Federal Reserve: fact or conspiracy?

zdreg · Jan 2, 2014

Quote from piezoe:

Of course the Fed did step in and was instrumental in assuring the survival of a few major banks, and along with them the assets of some of the "elites" you refer to. But this is not all they did, and to assume such is to greatly understate the Fed's accomplishments. They are the Regulator of banks in the U.S., and one of their extremely important functions is the maintaining of stability and confidence in the banking system. They would have been derelict had they done nothing and instead let the banks fail! On the other hand, they can be rightly faulted for not stepping in far sooner to halt rampant mortgage abuses. The Greenspan Fed, of which Bernanke was a part, was, after all, a cog in the insanity machine that led to the 2008 financial crisis. Nevertheless, the Fed was instrumental in bringing the U.S. back from the brink of financial disaster, even if it was a crisis largely made of their own inaction. They acted at least three years later then they should have, but they eventually did act!

Saving major banks, and those elites you mentioned, was just the tip of the iceberg. They also saved the pension funds and retirement accounts of millions of Americans with IRA's and 401Ks, 403bs, etc. They also helped rescue the U.S.Construction Industry, the U.S. Real Estate Industry, the U.S. Automobile Industry, and restored value to trillions of dollars of real estate by bringing down both short and long term interest rates to historic lows.

I did not think that some of the choices made by the Fed and the Treasury were the best choices they might have made. The Treasury and Fed together held all he cards, and as a pre-condition they should have insisted on compensation reforms to remove the incentives for a repeat performance. And in hindsight, I think Soros was right when he said it would be much better to replenish the Banks' equity without having the Fed buy the banks' otherwise unmarketable paper. They should have left that paper with the banks, and let the banks work through their losses over time, leaving the equity holders to pass ultimate judgement on the quality of the banks' management. Paulson, I believe, was more the force behind that poor decision than was Bernanke.

Regardless, you vastly understate the role of the Fed in bringing the country back from the brink of financial collapse.

the correct solution would have been to breakup the big banks. instead the big banks allocate credit upon direction from washington. this is typical of socialist countries.

piezoe · Jan 2, 2014

Quote from ammo:

do you think they were honest in blaming the problem on the subprime mortgages ,how many were there a billion ,3 billion 30 billion dollars worth?

The problem was amplified by these subprimes being incorporated into many more billions of securitized loan products. The components of these were not all subprime, but it became impossible to place a value on these products when the market for them dried up. The problem was further amplified by the huge unregulated swaps' market "insuring" these products.

piezoe · Jan 2, 2014

Quote from zdreg:

the correct solution would have been to breakup the big banks.

It has been considered by many. Reversing time and going back to Glass Steagall would cause a lot of unwinding and divestment and lead to banks compartmentalized, as before, into investment and commercial institutions. It would make work for a lot of lawyers. But with internet and branch banking across state and national boundaries banks would still be large.

zdreg · Jan 2, 2014

Quote from piezoe:

It has been considered by many. Reversing time and going back to Glass Steagall would cause a lot of unwinding and divestment and lead to smaller banks compartmentalized, as before, into investment and commercial banking. It would make work for a lot of lawyers.

in this case, let the lawyers be paid. it would be good for the economy.

ammo · Jan 2, 2014

Quote from ammo:

do you think they were honest in blaming the problem on the subprime mortgages ,how many were there a billion ,3 billion 30 billion dollars worth?

The problem was amplified by these subprimes being incorporated into many more billions of securitized loan products. The components of these were not all subprime, but it became impossible to place a value on these products when the market for them dried up. The problem was further amplified by the huge unregulated swaps' market "insuring" these products.

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piezoe

Registered: Jan 2006
Posts: 5768

New Post 01-02-14 06:48 PM

Quote from zdreg:

the correct solution would have been to breakup the big banks.

It has been considered by many. Reversing time and going back to Glass Steagall would cause a lot of unwinding and divestment and lead to banks compartmentalized, as before, into investment and commercial institutions. It would make work for a lot of lawyers. But with internet and branch banking across state and national boundaries banks would still be large.

piezoe, you sound like A BANKER mired in the shit they have sprawled out and just trying to live with yourself till the bad dream ends
you can get a life and find a means to support it ,or get a job and let it suck the life out of life

xelite777 · Jan 3, 2014

Quote from piezoe:

It has been considered by many. Reversing time and going back to Glass Steagall would cause a lot of unwinding and divestment and lead to banks compartmentalized, as before, into investment and commercial institutions. It would make work for a lot of lawyers. But with internet and branch banking across state and national boundaries banks would still be large.

Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah...

Piezoe, repeat after me : the Fed IS the problem!

Again : the Fed IS the problem!

One more time : the Fed IS the problem!

Ok, one more time, just in case you didn't get it right the first time: the Fed IS the problem!

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered"
Thomas Jefferson, third President of the United States.

And, oh boy, are we getting there fast.

pairsarbtooo · Jan 3, 2014

I wake up tomorrow, make money or not lose as much.

I complete my first book this year.

I continue to enhance my health and the lives of those that want to assimilate my experiences as advice.

I legitimately compete in a mainstream professional sport this year.

I expand the relationship with my family and all of my significant connections.

I realize that it doesn't matter if the Fed is evil, or good. All that matters is my plan to handle the material facts as they affect me, and maintain my positive, wealth developing demeanor.

My intention is to communicate facts as I understand them at present. I live and embrace inconsistency when I learn more valuable facts. I modify my thinking and actions based on better information.

When I contribute to these threads my intention is to gain support for what I believe to be the material facts of our current system, and begin support in each person for their own version of what they need to do to prosper.

Happy New Year. We can prosper well in these times. Some might say we are in the perfect business to directly do just that.

Hansel H · Jan 3, 2014

Quote from piezoe:

[B
Regardless, you vastly understate the role of the Fed in bringing the country back from the brink of financial collapse. [/B]

Perhaps you understate the role the Fed played in bringing the county TO the brink of financial collapse.

The FED is a self-serving instrument with operatives in every advanced nation on Earth that attempts to stabilize the economy just enough that in the long run they and their UK based partners in crime can bleed the productive classes for a maximum net gain.

They have to take care not to kill the golden geese whose eggs are currently being stored in London, England.

Inspector General for the Fed being evasive:

http://www.youtube.com/watch?v=ceqIEllQasA

pairsarbtooo · Jan 3, 2014

Quote from Hansel H:

Perhaps you understate the role the Fed played in bringing the county TO the brink of financial collapse.

The FED is a self-serving instrument with operatives in every advanced nation on Earth that attempts to stabilize the economy just enough that in the long run they and their UK based partners in crime can bleed the productive classes for a maximum net gain.

They have to take care not to kill the golden geese whose eggs are currently being stored in London, England.

Inspector General for the Fed being evasive:

http://www.youtube.com/watch?v=ceqIEllQasA

Basically the summary of the current facts of the system. Well done.

jsp326 · Jan 3, 2014

Quote from Hansel H:

Perhaps you understate the role the Fed played in bringing the county TO the brink of financial collapse.

The FED is a self-serving instrument with operatives in every advanced nation on Earth that attempts to stabilize the economy just enough that in the long run they and their UK based partners in crime can bleed the productive classes for a maximum net gain.

They have to take care not to kill the golden geese whose eggs are currently being stored in London, England.

Inspector General for the Fed being evasive:

http://www.youtube.com/watch?v=ceqIEllQasA

+1. This is like a kid secretly starting a fire in the neighborhood park -- only to rush out with pails of water once people notice it. The Fed is supposed to take credit for preventing something it helped start? In what kind of backasswards world does that happen?