Fed Monetizes 1 Trillion in MBS and Treasuries for 2013

[jem]

note... as of april Tarp was still out over 100 billion of hte 414 billion they say it cost.

and they say that they never intended to recover 46 billion of foreclosure relief.

so to me it looks like the govt is still cooking the books.

Plus as stated before if this "payback" includes those mbs... I doubt the value they give them right now is anywhere near the fair market value.

 

[jem]

also note... I believe the govt is handing out a trillion a year with fha loans..

Those loans have very little cushion... they start with 3.5 percent down... but the sellers frequently rebated that cost.

until that trillion a year is safe... this is all a bunch of shannigans.

What if we were at real interest rates...
what if we were not devaluing out dollar.

 

[Tsing Tao]

Quote from ktm:

Not true.

When did I say this is anything like TARP? The only similarity is that it's a gov't program designed to stabilize the economy and start things growing again. That one made money and worked pretty well. So why are so many people angry about the Fed doing what it's doing?

The FED is making money hand over fist for the gov't every day as we pay ourselves interest. They aren't floating anything with 85B a month. They are buying Treasuries as necessary to keep interest rates at historic lows - and some MBS. The last few auctions have been seriously oversubscribed, so I doubt the Fed is heavily buying when others are doing the job for them.

I think a lot of you are just short the market and are pissed that it won't drop for you. I see a lot of blaming the Fed for "propping up the market". Look at trimtabs for inflows if you want answers and not rhetoric. There's trillions on the sidelines waiting to be put to work and a lot of funds are buying this market - or at least not selling it with any real zest right now. Believe me, we can and will drop like a stone when the news warrants.

I'm not pissed because I am short, nor am I even short. But you are a fool if you think the Fed crowding out everyone else in the debt market and flooding over 1 Trillion into the market every year is a good thing - especially when it is yielding such meagre economic results as we're getting now.

How do you suppose this will be unwound? Or will it?

You sound like a Bernanke apologist.

 

[CT10Gov]

Quote from Tsing Tao:

How do you suppose this will be unwound? Or will it?

Why would they unwind those assets? Those are bond-like; They will eventually mature or be redeemed.

 

[marketsurfer]

The Mother of all Bull Markets if Obama relaxes his tax stance.

 

[denner]

Quote from Tsing Tao:

I'm not pissed because I am short, nor am I even short. But you are a fool if you think the Fed crowding out everyone else in the debt market and flooding over 1 Trillion into the market every year is a good thing - especially when it is yielding such meagre economic results as we're getting now.

How do you suppose this will be unwound? Or will it?

You sound like a Bernanke apologist.

LOL, seriously, these threads never change. Achilles28 and Tsing Tao throw a bit of truth syrum into the mix and the usual suspects start their routine of put downs. Anyone who is critical of the Fed is a "disgruntled short seller".

None of the apologists can begin to wrap their heads around how the Fed will unwind this, but then again they believe all the bullshit they are being fed....

Just like interest rates are at all time lows because of "great investor demand". There must be something in the water.

 

[denner]

Quote from marketsurfer:

The Mother of all Bull Markets if Obama relaxes his tax stance.

It won't mean shit if asset confiscation becomes a part of a longer term plan to "reduce the deficit".

 

[denner]

Quote from ktm:

Look at trimtabs for inflows if you want answers and not rhetoric. There's trillions on the sidelines waiting to be put to work and a lot of funds are buying this market - or at least not selling it with any real zest right now. Believe me, we can and will drop like a stone when the news warrants.

Biederman has gone on record for the past three years saying the fund inflows have become at complete odds with the market's run-up. Hell, he sounds more conspiratorial than anybody on this thread.

"trillions on the sidelines". I've heard that line for as long as I can remember...didn't matter if the market was up, down or sideways...always those billions and trillions on the sidelines.

 

[achilles28]

Quote from ktm:

Carnival barking and drooling won't get it done...is that what you've been doing since 2008 on this topic?

Four years is nothing.

Study some history and you'll see periods of 20-30 years or more where the US economy went nowhere, nor did the markets. You act like this giant real estate bubble popping is supposed to be fixed when, in a year or two?

Right.

Read this very s-l-o-w-l-y:

The US does Italy, Spain, Portugal and Greece in 4 Years. We don't have "20-30 years" to sit around with our thumbs up our ass.

 

[spencer]

Quote from Tsing Tao:

The Keynesian clowns would like you to believe we can grow our way out of this somehow.

Obviously you are not an American, and you probably hate America. I saw your other thread, and did not care to comment. But I will just add that you are extremely emotional and show no traits of an excellent trader, and if you think the US (and the world) will not grow - and you want to bet against it - go ahead. I would suggest going to sleep on a runway at Kennedy instead. I am very interested to see what your reaction will be to all of this 3 years from now.

You say the GDP has not even changed. I guess you haven't even bothered to look at actual GDP, let alone compared to the world, instead of just looking at the rates of change. http://www.usgovernmentspending.com/us_gdp_history