Jim Myrtle

Jim Myrtle
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  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    jhooper

    "The Fed took on some risk, which if there had been defaults, would have been losses"

    What risk was the Fed taking? Loans from the Fed require collateral.

    "that would have resulted in less "profit" being submitted to the treasury. Since the Fed was doing this at discount pricing, the "profit" returned to the Fed was reduced if this had happened in market pricing, thus creating an "expense" for the taxpayer"

    Discount pricing? What do you mean?
    If what had happened at market pricing?
    Jan 24, 2016. 02:37 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "$13T could include foreign bank payments/bail-outs"

    Yes, he could mean loans not expenses.
    In either case, it did not take bad loans off the banks books.

    It's clear, that author didn't know what he was talking about.
    Jan 24, 2016. 02:33 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "So, the $13 trillion could just be the sum of all the banks borrowing and repaying at the DW"

    He said "at enormous taxpayer expense - some $13 trillion in the United States"

    A loan that is repaid is not an expense. Loans that are repaid, with a couple dozen billion in profit, like the bank TARP, are not an expense.

    It sounds like he's confused.
    Jan 24, 2016. 01:43 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    DD,

    It sounds like he doesn't know what he's talking about.
    I don't know which bailout has taken bad loans off of banks' balance sheets. Let alone $13 trillion. The debt has only risen by $8.4 trillion since Obama took office.

    Do you think he's right?
    Jan 24, 2016. 12:51 AM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    DD, interesting link.

    "Since 2008, public bailouts have taken bad loans off the banks' balance sheet at enormous taxpayer expense - some $13 trillion in the United States"

    Do you know what he meant in the above claim?
    Jan 23, 2016. 10:45 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "The Federal Reserve is now the most powerful privately owned central bank in the world"

    Except it's not privately owned.
    Jan 21, 2016. 07:40 PM | 1 Like Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "Yes, by definition. The entire banking system has inflated"

    The money can sit in my account. Not get lent out. Not cause a spike in Audi prices, but you'll say it's inflation?

    I was earning 2% on the Treasury, now I'm getting less than 0.50%.
    I still don't see your claimed subsidy.

    "You didn't have to sell it in the market and thereby get a lower price"

    What if I sold it in the market and got a higher price?

    "Then you have $1 Treas, $2 Fed notes and 1 Audi. The ratio is now 1 Audi/$3 notes"

    Pretty sure the Fed isn't buying Audis with my old Treasury bond.

    "If you create additional notes without new assets, the notes are diluted and the asset is dearer"

    Except they traded the cash asset for the bond asset.
    I had $1 billion before, $1 billion now. I don't have extra Audi buying assets, in fact I'm earning less interest, so why does it matter again?

    "So now, whoever can get to the Audi before the guy with the Audi realizes there are new notes"

    Anyone who buys an Audi today, before I sell bonds to the Fed tomorrow, gets my subsidy? I guess they didn't have to "get the new money first"? Doesn't seem fair.

    "I can see what its so hard for people to understand"

    I think you heard that claim, "people who get new money first avoid inflation" and you thought it sounded reasonable. You haven't questioned it since. And now you're struggling to explain it.
    Jan 21, 2016. 04:07 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "Because now there are new notes in the system that have diluted all the others"

    I had Treasuries, now I have a larger bank balance.
    This is causing inflation?

    "Well, if you are a client at a dealer, you would get the subsidy"

    My account is at JPMorgan. What is my subsidy?

    "Part of being a member and clients of members means you are closest to the subsidized note creation fount"

    I sold the Treasury, I'm closest. What is my subsidy?

    "So, when someone gets a subsidized payment from the Fed, they can run out and buy an Audi"

    You still haven't shown how my sale is a subsidy. Or how I escape inflation.

    "Once that money starts to work through the system"

    It's still in my account.

    "Audis go up in price because now there are other people demanding Audis"

    I didn't need to sell bonds to the Fed to buy an Audi.
    Everyone who bought an Audi when I did escaped inflation?
    Did they all get a subsidy, even if they sold nothing to the Fed?

    "The reason this is hard for you is because you are just accepting a bunch of semantics and specious reasoning from pedestrian information sources"

    The reason this is hard is because you made a claim and can't back it up.
    Jan 21, 2016. 01:16 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "No, for the seller it would be a debit to their cash. For the Fed it would be a credit to the seller's Fed acct "

    Yes, the seller gets a credit to their bank account.
    No, the seller does not get a debit to their cash.
    The seller gave the Fed Treasuries, not cash.

    "At that point, the seller has avoided inflation"

    And the rest of us got hit. How?

    "So, for the people (aka the people involved in the bank) getting the new money first, they have received a subsidy which inflates the value of their institution, which translates into purchasing power for them"

    If I was the seller, why do you feel my bank is getting a subsidy?
    Why is my bank getting purchasing power? They didn't sell to the Fed.

    "Sounds like this is going to conflict with your ideology"

    Your confusing, shifting, unproven claim doesn't conflict with my ideology. Can you try again?

    Just focus on your inflation claim, leave out all the superfluous fluff.
    Jan 21, 2016. 12:19 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "Based on your questions, this does not appear to be so"

    Based on your claim about inflation, I could same the same about you.

    Let me get you started. The Fed buys $1 billion in Treasury bills.
    The seller gets a credit, from the Fed, in his bank account for that amount.
    Somehow he avoids inflation, but the rest of us get hit.
    Is that close to what you're claiming?
    Jan 21, 2016. 11:32 AM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "You will have to learn how the Fed Res works for you to know how that works"

    I know how it works. I'm interested in your claim that "people who get new money first avoid inflation".

    I assume you mean people who somehow get money from the Fed?
    Jan 21, 2016. 11:16 AM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "Dollar savers have lost 93% since the Fed came into being"

    They didn't collect any interest? That's not very smart.
    Jan 21, 2016. 10:45 AM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    jhooper

    "Exactly. The people who get the new money first avoid the inflation"

    Who gets new money first? How do they get it?
    Jan 21, 2016. 10:43 AM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "Jim Jim Jim: You are seriously picking nits"

    Asking for real proof of a serious claim ≠ picking nits.
    Maybe you can help him out?
    Jan 20, 2016. 10:20 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "It would be these people"

    The Fed stole money from people who own no stocks?
    How did they do that?

    "For those on welfare and working but haven't managed to save much, they will be the most victimized"

    The Fed stole from people on welfare?

    "What's interesting is the Fed wasn't originally advocated for by "average people". It was sold to them buy guys like Rockefeller and Morgan"

    Yes, bankers are more interested in creating a central bank than average people who have no money or knowledge of banking.
    Jan 20, 2016. 09:42 PM | 1 Like Like |Link to Comment
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