Jim Myrtle

Jim Myrtle
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  • Why The U.S. Is Europe: Central Bank Deficit Funding Thinly Veiled  [View article]
    "Given the low cost of ''producing'' such electronic cash, why would the government not do it"

    Is that why, over the last year, the Fed has actually slightly reduced their Treasury holdings? At the same time that the Treasury issued more than $1 trillion in new debt.
    Sep 29, 2012. 09:03 PM | 2 Likes Like |Link to Comment
  • The Fed Should Stimulate Lending  [View article]
    "The losses at the banks went to Fannie and Freddie"

    Tell that to the shareholders of the banks who lost tens of billions.

    "So yes the Wall Street banks took value and never paid it back"

    If by never paid it back you mean paid in full plus tens of billions in interest, you're right. For once. LOL!
    Sep 25, 2012. 07:34 PM | Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "It does in the sense that Bush Jr never even tried to be rational when it came to spending. "

    Obama put it back "on budget" and that makes his spending more rational? LOL!

    When is the last time Obama submitted one of these rational budgets to Congress?
    Sep 18, 2012. 08:22 PM | 1 Like Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "Yes, but how much was it worth? Probably not the face value. Maybe as little as a few cents on the dollar to as much as 75-90 cents on the dollar if it is top rated"

    The Fed only buys the Agency MBS. Guaranteed bonds.
    Trading currently well above par.
    Sep 17, 2012. 11:41 PM | Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    ?????????????

    I guess you can blame the Fed for what Congress does.
    Or blame sunspots.
    Makes as much sense as most of the stuff you post.
    Sep 17, 2012. 10:31 PM | 1 Like Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "But what happens when this scheme unwinds?"

    Then, instead of the Fed making $80 billion a year, they'll make $70 billion a year.

    "And my hypothetical was based on buying something with real easy to discern value, the government was buying junk to bolster the insolvernt banks"

    Yeah, buying government guaranteed bonds from the banks so they can add even more to their excess reserves isn't going to bolster the banks.

    "And what about the GSE losses?"

    Sounds like you should bitch at the Congress, instead of the Fed.
    Sep 17, 2012. 10:16 PM | Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    Last I checked, silver doesn't pay interest every month.
    Also, people don't refinance their silver and give you your money back.
    You realize the Fed can hold these bonds longer than you can whine about them? And make money while they do it!
    Sep 17, 2012. 09:15 PM | 2 Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    I'm talking reality, you keep making stuff up.
    Sep 17, 2012. 08:22 PM | 2 Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "And I ask Jason and Jim why the companies that took this money should be allowed to keep the profits they made from the bailout money?"

    Kill the greedy kulaks, eh comrade?
    Sep 17, 2012. 08:20 PM | 1 Like Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "My claim is that the government has lost a serious amount of money on the bailouts of the Wall Street Banks."

    Your claim is silly. Look here....

    http://bit.ly/nWSGgH

    The Treasury made $4.5 billion from BofA, $12.4 billion from Citi, $1.7 billion from JPMorgan Chase, $2.2 billion from Wells Fargo, Goldman $1.4 billion, $1.2 billion from Morgan Stanley and on and on.

    "I further claim that the bailouts were a transfer of wealth from the poor to the rich"

    The poor don't have wealth (that's why they're poor) and when the rich pay their loans back, what was transferred?

    "And my claims have not been refuted."

    Except when anyone with a clue responds to you.

    "The Fed has bonds from bailouts that it is claimed have been profitable"

    Probably has something to do with the $80 billion in profit they made in each of the last 2 years.
    Sep 17, 2012. 08:13 PM | 2 Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "Also, don't forget Bush Junior funding the entirety of his two wars with deficits: they were never put on the budget and funded via 'emergency spending' bills. Obama put them back in the budget"

    On budget, off-budget, exactly why does it make one iota of difference?
    Sep 17, 2012. 08:02 PM | Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "Jim, as I said, the Fed doesn't need to buy treasuries to finance the US Gov"

    No kidding, the world can't get enough of our debt. It'll be ugly when that is no longer the case.
    Sep 16, 2012. 10:03 AM | Likes Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "When the wage earner buys his breakfast cereal for an inflated price what is going on?"

    A drought. It was in all the papers. Also, there is an ethanol mandate that requires we raise the price of food to add it to our fuel supply. It has something to do with the Iowa primary every 4 years.
    Sep 16, 2012. 09:11 AM | 1 Like Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "IF they are making a profit, it must be because they are debasing the currency"

    Geez, you're dense. If they're making a profit it's because their cost of capital is less than 0.25% and they bought securities yielding 3%-4%.

    "It is not possible to overpay and then show a profit otherwise"

    Keep repeating your stupid claim that they overpaid. They'll keep making $60-$80 billion in annual profits.

    "And what happens if tomorrow the Federal Reserve announces that they are going to sell their balance sheet?"

    That will mean the economy is finally recovering. I'll celebrate!

    "You think there is going to be a profit?"

    Yes. It will be smaller though.

    "Are you going to buy their securities at these inflated prices?"

    Inflated prices? You said they were inflated when they bought them at par. Now they're trading at 107 and higher. You're not a good judge of when prices are inflated.

    "And we do know that the FED and the government overpayed substantially for assets. THis is fact"

    Your silly claims don't rise to the level of fact.

    "And how does the FED bail out an insolvent bank like Citicorp and then show a profit on this?"

    Citi wasn't insolvent. And you make a profit by lending money and being repaid with interest. Warrants help too.
    Sep 16, 2012. 09:08 AM | 1 Like Like |Link to Comment
  • There's No Longer A Bernanke Put  [View article]
    "If the FED buys a security based on collateral that is supposed to be worth half a million dollars but the collateral is actuallly worth a quarter of a million dollars, this is a losing investment"

    If the bond is guaranteed, and it is, the collateral doesn't matter.
    The Fed gets paid anyway. That's not a losing investment.
    The Fed paid for it with money that costs less than 0.25% and gets
    paid more than 4% a year.

    "THe only way out is for the government to debase the currency"

    The Fed doesn't need a way out. They made nearly $80 billion last year. When do your supposed losses happen?

    "This is the only way the government can show a profit after they have purchased securities based on insufficient collateral"

    The Fed shows $10s of billions in annual profits on these bonds every year since they bought these bonds. You don't know what you're talking about.
    Sep 16, 2012. 01:04 AM | Likes Like |Link to Comment
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