Financial Crisis

[AlexLah]

Dick......

Its the reporter who is a <deleted> - cant even report the trade properly.

Abrak, it is a joke......

23 Trillion, who cares. I say we pick up our AK 47's and head to Basel. Let's see how good these bankers are in swallowing a bottle of fine wine down their throat.

[teletiger]

Dick......

Its the reporter who is a <deleted> - cant even report the trade properly.

I'd like to declare myself as available as a fact debunker. Available at a price, of course. Gold Thai baht only.

Here's a freebe. There is absolutely no truth in despicable reports that British soldiers returning from the recent Iraqi conflict were asked if "they would be prepared to fire on their own civilians." 'And were assigned accordingly. This rumour was reportedly started by "alleged" relatives, posting in the Guardian newspaper, and refuted by the MOD. (Thats my initials by the way) Quite handy, Eh?

Regards.

[midas]

I'd like to declare myself as available as a fact debunker. Available at a price, of course. Gold Thai baht only.

Here's a freebe. There is absolutely no truth in despicable reports that British soldiers returning from the recent Iraqi conflict were asked if "they would be prepared to fire on their own civilians." 'And were assigned accordingly. This rumour was reportedly started by "alleged" relatives, posting in the Guardian newspaper, and refuted by the MOD. (Thats my initials by the way) Quite handy, Eh?

Regards.

Not surprising .........and I think you will find they are training special

forces in USA to do the same. Here is a link to more discussions about the British soldiers

http://thejournal.parker-joseph.co.uk/blog.../2/4109792.html

[teletiger]

Somewhat off topic.

"The detailed service records of 250,000 medieval soldiers - including archers who served with Henry V at the Battle of Agincourt - have gone online.

"

“The full profiles of soldiers from 1369 to 1453 will allow researchers to piece together details of their lives.”

“Dr Bell said: "The service records survive because the English exchequer had a very modern obsession with wanting to be sure that the government's money was being spent as intended.”

Will the records of our present frontline soldiers be available in 600+ years time??...Lack of equipment...medical after-care pensions.....Nah......much too embarrassing.

Regards.

[AlexLah]

It has been done before Tele..........But now they have those directed energy beam portable flesh cookers to keep you calm.

Anyway below is part 3 of another interesting docu (you should take some time to watch all parts) where indeed the army shoots civilians, very disturbing.

Edited July 21, 2009 by AlexLah

[Abrak]

Are we all sitting down?

"The total exposure of the US government to the financial crisis could hit $23.7 trillion (£14.3tn), according to a watchdog report."

http://news.bbc.co.uk/2/hi/business/8160282.stm

Regards.

I wondered how you could come to that figure. The only really big number I could think of was the guarantee on deposits which only total approximately US$9trn. Throw in recaps, selected credit guarantees and you would really struggle to get to US$13trn.

What I didnt realize is the size of US bank derivative exposure, which must result in some contingents. As at March 2009 total US bank sector equity was around US$1trn and derivative exposure was US$203trn (more than 2x global GDP).

http://www2.fdic.gov/sdi/main.asp

[Abrak]

....

Edited July 21, 2009 by Abrak

[flying]

From left field, Brazil, Canada pull money out of Treasurys

http://www.marketwatch.com/story/story/pri...59-6BCA58140C0D

It's the quiet ones that surprise you. Brazil and Canada were among big sellers of Treasurys in the latest month for which data is available and the previous year, catching analysts off guard and raising speculation that quieter nations may be concerned about investing in the U.S.

[Naam]

this one said "yada, yada", the other one said "yakety-yak", a third one claims that at night it is outside darker than inside because the trillions in Basel will be liberated by a bunch of AK47 and M16 and when i look into the thread "Financial Crisis"

i feel like going for a nap

as most of it is crap.

yawwwnnnnn...

[flying]

Not for Naam as I know he hates you tube

But for anyone who wants to see some of Bernanke's testimony today

[Abrak]

I find the whole line of questioning distinctly odd. If one was to question the effects of QE on monetary aggregates and inflation presumably the time to do it was when the policy was announced. It seems to me they havent even looked at the monetary aggregates.

M2 has risen 1.6% since the end of January or 3.5% annualised and less than 0.5% since end March. M2s growth rate rarely dips below 5% although with no growth and little inflation it is not particularly surprising to see it running at low levels. This is more the stuff of deflation than inflation concerns though.

More to the point, if you want to engender recovery you need excess monetary growth to some extent as this will help reflate asset markets. With so little monetary growth it is difficult to see the stockmarket going anywhere - quite the opposite.

Still I suspect that Bernanke knows exactly what he is doing - I do wonder why he was prepared to tighten policy so early and I am 90% sure he will never tell us.

[flying]

Actually this one is much more to the point. You can be sure you would never see it on CNBC

[flying]

Still I suspect that Bernanke knows exactly what he is doing

Seems odd though that he does not even recall which central bank got the half a trillion

[Abrak]

Bernanke did make an interesting statement as regards buying Treasuries. He says something along the lines that 'by the time we have finished buying the Fed will own a lower percentage of total treasuries than they did in 2007.'

