Tuesday, April 28, 2009
Is the FED our next troubled BANK?
by Mike Larson
The Federal Reserve is watching the backs of U.S. banks. But sometimes I wonder, “Who’s watching the Fed’s back? Is the Fed our next troubled bank?”
You see, all of this garbage paper that’s going bad — the troubled residential mortgage backed securities (RMBS), the commercial mortgage backed securities (CMBS), the asset backed securities (ABS), the Fannie Mae bonds, the corporate loans, and so on — hasn’t just gone “Poof.”
Instead, more and more of it has been landing on the Fed’s doorstep — either through direct ownership or as collateral against Fed loans that keep getting rolled over.
The result? The Fed’s once pristine balance sheet is starting to look more and more like the balance sheet of a troubled financial institution.
From AAA to Something Else Entirely
What do I mean? Well, take a look at this April 26, 2007, Federal Reserve Statistical Release. (Here)Table 2, the Consolidated Statement of Condition of All Federal Reserve Banks, shows the breakdown of the Fed’s assets back then. You’ll see that the Fed banks listed total assets of $883.5 billion at the time. The lion’s share of those assets — $787.1 billion, or 89 percent — were “AAA” quality U.S. Treasury bills, notes, and bonds. There were a few other assorted line items (gold, bank premises, etc.) … but that’s about it.
Now compare that two-year old balance sheet, (Here) to this multi-headed hydra of a balance sheet that came out a few days ago. The equivalent table (number 9) shows that total Fed assets have exploded to $2.19 TRILLION. And those plain-vanilla, risk-free Treasuries? They make up just $526.1 billion, or 24 percent, of Fed assets!
The Fed now also owns more than $355 billion of mortgage backed securities and $61 billion in debt issued by Fannie Mae, Freddie Mac, and Ginnie Mae. Term auction credit comes to $455.8 billion. Those are short-term loans against just about anything and everything — from auto loans and credit card receivables to Brady Bonds and CMBS.
The Fed is also holding $238 billion in commercial paper as part of an October 2008 program to help corporations fund short-term debt obligations.
Link
Subscribe to:
Post Comments (Atom)
The Federal Reserve balance sheets are irrelevant. The Federal Reserve will always acquire enough currency to cover all emergency requirements.
ReplyDeleteHowever, all the money will be debased currency based on absolutely nothing. Production cannot increase in the marketplace, we are already experiencing manufacturing overcapacity. All new currency will probably manifest itself as inflated asset pricing somewhere in the larger consumer markets.
It is entirely the reason the Federal Reserve will always fabricate currency to cover old debt that we are doomed to a financial implosion.
Even the author of the article does not seem to get it. The Fed cannot be in trouble since it issues the money. They are exchanging paper pictures for real assets. Since for them it does not cost a lot to print money (a couple of cents per banknote of any denomination) they do not care if the mortgages are in trouble or not. I will gladly exchange a couple of pictures that I printed on my printer for a couple of houses. How can I be in trouble? In any society money supposed to represent goods or products, and in this country they are not. The universal measure/product that money used to represent (gold and silver) has been disconnected from paper currency in 1971. So the money stopped being money and became pieces of paper. Make no mistake, it is done on purpose and the plan began in 1913. So, what is the purpose? The gigantic transfer of wealth from masses to selected group of bankers. Americans, how can you be so f...n stupid to understand such a simple thing?
ReplyDeleteANON ABOVE: So the feds get THOUSANDS of houses that are unrentable, uninhabitable, unsaleable,. They converted from a bad note to a bad asset and you call this a "REAL ASSET"? What world are you living in? The media has conditioned you to believe that houses are assets. This toxic asset will create a toxic bank. In other words they cannot discard this asset to anyone. Its JUNK. They should have kept the notes and bought some GOLD and SILVER!
ReplyDeleteHere are the homes that the banks took over from the builder. The banks made this decision because they knew the FEDS will own the debt. For Anon #2 here is your FED asset!
