Why Bonds Are Most Certainly Not in a Bubble [View article]
"I never said bankers were bright people"
Brighter than you.
"No, smart**s, the Fed does not lend securities to the banks"
You're the one who said banks could use their excess reserves. Excess reserves are cash. Did you mean banks could use their bonds? Maybe you should have said that, you'd sound less stupid.
" repurchase agreements that they enter into with the Fed "
How much of these repos are outstanding, give me a dollar amount
"Free money"
LOL! Yeah, Bear Stearns made free money the same way. Clown.
Why Bonds Are Most Certainly Not in a Bubble [View article]
"Can't you read English?"
Can't you do math?
"As I said above, because banks can buy Treasuries and bonds which have yields that are 100%-200% higher than that. The banks are making money doing nothing"
That's a great idea! Borrow over night to fund bonds maturing in 10 or more years. What could go wrong?
Maybe you could ask Bear Stearns? That's how they funded their bond portfolio. It works until people don't roll over your overnight loan. Then you go under.
"Banks can employ their excess reserves as collateral for conducting repurchase agreements (repos) with the Fed"
Yes, if the Fed wants to lend securities overnight, a bank could use its excess reserves. Last time I looked, the repo rate was 0.20%.
Pretty sure you don't know what you're talking about there either.
Why Bonds Are Most Certainly Not in a Bubble [View article]
"The Fed lends banks money at less than 1% which the banks use to buy Treasuries and Bonds that yield 2.5%-3.5%"
You think it's a good idea to borrow overnight to fund a 10 year bond purchase? LOL! You should try that with your own money, see how it works out. FYI, banks are currently borrowing a whopping $28 million at the discount window.
When you get a chance, please explain why a bank with excess reserves, yielding 0.25%, would borrow at 0.75%?
Why Bonds Are Most Certainly Not in a Bubble [View article]
"It is common knowledge that The Fed buys bonds and treasuries in the open market"
Change your mind already? LOL!
"It is also common knowledge that entities who could be affiliated with the Fed, or the Fed ITSELF, bid at Treasury auctions to buy bonds and treasuries"
What are "entities who could be affiliated with the Fed"? Do you have a list?
"The only reason the Fed doesn't directly and openly bid at Treasury auctions is to cover up the fact that they are printing money out of thin air"
Of course the Fed prints money out of thin air. That's why claims that they spend our tax dollars are stupid.
Why Bonds Are Most Certainly Not in a Bubble [View article]
And for thinking the Fed made the TARP loans.
And for thinking the Treasury sold bonds to the Fed for TARP.
And for thinking the Treasury sells bonds to the Fed.
And for thinking the Fed gives free money to the banks.
And for thinking it's a good idea to finance 10 year bonds with overnight loans.
And for all the other stupid comments you made on this thread.
Why Bonds Are Most Certainly Not in a Bubble [View article]
Brighter than you.
"No, smart**s, the Fed does not lend securities to the banks"
You're the one who said banks could use their excess reserves.
Excess reserves are cash. Did you mean banks could use their bonds? Maybe you should have said that, you'd sound less stupid.
" repurchase agreements that they enter into with the Fed "
How much of these repos are outstanding, give me a dollar amount
"Free money"
LOL! Yeah, Bear Stearns made free money the same way. Clown.
Why Bonds Are Most Certainly Not in a Bubble [View article]
Why Bonds Are Most Certainly Not in a Bubble [View article]
Can't you do math?
"As I said above, because banks can buy Treasuries and bonds which have yields that are 100%-200% higher than that. The banks are making money doing nothing"
That's a great idea! Borrow over night to fund bonds maturing in 10 or more years. What could go wrong?
Maybe you could ask Bear Stearns? That's how they funded their bond portfolio. It works until people don't roll over your overnight loan.
Then you go under.
"Banks can employ their excess reserves as collateral for conducting repurchase agreements (repos) with the Fed"
Yes, if the Fed wants to lend securities overnight, a bank could use its excess reserves. Last time I looked, the repo rate was 0.20%.
Pretty sure you don't know what you're talking about there either.
Why Bonds Are Most Certainly Not in a Bubble [View article]
Sorry, not a banker.
Why Bonds Are Most Certainly Not in a Bubble [View article]
You think it's a good idea to borrow overnight to fund a 10 year bond purchase? LOL!
You should try that with your own money, see how it works out.
FYI, banks are currently borrowing a whopping $28 million at the discount window.
When you get a chance, please explain why a bank with excess reserves, yielding 0.25%, would borrow at 0.75%?
Why Bonds Are Most Certainly Not in a Bubble [View article]
Free money? The discount rate is 0.75%.
Why Bonds Are Most Certainly Not in a Bubble [View article]
My actions?
I didn't realize my corrections of your errors had such power.
Why Bonds Are Most Certainly Not in a Bubble [View article]
Change your mind already? LOL!
"It is also common knowledge that entities who could be affiliated with the Fed, or the Fed ITSELF, bid at Treasury auctions to buy bonds and treasuries"
What are "entities who could be affiliated with the Fed"? Do you have a list?
"The only reason the Fed doesn't directly and openly bid at Treasury auctions is to cover up the fact that they are printing money out of thin air"
Of course the Fed prints money out of thin air. That's why claims that they spend our tax dollars are stupid.
"Such has been the strength that traders suspect"
Wow, such strong evidence.
Why Bonds Are Most Certainly Not in a Bubble [View article]
Lots of people, lots of firms, lots of countries.
"To the Fed"
The Treasury does not sell bonds to the Fed.
"Hence the Fed created out of thin air the money that the US Treasury got to spend on TARP"
Hence, you're wrong.
"And YOU are on the record denying this fact"
If you bothered to research the Fed balance sheet before TARP and after TARP, you could be on record denying your fallacy as well.
Why Bonds Are Most Certainly Not in a Bubble [View article]
It's true, the Fed also makes loans. It is a bank after all.
Why Bonds Are Most Certainly Not in a Bubble [View article]
If you think the Fed made TARP loans, you may be too stupid to take part in this discussion.
"I'm flying the latest F22A against your fleet of aging Mig21s"
LOL! Your F22 is a VW Beetle.
Why Bonds Are Most Certainly Not in a Bubble [View article]
You sure about that?
"Why would they have had to make a direct purchase, if their only reason was to drain excess reserves?"
A purchase adds to reserves.
Why Record Low Mortgage Rates Don't Signal a Weak Housing Market [View article]
Why Record Low Mortgage Rates Don't Signal a Weak Housing Market [View article]