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To be honest I can't recall if the FED bought the truly toxic stuff or not. But I can tell you that their investing decisions aren't sound.
Just reading by the FAQ about the MBS program:
"
What was the policy objective of the Federal Reserve's program to purchase agency mortgage-backed securities?
The goal of the program was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally."
Basically "theses investments suck so we buy them". Yeah, I doubt this kind of thing could ever lead to sound investments. FED's track record is abysmal, and my whole point was, it's not even their mission to invest effectively, so no surprise.
To be honest I can't recall if the FED bought the truly toxic stuff or not.
FAQs: MBS Purchase Program
The following frequently asked questions (FAQs) provide further information about the Federal Reserve’s $1.25 trillion program to purchase agency mortgage-backed securities (agency MBS). The MBS program completed its purchases on March 31, 2010, but will continue to settle transactions over the coming months. In connection with this activity, the Federal Reserve continues to use dollar roll and coupon swap transactions to facilitate an orderly settlement of the program’s purchases.
This agency MBS program is managed by the Federal Reserve Bank of New York at the direction of the Federal Open Market Committee (FOMC). The New York Fed will continue to work with two investment managers to support the implementation of the program.
Effective August 20, 2010
FAQs: MBS Purchase Program
Basically "theses investments suck so we buy them".
Why do you feel they suck? Is it because they're guaranteed?
Because they never miss an interest or principal payment?
Because they're a huge, liquid market?
Or is it something else? Maybe something you can't explain?
Yeah, I doubt this kind of thing could ever lead to sound investments. FED's track record is abysmal,
Are you basing this claim on the hundreds of billions in profits they've turned over to the US Treasury since 2008?
Did you read my post. The reason for buying them is to help a COLLAPSING ECONOMY.
Do you think this sounds like a sound investment? Me neither. What was their track record again?
Getting tired of repeating myself.
Their profits are tiny compared to their investment capital of 4 trillion.
The reason for buying them is to help a COLLAPSING ECONOMY.
Looks like it worked.
Do you think this sounds like a sound investment?
How is it unsound?
What was their track record again?
They gave the Treasury about $98 billion in 2015, $99 billion in 2014, $80 billion in 2013, $88 billion in 2012, $75 billion in 2011, $79 billion in 2010 and $47 billion in 2009.
Doesn't look like they've been losing money on their guaranteed bonds. What do you think?
Their profits are tiny compared to their investment capital of 4 trillion.
How high should their profits be?
All right, we are dealing with a class idiot, thanks for making it clear.
Please go and invest all your money into collapsing markets in order to boost their value. Invest the rest into US government bonds.
I am sure you will do extremely well.
All right, we are dealing with a class idiot,
I'm the only one dealing with your idiocy.
I am sure you will do extremely well.
I wish I could do as well as the Fed. Over half a trillion dollars turned over to the Treasury since the crisis.
If you ever figure out how their investments were unsound, come back y'all. LOL!
To be honest I can't recall if the FED bought the truly toxic stuff or not.
FAQs: MBS Purchase Program
The following frequently asked questions (FAQs) provide further information about the Federal Reserve’s $1.25 trillion program to purchase agency mortgage-backed securities (agency MBS). The MBS program completed its purchases on March 31, 2010, but will continue to settle transactions over the coming months. In connection with this activity, the Federal Reserve continues to use dollar roll and coupon swap transactions to facilitate an orderly settlement of the program’s purchases.
This agency MBS program is managed by the Federal Reserve Bank of New York at the direction of the Federal Open Market Committee (FOMC). The New York Fed will continue to work with two investment managers to support the implementation of the program.
Effective August 20, 2010
FAQs: MBS Purchase Program
Basically "theses investments suck so we buy them".
Why do you feel they suck? Is it because they're guaranteed?
Because they never miss an interest or principal payment?
Because they're a huge, liquid market?
Or is it something else? Maybe something you can't explain?
Yeah, I doubt this kind of thing could ever lead to sound investments. FED's track record is abysmal,
Are you basing this claim on the hundreds of billions in profits they've turned over to the US Treasury since 2008?
Did you read my post. The reason for buying them is to help a COLLAPSING ECONOMY.
Do you think this sounds like a sound investment? Me neither. What was their track record again?
Getting tired of repeating myself.
Their profits are tiny compared to their investment capital of 4 trillion.
The reason for buying them is to help a COLLAPSING ECONOMY.
Looks like it worked.
Do you think this sounds like a sound investment?
How is it unsound?
What was their track record again?
They gave the Treasury about $98 billion in 2015, $99 billion in 2014, $80 billion in 2013, $88 billion in 2012, $75 billion in 2011, $79 billion in 2010 and $47 billion in 2009.
