Financial Crisis

[midas]

It's Confirmed: The Fed Will NOT Do Shock & Awe QE Next Week

http://www.businessinsider.com/its-confirmed-the-fed-will-not-do-shock-and-awe-qe-next-week-2010-10

[midas]

:lol:

[flying]

It's Confirmed: The Fed Will NOT Do Shock & Awe QE Next Week

IMHO just the fact that it continues is pretty shocking

So....they have decided to rob the future dollars value & the current savers at a more leisurely pace have they?

Much appreciated I'm sure.........not

Edited October 27, 2010 by flying

[BlackJack]

something to do with their mid term elections??

then BANG it will be on again as sure as the sun sets

sneaky buggers

watch out for PAPER gold

read here http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_082710_pg283Emb.pdf

[midas]

something to do with their mid term elections??

then BANG it will be on again as sure as the sun sets

sneaky buggers

watch out for PAPER gold

read here http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_082710_pg283Emb.pdf

What even if the Republicans( and or tea party ) win both

Congress and Senate ?

[BlackJack]

something to do with their mid term elections??

then BANG it will be on again as sure as the sun sets

sneaky buggers

watch out for PAPER gold

read here http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_082710_pg283Emb.pdf

What even if the Republicans( and or tea party ) win both

Congress and Senate ?

"Let me issue and control a nation's money and I care not who writes the laws."

Mayer Amschel Rothschild, 1790

Nothing has changed

[BlackJack]

JPMorgan Chase & Co (JPM.N) and HSBC Holdings Plc (HSBA.L) were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices, and reaping an estimated hundreds of millions of dollars of illegal profits.

!!!!!!

take their license to trade off them

Edited October 28, 2010 by BlackJack

[midas]

something to do with their mid term elections??

then BANG it will be on again as sure as the sun sets

sneaky buggers

watch out for PAPER gold

read here http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_082710_pg283Emb.pdf

What even if the Republicans( and or tea party ) win both

Congress and Senate ?

"Let me issue and control a nation's money and I care not who writes the laws."

Mayer Amschel Rothschild, 1790

Nothing has changed

...........or maybe Bernanke is just hoping for an Oscar nomination

" according to Rebecca Christie and Craig Torres, the New York Fed has issued a survey to Primary Dealers, which asks for suggestions on the size of QE2 as well as the time over which it would be completed. It also asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. "

http://www.zerohedge.com/article/paralyzed-fed-defers-decision-monetary-policy-primary-dealers

[midas]

JPMorgan Chase & Co (JPM.N) and HSBC Holdings Plc (HSBA.L) were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices, and reaping an estimated hundreds of millions of dollars of illegal profits.

!!!!!!

take their license to trade off them

Never !

These two " companies " are on the list of Primary Dealers of America, and are now in control of US monetary policy.

[Naam]

directed by Midas A. Lah:

[midas]

directed by Midas A. Lah:

[Abrak]

...........or maybe Bernanke is just hoping for an Oscar nomination

" according to Rebecca Christie and Craig Torres, the New York Fed has issued a survey to Primary Dealers, which asks for suggestions on the size of QE2 as well as the time over which it would be completed. It also asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. "

http://www.zerohedge.com/article/paralyzed-fed-defers-decision-monetary-policy-primary-dealers

I suspect that Bernanke knows a bit more than most about how QE works, or if it works at all (or simply scares the shit of people) so I think we should look to his words to explain things. You see he says that QE is a bit like a golfer getting a new putter. Obviously this is extremely succinct but a little vague...

So to clarify the WSJ says...

Mr. Bernanke has used the analogy of a golfer with a new putter: Unsure how it will work, he finds [the] best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter.

Now I am not the World's greatest golfer but actually I do now how a putter works. In fact I am pretty sure there would be quite a lot of people who dont really play golf and know how a putter works. Even if you dont, I can promise you that when a golfer gets a new putter he doesnt tap it lightly at first, and then keep on tapping. Faced with the hole 20 foot away you try to hit the putt 20 foot - if you get a new putter and tap it 6 inches towards the hole, 40 times, you will end up holing the putt with little men in white coats offering to take you away.

[midas]

...........or maybe Bernanke is just hoping for an Oscar nomination

" according to Rebecca Christie and Craig Torres, the New York Fed has issued a survey to Primary Dealers, which asks for suggestions on the size of QE2 as well as the time over which it would be completed. It also asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. "

http://www.zerohedge.com/article/paralyzed-fed-defers-decision-monetary-policy-primary-dealers

I suspect that Bernanke knows a bit more than most about how QE works, or if it works at all (or simply scares the shit of people) so I think we should look to his words to explain things. You see he says that QE is a bit like a golfer getting a new putter. Obviously this is extremely succinct but a little vague...

