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Recent Recommendations
Is that Dudley as in Doright?
I was always rooting for Snidely Whiplash myself.
CalculatedRisk,
Why are they still playing alphabet soup scams.. it is getting a bit boring.
I want numerical and hexadecimal scams..
More Whipsaw ...
New Day ... ?
New Rules ...
Dithering! We need more dithering! There are at least a dozen people left in the United States whose eyes haven't glazed over yet.
Wonder if the Chinese meeting had anything to do with
the Fed trying to patch its bleeding balance sheet ?
Dudley wants his cut from the banks who bought this junk in the last few months specifically to game the taxpayer. They can't scream bloody murder: "You promised we could steal free money".
Does it mean the FED is realizing that paying cash for junk is not a good idea? Or the FED saving its money to pump treasuries?
Float trial green shoot balloon. Take it away and see what happens. The bond market is helping the treasury with its decision making.
With mortgage rates ripping higher that should give lenders a little extra incentive to get off their asses and liquidate those REOs.
Should be interesting to see how the fledgling jittery market behaves without a backstop in every corner.
I Wonder what the The "Banksters" Clearing House LLC will have to say about this ?
PPIP comments over the past few days, and where those comments are coming from, tell be the insular nature of Fed policy discussion is no longer exclusively reliant on insiders, if indeed it was formerly.
Sad a Fed governor is so very late to this game. Clear to me that Dudley and others are playing catch-up.
distressed bubble-era securities backed by mortgages
Although "legacy assets" is shorter, I prefer this description of the banks' assets.
blabbering to depress rates.
Don't worry they will just ask the Magic 8-Ball what to do.
Oh hell, broward. Probably.
Pigged on the last thread, but some of you might find this of interest:
Yield Curve: Green-Shoot? Weed?
Riiiiiight. Ben's REALLY SERIOUS THIS TIME about taking away the punch bowl.
Toxic Rate Adjustable Securitized Heirlooms.
Watch them squirm as prices for the shit they loaded up on drop to a level the Fed sees as "doable". "In our significant judgment, the taxpayer should finance these at 99 cents on the dollar..." "We'll give you a nickel. Any other offers? Didn't think so."
"Kung Fu" Actor David Carradine Found Dead in Bangkok
"Contrast marked the life of David Carradine, who became a star playing the austere and virtuous warrior Caine on TV's "Kung Fu" even as his personal life was an excess of alcohol and drugs."
Nothing like me, I swear
People who bought financials from March to June were pumped and dumped by the Fed.
I wonder if you can sue the Fed for securities fraud? RICO? It all seems like a big boiler room to re-capitalize banks.
pigged...
Comrade-Dope jg (profile) wrote on Thu, 6/4/2009 - 5:05 pm
Yep, I agree, 'Social Security Plus' for your 401(k) and IRAs -- i.e., you can only invest your IRA and 401(k) in Treasury bonds/bills -- is coming.
Foreign-held reserves of our legal tender is a relatively new phenomenon. It wasn't that long ago (though obviously before my time) that the primary holder of US assets was in fact the US. During most of that time we were a creditor, in fact the world's largest creditor. When foreign interests started buying our debt, suddenly we were able to play with OPM. And play we did. This is a cycle, and we reached one extreme again. "Forced" ownership of US assets by US citizens lessens the moral hazard of OPM and gradually underwrites the currency with value again, currency which we have been given on credit for the past 30 years from the world as a whole. We are, or soon will be, no longer credit-worthy and will have to pay back the future earnings we've already claimed for ourselves. IMHO politicians will spend until we've used up all of our loan collateral and the Fed says stop.
We shall delay any haircut for our bondholders, whatever the cost may be,
we shall dither in China,
we shall dither on the exchange floors,
we shall dither in the courts and in the press conferences,
we shall never inquire as to the performance of any loan, nor recognize any impairment of its value on any balance sheet!
We shall never surrender!
Oompa, Loompa, doom-pa-dee-da
If you're not greedy, you will go far
You will live in happiness too
Like the Oompa Loompa doom-pa-dee-do
Moe-Zill-Ohhhhhhhhhh (Haven't been able to be on today, hope this is non-redundant)
blabbering to depress rates.
Jawboning of an ass.
The suicide story is always preferable to the auto-asphyxiation rumor.
David Carradine was awesome, he had a cameo in "Crank 2" earlier this year.
"People who bought financials from March to June were pumped and dumped by the Fed.
I wonder if you can sue the Fed for securities fraud? RICO? It all seems like a big boiler room to re-capitalize banks."
~~~~
Only when we get our own Sovereign currency, not bankster generated credit will this Ponzi Scheme stop ...
Time to put the Fed in the UST and print our own money ....
The banks can then borrow from us, not the other way around ...
A lot of the alphabet soup programs are no longer necessary imo Why? AIG!
