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Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts

 
No Dhimmi

User ID: 15685685
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06/15/2012 06:35 AM

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Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Following the 2008 financial crisis, the Federal Reserve provided more than $4 trillion in near zero-interest loans and other help to banks and businesses whose executives also served as directors for the national bank.

At least 18 current and former Fed regional bank directors had a direct stake in the trillion-dollar bailout given to teetering institutions, according to a report produced by the Government Accountability Office, but released by Senator Bernie Sanders (I-Vermont).

“This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sanders said in a prepared statement. “At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks.”

[link to www.allgov.com]

Last Edited by Account Deleted by User on 06/15/2012 08:43 AM
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
Anonymous Coward
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06/15/2012 06:38 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
The taxpayers pick up the tab for everything in a corrupt
society, except there aren't enough taxpayers, so we put in on the tab.
Evil people are rewarded with lives of plenty.
They should have to look over their shoulders and sleep
with one eye open.
Soon they will.
No Dhimmi  (OP)

User ID: 15685685
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06/15/2012 06:45 AM

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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
And in Europe:

. . .you essentially have bankrupt countries pledging money to a fund which comes in and rescues the very same bankrupt country. This money is then used to buy the sovereign debt from the banks to help liquify the banks. These countries want the ECB to get involved in backstopping everything.


[link to kingworldnews.com]
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
No Dhimmi  (OP)

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06/15/2012 06:54 AM

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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
State and local governments are shedding jobs continually by 10,000, 15,000, 20,000 jobs each month because they don’t have the revenues coming in from the commercial real estate. There are widespread vacancies. They don’t have enough revenues and incomes taxes coming in. They also don’t have enough revenue coming in from the housing sector, which as I said is flat on its back.

[link to kingworldnews.com]
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
No Dhimmi  (OP)

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06/15/2012 08:42 AM

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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Britain to give banks $200 million to kick-start economy...

[link to www.telegraph.co.uk]
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
Anonymous Coward
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06/15/2012 08:46 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Oh Yea! But don't THINK about raising their Taxes you little People!!!!
1COR15:22

User ID: 17601555
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06/15/2012 08:54 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Zionist jewish people own and run the Federal Reserve Bank that the US government continually borrows from...and is in debt to.

jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Napoleon said: When a government is dependent for money upon the bankers, they and not the government leaders control the nation. This is because the hand that gives is above the hand that takes. Financiers are without patriotism and without decency.

The Federal Reserve Bank is a consortium of 9 Zionist Jewish-owned & associated banks with the Rothschilds at the head:

$1. Rothschild Banks of London and Berlin.

$2. Lazard Brothers Banks of Paris.

$3. Israel Moses Seif Banks of Italy.

$4. Warburg Bank of Hamburg and Amsterdam.

$5. Lehman Brothers of NY.

$6. Kuhn, Loeb Bank of NY (Now Shearson American Express).

$7. Goldman, Sachs of NY.

$8. National Bank of Commerce NY/Morgan Guaranty Trust (J. P. Morgan Bank - Equitable Life - Levi P. Morton are principal shareholders).

$9. Hanover Trust of NY (William and David Rockefeller & Chase National Bank NY are principal shareholders).

[link to www.rense.com]
Anonymous Coward
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United States
06/15/2012 08:59 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Ron paul was threatened by the FR:

[link to www.youtube.com]
AdHocBOHICA

User ID: 1530155
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06/15/2012 09:02 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
R O P E>>>>>>>>>>>
“Luck is what happens when preparation meets opportunity.” ~Seneca

PS:
I Stole this from another member.... ;)
Anonymous Coward
User ID: 11196657
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06/15/2012 09:06 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
hiding5a
Anonymous Coward
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Saudi Arabia
06/15/2012 09:06 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Yet another reason jewish people need to be rounded up!
Anonymous Coward
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06/15/2012 09:14 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
REVELATION 2:9 3:9

Satan is in total control until Christ comes back.
Anonymous Coward
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06/15/2012 09:18 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Yet another reason jewish people need to be rounded up!
 Quoting: Anonymous Coward 17924466




Can't agree with you on this. There is enough horror going on in the world without calling for a genocide.
Anonymous Coward
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06/15/2012 09:30 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Following the 2008 financial crisis, the Federal Reserve provided more than $4 trillion in near zero-interest loans and other help to banks and businesses whose executives also served as directors for the national bank.

