On Mar 25, 2009, at 11:41 AM, Lawrence Sica wrote:
On Mar 25, 2009, at 10:24 AM, Charles Bennett wrote:
"The Federal Reserve starts purchasing long-term Treasuries today,
aiming to bring down borrowing costs by employing tools last used
in the 1960s."
"“Clearly the Fed has credibility and buying power at the moment,
so they can force prices up” on Treasuries, said Jay Mueller, who
manages about $3 billion of bonds at Wells Fargo Capital Management
in Milwaukee."
WTF!! The FED *IS* the Treasury, is US..
That is exacly the same as me "loaning" myself $100 by taking it
out of my wallet, putting in my pocket, and claiming that I have
$200 in assets
since I have $100 and I'm OWED $100... Of course, keeping it to
scale, in their case they intend to then go spend 3000 dollars,
mark the 200 as GDP and the rest as deficit so our kids can pay
the loan later.
Ehh not exactly. The Fed is not the US Treasury when it comes to
securities.
I understand, but it's not like they have a day job in China where
they earn spending money. My point was ultimately, it's all US tax
payers money, even the stuff they just print or make appear by magic.
Securities like this are floated by the Dept of Treasury not the
Federal Reserve. Remember technically the Federal Reserve is not
fully a US Gov't entity. It's more like having your wife loan you
some cash.
Except she doesn't work and "we" pay her the allowance.
I saw a survey somewhere that 20% of the people in the US think that
the federal government has "it's own" money.
Kind of scary really. OTOH, more than 20% can't find North America on
a map so that may not be that exceptional.
They are doing this to try and drum up some more volume and
confidence. Things have been relatively slow lately.
The Fed was actually considering floating their own bonds back in
December. I guess that did not fly, I recall there was talk if they
even could do so legally.
I wonder how that would work. Hey, they could sell them to Treasury !
As a programmer, I wonder when the stack overflow happens.
Funny thing unrelated. The Treasury is releasing all sorts of new
bonds now as well. There is a 7 year bond now. There is talk of a
four year and a one year even.
I didn't notice that. A one year bond.. Usually they avoid them
because they come due so quickly, and then they have to sell more at a
possibly higher rate.
In a back handed way that would say that they really are confident of
the future.
=c=
_______________________________________________
OSX-Nutters mailing list | [email protected]
http://lists.tit-wank.com/mailman/listinfo/osx-nutters
List hosted at http://cat5.org/
