Run on Federal Reserve Bank????

T

Trendytrader

I've been looking over the dramatically increasing rate of borrowing from the FED that is taking place through its security lending facility. At the current and increasing rate the FED will hit a limit also in that it simple will not have the treasury securities available to continue to swap CDOs/MBSs and other BS securities from the brokers & bankers.

The Fed's holdings of U.S. Treasury securities fell by a daily average of $39.9 billion to $589.1 billion. That's down from $713.4 billion four weeks ago.


Then what will they do?

http://www.ny.frb.org/index.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0cOlXO2w5JM&refer=home

http://www.reuters.com/article/marketsNews/idUSN0330671820080403
 
Quote from Trendytrader:

I've been looking over the dramatically increasing rate of borrowing from the FED that is taking place through its security lending facility. At the current and increasing rate the FED will hit a limit also in that it simple will not have the treasury securities available to continue to swap CDOs/MBSs and other BS securities from the brokers & bankers.

The Fed's holdings of U.S. Treasury securities fell by a daily average of $39.9 billion to $589.1 billion. That's down from $713.4 billion four weeks ago.


Then what will they do?

http://www.ny.frb.org/index.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0cOlXO2w5JM&refer=home

http://www.reuters.com/article/marketsNews/idUSN0330671820080403
More...



Welcome to Zimbabwe!!

http://www.aneki.com/inflation.html
 
Quote from Trendytrader:

I've been looking over the dramatically increasing rate of borrowing from the FED that is taking place through its security lending facility.
More...
This is what is called "created" DEPENDENCY!

Created problems with a privately owned FED coming in as the solution (with added new powers in the days ahead) - they played the US financial/banking sector like a fiddle. :eek:
 
Looks like the run on the FED is an issue after all. Now they want the Treasury to borrow more money than they need!!!! THEY ARE NUTS!!!


http://www.reuters.com/article/bondsNews/idUSL0986366320080409


"... One option being considered is to have the Treasury borrow more money than it needs to fund the government and keep the proceeds on deposit at the Federal Reserve, the report said.

Other options include issuing debt under the Federal Reserve's name instead of the Treasury's, and asking Congress for immediate authority for the Fed to pay interest on commercial bank reserves rather than waiting until a law enacted earlier allows it to in 2011, according to the newspaper...."
 
one step closer to value money.. watching this unfold will be interesting

maybe breaking the credit system will be this administration's great contribution to human kind
 
Who wants to bet at some point, the fed will lend them a few 100 billion and then they won't be able to repay it. Thanks King George
 
US banks are bankrupt. The latest figures have non-borrowed reserves moving higher again this week.

http://www.federalreserve.gov/releases/h3/Current/

Reserves of depository institutions
-------------- ------------------------
Date Total(2) Non- Required Monetary
borrowed (3) base(4)
-------------------------------------------------------------------------
Month(5)
2007-Mar. 40712 40658 39094 813857

Apr. 42541 42462 40954 815897
May 44051 43948 42598 818511
June 43737 43549 41986 820028

July 42692 42430 41055 821918
Aug. 44674 43699 39846 823039
Sep. 42359 40792 40633 820020

Oct. 41640 41386 40206 821908
Nov. 42039 41673 40343 826710
Dec. 42809 27379 41057 829808

2008-Jan. 44061 -1599 42427 824436
Feb. 42854 -17303 41145 821894
Mar. p 42710 -51813 39717 825495
2 weeks ending(6)
2008-Feb. 13 40985 -19117 39326 820081
27 44915 -15283 43116 823478

Mar. 12 40576 -19654 39166 822599
26 44573 -61692 39952 828280

Apr. 9p 42613 -101337 40377 824648
 
Quote from Trendytrader:

I've been looking over the dramatically increasing rate of borrowing from the FED that is taking place through its security lending facility. At the current and increasing rate the FED will hit a limit also in that it simple will not have the treasury securities available to continue to swap CDOs/MBSs and other BS securities from the brokers & bankers.
More...

Another two months have passed and another $100B of treasury bonds have been swapped for boats, houses and cars and anything else the investment banks don't want. At this rate all of the FEDs treasury capital will be gone by the end of 2008!!!

http://www.ny.frb.org/markets/soma/sysopen_accholdings.html

http://www.federalreserve.gov/releases/h3/Current/

Then what??? The word on the street is that a number of regional banks will fail in the next few months not too mention LEH.
 
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