At least 18 current and former Fed regional bank directors had a direct stake in the trillion-dollar bailout given to teetering institutions, according to a report produced by the Government Accountability Office, but released by Senator Bernie Sanders (I-Vermont).

“This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sanders said in a prepared statement. “At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks.”

[link to www.allgov.com]
 Quoting: No Dhimmi


Understand fiat money. every creation of it is a bailout. and the Fed, is not the United States private bank, it is the global private bank of the private banks and it bails out everyone constantly 24/7
Anonymous Coward
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06/15/2012 09:33 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
And in Europe:

. . .you essentially have bankrupt countries pledging money to a fund which comes in and rescues the very same bankrupt country. This money is then used to buy the sovereign debt from the banks to help liquify the banks. These countries want the ECB to get involved in backstopping everything.


[link to kingworldnews.com]
 Quoting: No Dhimmi


Meanwhile someone is getting rich. Usually it's the middle man, the trader, the dealer, the go-between, the guy who plays both ends, the guy who says "you two people can't trust each other, you need to go through me". I.e., bankers and traders.

Get those people off the face of the earth! Please.
ruxpin

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06/15/2012 09:34 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Britain to give banks $200 million to kick-start economy...

[link to www.telegraph.co.uk]
 Quoting: No Dhimmi


$200 mil? That wouldn't even take care of food stamps for the crew Harlem.
I only believe half of what I read and even half of that is bullshit.
humanitech
User ID: 17978626
United Kingdom
06/15/2012 10:00 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
I often wonder why people are often so surprised by the realities of all our corrupt hierarchal systems and their delusional (hyprocitical)doctrines..That allow the criminals at the top to help their peers to exploit and maintain their false advantage over others...always at the suffering and expense of all their respective subjects, subordinates, followers (willing blind servants) beneath them.
No Dhimmi  (OP)

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06/15/2012 10:20 AM

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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
U.S. Foreclosure Activity Increases 9 Percent in May According to RealtyTrac® U.S. Foreclosure Market Report
Overall Foreclosure Activity Exceeds 200,000 for First Time in Three Months; Foreclosure Starts Increase Annually for First Time Since January 2010

[link to www.marketwire.com]
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
Anonymous Coward
User ID: 12339688
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06/15/2012 10:29 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Zionist jewish people own and run the Federal Reserve Bank that the US government continually borrows from...and is in debt to.

jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Napoleon said: When a government is dependent for money upon the bankers, they and not the government leaders control the nation. This is because the hand that gives is above the hand that takes. Financiers are without patriotism and without decency.

The Federal Reserve Bank is a consortium of 9 Zionist Jewish-owned & associated banks with the Rothschilds at the head:

$1. Rothschild Banks of London and Berlin.

$2. Lazard Brothers Banks of Paris.

$3. Israel Moses Seif Banks of Italy.

$4. Warburg Bank of Hamburg and Amsterdam.

$5. Lehman Brothers of NY.

$6. Kuhn, Loeb Bank of NY (Now Shearson American Express).

$7. Goldman, Sachs of NY.

$8. National Bank of Commerce NY/Morgan Guaranty Trust (J. P. Morgan Bank - Equitable Life - Levi P. Morton are principal shareholders).

$9. Hanover Trust of NY (William and David Rockefeller & Chase National Bank NY are principal shareholders).

[link to www.rense.com]
 Quoting: 1COR15:22


Are you saying you can't do anything in this world because Jewish people run your life? Anyone who entertains that thought freely gives others control of their life.

Jewish people are human beings just the same as you. So are you going to whine the rest of your life, that they won so you just quit?

Rense is leading you by the nose. Saying sit down, don't try, it's pointless. Don't be a sucker.

The best boss I ever had was a Jewish man. Fair and honest.
Anonymous Coward
User ID: 15541386
United States
06/15/2012 10:29 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
whats makin the banks go under
Anonymous Coward
User ID: 12339688
United States
06/15/2012 10:31 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Zionist jewish people own and run the Federal Reserve Bank that the US government continually borrows from...and is in debt to.

jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Napoleon said: When a government is dependent for money upon the bankers, they and not the government leaders control the nation. This is because the hand that gives is above the hand that takes. Financiers are without patriotism and without decency.