The fed and treasury can surgically bailout most any bank by funneling money through AIG. For all we know, AIG is still writing CDS that are designed to lose money in order to recapitalize banks.
It's all a big sham. Be it insane leverage, mark to myth, bailouts, etc. The biggest swindle in history. The greatest story never told.
Angry Saver
A lot of the alphabet soup programs are no longer necessary imo Why? AIG!
The fed and treasury can surgically bailout most any bank by funneling money through AIG. For all we know, AIG is still writing CDS that are designed to lose money in order to recapitalizing banks.
It's all a big sham. Be it insane leverage, mark to myth, bailouts, etc. The biggest swindle in history. The greatest story never told.
~~~~
Exactly ...
Maybe "Kung Fu" will show up on cable somewhere...
Since the yield curve is record steep, does that mean the economy is record good?
Yah-hoo! Super US economy on steriods!!!!!!
Surely they are nowhere near ready to let the market clear on its own. Maybe, just maybe, the Fed has decided to juice the CMBS purchases instead ? That might be even more worrisome at this point, to bail out the pension funds and insurers.
Angry Saver
Here is a great article you might want to read about the situation ...
Bond Market Blowout By Mike Whitney
Bond Market Blowout By Mike Whitney « Dandelion Salad
It is about much more than the bond market and well worth a read ...
The image of a helicopter leaving a Saigon rooftop before the complete fall comes to mind.
Bond Market Blowout
And as predicted by me in Oct, 2008 here on CR.
HaloScan.com - Comments
Farnsworth: "Who are those horrible orange creatures over there?"
Glurmo: "Why those are the Grunka Lunkas. They work here in the Slurm factory."
Farnsworth: "Tell them I hate them!"
I'M BACK
YouTube - walstreetpro2 Channel
Walstreetpro2's best work ever.
mmckinl,
Thanks for the heads up. I'm a regular reader and fan of Whitney. But I will say he changes his views with the markets. A week or two ago he wrote a piece on deflation. Now, as rates have bumped up, he suddenly sees inflation. That's not helpful analysis.
My personal view is that the bond markets (10 yr TIPS) have it pegged about right. 2% inflation and low real growth of less than 2%. I could be wrong though. We are definitely going where no fed or administration has gone before.
FWIW, my forecast is based on demand. I think demand is seriously injured. Banks and speculators may have a field day blowing bubbles with central bank liquidity, but the majority are tapped out.
A party on wall street won't change the funeral taking place on main street.
Hugo Chavez Jokes That "Comrade Obama" Is Making Him Look A Right Winger
Bond Market Blowout
He's being overly-dramatic. 4% for 10 years is pretty cheap IMO.
The fed giveth and the fed taketh away; blessed be the name of the fed.
At the low end the small jumps are huge as percentage. Can you say leverage?
He's being overly-dramatic. 4% for 10 years is pretty cheap IMO
1994 Bond blowout was a $1 trillion loss for bond holders.
I'd expect something 4-5X bigger this time.
If you acknowledge that we're in "unknown waters", why would you hold TIPS?
Unknown waters == risk, by definition.
Angry Saver
The higher bond rates are a supply and demand phenomena ...
Too much supply for too few buyers ...
It is not caused by inflation ...
Ben's REALLY SERIOUS THIS TIME about taking away the punch bowl.
Perhaps the Fed found out the people view his punch bowl as a toilet throne, and don't want to drink.
broward -"why would you hold TIPS?"
Why not? Another safer more dynamic instrument I haven't heard of ?
"your risk chains me hostage"
- d. boon
Sim Sim Sala Bim......
Before becoming the Fed's chief trader in 2007, Dudley was chief economist at Goldman Sachs for 10 years, a role for which he was ranked No. 1 in Institutional Investor magazine's league table of economists several times.
He had joined Goldman Sachs in 1986, working in a number of capacities, including as former Treasury Secretary Robert Rubin's senior economic adviser.
Prior to his years at Goldman, Dudley was in charge of regulatory analysis at J.P. Morgan, where he co-authored a pamphlet that advocated repealing the Glass-Steagall Act
"Dudley was chief economist at Goldman Sachs for 10 years"
All roads lead to the hive!
"Dudley was chief economist at Goldman Sachs for 10 years"
What are the chances Goldman holds boatloads of RMBS ?
lol !
mmckinl,
The higher bond rates are a supply and demand phenomena ...
Too much supply for too few buyers ...
It is not caused by inflation ...
I understand your point about the supply and demand dynamic, but the TIPS spreads are important as they indicate inflation AND growth expectations. The fed won't allow an outright deflationary bust and I don't think the consumer has the credit access or earnings ability to push inflation. The calls for hyper-inflation and a bond market blow-out don't make sense to me.
The TIPS expectations look reasonable to me. I don't anticipate a bond market blow out. Short term rates are near zero and I expect that to continue for a good while, but who knows for sure.
A retail green chute via BR.