So to clarify the WSJ says...

Mr. Bernanke has used the analogy of a golfer with a new putter: Unsure how it will work, he finds [the] best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter.

Now I am not the World's greatest golfer but actually I do now how a putter works. In fact I am pretty sure there would be quite a lot of people who dont really play golf and know how a putter works. Even if you dont, I can promise you that when a golfer gets a new putter he doesnt tap it lightly at first, and then keep on tapping. Faced with the hole 20 foot away you try to hit the putt 20 foot - if you get a new putter and tap it 6 inches towards the hole, 40 times, you will end up holing the putt with little men in white coats offering to take you away.

The irony of this is the fact that he has sought the " guidance " of a group of bankers whose organisation's now have multiple serious charges of fraudulent activities hanging over them – i.e. mortgage crisis and the manipulation of the silver market.

And who’s money is it ?.It belongs to the sons and grandsons that will need to pay off these debts in the future. Why aren’t the US citizens being given the opportunity to have a say in what are best policies for them and their families ?

Never mind the golf course, why can’t he metaphorically go right into the middle of the baseball stadium and say

“ hey you guy’s this is your future and money and your children`s future and money – what would you like to see me to do “ ? Even Obama has town hall meetings but this just guy forever hides away in the background with his exclusive mates.

If he is not sure of the outcome, what gives him the right to chose to only ask the opinion only from a small group of people who have been repeatedly accused of serious white collar crimes.

This is a vital decision that will have such serious consequences for 300 million people and future generations - they should have a say in it as well. i,e IF he was bona fide

Edited October 29, 2010 by midas

[flying]

This is a vital decision that will have such serious consequences for 300 million people and future generations - they should have a say in it as well.

You mean let the people vote on it?

Oh my..... cool idea!

that would be like a democracy or a government of the people, by the people, for the people

But.....

Next thing you know those same people/citizens would want a say in whether or not they agree to things like losing billions a year supporting a military industrial complex invading foreign lands & chasing ghosts in caves.

Or even having an actual vote on things like bailing corrupt banks & hedge funds.

Edited October 29, 2010 by flying

[Abrak]

So you think that Bernanke is asking for 'guidance' from primary dealers - that is like asking a blind man to read you a newspaper. He is clearly just survey their expectations of his actions so he can adjust his actions to manage theirs. If you notice he didn't ask them the only key question which is where he will influence the yield curve which will screw the bankers by hitting the mid long end to the extent he does much.

You pointed out 2 pages ago that iris highly debatable whether QE makes much difference at all (apart from influencing expectations before you do it.)

This perhaps most simply explained in this short report. Essentially with excess banking reserves there is no binding constraint.

http://www.hussmanfunds.com/wmc/wmc101025.htm

If you think of the only possible real economic implication it is that you limit QE to flattening the yield curve so the banks finance an Obama 100% investment write off for next year as well as support the stockmarket and limit damage in the property sector.

[cloudhopper]

An interesting blogspot and comments-

http://gonzalolira.blogspot.com/2010/10/signs-hyperinflation-is-arriving.html

[midas]

So you think that Bernanke is asking for 'guidance' from primary dealers - that is like asking a blind man to read you a newspaper. He is clearly just survey their expectations of his actions so he can adjust his actions to manage theirs.

Semantics - in hindsight given the nature of who he " surveyed " ,

perhaps collusion would have been a more appropriate term

" We can easily forgive a child who is afraid of the dark. The real tragedy of life is when men are

afraid of the light ". ~ Plato

Come out Mr Bernanke.......shave your beard and show yourself to the world

[midas]

This is a vital decision that will have such serious consequences for 300 million people and future generations - they should have a say in it as well.

You mean let the people vote on it?

Oh my..... cool idea!

that would be like a democracy or a government of the people, by the people, for the people

But.....

Next thing you know those same people/citizens would want a say in whether or not they agree to things like losing billions a year supporting a military industrial complex invading foreign lands & chasing ghosts in caves.

Or even having an actual vote on things like bailing corrupt banks & hedge funds.

It is not even my country flying but there has to be something wrong

surely when a central banker appears to have more power than the elected head of state in that he doesn't seem to care less what people think of him. He has the

authority to make these kinds of decisions even if it may be against

the will and long term interests of the people ?