The Federal Reserve Bank is a consortium of 9 Zionist Jewish-owned & associated banks with the Rothschilds at the head:

$1. Rothschild Banks of London and Berlin.

$2. Lazard Brothers Banks of Paris.

$3. Israel Moses Seif Banks of Italy.

$4. Warburg Bank of Hamburg and Amsterdam.

$5. Lehman Brothers of NY.

$6. Kuhn, Loeb Bank of NY (Now Shearson American Express).

$7. Goldman, Sachs of NY.

$8. National Bank of Commerce NY/Morgan Guaranty Trust (J. P. Morgan Bank - Equitable Life - Levi P. Morton are principal shareholders).

$9. Hanover Trust of NY (William and David Rockefeller & Chase National Bank NY are principal shareholders).

[link to www.rense.com]
 Quoting: 1COR15:22


Are you saying you can't do anything in this world because Jewish people run your life? Anyone who entertains that thought freely gives others control of their life.

Jewish people are human beings just the same as you. So are you going to whine the rest of your life, that they won so you just quit?

Rense is leading you by the nose. Saying sit down, don't try, it's pointless. Don't be a sucker.

The best boss I ever had was a Jewish man. Fair and honest.
 Quoting: Anonymous Coward 12339688


Also if your are going to use Bible scripture for a user name........Jesus said love your brother.........That was missing in your post.

If you are going to quote it Live it or at least attempt it.
Anonymous Coward
User ID: 12574590
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06/15/2012 10:32 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
but according to the conserviturds here, the banker elite plutocrats are the greatest people around and create jobs for everyone. We must not tax them but give them more interest money for the deficits they create.
No Dhimmi  (OP)

User ID: 198576
United States
06/15/2012 10:49 AM

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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Capital & Travel Controls and Preparing for Chaos in Europe

The current liquidity crisis in the southern periphery of the Eurozone continues to spread. There are already quiet electronic bank runs in progress in Greece and Spain. On Monday, a bank "holiday" was announced in Italy.

Then, in something we have not seen reported anywhere else, we received contact from a reader, Pierre J., who told us that bank branches are limiting withdrawals now almost everywhere in France. According to Pierre, they are requesting five days notice to withdraw 2000 euro.

Those currently not in Europe should be watching with eyes wide open at how this plays out. Limited bank machine withdrawals or bank holidays, capital controls and even travel controls will soon be coming to the US and other western countries so take this opportunity to learn and prepare for this inevitability.
Statists always like to say that a world with no violent rulers would be one of chaos. As much of Europe burns to the ground in the coming years, remember that its cause all stems from the state.

More at link:
[link to www.dollarvigilante.com]
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
Anonymous Coward
User ID: 1508557
Canada
06/15/2012 11:21 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
The taxpayers pick up the tab for everything in a corrupt
society, except there aren't enough taxpayers, so we put in on the tab.
Evil people are rewarded with lives of plenty.
They should have to look over their shoulders and sleep
with one eye open.
Soon they will.
 Quoting: Anonymous Coward 17976173

they already are
Anonymous Coward
User ID: 1149784
United States
06/15/2012 11:55 AM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
We're all slaves and they can take whatever they want.
Epic Beard Guy

User ID: 1079209
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06/15/2012 12:12 PM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Why is it that every time I hear anything about the fed, I feel like I should be kissed? It seems like that is the least they should do after the fuckin' we've gotten in the last few years. My dollars are worth 40% less because these ass holes are printing money to bail out their own banks. I don't know about you, but my ass is bleeding.
Hope for the best, but prepare for the worst.
"America is at that awkward stage. It's too late to work within the system, but too early to shoot the bastards." -- Claire Wolfe
No Dhimmi  (OP)

User ID: 109891
United States
06/15/2012 12:13 PM

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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
What if banks were closed? And what if when they reopened again your dollar was worth much less than when they closed for business?

This happened in 1934 after FDR devalued the dollar against gold during a bank holiday, it recently happened in Venezuela when Chavez devalued the local currency by 50%, and most notably in North Korea where residents lost 99% of the value of their wealth over night.

How would you pay your rent or mortgage? (Banks may be closed to your withdrawals, but be assured they will still want your monthly payment)

How would you buy food or toilet paper?

How would you pay your utility bills? (or what if your utility company couldn’t pay their bills?)