Doesn't look like they've been losing money on their guaranteed bonds. What do you think?
Their profits are tiny compared to their investment capital of 4 trillion.
How high should their profits be?
All right, we are dealing with a class idiot, thanks for making it clear.
Please go and invest all your money into collapsing markets in order to boost their value. Invest the rest into US government bonds.
I am sure you will do extremely well.
All right, we are dealing with a class idiot,
I'm the only one dealing with your idiocy.
I am sure you will do extremely well.
I wish I could do as well as the Fed. Over half a trillion dollars turned over to the Treasury since the crisis.
If you ever figure out how their investments were unsound, come back y'all. LOL!
Half a trillion with infinite liquidity is extremely poor performance. You have to factor in that the FED has a major influence in the assets in these markets. It's barely 10 % of their assets anyway, no one would take pride in this sort of lackluster performance.
You are clueless.
Everything everywhere has a 100 percent failure rate with a long enough time horizon. Simply saying that it will fail at some point is not really all that much of an insight. The question is what you think works better and why?The overwhelming majority of money is electronic. You refer to physical currency, which only exists because of the government.Start with some cotton rags and some green ink ...
We'll see how this ends. So far the track record is total failure every time and every place it's been tried
All money is just an IOU...I know exactly how it works.Most americans have absolutely no idea.
I wonder what you guys know?
The part you half-truthers always leave out is how money is destroyed.
All money is just an IOU...I know exactly how it works.Most americans have absolutely no idea.
I wonder what you guys know?
The part you half-truthers always leave out is how money is destroyed.
All money is just an IOU...
I'm holding a $20. Who owes me?
Did you read my post. The reason for buying them is to help a COLLAPSING ECONOMY.
Do you think this sounds like a sound investment? Me neither. What was their track record again?
Getting tired of repeating myself.
Their profits are tiny compared to their investment capital of 4 trillion.
The reason for buying them is to help a COLLAPSING ECONOMY.
Looks like it worked.
Do you think this sounds like a sound investment?
How is it unsound?
What was their track record again?
They gave the Treasury about $98 billion in 2015, $99 billion in 2014, $80 billion in 2013, $88 billion in 2012, $75 billion in 2011, $79 billion in 2010 and $47 billion in 2009.
Doesn't look like they've been losing money on their guaranteed bonds. What do you think?
Their profits are tiny compared to their investment capital of 4 trillion.
How high should their profits be?
All right, we are dealing with a class idiot, thanks for making it clear.
Please go and invest all your money into collapsing markets in order to boost their value. Invest the rest into US government bonds.
I am sure you will do extremely well.
All right, we are dealing with a class idiot,
I'm the only one dealing with your idiocy.
I am sure you will do extremely well.
I wish I could do as well as the Fed. Over half a trillion dollars turned over to the Treasury since the crisis.
If you ever figure out how their investments were unsound, come back y'all. LOL!
Half a trillion with infinite liquidity is extremely poor performance. You have to factor in that the FED has a major influence in the assets in these markets. It's barely 10 % of their assets anyway, no one would take pride in this sort of lackluster performance.
You are clueless.
They bought trash----no, they bought guaranteed bonds.
They have a terrible track record----they turned over $600 billion since the crisis.
Half a trillion with infinite liquidity is extremely poor performance----pretty good for trash.
You have to factor in that the FED has a major influence in the assets in these markets.----above par before and after they bought the MBS. No new net purchases since October 2014.
no one would take pride in this sort of lackluster performance.----They didn't buy in order to make a profit.
You are clueless.---- Based on all your errors I've corrected, that's hilarious.
The reason for buying them is to help a COLLAPSING ECONOMY.
Looks like it worked.
Do you think this sounds like a sound investment?
How is it unsound?
What was their track record again?
They gave the Treasury about $98 billion in 2015, $99 billion in 2014, $80 billion in 2013, $88 billion in 2012, $75 billion in 2011, $79 billion in 2010 and $47 billion in 2009.
Doesn't look like they've been losing money on their guaranteed bonds. What do you think?
Their profits are tiny compared to their investment capital of 4 trillion.
How high should their profits be?
All right, we are dealing with a class idiot, thanks for making it clear.
Please go and invest all your money into collapsing markets in order to boost their value. Invest the rest into US government bonds.
I am sure you will do extremely well.
All right, we are dealing with a class idiot,
I'm the only one dealing with your idiocy.
I am sure you will do extremely well.
I wish I could do as well as the Fed. Over half a trillion dollars turned over to the Treasury since the crisis.
If you ever figure out how their investments were unsound, come back y'all. LOL!
