Quantitative Easing Only only works when you are the only one doing it.
- Thread starter jem
- Start date
who elected those guys anyway?
you are 100% wrong about this.
When the FED was buying buy trillions of bad assets with Pimco's help they allocated trillions of assets to their crony friends.
When they allow wall street banks to borrow cheaper than other they allocate.
When they allow wall street banks to sell bonds they allocate.
I don't think you have the tiniest grasp of how the FED makes certain cronies rich and powerful.
When the FED helps Buffett buy pieces of banks...
When the FED helps BofA buy Merrill Lynch.
I can go on and on.
Then those on the receiving end have the cash to buy assets and politician and the cycle starts all over again.
When the FED was buying buy trillions of bad assets with Pimco's help they allocated trillions of assets to their crony friends.
When they allow wall street banks to borrow cheaper than other they allocate.
When they allow wall street banks to sell bonds they allocate.
I don't think you have the tiniest grasp of how the FED makes certain cronies rich and powerful.
When the FED helps Buffett buy pieces of banks...
When the FED helps BofA buy Merrill Lynch.
I can go on and on.
Then those on the receiving end have the cash to buy assets and politician and the cycle starts all over again.
Ok, they've gone through three qe's and kept fed funds at zero for over half a decade and still can't get to escape velocity.
How many times did Reagan have to enact supply side economics until the economy turned around.
There's the answer to all your questions. If you can face it.
coming from a guy who gives the soros lefty or banker slant to everything he writes (save agw) ... thats an endorsement for the fact of my facts.
but... we can also do a check.. for instance here is how one crony... and fed spokesmodel puppet like Buffett did well.
and by the way... buying up trillions of assets with money that was created with the push of the button... is electronically "printing" money. Trillions of it.
http://learnbonds.com/110429/pimco-fed-deal/
http://www.cnbc.com/2013/09/27/pimco-shook-hands-with-the-fedand-made-a-killing.html
* In December 2008, the Fed hired Pimco, along with three other big Wall Street firms, to implement enormous purchases of agency MBS to keep interest rates low and spur the U.S. economy.
* Over the next few years, Pimco repeatedly invested heavily in those same securities - far more than other big investors, even considering its size.
* Pimco's mortgage plays in 2009 and 2012 - when Fed buying was heavy - handed the firm and investors in the Total Return Fund a gain of $10 billion, excluding net investment flows, according to Reuters estimates.
There is no evidence of illegality or impropriety in Pimco's actions. Pimco says that it kept its employees who were helping the Fed at arm's length from those investing for its funds, and that its bond-buying bet was conceived before the Fed's program was begun. The Fed says it implemented and enforced strict controls over the trading done by the firms.
But Pimco's ability to enrich its returns by following the Fed does illustrate how the Fed's easy-money policy over the past five years has produced outsized winners. As one of them, Pimco benefited enormously from the very Fed policies that it was helping to implement.
but... we can also do a check.. for instance here is how one crony... and fed spokesmodel puppet like Buffett did well.
and by the way... buying up trillions of assets with money that was created with the push of the button... is electronically "printing" money. Trillions of it.
http://learnbonds.com/110429/pimco-fed-deal/
http://www.cnbc.com/2013/09/27/pimco-shook-hands-with-the-fedand-made-a-killing.html
* In December 2008, the Fed hired Pimco, along with three other big Wall Street firms, to implement enormous purchases of agency MBS to keep interest rates low and spur the U.S. economy.
* Over the next few years, Pimco repeatedly invested heavily in those same securities - far more than other big investors, even considering its size.
* Pimco's mortgage plays in 2009 and 2012 - when Fed buying was heavy - handed the firm and investors in the Total Return Fund a gain of $10 billion, excluding net investment flows, according to Reuters estimates.
There is no evidence of illegality or impropriety in Pimco's actions. Pimco says that it kept its employees who were helping the Fed at arm's length from those investing for its funds, and that its bond-buying bet was conceived before the Fed's program was begun. The Fed says it implemented and enforced strict controls over the trading done by the firms.
But Pimco's ability to enrich its returns by following the Fed does illustrate how the Fed's easy-money policy over the past five years has produced outsized winners. As one of them, Pimco benefited enormously from the very Fed policies that it was helping to implement.
Are you writing for zero hedge now?If only you had your facts straight, you might get on with the Atlantic.
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correct... they and were worth nothing or next to nothing and on their way to nothing. had the fed not started buying them and giving their owners windfall zombie bond prophets.
had I been a crony I and known the FED was going to buy them, I could have purchased them for next to nothing and then held until just before the last tranche was purchased by the Fed.
had I been a crony I and known the FED was going to buy them, I could have purchased them for next to nothing and then held until just before the last tranche was purchased by the Fed.
You were probably going on about how risky and overpriced these agency MBSs were when you should have been buying them.
Latest Fed lunacy:
While visiting Australia, Cleveland Fed President Loretta Mester said that helicopter money” could be considered to stimulate America’s economy if conventional monetary policy fails.
The same crowd that has been defending the fed for eight years and swearing that qe isn't that evil thing of printing money will do a u-turn and begin claiming that printing money isn't so bad. In fact, it's a good thing. (when a democrat is president, of course)
Monetizing and printing money is one of the most destructive economic forces on earth. It had a death penalty attached to it back at the beginning of our country.
But in our new age of the willing suspension of disbelief, they're gonna give you these reasons.
1. we owe it to ourself!!!!
2. its just like banks creating credit for projects and that's what the fed is doing.
Dudes with dicks are women and printing money is economic brilliance. And anyone who doesn't go along is uneducated, anti intellectual, and probably lives in the south with a confederate flag.
We're right on the cusp of it. Keep watch.
While visiting Australia, Cleveland Fed President Loretta Mester said that helicopter money” could be considered to stimulate America’s economy if conventional monetary policy fails.
The same crowd that has been defending the fed for eight years and swearing that qe isn't that evil thing of printing money will do a u-turn and begin claiming that printing money isn't so bad. In fact, it's a good thing. (when a democrat is president, of course)
Monetizing and printing money is one of the most destructive economic forces on earth. It had a death penalty attached to it back at the beginning of our country.
But in our new age of the willing suspension of disbelief, they're gonna give you these reasons.
1. we owe it to ourself!!!!
2. its just like banks creating credit for projects and that's what the fed is doing.
Dudes with dicks are women and printing money is economic brilliance. And anyone who doesn't go along is uneducated, anti intellectual, and probably lives in the south with a confederate flag.
We're right on the cusp of it. Keep watch.