Comments on: Our Next Troubled Bank: The Fed http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 22:10:06 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: mikaeel http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165842 mikaeel Tue, 28 Apr 2009 13:05:41 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165842 John Wayne is like an analogy for our federal reserve system: a dead actor rumored to have dodo stuck in his colon. John Wayne is like an analogy for our federal reserve system: a dead actor rumored to have dodo stuck in his colon.

]]> By: Blick Log » Stiglitz et al zu toxischen Assets, Stress Tests und mehr http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165786 Blick Log » Stiglitz et al zu toxischen Assets, Stress Tests und mehr Tue, 28 Apr 2009 04:21:50 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165786 [...] BP: Our Next Troubled Bank: The Fed [...] [...] BP: Our Next Troubled Bank: The Fed [...]

]]> By: tradeking13 http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165784 tradeking13 Tue, 28 Apr 2009 04:13:26 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165784 Hopefully this takes down the Fed. Good riddance. Hopefully this takes down the Fed. Good riddance.

]]> By: delliott http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165767 delliott Tue, 28 Apr 2009 03:23:52 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165767 The debt will be addressed in one of four ways: 1) taxes will be raised to pay for it; 2) the treasury will default; 3) the debt will be directly monetized by the Fed or otherwise reduced in real value through inflation; 4) the vast profits from the Fed's eventual sale of all the Maiden Lane and other new balance sheet "assets" The explosion of the Fed's balance sheet means 3 is more likely than 1 and is already happening at a pretty good clip. It does not mean that the debt is going to be larger through the Fed's "bad investments." The debt will be addressed in one of four ways: 1) taxes will be raised to pay for it; 2) the treasury will default; 3) the debt will be directly monetized by the Fed or otherwise reduced in real value through inflation; 4) the vast profits from the Fed’s eventual sale of all the Maiden Lane and other new balance sheet “assets”

The explosion of the Fed’s balance sheet means 3 is more likely than 1 and is already happening at a pretty good clip. It does not mean that the debt is going to be larger through the Fed’s “bad investments.”

]]> By: FromLori http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165724 FromLori Tue, 28 Apr 2009 01:14:34 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165724 Add another $5 Trillion in Fannie/Freddie Fraud to the Feds balance sheets... http://bluelori.blogspot.com/2009/04/fanniefreddie-5-trillion-fraud.html Add another $5 Trillion in Fannie/Freddie Fraud to the Feds balance sheets…

http://bluelori.blogspot.com/2009/04/fanniefreddie-5-trillion-fraud.html

]]> By: Wes Schott http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165697 Wes Schott Tue, 28 Apr 2009 00:28:34 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165697 F411 - I am starting to understand where you are coming from. Finally. F411 – I am starting to understand where you are coming from. Finally.

]]> By: Super-Anon http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165691 Super-Anon Tue, 28 Apr 2009 00:09:24 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165691 <i>When the Fed goes bankrupt, nobody will come to the auction.</i> There will be nothing for sale except broken illusions and squandered credibility. When the Fed goes bankrupt, nobody will come to the auction.

There will be nothing for sale except broken illusions and squandered credibility.

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165690 Mark E Hoffer Mon, 27 Apr 2009 23:54:22 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165690 delliott, you're missing the fact that those that fouled-up get patched-up, and you get stuck with the bill.. delliott,

you’re missing the fact that those that fouled-up get patched-up, and you get stuck with the bill..

]]> By: JD http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-2/#comment-165689 JD Mon, 27 Apr 2009 23:50:14 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165689 When the Fed goes bankrupt, nobody will come to the auction. Or vica-versa. When the Fed goes bankrupt, nobody will come to the auction. Or vica-versa.

]]> By: delliott http://www.ritholtz.com/blog/2009/04/our-next-troubled-bank-the-fed/comment-page-1/#comment-165687 delliott Mon, 27 Apr 2009 23:44:56 +0000 http://www.ritholtz.com/blog/?p=24710#comment-165687 yea adeev, I do not understand these comments. When you talk about the Fed's leverage, who do they think the Fed borrowed from or need to pay back? The only problem here is by purchasing assets that have little value, the Fed has injected a lot of money into the system that they will not be able to pull back out by selling the assets. This is theoretically inflationary, but a lot of things the last 8 years have been theoretically inflationary. yea adeev, I do not understand these comments. When you talk about the Fed’s leverage, who do they think the Fed borrowed from or need to pay back? The only problem here is by purchasing assets that have little value, the Fed has injected a lot of money into the system that they will not be able to pull back out by selling the assets. This is theoretically inflationary, but a lot of things the last 8 years have been theoretically inflationary.

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