Taken at face value that would seem a very significant statement. When the Fed started bailing out the banks it sterilised its operations by selling treasuries to raise funds. In total it sold US$300bn worth. Then after 9 months it gave up and simply created the money to bail out the banks increasing the Fed balance sheet from US$800bn to US$2trn.

http://blogs.wsj.com/economics/2009/07/16/...t-71609-update/

In March the Fed announced 'real' QE with a purchase program of US$300bn of Treasuries but all this does is replace the USTs it has sold (absolutely exactly!!). So is Bernanke going to stop 'real' QE now and then try to rewrite history by claiming that they never really 'bought' treasuries, merely replenished the ones that they sold? The idea that Bernanke would call off the monetising of fiscal debt before he has really started is quite possible. Bernanke is often quoted as saying that the threat of QE can be as effective as the policy itself.

[AlexLah]

In a stunning reversal in its evaluation of a clutch of mortgage bonds backed by commercial property, Standard & Poor’s Tuesday raised the ratings on several securities it had downgraded just a week ago.

Among the bonds that have been moved back to the top-notch triple-A category from the triple-B minus category are securities that make up the benchmark GG-10 deal.

The ratings firm said it raised the ratings following the implementation of its “recently updated criteria.”

That TALF program needs AAA rated stuff, I guess busy Ben made a few phone calls?

Have a look here to have a bit of an impression what's happening in Detroit: http://inmotion.magnumphotos.com/essay/detroit-troubled-city

[hhgz]

Oh, no, more conspiracy theories from one of the guys named Alex.

[AlexLah]

uuuuuuuurrrrrrr, these are fact's

And here another piece on GS fgrom taibbi.

http://trueslant.com/matttaibbi/2009/07/16...iganto-profits/

Edited July 22, 2009 by AlexLah

[Abrak]

Flying,

This is the second time you have posted you tube videos of Ron Paul going on about how the Fed is monetizing Government debt and is going to continue to monetize Government debt. This is despite the fact that Bernanke has says he is not monetizing Government debt and will not (in one of the videos).

Now Bernanke says some pretty stupid things but I think he is playing Ron Paul for a sucker.

First of all 'monetizing of Government debt' is generally known as 'QE' or purchasing USTs ex nihil (out of nothing). Well I am sure that is how Bernanke will see it anyways.

Now look at the Fed Balance Sheet.

http://blogs.wsj.com/economics/2009/07/16/...t-71609-update/

There are 3 very important points to note about the Fed's US$300bn UST purchase program announced in March (1) it is exactly equal to the sales made in 2007 to finance bailouts of the banks (I dont think this is a coincidence) (2) it is not resulting in an expansion of the Fed's balance sheet (in other words it is being financed by proceeds from sales of assets from bank bailouts and not monetized) (3) the asset purchases are being made to ease credit conditions, at no point has QE or monetisation ever been mentioned by the Fed.

So while Ron Paul sees 'monetisation' projects forward and envisages inflation (which is incidentally exactly what Bernanke wanted him to see), Bernanke merely says he is using proceeds from asset sales from bank bailouts to replenish USTs sold to finance bank bailouts.

Now I will readily admit this just about amounts to a conspiracy theory but I simply think that US$300bn figure didnt come out of thin air. And go back and see the disdain that Bernanke gives to Ron Paul's comments about UST purchases. What he did was quite clever. He gave the 'appearance' of 'monetary irresponsibility', he lit the fire of inflationary expectations, without undertaking a monetary irresponsible 'act'. And the whole thing was planned from the start.

[midas]

Have a look here to have a bit of an impression what's happening in Detroit: http://inmotion.magnumphotos.com/essay/detroit-troubled-city

makes me shiver..........

And the same thing in Riverside County, California,Stockton, California,Las Vegas,North Los Angeles County,

Miami, Florida,Phoenix, Arizona ...........

http://www.mint.com/blog/finance-core/mode...ed-real-estate/

Reminded me again about Celente and 2012

[flying]

This is despite the fact that Bernanke has says he is not monetizing Government debt and will not (in one of the videos).

Now look at the Fed Balance Sheet.

Printing money or adding to balance sheets is not monetizing? Even in the short term? Is this based on the fact they say they will repay it/cancel it in the future?

It is fine what Bernanke say's....But what is he doing?

We issue debt we print $$$ to buy it............

You say tomato & I say tomato

Well the nice thing about reality is it will prove itself shortly.

As for balance sheets of the FED what would be the point?

It has been said by many in Congress it is easier to find out thing

about the CIA than the FED. Just because he said *they* are buying less bonds....

(Joke in itself Buying what they are selling with a check book they re-fill on demand)

Does not mean they cannot buy through GS or others they have benefited.

The only problem I see with the proof that Bernanke has it wrong is the assumption he will be re-appointed. I think there is a better than 50% chance he will not be. Then the next FED Chairman will play the Mr O blame game & cry for years about the mess he inherited.

Edited July 22, 2009 by flying

[Abrak]

Printing money or adding to balance sheets is not monetizing? Even in the short term?

