Jim Myrtle

Jim Myrtle
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  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    Well, I'm willing to listen to your definition of stealing.
    Spell it out.
    Jan 20, 2016. 06:13 PM | 1 Like Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    RS055
    "Assets are owned mostly by the wealthy. So it is not a stretch to say QE exacerbated wealth inequality"

    The claim was:
    "using gov to steal from the average person to prop up the wealth of the politically connected"

    Unless you're claiming wealth inequality increased because the gov stole from average people to give to the rich, you're off topic.
    Jan 20, 2016. 06:07 PM | 1 Like Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    RS055

    "Empirically , the data is very clear that there has been a vast wealth disparity increase since 2007"

    Is that because the Fed stole from the average person to
    "prop up the wealth of the politically connected"?

    "Maybe you object to words like "steal""

    If you can back it up, use any word you like.
    Can you back it up?
    Jan 20, 2016. 02:33 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    jhooper

    "The trick is to stop using gov to steal from the average person to prop up the wealth of the politically connected"

    Is that what you think the Federal Reserve did since 2008?
    Jan 20, 2016. 01:47 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "It is law"

    Exactly. So is the Fed payment on reserves.

    "(a) IN GENERAL.—Section 19(b) of the Federal Reserve Act (12 U.S.C. 461(b)) is amended by adding at the end the following: ‘‘(12) EARNINGS ON BALANCES.— ‘‘(A) IN GENERAL.—Balances maintained at a Federal Reserve bank by or on behalf of a depository institution may receive earnings to be paid by the Federal Reserve bank at least once each calendar quarter, at a rate or rates not to exceed the general level of short-term interest rates"

    http://1.usa.gov/1KpuRuZ
    Jan 19, 2016. 01:28 PM | Likes Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "Since this is money that the Fed is normally required to return to the US Treasury, this IOER is effectively a large, permanent , ongoing federal ( taxpayer) subsidy for the banks"

    The Fed is paying on all reserves, not just excess reserves.
    The banks have these reserves because the Fed bought bonds yielding 2%-4%. The banks are now getting 0.5%.

    Is the ongoing "subsidy" for the Treasury (taxpayer) worse?
    After all, it is much, much higher than what the banks are receiving.
    Jan 19, 2016. 01:05 PM | 1 Like Like |Link to Comment
  • Ben Bernanke Got It Right - Is A New Round Of Quantitative Easing Needed?  [View article]
    "You keep on stating it was "not trash" that started all this?"

    I didn't see anyone claim that.
    But the claim that the Fed bought trash is wrong.
    The Fed bought bonds that were guaranteed by the Treasury.
    Treasury securities and guaranteed MBS. No trash.
    Jan 19, 2016. 10:29 AM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "You don't seem to be able to grasp the concept that wealth can be relative"

    Of course wealth is relative. I just have a problem with the idea that if the rich make money, someone else has to lose. Just as the rich losing money would not benefit me.

    Thanks for the discussion. Before you leave, please share your dividing line between rich and middle class.
    Jan 4, 2016. 11:17 PM | Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    Ron,
    "No, this is a drop in the bucket"

    $80 billion is a drop in the bucket? Why doesn't a drop in the bucket transfer wealth?

    " But if it eventually leads to asset deflation or return to fair market value without Fed's QE and ZIRP, then there is a "return" (not "transfer") of wealth from the rich to the poor"

    The crisis in 2007 and 2008 deflated assets. I don't remember the middle class and poor getting any benefit from the rich as a result.

    "Inflation always benefits the very wealthy and hurts the poor and middle class who receive income in wages or are on a fixed income"

    We should probably nail down your definition of wealthy and middle class. What's the dividing line between them?

    "House ownership is at all time low since 1967 (and lower than before the 2008 crisis) because of low affordability"

    How many are owned by the wealthy?
    How many by the non-wealthy?

    "Please understand that the "transfer" here is not a direct transfer of dollars from person A to person B."

    Or a direct transfer of wealth. Or an indirect transfer of wealth.

    "Rather it is a transfer because of the relativity of wealth and unfair redistribution"

    Didn't the wealthy lose much more than the middle class during the crisis?

    "Person B was given unfair advantage (the Fed intervening in the markets to support the value of B's assets - against normal market forces)"

    Like when the government "encouraged" imprudent lending to increase home ownership before 2007, against normal market forces?
    Jan 4, 2016. 10:07 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    ron,

    GOOG lost about $10 billion in market cap today.
    TSLA, about $2 billion, DD about $2 billion, JPM about $7 billion and since April, KMI over $60 billion.

    Was any of that a wealth transfer from the rich to the poor/middle class?
    Jan 4, 2016. 05:07 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    ron,

    "You have difficulty grasping the concept that wealth is relative"

    That wasn't the claim. The claim was that wealth was transferred from the middle class to the rich. I don't care who else you quote who says the same, unless they show proof, it remains an unproven claim.

    "If you don't disagree with the statements from the two Fed officials that QE and ZIRP benefited the wealthy more than the middle class"

    I don't disagree with that completely different claim.

    "If a house was selling for $200,000 before the Fed's QE (MBS) and ZIRP, a middle class person might be able to afford it"

    Telling me that a house went from $200,000 to $300,000 or that a stock went from $200 a share to $300 a share, while fascinating, is still not proof of the claim that the Fed caused a massive shift of wealth from the middle class to the wealthy.
    Jan 3, 2016. 11:30 PM | 2 Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "Almost 40% are renters (estimate). House ownership today is lowest since 1967"

    Middle class renters who didn't own a house had their wealth transferred to the rich because the Fed bought Treasuries and MBS?

    "I am saying the wealthy own most stocks, and not that the middle class do not own any stocks"

    Middle class stock owners had their wealth transferred to the rich when stocks went up?

    "The Federal Reserve isn't just inflating markets but is shifting a massive amount of wealth from the middle class and poor to the rich."-Stanley Druckenmiller

    Thanks for the quote, but without showing how the transfer happened, it might as well be you saying it again with no proof.
    Jan 3, 2016. 08:16 PM | 2 Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    Ron,
    "No one was forced to sell to the Fed? If there is a high bid, someone will sell. This is how the markets work. The Fed pushes up bond prices"

    Yes, there were voluntary sellers.

    "One example: the Fed bought MBS every month - pushing down mortgage rates - and this obviously benefits real estate investors (the wealthy who own more than one house)"

    Yes, real estate investors did benefit. So did middle class home owners who saw an increase in equity. So did middle class home owners who refinanced their mortgages at lower rates.

    "QE and ZIRP also pushed up stock prices - and who has most stocks? The wealthy"

    Yes. Middle class people also own stocks.

    "Perhaps you should ask these people from the Fed itself why there was a wealth transfer to the rich"

    Thanks for those quotes. Neither one said wealth was transferred from the middle class and poor to the rich.

    I can understand why you're running away from your original position.
    Jan 3, 2016. 06:37 PM | 1 Like Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    "-- the current market value won't be the same without the FED buying up so much short term securities every month (and MBS)"

    One of the reasons for their purchases was to reduce long term interest rates.
    No one was forced to sell to the Fed.

    How was this a wealth transfer from middle class to rich?
    Jan 3, 2016. 02:26 PM | Likes Like |Link to Comment
  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    John,

    IOR is interest on reserves.
    Nothing is being sterilized.
    Jan 1, 2016. 11:42 PM | Likes Like |Link to Comment
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