ReplyDeleteHere
This makes no sense. If the "globalists" wanted to steal all of the wealth back in 1913, why wait 96 years to do it? Why not institute martial law right then and there and take the wealth before it became diluted by an ever-exploding population? Well OF COURSE they were probably waiting for things like veri-chip and CCTV. But still, that is an awful damn long time. None of those globalists are even alive today.
ReplyDeleteCould it just be that positions of power draw corrupt and greedy individuals naturally? Could it be that all empires exist by creating war and strife to maintain wealth and power? Could it be that the global conspiracy is rule, period?
It kinda makes you think.
Blueprinted plans passed through generations. The ruling elite knew long ago that technology to control the masses was coming because it has existed before. It will be much more than a tracking chip or cashless society. Darpa and GIG will make it possible for every human on the planet to be interfaced into their network. No word spoken shall go unrecorded. Everyone with an ID number, IP address of sorts. Enhanced human capabilities; pretty much a whole new level of human evolution based on added tech. Yes - think Borg. Those that don't go along will be thought of as a sub-species and treated as slaves. Not a fantasy. It can be researched openly, they don't care about hidding it any longer. The human race as it is now will not exist in 20 years. Full world wide control of every person (that has been 'enhanced'). The elite care about you as an individual about as much as you care about the chicken you eat at KFC.
ReplyDeletehttp://video.google.com/videoplay?docid=-6739227220487922409&ei=_2T3SfX1GKmyqAO9tbHgBA&q=they+want+your+soul
ReplyDeleteCyclopsys, the Globalists haven't been "waiting" 96 years, they've been destroying countries incrementally for 96 years. Things have really just accelerated in the past few years. You can't come out and declare martial law without laying the groundwork because it will blow their entire cover, they would lose, and be hauled off to jail. You have to get unknowing accomplices working for your very system in order for it to function successfully. That's why 13 families run the world. They're counting on people not figuring this out, or at least doing something about it.
ReplyDeleteI agree with the earlier sentiments that the author of this piece doesn't really get it. The Fed can absorb these "losses" since they created them out of thin air anyway. Besides, for all these toxic "losses," they will own all the assets outright when they can't be "paid back." They don't even need physical pieces of paper anyway, credit/debt is created as a book entry on a computer screen and functions as money. The game is rigged and going perfectly according to their plan.
You report for your vaccination and never leave.
ReplyDeleteThe problem with the "globalist conspiracy movement" is that you believe everything you read that fits within your conspiracy paradigm and you discount all that falls outside of it. This limits your entire view. I know ALL about what has been written regarding family bloodlines and yes even the Reptilians that could be your grandmother. That I don't agree with it entirely does not make me an idiot, which you ironically label me as.
ReplyDeletePeople like you need to come back down to earth and not be afraid to use your god-given brains once and a while. There are other explanations that correlate to social reality besides "it's the Illuminati, dummy". Expand your reading sometime; it will do the mind good.
You guys are worth a cheap laugh, thanks.
ReplyDeleteCyclopsys, you should really think about the type of pejorative argument you use to try to discredit people. Your contention is that you're not an idiot because you "know" about the "globalist conspiracy movement" and that anyone who subscribes to it is "trying to fit it into their paradigm." You resent the fact that you are labelled an idiot for not believing it, yet you use a similar strategy to attack EVERYONE else who does not align with YOUR belief system. To you, everyone else is a paranoid, conspiratorial moron.
ReplyDeleteIt's easy to paint people with a broad brush, but when the labelling is all said an done, I rely on facts. Which ones do you want? Historical events? Admissions from the elite? Books written? Public statements? Predictions from sources which came true? Documents?
Couldn't we just as easily say that you are ignoring a litany of evidence supporting the conspiratorial view because YOU'RE trying to satisfy your own worldview?
Your dismissive, derisive attitude is typical of people who are intellectually lazy or don't like facing hard truths, so they scoff and label and diminish anything that doesn't fit into THEIR paradigm. They never have facts, but merely retort with strawmans and insults.
