3 12:52:20 2009 CDT #
CJ says:
I am confused as to how the entire banking system works? If the Fed just exapanded its balance sheet by printing money and buying Treasuries, does that mean at some ponit it must sell the Treasuries or wait for them to mature and then burn the proceeds? Then the gov't is taxing people and literally burning the money.
There should be an explanation of this that reasonablly smart non-financial professionals can understand. We're borrowing huge amounts of money. Some of it's coming from the Fed out of thin air. I wish someone had given America a short course in all this before we made the decisions.
CJ Fri Apr 3 12:57:42 2009 CDT #
Anonymous says:
The tax burdon to support runaway goverment spending to bailout this masssive fraud will squash infaltion as flat as a bug :-E
Anonymous Fri Apr 3 13:06:08 2009 CDT #
Boat52 says:
Maybe the next redesign of Federal Reserve notes should feature Bernanke on the hundred and Geithner on the fifty, that is $100,000 note for Ben and $50,000 note for Tim.
Boat52 Fri Apr 3 14:05:04 2009 CDT #
Jennifer Richards says:
Please blog on this topic or post more article links related to it. This question, whether the Fed can unwind without driving up interest rates or causing severe inflation, is absolutely central to the long-term health of the economy, especially when federal debts are going to explode.
If the budget explodes and the Fed can't unwind gracefully, it means you cannot invest in the stock market for any length of time, you can only swing trade and try not to get trapped.
Thank You!
Jennifer Richards Fri Apr 3 16:26:51 2009 CDT #
Credit easing says:
When in doubt of any strategy based on reality, invent a new term to go with a new theory and new model:
Re: "credit easing"
Credit easing Fri Apr 3 17:04:10 2009 CDT #
END