Half a trillion with infinite liquidity is extremely poor performance. You have to factor in that the FED has a major influence in the assets in these markets. It's barely 10 % of their assets anyway, no one would take pride in this sort of lackluster performance.
You are clueless.
They bought trash----no, they bought guaranteed bonds.
They have a terrible track record----they turned over $600 billion since the crisis.
Half a trillion with infinite liquidity is extremely poor performance----pretty good for trash.
You have to factor in that the FED has a major influence in the assets in these markets.----above par before and after they bought the MBS. No new net purchases since October 2014.
no one would take pride in this sort of lackluster performance.----They didn't buy in order to make a profit.
You are clueless.---- Based on all your errors I've corrected, that's hilarious.
You haven't corrected any of my errors - you have just verified beyond any doubt that you are a complete moron. Anyway, I am not going to waste time teaching the unteachable. Good bye.
All money is just an IOU...I know exactly how it works.Most americans have absolutely no idea.
I wonder what you guys know?
The part you half-truthers always leave out is how money is destroyed.
All money is just an IOU...
I'm holding a $20. Who owes me?
All money is just an IOU...I know exactly how it works.Most americans have absolutely no idea.
I wonder what you guys know?
The part you half-truthers always leave out is how money is destroyed.
All money is just an IOU...
I'm holding a $20. Who owes me?
Any point in that 29 minute video that tells me who owes me for my $20?
Just give me the time that proves your claim. Thanks!
All money is just an IOU...I know exactly how it works.
The part you half-truthers always leave out is how money is destroyed.
All money is just an IOU...
I'm holding a $20. Who owes me?
Any point in that 29 minute video that tells me who owes me for my $20?
Just give me the time that proves your claim. Thanks!
Money is just an IOU… That simple. The US treasury, the federal reserve and US government have no money. The federal debt is far too large for the federal government to have any assets.
All money is just an IOU...
All money is just an IOU...
I'm holding a $20. Who owes me?
Any point in that 29 minute video that tells me who owes me for my $20?
Just give me the time that proves your claim. Thanks!
Money is just an IOU… That simple. The US treasury, the federal reserve and US government have no money. The federal debt is far too large for the federal government to have any assets.
Money is just an IOU… That simple.
I saw that claim the first time you posted it. So who owes me for this $20 FRN I'm holding?
All money is just an IOU...
I'm holding a $20. Who owes me?
Any point in that 29 minute video that tells me who owes me for my $20?
Just give me the time that proves your claim. Thanks!
Money is just an IOU… That simple. The US treasury, the federal reserve and US government have no money. The federal debt is far too large for the federal government to have any assets.
Money is just an IOU… That simple.
I saw that claim the first time you posted it. So who owes me for this $20 FRN I'm holding?
The federal government robs Peter to pay Paul = our currency... It's just an exchange of IOUs
On loans, an extremely dumbed down version, but, to my understanding, usually true (given certain conditions).Most americans have absolutely no idea.
I wonder what you guys know?
Here's the truth:
- Loans create new money, this shows up in the form of deposits.
- The federal government creates new money through deficit spending. The central bank also plays an important role.
I expect many posters to take an issue with my assertion that Loans create deposits.
Banks do not lend out deposits or multiply up central bank money.
http://www.bankofengland.co.uk/publ...lletin/2014/qb14q1prereleasemoneycreation.pdf
This article explains how the majority of money in the modern economy is created by commercial banks making loans. • Money creation in practice differs from some popular misconceptions — banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits. • The amount of money created in the economy ultimately depends on the monetary policy of the central bank. In normal times, this is carried out by setting interest rates. The central bank can also affect the amount of money directly through purchasing assets or ‘quantitative easing’.
It really is quite simple. Money creation will indeed stop if banks stop lending, along with the government not running a deficit. Luckily, we run a net deficit with banks loaning. Unfortunately, no one seems to care about private sector debt build up.Most americans have absolutely no idea.
I wonder what you guys know?
Here's the truth:
- Loans create new money, this shows up in the form of deposits.
- The federal government creates new money through deficit spending. The central bank also plays an important role.
I expect many posters to take an issue with my assertion that Loans create deposits.
Banks do not lend out deposits or multiply up central bank money.
http://www.bankofengland.co.uk/publ...lletin/2014/qb14q1prereleasemoneycreation.pdf
This article explains how the majority of money in the modern economy is created by commercial banks making loans. • Money creation in practice differs from some popular misconceptions — banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits. • The amount of money created in the economy ultimately depends on the monetary policy of the central bank. In normal times, this is carried out by setting interest rates. The central bank can also affect the amount of money directly through purchasing assets or ‘quantitative easing’.