Cyclopsys, here is a prescription for you. You have to read this over and over until your brain starts operating again (I assume Jefferson is also a conspiracy theorist, right?):
ReplyDelete"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson, Letter 1802 to Secretary of the Treasury, Albert Gallatin
Speaking of intellectually lazy...
ReplyDeleteYou have gone on to lambaste me for all manner of things, from being dismissive to derisive. Isn't that the very thing you and the anonymous posters did from the get go? Excuse me but I never claimed anyone had to subscribe to my worldview in order not to be a moron. ON THE OTHER HAND, the previous comments stated that everyone else here was a moron for not believing in silly conspiracies, which is out-right moronic.
"(I assume Jefferson is also a conspiracy theorist, right?)"
I don't know, do you brainiac? Anything can be anything in your mind, I am sure.
It sounds like you are the one in need of a prescription: how about a healthy dose of reality check for starters.
You can present all the "evidence" you want. But debating with you and your ilk is like debating with religious zealots, i.e. speaking to a brick wall. In fact you are a religious zealot. Your faith is conspiracy and your leader is Alex Jones, David Icke, and other people who lack hard-hitting journalism and honest, thorough critical thinking.
Really what validity have you to call everyone here stupid for not buying your trashy, pre-digested ideology in the exact format which you would lay out for us here (that is a rhetorical question, of course).
"Your dismissive, derisive attitude is typical of people who are intellectually lazy or don't like facing hard truths, so they scoff and label and diminish anything that doesn't fit into THEIR paradigm. They never have facts, but merely retort with strawmans and insults."
Rather laughable and I am sorry that you actually believe that. It is interesting what your brand of "hard truths" and facts are, given your sources which are most likely, at least in part, from the above circle of friends. Unfortunately most conspiracy websites are not considered award winning journalism or even serious social criticism.
I am not saying that conspiracies don't exist or that world leaders are not corrupt, useless, and liars. What I am stating, and no doubt it goes above your head, anonymous, is that there are more thorough ways of analyzing it for those of a serious mind. Those of a lazy mind embrace the conspiracy angle whole-heartedly and then explain everything with that viewpoint in mind in order to support their ideas. It is like stopping at the edge of the road to smell the flowers but never walking into the grass. I am serious about reading other sources of information. It can't hurt you, right?
""If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson, Letter 1802 to Secretary of the Treasury, Albert Gallatin"
ReplyDeleteSee here, if we take the globalist conspiracy leap of faith, one quote from Thomas Jefferson is supposed to mean that all bankers are out to enslave everyone within their iron grip and the illuminati are passing on their evil plans through the generations secretly.
I'll be honest: I don't like banks. I don't like the monetary system. Financial institutions have always, historically, been used to enrich the few and place others at their mercy. The culprit? Greed and corruption born through the structures of government and power.
You believe, because governments do evil things, that there must be an evil cabal running them. "Oh, if we could only rid ourselves of the evil elitist devil-worshipers". But the fact is that is the nature of government. People drawn to positions of power are the very ones who will be most apt to abuse them. That my friend is a historical fact. Today it simply takes root in a more specialized, modern form.
Every time you identify yourself in terms of nations, money, products, and status, you are engaging in that which enslaves you.
To the more level headed of you responding here, I think we are more or less on the same side, even if we don't agree on the "how" or "why".
ReplyDeleteI don't believe that society will become entrapped in some futuristic fascistic techno-state. For one thing, the cookie is crumbling down to the floor and when the crumbs land it's going to be entropy, not stabilized enslavement. Yes pardon the bad metaphor, but if anyone hasn't noticed the worlds economies are going bankrupt. The bankers and the everyday joe's are going bankrupt. As things like energy and other natural resources continue to dissipate, our cultures will continue to slide in reverse, not forward into technocratic slave dystopia. My observation.
