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WMARKW

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  • Something Is Still Ridiculously Wrong [View article]
    @ Neil and Jim.

    So let me ask the question again? Why won't the Fed dispose of it's treasury holdings by selling them in the open market today? Answer: because it's contractionary.

    So it obviously begs the follow on question that I have been trying to get Mr. Myrtle to respond to. That question is this. If they can't sell them now, then what's going to happen when time comes that they mature? Answer: Oh, the principle will be repaid by the Treasury and they will evaporate.

    Follow on question: Where does the Treasury get the money to pay the Fed off at maturity? Answer: Oh, they will just issue new treasuries.

    Really? How will they just issue new treasuries then, taking money out of the system and not have it be contractionary....then?
    Aug 28, 2015. 04:50 PM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Thanks Jim. Non-responsive.

    Hobart16. But there is a ton of liquidity in the system. The FED doesn't hold Cash after selling their portfolio of Treasuries, just like they didn't have any cash when they bought them in the first place.

    Maybe if the Fed sold we'd find out what the market rate of interest really is?
    Aug 26, 2015. 01:32 PM | Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Jim - you are skirting the issue. Why don't idle cash holders buy Treasuries today? And why doesn't the Fed sell their holdings TODAY?
    Aug 18, 2015. 06:47 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    What's the inducement to invest idle cash in something they can buy today? Why is the cash idle today, but available to refi treasuries when the time comes?

    "Why rush?" To get out of the business of intervention?
    Aug 17, 2015. 07:25 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Well then, if there is sufficient demand right now, how about the FED cleaning up the B/S right now? Why wait? Let the refinancing begin.
    Aug 14, 2015. 09:14 AM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Check the price of an 11 ounce bag of Snickers at Walmart this weekend. It used to be $1.78 about 4-5 years ago.
    Aug 13, 2015. 11:40 PM | 3 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Ummmm....money "locked up" in the stock market doesn't circulate either? Where do all those start-up's like Facebook get the money to form their companies? Does it come from those making $10,000 a year or those who already have a bunch of wealth?
    Aug 13, 2015. 11:38 PM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    You all miss the point. The government (FED) stepped into the breach and created the money to lend to the $ consuming government. When those assets run off, the debt is not going to be retired. It's going to need to be refinanced by issuance of more debt. The question still stands. Where's the money going to come from? The private sector? At what interest rate? If it comes out of the (woodwork?) to purchase treasuries - what gets sold to generate the cash? Does it come out of "idle" cash? Don't think so.
    Aug 13, 2015. 11:36 PM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Where's the government get the money to refund the debt when those "assets run off"?
    Aug 13, 2015. 06:35 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    MostSerene - kindly help me understand how low taxes on the rich destroy the economy. Sounds like the assumption that higher taxes on the rich can then be used by government or the recipients of government largesse to do more (?) to grow the economy?
    Aug 13, 2015. 06:25 PM | 2 Likes Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    How does SS disrupt the markets?
    Aug 13, 2015. 06:19 PM | 1 Like Like |Link to Comment
  • Something Is Still Ridiculously Wrong [View article]
    Because for most of that time the world was on a gold standard or modified gold standard, but whenever anyone got in trouble, like the British after WWI, the players decided to change the rules of the game and/or ignore them.
    Aug 13, 2015. 06:16 PM | 3 Likes Like |Link to Comment
  • Gold renews slide, hits lowest price since 2010 [View news story]
    Dean, a naked short is the creation of something that did not exist before. It is tantamount to adding additional shares into an equity without going through the issuance process. It is in no way comparable to a purchase on margin (buying something from someone that does not create additional shares). A naked short sends a "false" signal to the market that additional supply exists, when it really doesn't. This fact is evident in the periodic manifestation of a "short squeeze".
    Jul 17, 2015. 04:39 PM | 9 Likes Like |Link to Comment
  • Wall Street Breakfast: Greek Parliament Votes On Bailout Deal [View article]
    "Confessions of an Economic Hitman" is a great eye opener. Part of the reason I have come to the understand that the politicians are puppets who are picked to stand up and take the arrows for doing the work of the powers that be - namely the bankers. The bankers have been in charge for almost 500 years. Money talks loudly.
    Jul 15, 2015. 07:21 PM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Greek Parliament Votes On Bailout Deal [View article]
    Yea...those Iranians are really nice people. They wouldn't do anything to hurt us.
    Jul 15, 2015. 09:46 AM | 8 Likes Like |Link to Comment
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