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Franky, I don't hear much backlash towards the Fed, at least not from ordinary people. There's a fair amount of backlash towards the spending of the administration however.
Abolish the Fed, let the economy run its own course
Fed has oversite authority over the banks it lent to does it not.........
The Fed doesn't lend to individuals, how would it take your house if you cannot pay?
Fed has oversite authority over the banks it lent to does it not.........
Sure.....so?
The Fed doesn't lend to individuals, how would it take your house if you cannot pay?
Don't know much at all do you? Leverage rules
Dubya's admin changed it from 12-1 to 35+-1 meaning for every billion they could loan out $12 billion the old way but $35+ billion the new way, several firms had over 35-1 leverage!
Agencys 04 Rule Let Banks Pile Up New Debt
"They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments. "
http://www.nytimes.com/2008/10/03/business/03sec.html?pagewanted=all
The SEC Rule That Broke Wall Street
"What this meant was that a well-capitalized U.S. bank required to hold 10 cents of capital on for every $1 of commercial loans it maderepresenting a 10 percent capital requirementwould only have to hold 5 cents for each mortgage it made or bought. The deal was even better for mortgage bonds backed by Fannie Mae or Freddie Mac. They required regulatory capital of just 2 cents on the dollar. "
The SEC Rule That Broke Wall Street
The Fed doesn't lend to individuals, how would it take your house if you cannot pay?
Don't know much at all do you? Leverage rules
Dubya's admin changed it from 12-1 to 35+-1 meaning for every billion they could loan out $12 billion the old way but $35+ billion the new way, several firms had over 35-1 leverage!
Agencys 04 Rule Let Banks Pile Up New Debt
"They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments. "
http://www.nytimes.com/2008/10/03/business/03sec.html?pagewanted=all
The SEC Rule That Broke Wall Street
"What this meant was that a well-capitalized U.S. bank required to hold 10 cents of capital on for every $1 of commercial loans it maderepresenting a 10 percent capital requirementwould only have to hold 5 cents for each mortgage it made or bought. The deal was even better for mortgage bonds backed by Fannie Mae or Freddie Mac. They required regulatory capital of just 2 cents on the dollar. "
The SEC Rule That Broke Wall Street
Don't know how to read, do you?
The Fed doesn't lend to individuals, how would it take your house if you cannot pay?
Don't know much at all do you? Leverage rules
Dubya's admin changed it from 12-1 to 35+-1 meaning for every billion they could loan out $12 billion the old way but $35+ billion the new way, several firms had over 35-1 leverage!
Agencys 04 Rule Let Banks Pile Up New Debt
"They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments. "
http://www.nytimes.com/2008/10/03/business/03sec.html?pagewanted=all
The SEC Rule That Broke Wall Street
"What this meant was that a well-capitalized U.S. bank required to hold 10 cents of capital on for every $1 of commercial loans it maderepresenting a 10 percent capital requirementwould only have to hold 5 cents for each mortgage it made or bought. The deal was even better for mortgage bonds backed by Fannie Mae or Freddie Mac. They required regulatory capital of just 2 cents on the dollar. "
The SEC Rule That Broke Wall Street
Don't know how to read, do you?
The Fed doesn't lend to individuals, how would it take your house if you cannot pay?
Weird, you responded to THIS
With this
"The Fed doesn't lend to individuals, how would it take your house if you cannot pay?"
Pointing out banks do the thing the pic says is wrong? lol
The Federal Reserve's recent and unprecedented actions in the realm of monetary policy have provoked a backlash among the American people. Trillions of dollars worth of loans and guarantees have been provided to Wall Street firms, while Main Street Americans suffocate under harsh taxation, the prospect of higher debt levels and increasing inflation. These events have awakened many Americans to problems with the Fed's loose monetary policy, the bubbles it has created in the past and the potential hyperinflation it might cause in the future.
One of the fallacies of modern economics is the idea that a central bank is required in order to keep inflation low and promote economic growth. In reality, it is the central bank's monetary policy that causes inflation and depresses economic growth. Inflation is an increase in the supply of money, which in our day and age is directly caused or initiated by central banks. All other things being equal, inflation results in a rise in prices. A so-called "mild" rate of inflation of 3% per year leads to a 56% rise in prices over a 15-year period. Even a "low" rate of inflation of 2% per year leads to a 35% rise over that same period. How is that conducive to long-term growth?