However, states do sometimes slide towards fascism in times of strife and chaos. The example is WWII. At the same time during the Spanish Revolution the republic existed without a government for a time. Individuals acted together in solidarity in local economies and neighborhoods side by side regardless of class or belief. Let's hope that something similar to that can happen here if it gets bad enough.
@Cyclopsys
ReplyDeleteThere are two types of people with different perception of events and facts: mosaic and kaleidoscopic.
Yours is obviously kaleidoscopic. Here is a couple of links with facts. http://www.youtube.com/watch?v=BLFivVpMb1c , http://www.youtube.com/watch?v=ClqUcScwnn8&NR=1
and http://globalresearch.ca/index.php?context=va&aid=11852. Rockefeller and Pianka themselves are a way past the “useful” age but they are not hurrying to jump off the cliff to release the precious planet of their impact. No, no. Their theories do not apply to them. Or listen to this: http://video.google.com/videoplay?docid=-5485958120797215219. Also conspiracy theorist? By the way, what's wrong with conspiracy theory? Evolution theory is just a theory, just like a Theory of relativity. And yet both are widely accepted and prayed upon. Why do we all believe Darwin? Because he had a thick beard, bushy eyebrows and visited the Galapagos Islands. So if I grow a beard like that and visit the islands, will it give me as much credibility? By the way, your president's favorite advisor, Karl Marx, also had a thick beard. So Darwin stayed on the islands for a couple months and “observed” finches with big beaks. So, said Darwin, they developed these beaks to eat seeds to survive the harsh climate. What if they had this beaks from the beginning and did not develop anything. They survived because they had it and the other finches died out, because they did not have the type of beaks? Did you notice with your kaleidoscopic perception that Theory of evolution contradicts with genetics? Not only that, the Theory of evolution played a bad joke on the British elites. Inspired by the theory they started breading withing the “brightest” group – ended up and fairly quickly with mutants. The interesting thing is that the elites stopped conspiring and they now do it in the open. Why? Because they figured out that people are too stupid to put 2 and 2 together. Moreover if the result is going to be 4, they won't believe it anyway, because it is a “Conspiracy theory”.
Like I said, your source is Alex Jones. Say no more.
ReplyDeleteI find it humorous in the video about "population control" that you, like the reporter, completely missed the point in the video and in plain sight to the right of it: "I don't support exterminating people by any means, but the reporter misses the point completely in this video where over-population is discussed without any mention of the RATE at which the world's population is growing. We can sustain the 6.7 billion people we have now, but we cannot possibly sustain the growth rate, which will be overwhelming in the next 25 years (especially since 25 years ago there were only 5 billion people on this planet)".
So just because once scientist voices concern about the rate of population control you jump to the farfetched conclusion that the elites want to wipe us clean of the planet so they can enjoy it them selves.
Or, let me guess, you must be against using contraceptives in addition to abortion.
"There are two types of people with different perception of events and facts: mosaic and kaleidoscopic."
And there are people who see things only in black and white. You my friend are guilty of these last two types it seems. Your lens is only conspiracy information. While some of it is correct and worrying, as regards to the behavior of political leaders, you are the type to go off the deep end and make all kinds of false links and speculation about matters you don't really have all the information about.
Here is another perfect example of your use of logic:
"Why do we all believe Darwin? Because he had a thick beard, bushy eyebrows and visited the Galapagos Islands. So if I grow a beard like that and visit the islands, will it give me as much credibility?"
Yes, it will in fact. I don't know what this has to do with population control or the elite, but glad you saw the connection to beard and intelligence.
Cyclopsys, you just proved my point even further with your rebuttal. First, you use an underhanded argumentative technique: automatic dismissal without even entertaining the argument. By off-handedly dismissing Alex Jones because YOU declare any evidence he has compiled worthless and nonsensical, you have an escape valve. That's called intellectually lazy.