How would you pay for medical care or emergency medicine? (Or what if there were no medicines left to buy?)

How would you even get to the grocery store with your devalued dollars after economic martial law was declared and gas prices were so high you couldn’t afford them or gas itself wasn’t even available at your local gas station?

Are you planning on the National Guard giving you a ride?

Then again, this is America, and we have a centrally planned economy, so there is no way this is going to happen.

Nothing to see here. Carry on.

[link to www.shtfplan.com]
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
Anonymous Coward
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06/15/2012 12:54 PM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
No matter all the stuff you post here, none of them know. The FED is a GLOBAL organization with offices in the US of A. All central banks globally belong to it. And since fall 2010 the Chinese Dragons now OWN the whole thing. you have been seeing a battle between the Dragons and the Khazars since then, thru Libya and other places. While you are focused on Syria, there is a chinese invasion planned by the khazars and which they cannot win.
magonia

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06/15/2012 12:59 PM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Its the system thats at fault and bad decision making. Throwing money at the problem is a stop gap measure.
Never believe what you see, never believe what you hear. Both can be fooled.
Anonymous Coward
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06/15/2012 02:46 PM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Zionist jewish people own and run the Federal Reserve Bank that the US government continually borrows from...and is in debt to.

jewish people CONTROL THE MONEY IN AMERICA. Period. End of story.

Napoleon said: When a government is dependent for money upon the bankers, they and not the government leaders control the nation. This is because the hand that gives is above the hand that takes. Financiers are without patriotism and without decency.

The Federal Reserve Bank is a consortium of 9 Zionist Jewish-owned & associated banks with the Rothschilds at the head:

$1. Rothschild Banks of London and Berlin.

$2. Lazard Brothers Banks of Paris.

$3. Israel Moses Seif Banks of Italy.

$4. Warburg Bank of Hamburg and Amsterdam.

$5. Lehman Brothers of NY.

$6. Kuhn, Loeb Bank of NY (Now Shearson American Express).

$7. Goldman, Sachs of NY.

$8. National Bank of Commerce NY/Morgan Guaranty Trust (J. P. Morgan Bank - Equitable Life - Levi P. Morton are principal shareholders).

$9. Hanover Trust of NY (William and David Rockefeller & Chase National Bank NY are principal shareholders).

[link to www.rense.com]
 Quoting: 1COR15:22


Are you saying you can't do anything in this world because Jewish people run your life? Anyone who entertains that thought freely gives others control of their life.

Jewish people are human beings just the same as you. So are you going to whine the rest of your life, that they won so you just quit?

Rense is leading you by the nose. Saying sit down, don't try, it's pointless. Don't be a sucker.

The best boss I ever had was a Jewish man. Fair and honest.
 Quoting: Anonymous Coward 12339688


Also if your are going to use Bible scripture for a user name........Jesus said love your brother.........That was missing in your post.

If you are going to quote it Live it or at least attempt it.
 Quoting: Anonymous Coward 12339688


dont fall for this well-worn psyop

the money changers are behind antisemitism

they traditionally have hidden behind the semitic race for humnan shield protection

but that about to change

as everyone knows


it aint the jewish people

its the MONEY CHANGERS
Chrit

User ID: 15366081
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06/15/2012 02:55 PM
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Re: Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
The fed itself is its own primary bond holder.

The fed owns 43% of its own bonds, they inject this money that they have borrowed from themselves back in to the market. If the market takes a down turn and the fed fails to make a profit by the time these bonds mature, the value of the dollar will collapse in on itself.

That 77 billion the fed made last year barely got them by.

To put it very simply, it’s like using one credit card to pay off another credit card. That’s fine till you miss one payment then the whole thing collapses quickly.

In 2007 the fed held just 4% of its own bonds.

In 2010 the fed only owned 24% of its own bonds; this is how quickly it has gotten out of control.

Foreign banks are just waiting for our market to collapse so they can buy in cheap!


We are caught in what is known as a “third world debt trap” now that foreign governments will not buy our bonds, we have to leverage our selves, and the second the market doesn’t have a return its over!





Fed has bought $1.6 trillion in bonds with QE &QE2 due to the fact no one else would buy the debt. The Debt brought on By QE & QE2 is part of the debt ceiling it, does exist. The bonds held by the Fed are literally money that the government owes to itself.