No politician has that luxury for long - not these days

and you may that see next week

Edited October 30, 2010 by midas

[AlexLah]

Snip:

A few months ago a troubling milestone was passed. In the United States college loan debt outstanding has surpassed credit card debt. As of June 2010 $829 billion in student loan debt was outstanding compared to $826 billion in credit card debt.

http://www.mybudget360.com/debt-u-4800-colleges-and-universities-in-the-u-s-and-many-are-putting-students-into-massive-amounts-of-debt/#more-2491

Another bubble?

[Wrong Turn]

Snip:

A few months ago a troubling milestone was passed. In the United States college loan debt outstanding has surpassed credit card debt. As of June 2010 $829 billion in student loan debt was outstanding compared to $826 billion in credit card debt.

This is a very sad - and a very telling figure.

This, among many other pieces of factual data, reveal that the United States is declining rapidly.

[Abrak]

Snip:

A few months ago a troubling milestone was passed. In the United States college loan debt outstanding has surpassed credit card debt. As of June 2010 $829 billion in student loan debt was outstanding compared to $826 billion in credit card debt.

This is a very sad - and a very telling figure.

This, among many other pieces of factual data, reveal that the United States is declining rapidly.

Actually while the figures are not very pretty they are not actually that large relative to GDP. Remember they are cumulative and each amount to little more than 7% of GDP.

The traditional way of looking at a decline of an Empire is when its military expense exceeds its ability to finance it to hold together the Empire that it has created. This has been basically true from the Roman Empire to the British Empire. It is to some extent true of the US which spends 8% of GDP EACH year on defense, virtually more than every other country put together. It could cut its defense budget by 80% and it would still be the largest in the World.

The irony is, that the US Empire is not built on military might but the hegemony of Western Civilisation be it MacDonald's or Tom Cruise. The annual spend of defense is higher at 8% per annum than the sum total of either credit card debt or student loan debt (and annual individual income taxes). And it achieves virtually nothing.

[Abrak]

Flying, I was optimistic last year until a rebound from recession was announced. After that all bets were off.

(2) Actually you slightly misread me. I was optimistic last year because I was certain in an economic bounce.

And where I am depressed from last year is that the crisis brought change from people and companies but it brought irresponsibility from Governments and a 'fuc_k you' sign from bankers.

Correct & Actually I remember that now..........Yes you were rightfully bullish of a bounce when I saw only further decay. In hindsight I wish I had acted on a couple of things I had considered.

I have to agree 101% with the feelings towards govt & banks.

Actually I think this is a very important point about analysis. You should be prepared to change your view with the facts rather than change the facts to suit your view. I have got a lot of things wrong in this downturn but just because circumstances change and my conclusion changes it is really the right thing to do. Defending indefensible positions is pointless.

Much is deabatable - the rebound has been long on growth and short on quality.

I actually think that you learn from your mistakes rather than defending them.

I definitely underestimated China both in terms of quality and growth (but it want a great investment).

I generally underestimated the recovery but the quality was crap

I was very early on the Euro divergence (Nov 2007) but I did not see the Germany benefit. I still think the Euro is the major imbalance globally.

Corporate profitability recovery in the US was a huge surprise.

I was a complete idiot for missing the bottom

I didnt think there would ever be a deflate/internal conflict disaster again.

If you think I got everything wrong I have been super bullish of Thailand throughout the crisis (my only consolation.)

P.S. The biggest mistake I made during the 2008 crash was investing in gold six months before on the basis that I thought it might be inversely correlated with stocks as in black Monday - only to see it totally collapse. That was a huge bummer.

Edited October 30, 2010 by Abrak

[BlackJack]

This is a vital decision that will have such serious consequences for 300 million people and future generations - they should have a say in it as well.

You mean let the people vote on it?

Oh my..... cool idea!

that would be like a democracy or a government of the people, by the people, for the people

But.....

Next thing you know those same people/citizens would want a say in whether or not they agree to things like losing billions a year supporting a military industrial complex invading foreign lands & chasing ghosts in caves.

Or even having an actual vote on things like bailing corrupt banks & hedge funds.

It is not even my country flying but there has to be something wrong

surely when a central banker appears to have more power than the elected head of state in that he doesn't seem to care less what people think of him. He has the

authority to make these kinds of decisions even if it may be against

the will and long term interests of the people ?

