The Fed’s “independence” is a relatively new thing.
It should be more accountable to voters. When we elect a new POTUS they put their people on the Board of Governors.
Federal Reserve Admits It Pumped More than $6 Trillion to Wall Street in Recent Six Week Period
- Thread starter OfTheCross
- Start date
It should be more accountable to voters. When we elect a new POTUS they put their people on the Board of Governors.
I think even if Trump weren't bytching I think the fed would still be hesitant to raise rates and have this ponzi scheme economy fall. Their worried sbout what another crash would to people's alreafy flailing feelings about cspitalism
FRIED MASON
Superstar
Audit the feds.
OfTheCross
Veteran
Real shyt.
Democrats need to be talking about this from right now.
This shyt isn't going to last forever and if it crashes with them in office they're fukked politically
I have a theory about why they aren't. I think candidates are discouraged from talking about these underlying issues because how it might scare the markets and they'd be blamed for their speculation. It sucks because its a disservice to all of us.
OfTheCross
Veteran
On February 12, 2020, the Dow Jones Industrial Average closed at 29,551.42. Yesterday, March 13, the Dow closed at 23,185.62 -– a loss of 6,365.80 points in one month’s time, or 21.54 percent. In 2008, the greatest financial calamity since the Great Depression, the Dow had lost 2,339.60 points or 21.4 percent one month after the frightening events of September 15, 2008 when Lehman Brothers filed bankruptcy, Merrill Lynch had to be taken over by Bank of America, and one day before the U.S. government seized the giant insurer, AIG, because it couldn’t pay the tens of billions of dollars in derivative bets it had made with the mega banks on Wall Street.
On this past Friday morning, in what appeared to be an effort to restore confidence on Wall Street, U.S. Treasury Secretary Steve Mnuchin gave an interview on CNBC. Mnuchin said “there’s lots of liquidity” and “this isn’t like the financial crisis.” But savvy folks on Wall Street, and readers of Wall Street On Parade, clearly understand that there is not lots of liquidity and this is exactly like the financial crisis of 2008 in terms of mega Wall Street banks losing massive amounts of their common equity capital and being on a liquidity feeding tube inserted by the Federal Reserve.
Since September 17, 2019 – six months ago, the Federal Reserve has loaned billions of dollars to Wall Street every single business day that the stock market has been open. This is the first time this has been necessary since the financial crisis of 2008. That fact, in and of itself, makes this very much on a par with the financial crisis of 2008.
Since the Fed began its repo loan operations on September 17, the tally of the Fed’s cumulative loans to Wall Street’s trading firms comes to more than $9 trillion (using the Fed’s own Excel spreadsheet of the data; you have to manually remove the Reverse Repo dollar amounts.)
According to the Fed audit conducted by the Government Accountability Office (GAO), from December 12, 2007 to July 21, 2010, a period spanning more than 31 months during the worst financial crisis since the Great Depression, the Fed’s cumulative loans to Wall Street tallied up to $16.1 trillion. (See chart below from the GAO audit.)
The Fed Has Pumped $9 Trillion into Wall Street Over the Past Six Months, But Mnuchin Says “This Isn’t Like the Financial Crisis”
On this past Friday morning, in what appeared to be an effort to restore confidence on Wall Street, U.S. Treasury Secretary Steve Mnuchin gave an interview on CNBC. Mnuchin said “there’s lots of liquidity” and “this isn’t like the financial crisis.” But savvy folks on Wall Street, and readers of Wall Street On Parade, clearly understand that there is not lots of liquidity and this is exactly like the financial crisis of 2008 in terms of mega Wall Street banks losing massive amounts of their common equity capital and being on a liquidity feeding tube inserted by the Federal Reserve.
Since September 17, 2019 – six months ago, the Federal Reserve has loaned billions of dollars to Wall Street every single business day that the stock market has been open. This is the first time this has been necessary since the financial crisis of 2008. That fact, in and of itself, makes this very much on a par with the financial crisis of 2008.
Since the Fed began its repo loan operations on September 17, the tally of the Fed’s cumulative loans to Wall Street’s trading firms comes to more than $9 trillion (using the Fed’s own Excel spreadsheet of the data; you have to manually remove the Reverse Repo dollar amounts.)
According to the Fed audit conducted by the Government Accountability Office (GAO), from December 12, 2007 to July 21, 2010, a period spanning more than 31 months during the worst financial crisis since the Great Depression, the Fed’s cumulative loans to Wall Street tallied up to $16.1 trillion. (See chart below from the GAO audit.)
The Fed Has Pumped $9 Trillion into Wall Street Over the Past Six Months, But Mnuchin Says “This Isn’t Like the Financial Crisis”
We gotta stop recycling these same stories into new threads.
Secure Da Bag
Veteran
He's recycling his own threads?
Secure Da Bag
Veteran
Wow...
Edit: am i reading right, they are opening commercial paper to foreign banks?
Good luck finding yields in this market boiler room brehs
Edit: am i reading right, they are opening commercial paper to foreign banks?
Good luck finding yields in this market boiler room brehs
OfTheCross
Veteran