ReplyDeleteNext, your assertion is that these are all things we "believe" for the sake of wanting to believe them. Like I said, I look at the facts. Name a topic concerning arguments over globalist control. I'll give you evidence.
Here's an example from what you just said:
"I don't know, do you brainiac? Anything can be anything in your mind, I am sure."
First, the insult (attack the messenger, not the message). Then, you don't address the quote itself, but instead attribute it to the delusional rantings of the poster. Why don't you just address the evidence? There can only be a few reasons for this:
1. You can't.
2. This would require effort, which you aren't prepared to exercise.
3. It's a reality that you are afraid to face.
Otherwise, if you were in the right, you could soundly refute this.
People like you are a dime a dozen. Whether a claim is bogus or not, the fact that people like you can only respond with insults without so much as entertaining the argument for the merit of the argument speaks volumes about you. You will most certainly reply with scoffing protest and call me a "conspiracy theorist" again.
"I am not saying that conspiracies don't exist or that world leaders are not corrupt, useless, and liars."
Ok, so which ones don't exist and which ones do? What makes one credible and not the other? You make this admission, and yet all of your other rhetoric seems to suggest if you believe in conspiracies, you're a fool.
"Really what validity have you to call everyone here stupid for not buying your trashy, pre-digested ideology in the exact format which you would lay out for us here (that is a rhetorical question, of course)."
I'm not bashing others, I'm calling into question your hypocrisy. What validity do YOU have to call my argument a "trashy, pre-digested ideology"?
"I am serious about reading other sources of information. It can't hurt you, right?"
Ok, so what would you like to read? Carrol Quigley's 1200 page book on the New World Order, called Tragedy and Hope? David Rockefeller's memoirs? Jim Marrs' Rule By Secrecy which is extensively referenced? What are you open to reading?
Have you considered that maybe all of your ill-conceived notions are a waste of time to sift through? You could supply all the "evidence" in the world, but it doesn't mean it is high quality or relevant, as the other links and quotes have proven.
ReplyDeleteI didn't say that nothing Alex Jones said is worthwhile, but his journalism is lacking as I already noted. Unfortunately that and a few similar sites are your only source of information. Therefore it is skewed.
"1. You can't.
2. This would require effort, which you aren't prepared to exercise.
3. It's a reality that you are afraid to face."
I made a mistake when I labeled you and others more level headed. Pretty much everything you have said is a joke. Afraid to face the reality? Please. Can't you get it through your dense skull that I have entertained these theories before and I simply disagree with most of the speculation that is a result of it.
So you can throw around conspiracy titles and act like I am closed off to reading, meanwhile it is YOU who are the lazy minded (fool) who is stuck to only one sample of reading.
Your trashy pre-digested ideology comes into question because it lacks thorough analysis, quality journalism, and most of it goes off the deep end with wild speculation. It attracts a certain mentality, which you seem quite matched to. Namely, a certain density, being prone to speculation without real hard facts, and wholly swallowing an ideology served to you on a platter.
Nothing that you have said is original, and much of it is riddled with error. You throw around quotes and vague references and expect people to prove you wrong. When they do no doubt you go on to the next thing to prove your ill conceived ideology. I know people in real life who accept entirely your very belief system. Debating with them, as I already said, is like speaking to a brick wall.
The video posted and the quote I responded to proved absolutely nothing. Except the fact that you cant look at something and claim that it proves something that is actually unrelated. A professor of ecology states that the world is over-populating, therefore the gloabalists are plotting the middle classes demise! Thomas Jefferson states that too much power in the hands of banks is a bad thing. The bankers are trying to over take the world and your mind!
To put it succinctly, you are ridiculous, and if there are any other serious minded people reading this blog they are either being quite or think you are even more of a waste of time than I.
"Your trashy pre-digested ideology comes into question because it lacks thorough analysis, quality journalism, and most of it goes off the deep end with wild speculation."