No politician has that luxury for long - not these days

and you may that see next week

I think you'll find that BEN is only the spokesperson for the consortium/banksters

likes its been said before - give me control of the money and I dont care who makes the laws

Think of it another way that this guy is a bank rock star and wants to be remembered throughout history. Good or bad he wil be remembered.

[flying]

Hey I know none of us notice the bank closures in the US anymore as it is old news.

But we did just pass a new milestone last week 10/22/10

When the FDIC closed another 7 banks

Not a big deal as we have grown use to it.

One of them........ Hillcrest Bank, Overland Park, Kansas,

Was of pretty good size too......

As of June 30, 2010, Hillcrest Bank had approximately $1.65 billion in total assets and $1.54 billion in total deposits. Hillcrest Bank, N.A. did not pay the FDIC a premium for the deposits of Hillcrest Bank. In addition to assuming all of the deposits of the failed bank, Hillcrest Bank, N.A. agreed to purchase essentially all of the assets.

The FDIC and Hillcrest Bank, N.A. entered into a loss-share transaction on $1.15 billion of Hillcrest Bank's assets. Hillcrest Bank, N.A. will share in the losses on the asset pools covered under the loss-share agreement.

BUT.......all that aside I thought last week was noteworthy because..........

We just passed the 140 banks we closed in 2009 mark

We have now closed/lost 142 banks for 2010

It is only 10 months down for 2010

We should start a pool to guess what the tally for 2010 will be.

Edited October 31, 2010 by flying

[AlexLah]

Interesting.........

Snip:

This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in subpart 12.6 of the FAR (Federal Acquisition Regulation) as supplemented with additional information included in this notice. U.S. Army Dugway Proving Ground, Directorate of Contracting is contemplating the procurement of ninety (90) grams of chemical BZ (QUINUCLIDINYL BENZILATE).

From here: https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=352d5b4cafd4896bc217dac629fab1d0

What it is and does: http://emedicine.medscape.com/article/833155-overview

Mmmmmmm...............

[BlackJack]

Interesting.........

Snip:

This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in subpart 12.6 of the FAR (Federal Acquisition Regulation) as supplemented with additional information included in this notice. U.S. Army Dugway Proving Ground, Directorate of Contracting is contemplating the procurement of ninety (90) grams of chemical BZ (QUINUCLIDINYL BENZILATE).

From here: https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=352d5b4cafd4896bc217dac629fab1d0

What it is and does: http://emedicine.medscape.com/article/833155-overview

either one big party coming up or Yemmen is getting a mass dose

Mmmmmmm...............

[Naam]

Hey I know none of us notice the bank closures in the US anymore as it is old news.

But we did just pass a new milestone last week 10/22/10

When the FDIC closed another 7 banks

they should close these!

[midas]

Hey I know none of us notice the bank closures in the US anymore as it is old news.

But we did just pass a new milestone last week 10/22/10

When the FDIC closed another 7 banks

they should close these!

in War of the Worlds it only took some terrestrial microbial diseases

and they all died

[midas]

My god ! Ben Bernanke and Mervyn King - chalk and cheese

" Mervyn King imagines the "abolition of fractional reserve banking":

"Eliminating fractional reserve banking explicitly recognises that the pretence that risk-free deposits can be supported by risky assets is alchemy. If there is a need for genuinely safe deposits the only way they can be provided, while ensuring costs and benefits are fully aligned, is to insist such deposits do not co-exist with risky assets."

http://www.washingtonsblog.com/

[BlackJack]

I cant find this article the 5 min rap was paraphrasing and so if anyone else has read it can you post the link

thanks

We seem to be living in an historical moment. But the irony is, as an article in Bloomberg points out, we are largely unaware of it. And what is this historical moment? Well, it is the end of the current currency regime with the US dollar as its centre. The transition though is not going to be smooth. It is on the contrary going to be extremely chaotic. This is because the people who are in charge of preventing the world's financial system from getting dysfunctional are in fact leading us to it.

The world's central bankers seem to be taking a very theoretical look at things. They believe that by engaging in quantitative easing, just the right kind of inflation can be created. An inflation which will make people spend and take the world towards renewed prosperity. Hence, these bankers are printing money left, right and centre. However, such an approach is full of risks.

The ability of financial markets to overshoot cannot be emphasized enough. And if at all there is overshooting, the economy will become even more fragile and unpredictable. Amidst such a scenario, gold is the only metal that will be left standing. Hence, it will not hurt if a certain percent of one's investment is put into gold right now.