Saturday, May 15, 2010

More WSJ Propaganda

"The [Fed] has acquired more than $1 trillion of mortgage-backed securities in the past 15 months. At their policy meeting next week, Fed officials will decide how and when to get rid of them without jarring financial markets and the nascent economic recovery. ... The more challenging issue will be agreeing on a long-term plan to shrink a balance sheet of $2.38 trillion, or more than double the pre-crisis levels, according to Fed insiders. ... It is also possible that the Fed won't signal its intentions on the matter in its post-meeting statement on Wednesday. But markets are on edge because its mortgage-bond holdings are so large. ... Fed staff next week will present models to forecast how different approaches to reducing the portfolio might play in markets. ... But Fed Chairman Ben Bernanke made his preferences clear. 'I currently do not anticipate that the [Fed] will sell any of its security holdings in the near term, at least until after policy tightening has gotten under way and the economy is clearly in a sustainable recovery,' he said in February testimony before Congress", Jon Hilsenrath at the WSJ, 24 April 2010, link:

When will Zimbabwe Ben (ZB) sell these fine securities? Try 2110! This is just more Fed smoke screening. If ZB sells this crap, it's true value might be exposed along with the Fed's insolvency.

1 comment:

Anonymous said...

Well the dealers' shill got them and the Fed protected on this... no price dissemination on trades... (who does Finra represent again?)

Who would ever know what price the Fed is getting?

Or rather if it continues to get played by the Street...

So here you have the core of the financial crisis... valuation of mortgage related securities... and nobody thought it useful to create transparency for investors...

Unfortunately Pres-O has perpetuated in the financial system the garbage he criticized between federal regulators and the oil industry...

His regulators continue full subservience to the banks... he dines with Jamie Dimon repeatedly... he laments the high unemployment rate but has authorized NO programs of any substance.

Shouldn't Americans think it odd that we give $50 billion to Greece without Congressional authorization but have almost nothing for small American firms?

The people have just begun to send a signal to Washington with Sen Bennett's total failure at his convention.

Practically no one could stomach the thought of that bank apologist being reelected... slunk out with his tail between his legs... adios bank moneytaker...

Who falls next?

Gonna be a lot incumbent defeats ... no matter how much corporate money they raise... the people want them out...

And ZimBen... who has relied on the corporate bought members of the Senate for cover... will lose much of his support...

New days coming for the Fed...

Oh and the Euro bank meltdown?

Better hop on that one Lord Geithner... your facile words of calm are daily belied by market participants...

Goldman, SocGen, Merrill, Deutsche Bank, Calyon, UBS... the same crowd of thieves that clustered around AIG...

Lehman was a simple precursor of contangion... cause the Euro system is rotten to the core...