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Jim Myrtle

Jim Myrtle
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  • 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 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 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 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 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 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 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 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 06:02 PM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "The People paid to bail out Goldman Sachs et al."

    And then Goldman paid back the loans and interest to the Treasury (the People).

    "These guys should have went under for their reckless ways. Instead they get big bonuses all thanks to Joe Taxpayer"

    And then all the mean rich people paid taxes on their bonuses and then Goldman paid $4.5 billion in taxes in 2010, $1.7 billion in 2011 and $3.7 billion in 2012.
    Bastards!
    Oct 27 04:18 PM | 1 Like Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "I gave you a link"

    Yes, I saw your 200 page plus link.

    Any particular page give proof of your claim, or was I supposed to read it all and hope your proof was there? Didn't think so.
    Oct 25 05:26 PM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    Any luck proving the Fed overpaid for MBS?
    Oct 25 09:08 AM | Likes Like |Link to Comment
  • The Worrying U.S. Path Toward High Inflation [View article]
    "Did the Fed buy these instruments and pay more than market at the time they bought them? I contend yes"

    I patiently await your proof.
    Oct 22 08:02 PM | 1 Like Like |Link to Comment
  • 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
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