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Jim Myrtle

Jim Myrtle
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  • The Worrying U.S. Path Toward High Inflation [View article]
    "so - you don't know what the market was at the time those instruments were purchased by the FED and whether there was a market for them"

    You can get an idea of the market here.....
    http://on.wsj.com/1eHjQ9x

    "And you didn't answer the question about why they sold to the Fed vs. to the open market"

    I'm not a Primary Dealer, you'd have to ask them.

    Not sure why you think there isn't or wasn't a market.
    These MBS are one of the deepest markets out there.

    "And you didn't answer the question about why they sold to the Fed vs. to the open market."

    Here's some info about the Fed purchase program.....
    http://bit.ly/16cCrHe

    "Obviously there was a premium that the Fed paid"

    Obviously? Why?

    "Were not talking about what they are worth today (with Fed intervention). Were talking about what they were worth at the time they were purchased in 2008 - 2010"

    Rates are lower today, so these guaranteed, above par bonds are worth more today than in 2008-2010.
    Oct 22 05:35 PM | 2 Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Jim - do you know what the Fed paid for the MBS they acquired - whether they acquired at par or at discount?"

    If they're trading over par, the Fed would buy over par.

    "Did the institution selling to the Fed have the option of selling MBS in the open market - at par or discount?"

    Of course, MBS holders are free to sell them into the open market, at the market price, over par.

    "If so, why did they not sell in the open market? Perhaps it was because there was no market for MBS at the time - "liquidity crisis"?"

    I'm not aware of any bonds having no market, while trading consistently above par. Do you have any examples?

    If you want actual prices for tranactions, go here........
    http://1.usa.gov/NbYHoL
    Oct 21 11:53 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Simple, they pass the risk of default on to someone else"

    Guaranteed MBS have a risk of default? Please explain further.

    "on an MBS that is underwater."

    MBS trading over par are underwater?
    Maybe you have a unique definition of that word?
    Oct 21 10:06 AM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "However, the money the Fed creates out of nothing in order to buy mortgage-backed securities and government debt for the QE3 program, benefits first and foremost the big banks and the financial class — those people who are invited to the Fed auctions"

    They give up bonds yielding 2%-4% in exchange for cash yielding 0.25%.
    Where's the benefit?

    "This new money then fuels stock bubbles, bond bubbles, agricultural land bubbles, and others"

    What if they sold to bond to someone other than the Fed?
    The sales proceeds could "then fuel[s] stock bubbles, bond bubbles, agricultural land bubbles, and others".
    Would that be okay?
    Oct 20 08:40 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "I did not admit that an increase in a stock portfolio does not transfer wealth"

    You failed to show how it transferred wealth from the poor to me.
    You still have a chance to do so.

    "If you want to believe that an inflationary monetary policy does not transfer wealth, go ahead"

    It certainly can. For instance, my mortgage is currently below 4%.
    If inflation rose to 10% annually, my wealth would increase while the wealth of the mortgage holder would decrease.

    Last chance, how does the current low rate environment transfer wealth from the poor to the rich?
    Oct 20 07:04 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    If my house increases in price, the increase did not come out of the pocket of someone with no assets.

    You've already admitted that the increase in my stock portfolio did not come out of the pocket of someone with no assets.

    If you find an example where my increased net worth came from the Fed somehow stealing from those who have no assets, to hand assets to me, please let me know.
    Oct 20 02:04 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Explain to me how debasing money and raising the price of houses and raising the price of milk is not taking from those that don't own assets and giving to those that do own assets"

    Taking from those who don't own assets and giving to those that do.

    If you said it out loud before you typed it, you might realize how silly it sounds.

    "SO in this respect there is no transfer of wealth"

    Thanks.
    Oct 20 02:17 AM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    How does your higher price for milk give me more money for my Google? After all, I don't own a dairy......
    Oct 19 11:16 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    We're not talking about food at the grocery store, we're talking about your claim that rising asset prices steal wealth from the poor.

    Google rose nearly 14% yesterday, which poor people did that steal wealth from?
    Oct 19 08:43 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "And if the rich are thus getting richer, doesn't someone have to get poorer?"

    Let's see, I own a share of Google, did someone get poorer today because I own a share?

    "Doesn't wealth need to be transferred?"

    Show me.
    Oct 19 01:54 AM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "And low mortgage rates don't benefit the poor at all"

    And high rates don't hurt them. Great.

    "And certainly the more house one owns the more one benefits from low rates, so again society's wealth is shifted to the wealthy"

    Society's wealth? I thought wealth was owned by individuals?
    How do low rates shift wealth from the poor to the rich?
    Oct 19 12:32 AM | Likes Like |Link to Comment
  • Federal Reserve: Greatest Hedge Fund Ever! But Is It A Central Bank? [View article]
    I think he was too nutz for MSNBC.
    Imagine how nuts you have to be for them to cut you loose. LOL!
    Oct 18 11:08 PM | 1 Like Like |Link to Comment
  • Federal Reserve: Greatest Hedge Fund Ever! But Is It A Central Bank? [View article]
    He's a leftist and his silly rant was funny. Not right.
    Oct 18 08:30 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "You claim to care for the People and not the wealthy and then you support the Federal Reserve"

    Would eliminating the Fed help the People?

    "It is the wealthy that own the assets and when the Federal Reserve pumps up the price of assets the lower classes get the shaft"

    The "lower classes" don't own any assets?
    They didn't benefit from low mortgage rates?
    Oct 18 12:45 PM | 2 Likes Like |Link to Comment
  • Federal Reserve: Greatest Hedge Fund Ever! But Is It A Central Bank? [View article]
    Poor Dylan, not very bright, but he is very excitable.
    Oct 17 11:24 PM | Likes Like |Link to Comment
COMMENTS STATS
969 Comments
638 Likes