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Jim Myrtle

Jim Myrtle
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  • The Worrying U.S. Path Toward High Inflation [View article]
    "But just because you believe it and say it with conviction, doesn't make the Fed's "unrealized losses" irrelevant"

    You still haven't shown that they would be relevant.

    "(By the way, it's unclear what interest the Fed pays that you refer to.)"

    Interest on reserves. Currently 0.25%. Much less than they earn on their guaranteed bond portfolio.

    "How much of the banks' profitability is due to the 0.25% from the Fed?"

    Much less than the profitability of bonds yielding 2% - 4%.
    Nov 8, 2013. 09:31 AM | Likes Like |Link to Comment
  • Gold's Reaction To Fed Is A Bearish Signal, Libya Weighs On Oil, Copper At Top Of Range [View article]
    "Big banks have about $67 trillion of toxic derivatives on their books"

    Who is on the other side of these derivative trades that you fear so?
    Nov 6, 2013. 10:39 PM | 1 Like Like |Link to Comment
  • The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
    "Brooksley Bourne was the lone voice arguing it was fiscally irresponsible to get rid of GS AND not regulate derivatives"

    That's an interesting story she tells, with no witnesses.
    And so what?
    What bank failed because they traded derivatives?
    Nov 6, 2013. 09:29 AM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "So, if you really think your bank is the beneficiary of IoER, and that the money is not passed on to you as goods or services in this hypercompetitive business, you don't understand how free enterprise works"

    Hear, hear.
    Keep smacking down those silly claims!
    Nov 5, 2013. 05:38 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Most people are in no position to collect the lucre handed out by the FED"

    The Fed is handing out something? What? Where?
    Nov 1, 2013. 10:43 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Our currency is backed by the Fed's portfolio of bonds. If the value of that portfolio were to be reduced by, say, 10% in any one year, that could have a bad effect on the economy"

    Why? You can't turn in your FRN for a portion of the Fed's bond portfolio.
    Oct 31, 2013. 08:02 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Here they can buy trillions in bonds, make profits"

    The opposite of your claim, that they bought crappy bonds at above market prices, which would have resulted in Fed losses.
    Oct 31, 2013. 12:44 AM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "So, if the Fed ever desires to reduce QE3 quickly (although here in 2013 that might seem highly unlikely), the Fed will have to consider the unrealized losses on their huge portfolio"

    The Fed currently has huge unrealized profits on their positions.
    Oct 28, 2013. 05:04 PM | 2 Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "You don't take wealth from the People, give it to some reckless banks and then claim the People are in better shape for losing this wealth"

    The banks paid it back, plus a healthy profit to the Treasury.
    The people did not "lose this wealth". You're wrong.
    Oct 28, 2013. 05:01 PM | 3 Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "So let us just bail out everyone that goes bankrupt"

    Which bankrupt firms do you feel were bailed out?
    Oct 28, 2013. 05:00 PM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "If you can't see that what the own is a function of the interest rates they set"

    If they set the Fed Funds rate at 1%, do you feel these MBS will become junk? What about 2%? 3%?

    Maybe you can better explain your feelings?
    Oct 28, 2013. 08:33 AM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "As a result of that, probably $400-500 billion a year is being transferred as a fiscal maneuver by the Fed from savers to the banks. They are collecting the spread"

    How does the current spread compare to the spread when savers weren't "thieved from"?

    "The FED did take losses to bail out rich bankers"

    If earning $91 billion from their holdings is "taking losses", the word "losses" has lost all meaning.

    "and they paid back the TARP"

    Look, even Stockman knows they paid back TARP. LOL!
    Oct 28, 2013. 12:00 AM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "With Fannie and Freddie out of business (in effect) those agency bonds are guaranteed by the "full faith and credit" of the US"

    Yes. So when the Fed buys them, it isn't taking junk off the hands of the banks. Glad you finally get it.
    Oct 27, 2013. 11:54 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "The Federal Reserve has trillions of dollars of these bank's junk on their books"

    If by junk you mean fully guaranteed bonds, I agree.

    "Goldman debtors were also bailed out. For instance AIG"

    It's true, the Treasury made about $5 billion in profit from their loan to AIG. Unforgivable!
    Oct 27, 2013. 11:27 PM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "It was Goldman Sachs and the Wall Street Banks that were the debtors"

    Wall Street banks holding mortgages were creditors.

    "The wealth to bail out these banks came from the people. Your whole idea assumes that the wealth that was handed over to the banks just comes out of thin air"

    Not at all. The TARP loans were funded by Treasury borrowings, not thin air. Handed over? Hardly. Loaned and paid back, at a profit to the Treasury.

    "These reckless banks were deeply insolvent and we handed them great wealth"

    And then they turned around, and handed it right back. The nerve!
    Oct 27, 2013. 06:02 PM | 1 Like Like |Link to Comment
COMMENTS STATS
988 Comments
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