Audit the Fed' bill gets new push under Trump

[achilles28]

The FED props up bond and asset prices. Look at the size of it's balance sheet.

If the FED were to be shuttered and assets disposed, yes, the market would tank like a fucking rock.

Asset prices would find a natural market equilibrium which is about 4.8 Trillion dollars south? of where we are today?

A bullish reaction would happen, as well. I think if the FED were dissolved, the major FED banks would have much more competition and we'd see genuine private sector loan creation rise dramatically. Instead of the current climate which sees FED Banks loaning money back to the FED and keeping it out of the real economy.

 

[W.J. Feathermaker III]

How much operating capital will you put at risk? Dont need to know dollars. Just need the percentage of your total bank roll, how much willing to lose before you pull the plug on the guess.

Maybe I'm over-reacting. I'm acting as if you had called for a closed door meeting with Congress and were making threats if they opened the books on your bank.

I'ld like to see them try that again and see what Trump does.

I've already made hard cash betting on Trump.

I just wanted to know how much you're willing to bet against him.

Seriously, what the hell is your problem?

 

[W.J. Feathermaker III]

The FED props up bond and asset prices. Look at the size of it's balance sheet.

If the FED were to be shuttered and assets disposed, yes, the market would tank like a fucking rock.

Asset prices would find a natural market equilibrium which is about 4.8 Trillion dollars south? of where we are today?

A bullish reaction would happen, as well. I think if the FED were dissolved, the major FED banks would have much more competition and we'd see genuine private sector loan creation rise dramatically. Instead of the current climate which sees FED Banks loaning money back to the FED and keeping it out of the real economy.

The bigger issue is that there are numerous central banks all engaged in something similar. Hence, one central bank terminates QE and two others take up the slack, etc, etc.

 

[Good1]

Seriously, what the hell is your problem?

As a rule of thumb, I have distaste for any dishonest person who frames guesswork as knowledge, conflating prediction with prophecy.

I over-reacted, as if Clubber Lang was going to call a closed session of Congress and threaten to blast the US economy back to 1930 if Congress proposed (passes law) to open the Fed's books.

I will let Trump react to that if/when it happens.

And I'll let Lang bet in favor of the Fed against Trump if that happens.

I was just curious how much he was going to put down.

 

[Good1]

Seriously, what the hell is your problem?

The tone of the prediction brought back terrible memories of prophetic predictions as illustrated in this youtube:

It's possible the market will react negatively to news that Fed books will be pryed open with a crow bar thinking that the Fed has artificially propped up 100% of the market since the bottom of 2009...and won't be able to hide it or continue.

But there are other factors that tell me that is guesswork, and ultimately a guess against Trump's macro management abilities.

Theres the market's reaction and a possible Fed reaction. Two different things.

If the Fed wants to react with threats, as somebody did threaten Congress in 2009, I'm guessing Trump will ask the Fed how much of their bankroll they are willing to bet on their threat.