The Frightening Truth About PFGBest [View article]
Yes but the firm may have other secured creditors. Look what NFA recently required CTAs to include in their ddoc: THE FUNDS DEPOSITED WITH A COUNTERPARTY FOR SUCH TRANSACTIONS WILL NOT RECEIVE THE SAME PROTECTIONS AS FUNDS USED TO MARGIN OR GUARANTEE EXCHANGE-TRADED FUTURES AND OPTION CONTRACTS. IF THE COUNTERPARTY BECOMES INSOLVENT AND YOU HAVE A CLAIM FOR AMOUNTS DEPOSITED OR PROFITS EARNED ON TRANSACTIONS WITH THE COUNTERPARTY, YOUR CLAIM MAY NOT BE TREATED AS A COMMODITY CUSTOMER CLAIM FOR PURPOSES OF SUBCHAPTER IV OF CHAPTER 7 OF THE BANKRUPTCY CODE AND REGULATIONS THEREUNDER. YOU MAY BE A GENERAL CREDITOR AND YOUR CLAIM MAY BE PAID, ALONG WITH THE CLAIMS OF OTHER GENERAL CREDITORS, FROM ANY MONIES STILL AVAILABLE AFTER PRIORITY CLAIMS ARE PAID. EVEN FUNDS THAT THE COUNTERPARTY KEEPS SEPARATE FROM ITS OWN FUNDS MAY NOT BE SAFE FROM THE CLAIMS OF PRIORITY AND OTHER GENERAL CREDITORS. Looks like 25 cents on the dollar, usually these are fairly accurate: http://bit.ly/Mz6HPN
Yes you are right. But in the mid-late 90's, many who built the institutions started to retire, and few of quality replaced them. Therefore, it accelerated at a more rapid pace. In the 70's Lehman was near their peak (arguably) but by 2009 they were defunct.
The Fallacy Of State-Backed Deposits [View article]
The bureau of engraving and printing prints physical currency (about 800 billion in circulation) on behalf of the Federal Reserve (as requested), hence the reason if you look on a dollar bill it says "Federal Reserve Note" :
Currently, the US government maintains over 800 billion US dollars in cash money (primarily Federal Reserve Notes) in circulation.[46][47] The amount of cash in circulation is increased (or decreased) by the actions of the Federal Reserve System. Eight times a year, the 12-person Federal Open Market Committee meet to determine US monetary policy.[48] Every business day, the Federal Reserve System engages in Open market operations to carry out that monetary policy.[49] If the Federal Reserve desires to increase the money supply, it will buy securities (such as US Treasury Bonds) anonymously[citation needed] from banks in exchange for dollars. Conversely, it will sell securities to the banks in exchange for dollars, to take dollars out of circulation.[50] http://bit.ly/QlxYt7
However, the Federal Reserve is the sole source of money supply (M0,M1) as the central bank, as determined by the Federal Open Market Committee. This includes the purchase and sale of US treasury debt, issued by the US Treasury.
Further reading.. The authority of the Federal Reserve Banks to issue notes comes from the Federal Reserve Act of 1913. Legally, they are liabilities of the Federal Reserve Banks and obligations of the United States government. Although not issued by the Treasury Department, Federal Reserve Notes carry the (engraved) signature of the Treasurer of the United States and the United States Secretary of the Treasury.
General Electric: Genuine Risk of Collapse? [View article]
GE is integrated in the system at every angle. We shouldn't blame individual companies who have widespread exposure to every facet of the system, such as GE had. The system is what is having problems, not individual companies. Also don't forget all these companies are supported by consumers, they don't exist in a bubble. They are catering to client demands. If clients had demanded fast trains and hydroponic farming you bet GE would have supplied it.
GE's mistake was getting involved in the finance business! It reminds me of a company we had researched that owned the technology behind an FX trading system and 'patents on ancient Chinese health secrets'. i.e. What business are you in? We sell investments, couches, and also a fine wine.
Maybe companies will start doing what they do best. GE was a great manufacture of industrial equipment (light bulbs, medical instrumentation, engines, etc.), but a less than average bank. Overall, this crisis will be a good thing for the economy although it will be painful.
PFGBest Customers Get Offers From 20% To 25% [View article]
The Frightening Truth About PFGBest [View article]
Modern Institutional Decay [View article]
The Fallacy Of State-Backed Deposits [View article]
Currently, the US government maintains over 800 billion US dollars in cash money (primarily Federal Reserve Notes) in circulation.[46][47] The amount of cash in circulation is increased (or decreased) by the actions of the Federal Reserve System. Eight times a year, the 12-person Federal Open Market Committee meet to determine US monetary policy.[48] Every business day, the Federal Reserve System engages in Open market operations to carry out that monetary policy.[49] If the Federal Reserve desires to increase the money supply, it will buy securities (such as US Treasury Bonds) anonymously[citation needed] from banks in exchange for dollars. Conversely, it will sell securities to the banks in exchange for dollars, to take dollars out of circulation.[50]
http://bit.ly/QlxYt7
However, the Federal Reserve is the sole source of money supply (M0,M1) as the central bank, as determined by the Federal Open Market Committee. This includes the purchase and sale of US treasury debt, issued by the US Treasury.
http://bit.ly/Oy2xyy
http://bit.ly/Oy2xyB
Further reading.. The authority of the Federal Reserve Banks to issue notes comes from the Federal Reserve Act of 1913. Legally, they are liabilities of the Federal Reserve Banks and obligations of the United States government. Although not issued by the Treasury Department, Federal Reserve Notes carry the (engraved) signature of the Treasurer of the United States and the United States Secretary of the Treasury.
EUR/GDP Could Hit Parity - Or Correct [View article]
General Electric: Genuine Risk of Collapse? [View article]
GE's mistake was getting involved in the finance business! It reminds me of a company we had researched that owned the technology behind an FX trading system and 'patents on ancient Chinese health secrets'. i.e. What business are you in? We sell investments, couches, and also a fine wine.
Maybe companies will start doing what they do best. GE was a great manufacture of industrial equipment (light bulbs, medical instrumentation, engines, etc.), but a less than average bank. Overall, this crisis will be a good thing for the economy although it will be painful.