I take issue with the fact that your post boils down a complex phenomenon as if it were a simple push-button. The reality is that money is created only when the general population, through direct or indirect agreement or tacit agreement, agrees that it is created.
Jesus. Loans create deposits. Your entire argument isn't even attacking that.Todd, does a bank take from its deposits to loan?That has nothing to do with banks LENDING OUT DEPOSITS. Banks do not lend out deposits, your example doesn't show that at all.No, they don't. What makes you think banks lend out deposits and multiply up central bank money?
Here's an authority on the question:
http://www.bankofengland.co.uk/publ...lletin/2014/qb14q1prereleasemoneycreation.pdf
No, they don't.
Yes, they do.
What makes you think banks lend out deposits
Let's walk through it.
Dovahkiin goes to the bank to borrow $10,000 to buy a car. They have no deposits, because they create a deposit with your loan. You write a check against that deposit account and give it to the car dealer. You drive off with your new car. The dealer deposits the check and it bounces. The dealer sues you and takes back the car. You sue the bank.
Toddsterpatriot goes to the bank to borrow $10,000 to buy a car. They have $100,000 in deposits, because they like their checks to actually clear. My loan creates a deposit and I write a check against that deposit account and give it to the car dealer. I drive off with my new car. The dealer deposits the check and it clears.
Which bank is more likely to be in business next week?
Banks do not lend out deposits
How long does the lending bank remain in business with $0 deposits?
Todd, does a bank take from its deposits to loan?
Where else would the money come from to clear the check?
Jesus. Loans create deposits. Your entire argument isn't even attacking that.Todd, does a bank take from its deposits to loan?That has nothing to do with banks LENDING OUT DEPOSITS. Banks do not lend out deposits, your example doesn't show that at all.No, they don't.
Yes, they do.
What makes you think banks lend out deposits
Let's walk through it.
Dovahkiin goes to the bank to borrow $10,000 to buy a car. They have no deposits, because they create a deposit with your loan. You write a check against that deposit account and give it to the car dealer. You drive off with your new car. The dealer deposits the check and it bounces. The dealer sues you and takes back the car. You sue the bank.
Toddsterpatriot goes to the bank to borrow $10,000 to buy a car. They have $100,000 in deposits, because they like their checks to actually clear. My loan creates a deposit and I write a check against that deposit account and give it to the car dealer. I drive off with my new car. The dealer deposits the check and it clears.
Which bank is more likely to be in business next week?
Banks do not lend out deposits
How long does the lending bank remain in business with $0 deposits?
Todd, does a bank take from its deposits to loan?
Where else would the money come from to clear the check?
You're all over the place. Notice how you fail to provide evidence that deposits create loans.It doesn't, because a bank that isn't lending doesn't have anyone going to it for loans.That has nothing to do with banks LENDING OUT DEPOSITS. Banks do not lend out deposits, your example doesn't show that at all.No, they don't. What makes you think banks lend out deposits and multiply up central bank money?
Here's an authority on the question:
http://www.bankofengland.co.uk/publ...lletin/2014/qb14q1prereleasemoneycreation.pdf
No, they don't.
Yes, they do.
What makes you think banks lend out deposits
Let's walk through it.
Dovahkiin goes to the bank to borrow $10,000 to buy a car. They have no deposits, because they create a deposit with your loan. You write a check against that deposit account and give it to the car dealer. You drive off with your new car. The dealer deposits the check and it bounces. The dealer sues you and takes back the car. You sue the bank.
Toddsterpatriot goes to the bank to borrow $10,000 to buy a car. They have $100,000 in deposits, because they like their checks to actually clear. My loan creates a deposit and I write a check against that deposit account and give it to the car dealer. I drive off with my new car. The dealer deposits the check and it clears.
Which bank is more likely to be in business next week?
Banks do not lend out deposits
How long does the lending bank remain in business with $0 deposits?
This should be common sense.
It doesn't
I agree, it doesn't remain in business.
a bank that isn't lending doesn't have anyone going to it for loans.
Your bank did lend to you. $10,000 for your car purchase. Did you forget already?
That does nothing to disprove reality. It's simply whining.Jesus. Loans create deposits. Your entire argument isn't even attacking that.Todd, does a bank take from its deposits to loan?That has nothing to do with banks LENDING OUT DEPOSITS. Banks do not lend out deposits, your example doesn't show that at all.
Banks do not lend out deposits
How long does the lending bank remain in business with $0 deposits?
Todd, does a bank take from its deposits to loan?
Where else would the money come from to clear the check?
Fractional-Reserve Banking is Pure Fraud,
Start a thread on this, this isn't the one for it.Cracking down on them for what?I'm not defending the banks, in fact, I favor cracking down on the banks.You sure do spend a lot of time defending the banks.