Fed Up - Forbes.com
Ron Paul: Like father like son: The man has a difficult time distinguishing fact from fiction, myth from reality, himself from causes.The Federal Reserve's recent and unprecedented actions in the realm of monetary policy have provoked a backlash among the American people. Trillions of dollars worth of loans and guarantees have been provided to Wall Street firms, while Main Street Americans suffocate under harsh taxation, the prospect of higher debt levels and increasing inflation. These events have awakened many Americans to problems with the Fed's loose monetary policy, the bubbles it has created in the past and the potential hyperinflation it might cause in the future.
One of the fallacies of modern economics is the idea that a central bank is required in order to keep inflation low and promote economic growth. In reality, it is the central bank's monetary policy that causes inflation and depresses economic growth. Inflation is an increase in the supply of money, which in our day and age is directly caused or initiated by central banks. All other things being equal, inflation results in a rise in prices. A so-called "mild" rate of inflation of 3% per year leads to a 56% rise in prices over a 15-year period. Even a "low" rate of inflation of 2% per year leads to a 35% rise over that same period. How is that conducive to long-term growth?
Fed Up - Forbes.com
Don't know how to read, do you?
The Fed doesn't lend to individuals, how would it take your house if you cannot pay?
Weird, you responded to THIS
With this
"The Fed doesn't lend to individuals, how would it take your house if you cannot pay?"
Pointing out banks do the thing the pic says is wrong? lol
Since the Fed is the only entity that can create dollars out of nothing, how should I respond to that stupid pic?
Forbes Article Posted by Ron Paul: 5/15/2009 @ 7:10PM
[MENTION=11774]Kevin_Kennedy[/MENTION] post: 05-17-2009, 03:21 AM
Ron Paul: Like father like son: The man has a difficult time distinguishing fact from fiction, myth from reality, himself from causes.The Federal Reserve's recent and unprecedented actions in the realm of monetary policy have provoked a backlash among the American people. Trillions of dollars worth of loans and guarantees have been provided to Wall Street firms, while Main Street Americans suffocate under harsh taxation, the prospect of higher debt levels and increasing inflation. These events have awakened many Americans to problems with the Fed's loose monetary policy, the bubbles it has created in the past and the potential hyperinflation it might cause in the future.
One of the fallacies of modern economics is the idea that a central bank is required in order to keep inflation low and promote economic growth. In reality, it is the central bank's monetary policy that causes inflation and depresses economic growth. Inflation is an increase in the supply of money, which in our day and age is directly caused or initiated by central banks. All other things being equal, inflation results in a rise in prices. A so-called "mild" rate of inflation of 3% per year leads to a 56% rise in prices over a 15-year period. Even a "low" rate of inflation of 2% per year leads to a 35% rise over that same period. How is that conducive to long-term growth?
Fed Up - Forbes.com
"A true propagandist he starts out with crap like: "One of the fallacies of modern economics is the idea that...In reality, it is..."
"A common misconception is..."
then the hero populists ends with: "If Congress fails to scrutinize the Fed and the actions of its unelected bureaucrats, it will only have itself to blame as this countrys economy crashes and burns."
The country's economy has NOT crashed and burned. Like his dad and other charlatans of prophecy, Senator Paul throws enough crap into the fan hoping at some point some will stick and he can say "See, I told you so."
Forbes Article Posted by Ron Paul: 5/15/2009 @ 7:10PM
[MENTION=11774]Kevin_Kennedy[/MENTION] post: 05-17-2009, 03:21 AM
Ron Paul: Like father like son: The man has a difficult time distinguishing fact from fiction, myth from reality, himself from causes.
"A true propagandist he starts out with crap like: "One of the fallacies of modern economics is the idea that...In reality, it is..."
"A common misconception is..."
then the hero populists ends with: "If Congress fails to scrutinize the Fed and the actions of its unelected bureaucrats, it will only have itself to blame as this countrys economy crashes and burns."
The country's economy has NOT crashed and burned. Like his dad and other charlatans of prophecy, Senator Paul throws enough crap into the fan hoping at some point some will stick and he can say "See, I told you so."
yes, sad but true, the libertarians got it all wrong for years predicting that a huge inflation was coming. They did not realize that quantity and velocity both matter.
Still, it is disconcerting that the Fed which had no idea the crash was coming is somehow doing a good job of mitigating it.
Weird, you responded to THIS
With this
"The Fed doesn't lend to individuals, how would it take your house if you cannot pay?"
Pointing out banks do the thing the pic says is wrong? lol
Since the Fed is the only entity that can create dollars out of nothing, how should I respond to that stupid pic?
AGAIN, you don't understand how the leverage rule work, Got it. Dubya allowed them to more than triple in 2004 which flooded the market with cheap monies!
