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Jim Myrtle

Jim Myrtle
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  • The Fed Should Stimulate Lending [View article]
    Tack said,

    "when the Government allows the banks to borrow in almost indefinite quantities, and pays them to do so".

    What does that have to do with the Fed buying a Treasury bond from Goldman? Is Goldman depositing cash into banks "in almost indefinite quantities". Why do banks need "government allowance" to take deposits?

    He must have a better expanation for his claim.
    Aug 14, 2012. 03:30 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "Then, why is interest paid on excess reserves such a big deal?"

    It isn't. Do you think banks borrow from the Fed at 0% and park it as reserves for 0.25%?

    "How did all the Fed-supplied liquidity get into the banking system?"

    The Fed bought stuff.
    Aug 14, 2012. 02:36 PM | 1 Like Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "when the Government allows the banks to borrow in almost indefinite quantities, and pays them to do so, then, I, too, as a bank, would happily add endless liquidity to my balance sheet at the effective risk level of zero"

    I love this claim. How much are banks currently borrowing from the Fed Discount Window? Primary Credit borrowings on Aug 8, 2012 were $1 million. MILLION, with an M.
    Why so little, if they can borrow and be paid, with an "effective risk level of zero"?
    There seems to be some confusion and I suspect it is your's, rather than the banks that are missing this free money you seem to think the government is giving to them.
    Aug 14, 2012. 02:24 PM | 1 Like Like |Link to Comment
  • 10-Year Treasuries Telling A Much Scarier Story Than Stocks [View article]
    "The Fed is printing and buying Treasuries to keep rates down so that the Federal budget deficit doesn't explode higher than what it already is right now"

    The Fed has fewer Treasuries today than on January 5, 2012.
    Only $23 billion more than July 20, 2011.
    The 10 year was yielding close to 3% a year ago.
    Nearly 2% at the beginning of 2012.
    Maybe there is something else keeping rates down?
    Jul 22, 2012. 03:56 PM | 2 Likes Like |Link to Comment
  • 10-Year Treasuries Telling A Much Scarier Story Than Stocks [View article]
    "What if the gov were to spend exactly what it raises in revenue for the next tens years,would the debt go up, and if so why?"

    No, it wouldn't. If they spend exactly what they raise, there would be no need to increase borrowing.

    "Ans. Interest,compounded would actually double the $15 trillion to $30 trillion based upon...."

    Based upon your confusion. Interest on the debt is part of spending.
    Jul 22, 2012. 03:48 PM | Likes Like |Link to Comment
  • Bank Of America's Report Betrays Uselessness Of Big Bank Earnings Releases [View article]
    "For example, the FED pay banks 0.25% on deposits with the FED, risk free. The banks mostly get the money at 0%. Isn't this a subsidy?"

    0%? LOL!

    Yeah, bank earnings are dependent on 0.25% on Fed reserve balances. That's funny.
    Jul 20, 2012. 07:27 PM | 1 Like Like |Link to Comment
  • Bank Of America's Report Betrays Uselessness Of Big Bank Earnings Releases [View article]
    "My article is a statement of fact. 56% of Bank of America's earnings are from a reduction in loan loss reserves. That is absurd."

    What is the correct percentage that you'd feel wasn't absurd?
    Were you complaining during the smash that their reported earnings were too low, because they put too much in loss reserves?
    Jul 20, 2012. 07:23 PM | Likes Like |Link to Comment
  • Bank Of America's Report Betrays Uselessness Of Big Bank Earnings Releases [View article]
    "the likes of BAC had an offseting benefit from the FED's MBS purchases - under which they were basically paid rich for impaired assets"

    Yeah, those guaranteed bonds that are trading well above par sure were "impaired".
    Jul 20, 2012. 07:19 PM | Likes Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    "The Fed buys Euros for dollars. The Euro collapses anyway, and the Fed - which PRINTS dollars - "loses" its investment."

    Well, the ECB has committed to return the dollars in exchange for the now collapsed Euros.
    Jul 10, 2012. 09:27 AM | 1 Like Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    "The Fed was lending (swapping for less in demand Euros) dollars to Euro banks via a loan to the ECB at a lowered swap rate so we can help our good buddies overseas and they wouldn't go and collapse on us"

    Yes, the purpose is to help Europe. And they had 100% cash collateral. And their counterparty can print money. Sounds safe.
    So what's your gripe?
    Jul 10, 2012. 08:38 AM | Likes Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    "Glass-Steagall would not have prevented bad loans, it would/should have prevented (if correcly implemented) the packaging of loans into toxic CDO's and the sale of said CDO's"

    I thought mortgages had been turned into MBS for decades under Glass-Steagall? Was I mistaken?

    "If they were maybe they would have the confidence to go and lose 8 billion as well"

    Darn those companies that can't make money on every single trade.

    "JP Morgan payed their taxes? Well wasn't that big of them!"

    I know, it's kinda like they're taxpayers instead of supported by the taxpayer.

    "Congrats on your belief that LIBOR manipulation is no big deal"

    Who said that?
    Jul 9, 2012. 08:57 PM | Likes Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    But...but...Glass-Stea... 1%...TBTF...paid themselves bonuses...won't lend...made bad loans they knew wouldn't be repaid...where's my bailout...LOL!

    When you string together all their greatest hits, it sounds funny, doesn't it. Don't ask them about derivatives, they'll start talking about "never paying them back".
    Jul 9, 2012. 07:18 PM | Likes Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    "No interest on a currency swap?"

    Did you think the Fed charges the ECB 1% and the ECB charges the Fed 1%?

    "He's talking about a liquidity swap, it's a loan to the central bank of Europe priced at some spread over the overnight rate."

    No, that would be a loan, not a swap.

    "but the loan portion is dead on, how could it be anything else? "

    The clue is in the name. Swap.
    The Fed gives the ECB $50 billion (or whatever) and the ECB gives the Fed the same value in Euros. Now, the Fed can take those Euros and buy Euro debt with it, but there is no rate attached to the swap.

    "Why would there be an economic reason for the transaction to exist if it wasn't a loan?"

    The reason is to supply dollar liquidity to Euro banks.
    Jul 9, 2012. 04:50 PM | 1 Like Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    "Well said, Mr. Dimon. So what do you call derivative bets that leave government (i.e., taxpayer) backed institutions on the hook for $8 billion"

    Taxpayer backed? JPM paid back TARP, in full, at a profit to the Treasury. They also paid nearly $7.8 billion in taxes in 2011.
    Nearly $7.5 billion in 2010 and $4.4 billion in 2009.

    " Reversion to Glass-Steagall is THE obvious antidote"

    How would that have prevented bad mortage loans?

    " There currently exists a monopoly of dangerous greed mongering that serves no public good, yet is implicitly, if not explicitly, bankrolled by a public that has no choice in the matter! "

    I know, Fannie and Freddie were just awful ideas.
    Jul 9, 2012. 04:21 PM | 1 Like Like |Link to Comment
  • Big Banks' $76 Billion Per Year Federal Subsidy And What We Need To Do About It [View article]
    Is it another article that provides no evidence to back up your claim?
    Thanks.

    "Everyone on this site who thinks debt is good and that everything is managable through taking on more debt to protect the old debt we have "

    Hello Mr Strawman. Spending a lot of time with Michael, aren't you?.
    Jul 9, 2012. 12:00 PM | Likes Like |Link to Comment
COMMENTS STATS
1,129 Comments
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