Fed Pumps $41B Into US Financial System

[kewp]

In hindsight would it have been better to raise rates, flush out the bad debt, over-leveraged financials, and hit the bottom quicker than slow and painfully?

I don’t know and neither do you.

A fast bottom might incite a panic and create a much bigger mess. Slow squeezing the debt away via inflation might be a better solution.

[4plexowner]

That’s right – why have a quick solution when we can drag the problem out for 10 or 15 years the way Japan did?

[4plexowner]

That’s right – why have a quick solution when we can drag the problem out for 10 or 15 years the way Japan did?

[4plexowner]

That’s right – why have a quick solution when we can drag the problem out for 10 or 15 years the way Japan did?

[4plexowner]

In case you still think ‘subprime is contained’ check out the charts of these stocks:

ABK Ambac Financial
AIG Amer Intl Group
MBI MBIA Inc

These companies sell insurance for real-estate backed securities

ABK has dropped from $73 to $30 in the last 14 trading days – MBI from $69 to $39 – AIG from $70 to $60 (they are more diversified that ABK and MBI)

~

I said it several weeks ago and I will say it again – ALL of these real estate backed derivatives (MBS, CDO, etc) are WORTHLESS PIECES OF PAPER

The people that insure this trash paper appear to be finding this out as well

~

The Fed will continue to lower interest rates and inject money into the financial system as long as the financial stocks are dropping – they don’t give a shit about you and me – it is only the pain of their banking cohorts that stirs them to action

The banking industry is in the process of collapsing (thank you, Lord!) – don’t be distracted by the blame game that is and will be going on for the next few years (it’s Greenspans fault, it’s Ben’s fault, it’s the MSMs fault, etc) – the root cause of all our economic problems are:

FIAT CURRENCY, CENTRAL BANKING and RESERVE BANKING

~

Here’s Mish questioning the health of the banking industry:

http://globaleconomicanalysis.blogspot.com/2007/11/question-of-solvency-at-citigroup.html

[4plexowner]

In case you still think ‘subprime is contained’ check out the charts of these stocks:

ABK Ambac Financial
AIG Amer Intl Group
MBI MBIA Inc

These companies sell insurance for real-estate backed securities

ABK has dropped from $73 to $30 in the last 14 trading days – MBI from $69 to $39 – AIG from $70 to $60 (they are more diversified that ABK and MBI)

~

I said it several weeks ago and I will say it again – ALL of these real estate backed derivatives (MBS, CDO, etc) are WORTHLESS PIECES OF PAPER

The people that insure this trash paper appear to be finding this out as well

~

The Fed will continue to lower interest rates and inject money into the financial system as long as the financial stocks are dropping – they don’t give a shit about you and me – it is only the pain of their banking cohorts that stirs them to action

The banking industry is in the process of collapsing (thank you, Lord!) – don’t be distracted by the blame game that is and will be going on for the next few years (it’s Greenspans fault, it’s Ben’s fault, it’s the MSMs fault, etc) – the root cause of all our economic problems are:

FIAT CURRENCY, CENTRAL BANKING and RESERVE BANKING

~

Here’s Mish questioning the health of the banking industry:

http://globaleconomicanalysis.blogspot.com/2007/11/question-of-solvency-at-citigroup.html

[4plexowner]

In case you still think ‘subprime is contained’ check out the charts of these stocks:

ABK Ambac Financial
AIG Amer Intl Group
MBI MBIA Inc

These companies sell insurance for real-estate backed securities

ABK has dropped from $73 to $30 in the last 14 trading days – MBI from $69 to $39 – AIG from $70 to $60 (they are more diversified that ABK and MBI)

~

I said it several weeks ago and I will say it again – ALL of these real estate backed derivatives (MBS, CDO, etc) are WORTHLESS PIECES OF PAPER

The people that insure this trash paper appear to be finding this out as well

~

The Fed will continue to lower interest rates and inject money into the financial system as long as the financial stocks are dropping – they don’t give a shit about you and me – it is only the pain of their banking cohorts that stirs them to action

The banking industry is in the process of collapsing (thank you, Lord!) – don’t be distracted by the blame game that is and will be going on for the next few years (it’s Greenspans fault, it’s Ben’s fault, it’s the MSMs fault, etc) – the root cause of all our economic problems are:

FIAT CURRENCY, CENTRAL BANKING and RESERVE BANKING

~

Here’s Mish questioning the health of the banking industry:

http://globaleconomicanalysis.blogspot.com/2007/11/question-of-solvency-at-citigroup.html

[pertinazzio]

Someone in the thread asked about how the Fed pumps money into the system. Can anyone give us a quick lesson on this?

Quaeritur, quomodo nummi in fora injicientur?

[pertinazzio]

Someone in the thread asked about how the Fed pumps money into the system. Can anyone give us a quick lesson on this?

Quaeritur, quomodo nummi in fora injicientur?

[pertinazzio]

Someone in the thread asked about how the Fed pumps money into the system. Can anyone give us a quick lesson on this?

Quaeritur, quomodo nummi in fora injicientur?

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[The-Shoveler]

Seems SD is not the only county with budget issues,

In L.A. City and County, they are near financial crises due to falling revenue from property taxes and fees etc…

This is getting more interesting every day.

[Author]

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