Will they be about right this time?
Printable View
Does my head in too, but it looks very dodgy to me judging by Bernanke’s body language in the Youtube video below when he is interviewed by Alan Grayson about half a trillion dollars that the Fed lent to foreign central banks from last quarter 2007 to end of 2008. NZ got $9b = $3,000 per person. Swaps went from $24b at the end of 2007 to $500b at the end of 2008.
https://www.youtube.com/watch?v=n0NYBTkE1yQ
Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know."
The current outstanding swap lines on the Fed’s balance sheet have grown from $45 billion on March 18 to $348.5 billion by April 1 and now stand, as of 7 May, at a stunning $444.89 billion. So nearly as much as GFC which was done over a year, has been done in less than two months. It does mean we are in a liquidity crisis like the GFC, but much worse.
Swaps is the largest of the Fed’s emergency programs by a factor of more than two to one.
It’s the carefully calculated disbursement of those swap lines to foreign central banks that are already propping up the stock market through the purchase of stocks and corporate bonds.
The ECB announced on March 18 that it will expand its asset purchases (which include corporate bonds) by another $820 billion.
Also remember this, the Fed and foreign central banks were also working in collusion during the devastating financial crisis of 2007 to 2010.
The book Collusion not only proves that the 1 percent got bailed out while the 99 percent got sold out as a result of policies of the U.S. Central Bank (the Fed) during and after the financial crash of 2008,
Wall Street used its easy access to cheap money to increase speculation in derivatives and other complex securities. They used it to buy back their own shares, thus effectively manipulating their own stock – in broad daylight and with explicit approval from the Fed.” Equally problematic writes Prins, “these banks dialed back their lending to small and midsized businesses, which hampered their growth potential.”
By providing the grease that kept money flowing, central bankers superseded governments – they set the cost of money and provided the confidence in ongoing liquidity – the world was their battlefield.”
“The Fed absolved itself of all responsibility for financial stability in the big bank landscape in June 2017 when it allowed thirty-four of the largest Wall Street banks, including the Big Six, to pass its stress tests. In turn, the banks took this opportunity to buy more of their own shares, elevating their stock prices rather than expanding their loan services for small businesses and Main Street customers.”
This maneuver by the Fed resulted in announcements that Wall Street banks planned “to buy back $92.8 billion of their own stock as a direct response to the Fed’s blessing,” notes Prins, effectively meaning that the Fed was “greenlighting legal manipulation of the stock market.” Indeed, says Prins, “The Dow soared.”
Prins writes further that “Instead of financing speculative bubbles at the hands of the big private banks, central banks should finance large investment and recovery programs.
Thanks for posting Joshuatree. On the side bar of the article it says the Fed’s Emergency Loan Operations to Wall Street’s Trading Firms Began on September 17, 2019 – Months Before the Coronavirus COVID-19 Had Emerged in China or Anywhere Else in the World. That Strongly Suggests to Us that Wall Street Banks Had a Serious Problem Independent of the Virus Outbreak.
You do know that the Fed is not a government institution, right? It is a private consortium of the worlds richest financiers, only concerned with their own profitability which means sustaining the mirage of economic stability by intervention in monetary policy, which by law they are entitled and expected to do. Now there is a truely ****ed up system! Especially being the banker for the worlds largest superpower. The mind boggles.
https://www.bangkokpost.com/business...virus-pandemic
This Year's Stress Test For Big Banks Is Real: the Coronavirus Pandemic
The Fed said Friday it is adjusting its annual "stress tests" for banks to incorporate lenders' performance during the coronavirus-triggered downturn, which is worse than the hypothetical scenarios that the central bank previously planned to use.
For instance, the Fed's hypothetical severe recession imagined U.S. gross domestic product dropping 9.9% in the second quarter and unemployment hitting 6.1% by the end of June.
Economists surveyed by The Wall Street Journal this month predicted GDP would contract at an annual rate of 25% in the second quarter, and the unemployment rate would hit 13% in June this year and still be at 10% in December.
this was the event to watch as mentioned yesterday and boo hoo the market didnt like it. anyway i cant see how banks , insurance companies etc would survive if the whole world goes negative rates and looking at the performance of bank stock prices the market must think so too
The Fed won't use negative interest rates to counteract the coronavirus recession, chairman Jerome Powell says
https://www.businessinsider.com.au/n...20-5?r=US&IR=T
looks like trump has been reading black monday thread lol
Trump warns that ‘rich guys’ could be talking down stock market to profit
https://www.cnbc.com/2020/05/13/trum...to-profit.html
and trump is ratcheting up pressure on china
Trump on China: ’100 Trade Deals’ wouldn’t make up for coronavirus
https://www.cnbc.com/2020/05/13/trum...ronavirus.html
toeing the line
Attachment 11574
Something wrong with the NZX
It’s nearly nine and no profit upgrades or news of big cap raises or MET deal def going ahead
Going to be a boring day