Look when they started buying and look at the end. They buy US$200bn of USTs and their balance sheet is unchanged.

Is this based on the fact they say they will repay it/cancel it in the future?

Now this is the subtle part of the Bernanke plan. As you say if a Central Bank intervenes in the market it should be on a temporary basis. If it buys USTs with money it should resell them, if it buys them for nothing it should cancel them. So Bernanke will argue the opposite. In 2007 the Fed was forced into the market to sell US$300bn of USTs to finance bank bailouts. As a consequence, it now feels obliged to use proceeds from that to repurchase those US$300bn USTs so that there is no net distortion to the market. It will restore the Fed's long term holding. In effect current purchases are reverse QE. This is a perfect bait and switch.

Ron Paul is being set up. Bernanke talks a lot about managing expectations. His criticism of Japan is that they never engendered inflationary expectations. If you wish to see inflationary expectations engendered in a deflationary environment managed by a Central Banker, we have Ron Paul. As you say, if he is sacked Bernanke will boast about it. If not he might not win the end game as he will probably have to print more money eventually anyway.

[flying]

Printing money or adding to balance sheets is not monetizing? Even in the short term?

Look when they started buying and look at the end. They buy US$200bn of USTs and their balance sheet is unchanged.

Is this based on the fact they say they will repay it/cancel it in the future?

Now this is the subtle part of the Bernanke plan. As you say if a Central Bank intervenes in the market it should be on a temporary basis. If it buys USTs with money it should resell them, if it buys them for nothing it should cancel them. So Bernanke will argue the opposite. In 2007 the Fed was forced into the market to sell US$300bn of USTs to finance bank bailouts. As a consequence, it now feels obliged to use proceeds from that to repurchase those US$300bn USTs so that there is no net distortion to the market. It will restore the Fed's long term holding. In effect current purchases are reverse QE. This is a perfect bait and switch.

Ron Paul is being set up. Bernanke talks a lot about managing expectations. His criticism of Japan is that they never engendered inflationary expectations. If you wish to see inflationary expectations engendered in a deflationary environment managed by a Central Banker, we have Ron Paul. As you say, if he is sacked Bernanke will boast about it. If not he might not win the end game as he will probably have to print more money eventually anyway.

Again as I said in the last post I am not comfortable with any FED balance sheets given the news of recent times.

They can call it what they want & play any word game they like but by definition they are in fact monetizing debt.

If Bernanke is sacked he will only boast that the problem is now due to him not being able to complete his work.

The one who takes his place will complain about the mess he inherited.

We will see if what the FED does follows or diverts from this

Edited July 22, 2009 by flying

[Naam]

Actually this one is much more to the point. You can be sure you would never see it on CNBC

but you could see it on Bloomberg.

[jcon]

whoa for a second there I thought Naam embedded a Youtube video into his post *shock horror*!!!!

I'm still waiting for bingo to return and talk about unicorns pooping skittles (or some sentence that includes the words "kiddies" and/or "prostate" - and/or the phrase, "all of the som tum in the world..." [sic])...

...this thread needs a good kick in the balls for excitement...

edit: Why can't Ron Paul pronounce the word 'debt?' "DAT" this "DAT" that....

Edited July 22, 2009 by jcon

[flying]

I'm still waiting for bingo to return and talk

...this thread needs a good kick in the balls for excitement...

edit: Why can't Ron Paul pronounce the word 'debt?' "DAT" this "DAT" that....

Bingo has not posted since April & never posted in this thread.

Kick in the balls = excitement for you?

RP is from Texas that is how you white guys talk. Then again is not what he says more important than pronunciation? Worrying about pronunciation is like worrying what color skittles the unicorns are pooping

Edited July 22, 2009 by flying

[Naam]

Worrying about pronunciation is like worrying what color skittles the unicorns are pooping...

or considering Ron Paul a Messiah.

[flying]

or considering Ron Paul a Messiah.

Silly Klingon.....Didn't you get the memo? Mobama is the messiah...Ron Paul is just a good mad citizen like most of us.

Edited July 23, 2009 by flying

[midas]

Very intelligent move Gordon Brown this age of technolgy and

completely against the trend .....

Education spending to be cut by £100m despite Gordon Brown's pledge

Education spending will be cut next year for the first time in more than two decades, according to Treasury figures.

http://www.telegraph.co.uk/education/educa...wns-pledge.html

while in China.....................

This is why the government has decided to invest almost 86 billion Yuan on the national education system a 41.7 % hike compared to the last budget...

[AlexLah]

The Messiah (Ben the great) said this a while ago:

- In 2005 Bernanke said there was no housing bubble to bust. "[Housing] increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households.

- Less than two years ago he said things were contained.

- In January 2008, he said housing would improve by the end of the year.

Do you still believe your hero Barak, Abrak?

Did you read the Spiegel article?

[Naam]

or considering Ron Paul a Messiah.

Silly Klingon.....Didn't you get the memo? Mobama is the messiah...Ron Paul is just a good mad citizen like most of us.