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Jim Myrtle

Jim Myrtle
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  • The Fed Should Stimulate Lending [View article]
    http://1.usa.gov/Kk75Xj

    Current Treasury holdings at above link, $1.652 trillion.

    http://1.usa.gov/R8EKV2

    Treasury holdings at above link, Aug 16, 2007, $790 billion.

    Looks like $862 billion in new purchases in the last 5 years.
    A quick trip to Debt to the Penny, http://bit.ly/pKvH6f

    shows debt held by the public increased from $5.047 trillion to $11.176 trillion. $6.129 trillion increase.
    $862 billion/$6.129 trillion = 14%
    Aug 18, 2012. 10:09 AM | 1 Like Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "Presumably, the Fed purchased the lowest-quality assets that the banking system held: removing the most "toxic" assets to aid bank capitalization levels. Knowing that the Fed now holds the most toxic of the subprime assets the banking system could create during the roaring 2000s should leave us with some concern"

    The Fed didn't buy subprime assets. The Fed bought government guaranteed securities from Fannie and Freddie.
    Look them up in the WSJ.
    They are trading above par.

    Your article is wrong.
    Aug 18, 2012. 12:03 AM | 1 Like Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "That's not the relevant issue, i.e., what they have done"

    The issue is what they've done compared to what dnp imagines they've done.
    Omnipotence is another discussion.
    Aug 17, 2012. 11:02 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    The Fed creates high powered money, just a portion of money supply.
    They can, but do not buy unlimited amounts. They've funded only a small percentage of new government debt over the last 5 years.
    Aug 17, 2012. 09:44 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "The Fed funds the Government, and the assets are 100% guaranteed by the same Government"

    What do you mean, the Fed funds the Government?
    Aug 17, 2012. 09:34 PM | 1 Like Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    They didn't buy any toxic assets.
    The guaranteed mortgages they bought, when rates were higher, have thrown off interest, every year since they bought them. Some were refinanced and some were paid off when houses were sold.
    That reduced their outstanding MBS holdings. Profitably.

    If you have a specific question based on one of your links, cut and paste the section you want to discuss and ask your questions.
    Aug 17, 2012. 09:31 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    Be specific.
    Aug 17, 2012. 08:17 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "The Federal reserve went in and bought trillions of dollars of toxic assets and it was a good deal"

    Right, the Fed bought trillions in guaranteed MBS and Treasuries and made hundreds of billions of dollars.

    "Since the Federal Reserve sorely does not want to realize a massive loss on these shenanigans"

    Since the Fed has massive gains on their positions, what are you babbling about?

    "This is the only way for these toxic assets to become profitable"

    They were profitable the instant the Fed bought them. Get a clue.
    Aug 17, 2012. 05:25 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    Unless they sold them, Citi, for instance is reducing them, yes, banks still have mortgages, some underperforming, on their balance sheets.

    Nope, the Fed never bought anything but guaranteed bonds.

    They did have some crap in the Maiden Lanes, bought at a large discount to face value and turning a decent profit since 2008.
    Aug 17, 2012. 03:02 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "The stuff is so valueless that Warren Buffet has been scrambling around trying to buy up the "crap," too"

    These guys don't know much, but they sure know how to repeat their (incorrect) talking points.
    Aug 17, 2012. 02:29 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "And what "market" rate is Warren paying for these assets - face value or discounted?"

    If he's buying Agencies, he's paying above par.

    http://on.wsj.com/Ona3cb
    Aug 17, 2012. 02:28 PM | Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "The Fed bought these assets so the banks would not have to mark them down"

    We're talking about government guaranteed agency MBS.
    Trading well above par.

    How are those toxic?
    Aug 17, 2012. 02:26 PM | 2 Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "What did these banks sell this crap to the FED if they were so great?"

    Allow me to repeat myself.
    The Fed didn't buy them because they had no buyers.
    The Fed bought them to boost money supply and bring down rates.

    The Fed paid market price. For guaranteed mortgages.
    And hasn't lost a penny on them.
    Has made tens of billions annually on them and has tens of billions of unrealized capital gains on the ones that haven't been refinaced away from them.
    Keep claiming they were crap with zero evidence.
    It makes you look silly.
    Aug 17, 2012. 01:18 PM | 2 Likes Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    "If these assets had buyers, the Fed would not have needed to buy them"

    The Fed didn't buy them because they had no buyers.
    The Fed bought them to boost money supply and bring down rates.

    "And now the Fed is stuck with these assets"

    Yes, the Fed is stuck with these high yielding mortgages with very large unrealized capital gains. Just awful.
    Aug 17, 2012. 11:54 AM | 1 Like Like |Link to Comment
  • The Fed Should Stimulate Lending [View article]
    Yeah, survival beats the alternative.
    Aug 17, 2012. 09:49 AM | Likes Like |Link to Comment
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