In 2007 the fed owned less then 4% of the bonds, today they hold 43% of all issued bonds.


Everything changed in 2008, hard to find any link at all that I like on the subject, this one is ok.



Article:The Fed can issue non-interest bearing debt now. This is the Federal Reserve notes that we use as a medium of exchange. When the Fed buys things like Treasury bills, commercial paper, junk bonds, stocks, or many other securities, it pays by creating reserves for banks that can be cashed out, if desired, as Federal Reserve notes. The Fed has created a ton of potentially inflationary reserves lately. It is paying interest on these reserves in order to "sterilize" them, that is, prevent them from being cashed out and from being used to make an excessive amount of new loans. It's trying to save the banking system without causing inflation. It appears that the proposal to issue interest-bearing debt is a variation on this scheme.

The basic scheme that is now in place is that the Fed wishes to support security markets that are under pressure. It buys mortgage obligations, for example. The sellers deposit their checks. The Fed clears them by crediting the reserve account of the member banks making the deposits. Ordinarily, as the bank lends, the multiplicative effect of fractional-reserve banking kicks in. The money supply rises. At present, the Fed is trying to short-circuit that process by paying interest on the reserves. Their success at this manipulation will end when the banks start making loans that pay interest higher than what the Fed is offering. At that point the Fed will have to sell loans so as to drain reserves from the system, if it wishes to stem inflation. The Fed will be reluctant to do this. It has fewer Treasury bills than it used to. Its loans are too illiquid to sell. The Fed must overcome this problem or risk much higher inflation.

Enter the new scheme. The Fed issues interest-bearing debt. Whoever buys this, whether an investor or a bank, they pay with a check. When it clears, some bank's reserves decline. This absorbs reserves and/or cash from the system. The banks, for example, use their reserves to buy the Fed's debt. It carries a higher interest rate than what the Fed pays on the short-term reserve accounts. This deters the banking system from using all those reserves in an inflationary manner. In short, the Fed is re-financing the liability side of its balance sheet. It is converting short-term debt (bank reserves) into long-term debt (its own bonds.) By funding its troubled assets with long-term debt, the Fed signals that it intends to hold these assets for a long time. It is now thinking about funding these long-term assets with long-term debt. The banking system is being induced to convert short-term liquid reserves into long-term Federal Reserve bonds.

The big picture here is something like this. The banking system has a lot of lousy loans on its books. It didn't mark them all down or fully because that would reveal that many banks are insolvent. They would need to be re-organized. The insolvent banks didn't want this done. The Fed rode to the rescue by exchanging its good securities for bad loans from the banks — some of them, not all. Meanwhile, bad loans began to crop up elsewhere in the system. The Fed took on some of those too. In the process, it has created far too high a level of bank reserves, a level that is highly inflationary if put to work making new loans. By issuing long-term debt, the Fed would complete the process it began. The banks would now have as assets the better securities the Fed loaned them plus they would have Federal Reserve bonds.

As for the Fed, its balance sheet would now carry as assets many troubled loans that the banks once held. On the liability side, the Fed would have issued its own bonds. Its financial leverage would have increased dramatically even as its asset quality decreased dramatically. Some of the shakiness of the banking system would be transported into shakiness of the Fed as a bank. This would not resolve all the problems because the total amount of shaky debt in the system, in the U.S. and worldwide, is so great that the Fed can absorb only a small fraction of it.

An interesting thing to wonder about is the risk of the Fed's bonds. The riskiness of liabilities derives from the riskiness of assets. Since the Fed has taken on numerous questionable loans (and refuses to be transparent about those loans), its assets have risen in risk as compared to when it held mainly Treasury bills. If the cash flows of the Fed's bonds are to be serviced by the cash flows of these assets, then those bonds will not be risk-free. But the Fed has the power to buy any security it wants to. It can buy its own bonds in the market and support the price (although this raises bank reserves and defeats the purpose of the bonds). It can make them risk-free, although this is unlikely.

50% rule

[link to www.lewrockwell.com]


This below is the new scheme they are doing now...

reverse-repos

[link to tv.ibtimes.com]

Last Edited by Chrit on 06/15/2012 02:58 PM
I'm only human, it's my biggest flaw.

We must all realize a sink a chair and a pillow are all luxuries of home and a soldiers helmet takes the place of all three.





GLP