ReplyDeleteYou say it's "a waste of your time" to entertain evidence, and then claim my opinion is all based on wild speculation and hyperbole. If you don't even want to hear the evidence, how would you possibly arrive at the conclusion that it's a waste of your time? You don't even know what it is! If you're admitting you're not going to bother hearing anything, then you can hardly complain about something being wild speculation.
You put "evidence" in quotation marks as if to sarcastically imply there is none. You haven't even seen any yet! Plus, if you're unwilling to see it, how can you say it doesn't exist?
"Nothing that you have said is original, and much of it is riddled with error."
I'm not aiming for originality, I'm aiming for accuracy. What have I said is riddled with error? And what do you base that on?
"I know people in real life who accept entirely your very belief system. Debating with them, as I already said, is like speaking to a brick wall."
Ah, so ascribing these people you "know" to me to avoid engaging in debate. Another great dismissive tactic!
"Thomas Jefferson states that too much power in the hands of banks is a bad thing."
There's an understatement! Yes, but he also predicted exactly what has unfolded, not just that it is a bad thing.
I'll make one last attempt: you pick a conspiratorial topic. And I'm not talking about little green men running around. Do you want evidence or don't you? If you say no, then quit your blathering about conspiracy theories. If you say no, it's obvious you're too afraid to hear anything but your own worldview. If you say yes, then you can put your money where your mouth is about being open to learning.
@Passerby
ReplyDeleteLeave him alone. I already mentioned in my post that he most likely is with a kaleidoscopic mindset. Nothing you are going to tell is going to convince him. People with this type of mind do not get that the pieces of jigsaw puzzle with blue colors might represent the sky, and the green ones might represent the grass. It does not matter how much logic you throw at them, they still do not get it. Waste of time.
"Leave him alone. I already mentioned in my post that he most likely is with a kaleidoscopic mindset. Nothing you are going to tell is going to convince him. People with this type of mind do not get that the pieces of jigsaw puzzle with blue colors might represent the sky, and the green ones might represent the grass. It does not matter how much logic you throw at them, they still do not get it. Waste of time."
ReplyDeleteYes, as I said, you are a waste of time. That is precisely why I am not engaging you with your pseudo-facts and silly speculation which i have already heard before. You have NO room to speak about limiting mindset, other than your own personal experience with it of course. And actually, Dumbo, the truth of the matter is a kaleidoscope mindset would be be able to behold many different angles and colors at once and then turn them at will - something I actively endeavor to do but something you are decidedly incapable of. So go back to looking at shapes in the clouds and them arbitrarily assigning conspiracy patterns to them, if that is what makes you feel special.
Do you know why you are so annoying? It's because you constantly misunderstand and misconstrue, which is why you are easily convinced of only the most conspiratorial ideas - they require less critical thinking but sure r fun!
ReplyDelete"You put "evidence" in quotation marks as if to sarcastically imply there is none.
I put it there because your quality of evidence is questionable at best. I made note of the sources like Alex Jones, David Icke, and all the other countless sources you would know doubt quote from.
You haven't even seen any yet! Plus, if you're unwilling to see it, how can you say it doesn't exist?"
Did I not already tell you have I ALREADY weighed much of the conspiracy "evidence" you speak of. That's why you aren't being original/saying anything new. You are merely repeating what you have read and the fact I disagree with you leads you leads you to falsely believe I must never have read it or simply do not get it.
""Thomas Jefferson states that too much power in the hands of banks is a bad thing."
There's an understatement! Yes, but he also predicted exactly what has unfolded, not just that it is a bad thing. "
You are a goober. He did not predict "exactly how it unfolded". If so please show the proof. Are you not familiar with history? You act as if concentrated or corrupted power is something new. This is the quality of your "evidence". And it shows that your standards are very low that are used to "prove" your ill-conceived theories. Granted, again, conspiracies do exist. But everything in the world is not a conspiracy, my paranoid little chihuahua.
The swine flu is here people and someone is a disingenuous little pig!
ReplyDeleteOINK OINK
Amen brother
ReplyDelete