http://www.ritholtz.com/blog/2010/01/the-federal-reserve-still-doesn%e2%80%99t-know-how-to-get-rid-of-excess-liquidity/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:30:38 +0000 hourly 1 http://wordpress.org/?v=3.0.5 http://www.ritholtz.com/blog/2010/01/the-federal-reserve-still-doesn%e2%80%99t-know-how-to-get-rid-of-excess-liquidity/comment-page-1/#comment-246112 Potash Pricing Increases Visibility | ZachStocks Wed, 06 Jan 2010 16:47:29 +0000 http://www.ritholtz.com/blog/?p=47781#comment-246112 [...] Potash Corp (POT) is probably the most stable investment in this area as the firm holds the rights to a very wide range of potash properties.  Intrepid Potash (IPI) on the other hand is a smaller and more nimble player and could theoretically grow at a more rapid rate than its competitor.  Both companies appear to be trading in a strong trend and could lend significant investment returns. Other Articles of Interest Banking in 2010 – At Risk If You Do, More Risk If You Don’t First Cash Financial Breaking to New Recovery High WSJ: Life Insurers Need $8.75 Billion RMBS Backstop Ritholtz: Fed Doesn’t Know How to Get Rid of Liquidity [...] [...] Potash Corp (POT) is probably the most stable investment in this area as the firm holds the rights to a very wide range of potash properties.  Intrepid Potash (IPI) on the other hand is a smaller and more nimble player and could theoretically grow at a more rapid rate than its competitor.  Both companies appear to be trading in a strong trend and could lend significant investment returns. Other Articles of Interest Banking in 2010 – At Risk If You Do, More Risk If You Don’t First Cash Financial Breaking to New Recovery High WSJ: Life Insurers Need $8.75 Billion RMBS Backstop Ritholtz: Fed Doesn’t Know How to Get Rid of Liquidity [...]

]]> http://www.ritholtz.com/blog/2010/01/the-federal-reserve-still-doesn%e2%80%99t-know-how-to-get-rid-of-excess-liquidity/comment-page-1/#comment-245978 oldbluejeans Tue, 05 Jan 2010 19:43:39 +0000 http://www.ritholtz.com/blog/?p=47781#comment-245978 Someone help me out here! For the treasuries and GSE debt that the Fed has bought, sooner or later they will have to sell it back to someone. BUT, the part of the Fed's balance sheet that comes from loaning money to banks, in which the banks deposited toxic assets as collateral, I THOUGHT would have be given back to the banks once the loans have been repaid to the Fed. So, while the banks may not want to do that for some time, it should reduce money supply without affecting interest rates, or no? Someone help me out here! For the treasuries and GSE debt that the Fed has bought, sooner or later they will have to sell it back to someone. BUT, the part of the Fed’s balance sheet that comes from loaning money to banks, in which the banks deposited toxic assets as collateral, I THOUGHT would have be given back to the banks once the loans have been repaid to the Fed. So, while the banks may not want to do that for some time, it should reduce money supply without affecting interest rates, or no?

]]> http://www.ritholtz.com/blog/2010/01/the-federal-reserve-still-doesn%e2%80%99t-know-how-to-get-rid-of-excess-liquidity/comment-page-1/#comment-245917 Chimera Investment Corp - Discipline Yields Success | ZachStocks Tue, 05 Jan 2010 15:23:28 +0000 http://www.ritholtz.com/blog/?p=47781#comment-245917 [...] Currently Chimera is realizing an annualized yield on its assets at 7.71% and has been able to lower its borrowing costs to 1.67%.  The interest rate spread of 6.04% is quite impressive and while that may narrow in a rising interest rate environment, the company should still be able to command a healthy margin.  The current loan portfolio is now made up of 59% fixed rate mortgages which are more stable and likely much less risky than the ARM component. Other Articles of Interest Banking in 2010 – At Risk If You Do, More Risk If You Don’t First Cash Financial Breaking to New Recovery High WSJ: Life Insurers Need $8.75 Billion RMBS Backstop Ritholtz: Fed Doesn’t Know How to Get Rid of Liquidity [...] [...] Currently Chimera is realizing an annualized yield on its assets at 7.71% and has been able to lower its borrowing costs to 1.67%.  The interest rate spread of 6.04% is quite impressive and while that may narrow in a rising interest rate environment, the company should still be able to command a healthy margin.  The current loan portfolio is now made up of 59% fixed rate mortgages which are more stable and likely much less risky than the ARM component. Other Articles of Interest Banking in 2010 – At Risk If You Do, More Risk If You Don’t First Cash Financial Breaking to New Recovery High WSJ: Life Insurers Need $8.75 Billion RMBS Backstop Ritholtz: Fed Doesn’t Know How to Get Rid of Liquidity [...]

]]> http://www.ritholtz.com/blog/2010/01/the-federal-reserve-still-doesn%e2%80%99t-know-how-to-get-rid-of-excess-liquidity/comment-page-1/#comment-245769 rob Mon, 04 Jan 2010 20:43:41 +0000 http://www.ritholtz.com/blog/?p=47781#comment-245769 So when the economy takes off, the banks are going to deposit money with the Fed at some nominal interest rate when they could make considerably more by lending to expanding businesses???? With TBTF firmly stated now, why would they even bother with risk management like that? They will lend like crazy trying to firm up revenue streams for years to come and tell the Fed to go and take a flying leap! So when the economy takes off, the banks are going to deposit money with the Fed at some nominal interest rate when they could make considerably more by lending to expanding businesses???? With TBTF firmly stated now, why would they even bother with risk management like that? They will lend like crazy trying to firm up revenue streams for years to come and tell the Fed to go and take a flying leap!

]]>