[roccman]

580 down.... Hmmmmmmmm....

[eXpat]

JIM CRAMER TAKE YOUR MONEY OUT NOW!, link WTF??? is mainstream now!!!!!

[Gebari]

Got popcorn? Actually to hell with popcorn, I need a drink.

[yesplease]

$this->bbcode_second_pass_quote('eXpat', 'J')IM CRAMER TAKE YOUR MONEY OUT NOW!, link WTF??? is mainstream now!!!!!

[eXpat]

$this->bbcode_second_pass_quote('Gebari', 'G')ot popcorn? Actually to hell with popcorn, I need a drink.

[emeraldg40]

$this->bbcode_second_pass_quote('eXpat', '')$this->bbcode_second_pass_quote('Gebari', 'G')ot popcorn? Actually to hell with popcorn, I need a drink.

[Spanktron9]

Cue Lord Vader's theme. The Empire is upon us.

[Iaato]

Are we having fun yet? Got gold yet?

$this->bbcode_second_pass_quote('', 'H')ere is how the Supplementary Financing Program is alleged to work. The U.S. Treasury Department sells Treasury securities in a public auction and deposits the cash proceeds with the Federal Reserve. The Federal Reserve thus has “cash for use in the Federal Reserve initiatives”.

Sounds simple enough, but do not be fooled! That is only a part of the story. If the Treasury securities were merely sold into the market and the proceeds were loaned to the Federal Reserve, there would be no impact on Reserve Balances or the Monetary Base. Or as Ed Bugos likes to say, the liquidity would be “sterilized”. In other words, the operation would merely represent a shift of existing money supply within the financial system. Not an injection of new cash. Yet what we have witnessed in the past few weeks is a massive increase in Reserve Balances to the tune of over $160 billion.

And that can only mean one thing: the Fed is now monetizing banking assets (or at least is preparing to do so). This is a bona fide helicopter operation, the first of its kind during the current credit crisis and certainly the largest in the history of First World central banking since the Great Depression. What we don’t know is if these Reserve Balances will turn into Federal Reserve Notes and get stuffed under the mattress as panicked depositors continue to withdraw cash from the banking system or if these Reserve Balances will get loaned out by the banks whose assets are being monetized. If the former, the hyperinflation will be delayed until the cash is taken back out from under the mattress, which will happen once the bank runs have abated. If the latter, hyperinflation could come fast and furious.

In effect, what’s really happening is that the Treasury is borrowing money into existence at the Monetary Base level. This is exactly the same thing that Weimar Germany did. What the Germans (and the Argentinians, Zimbabweans, etc.) found out, and what our “benevolent” leaders will also discover, is that the printing press is a slippery slope to oblivion. The worst-case outcome of giving into this temptation is almost unfathomable.

[TWilliam]

$this->bbcode_second_pass_quote('Narz', 'I')f "it's bunker time" why the fark do you care about the price of gold? You evolved some enzyme that lets you digest the stuff?

[eXpat]

People is starting to realize that the proper word is not recession, is depression (yes, like in the 30s, like TSHTF):
$this->bbcode_second_pass_quote('', 'N')EW YORK (CNNMoney.com) -- Nearly six out of ten Americans believe another economic depression is likely, according to a poll released Monday.
The CNN/Opinion Research Corp. poll, which surveyed more than 1,000 Americans over the weekend, cited common measures of the economic pain of the 1930s:
* 25% unemployment rate
* Widespread bank failures
* Millions of Americans homeless and unable to feed their families
In response, 21% of those polled say that a depression is very likely and another 38% say it is somewhat likely.

[dunewalker]

$this->bbcode_second_pass_quote('dunewalker', 'M')y guess is that today's marching orders for the Plunge Protection Team are to: "Hold the dow above 10,000 at all costs!"...We shall see...

[DantesPeak]

$this->bbcode_second_pass_quote('Iaato', 'A')re we having fun yet? Got gold yet?

$this->bbcode_second_pass_quote('', 'H')ere is how the Supplementary Financing Program is alleged to work. The U.S. Treasury Department sells Treasury securities in a public auction and deposits the cash proceeds with the Federal Reserve. The Federal Reserve thus has “cash for use in the Federal Reserve initiatives”.

Sounds simple enough, but do not be fooled! That is only a part of the story. If the Treasury securities were merely sold into the market and the proceeds were loaned to the Federal Reserve, there would be no impact on Reserve Balances or the Monetary Base. Or as Ed Bugos likes to say, the liquidity would be “sterilized”. In other words, the operation would merely represent a shift of existing money supply within the financial system. Not an injection of new cash. Yet what we have witnessed in the past few weeks is a massive increase in Reserve Balances to the tune of over $160 billion.

And that can only mean one thing: the Fed is now monetizing banking assets (or at least is preparing to do so). This is a bona fide helicopter operation, the first of its kind during the current credit crisis and certainly the largest in the history of First World central banking since the Great Depression. What we don’t know is if these Reserve Balances will turn into Federal Reserve Notes and get stuffed under the mattress as panicked depositors continue to withdraw cash from the banking system or if these Reserve Balances will get loaned out by the banks whose assets are being monetized. If the former, the hyperinflation will be delayed until the cash is taken back out from under the mattress, which will happen once the bank runs have abated. If the latter, hyperinflation could come fast and furious.

In effect, what’s really happening is that the Treasury is borrowing money into existence at the Monetary Base level. This is exactly the same thing that Weimar Germany did. What the Germans (and the Argentinians, Zimbabweans, etc.) found out, and what our “benevolent” leaders will also discover, is that the printing press is a slippery slope to oblivion. The worst-case outcome of giving into this temptation is almost unfathomable.

[Roccland]

$this->bbcode_second_pass_quote('TWilliam', '')$this->bbcode_second_pass_quote('Narz', 'I')f "it's bunker time" why the fark do you care about the price of gold? You evolved some enzyme that lets you digest the stuff?

[Spanktron9]

$this->bbcode_second_pass_quote('Roccland', '')$this->bbcode_second_pass_quote('TWilliam', '')$this->bbcode_second_pass_quote('Narz', 'I')f "it's bunker time" why the fark do you care about the price of gold? You evolved some enzyme that lets you digest the stuff?

[TWilliam]

$this->bbcode_second_pass_quote('Roccland', '')$this->bbcode_second_pass_quote('TWilliam', '')$this->bbcode_second_pass_quote('Narz', 'I')f "it's bunker time" why the fark do you care about the price of gold? You evolved some enzyme that lets you digest the stuff?

[Roccland]

$this->bbcode_second_pass_quote('TWilliam', '')$this->bbcode_second_pass_quote('Roccland', '')$this->bbcode_second_pass_quote('TWilliam', '')$this->bbcode_second_pass_quote('Narz', 'I')f "it's bunker time" why the fark do you care about the price of gold? You evolved some enzyme that lets you digest the stuff?

[Roccland]

So why Narz were you selling your honey in April?

1) it was too heavy on the bike
2) you needed lunch money
3) it is a useless product


And yesterday you were heading up to Pstarrville...in april you said you were going to eastern canada (about 4,000 miles difference).

Do you even have a plan...or do you move from one pot farm to the next?

[Roccland]

dang - and i thought the "leave no banker behind" bailout was working this morning...

dow in the red again.

fed to buy more shlT sandwiches...

all is good.

[Roccland]

oh ...

and dollar getting DESTROYED!

[Spanktron9]

EU just came out of their meeting and shrugged. CNBC commentator quipped "So much for systemic coordinated response! "