Entries categorized as ‘Bernanke’

“Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall “below zero”.
“We’re in a nasty environment,” said Tim Bond, the bank’s chief equity strategist. “There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth.” (more…)
Categories: Ambrose-Pierce · Barclay's · Barclay's Capital · Bernanke · Fed flubbed · Fed fluffed · credibility · financial storm · sub-zero credibility · the Fed · wealth management · wealth preservation
This is us folks. The US government, i.e. taxpayers, guarantees the NY Federal Reserve loan of $29,000,000,000 to JPMorgan/Bear Stearns. Call and write your congressional representatives if you disagree. Otherwise, you need not do anything. Click to read the letter → treasuryletter0308.pdf
Categories: Bear Stearns · Ben Bernanke · Bernanke · Fed · JP Morgan · Treasury guarantee · Treasury letter · bailout · corporate welfare · economic elite · federal reserve · fiscal burden · investment bankers · investment banking · nationalization · socialized banking · socializing losses
Click through to see New York Federal Reserve Bank’s March 2008 chart explaining TAF, TSLF, among many others including acceptable collateral for each type of lending:
forms_of_fed_lending.pdf

Categories: Bernanke · Fed · TLIF · bank insolvency · bank nationalization · bank reserves · banking system · federal reserve
Categories: Bear Stearns · Ben Bernanke · Bernanke · Bloomberg · CEO compensation · Economy · Fed · Jim Rogers · US dollar · bailout · bank failures · bank nationalization · disaster capitalism · dollar · federal reserve · fiat currency
“The risk of losses on U.S. Treasury notes exceeded German bunds for the first time ever amid investor concern the subprime mortgage crisis is sapping government reserves, credit-default swaps prices show. <snip> The U.S. government is not immune from the consequences of the credit crisis,” said Fabrizio Capanna, BNP’s head of high-grade corporate trading in London. “Support for troubled financial institutions in the U.S. will be perceived as a weakening of U.S. sovereign credit.”’ http://www.bloomberg.com/apps/news?pid=20601087&sid=aVl4JGYmkX0M&refer=home
Ben what are you doing?
hat tip for photo to fintag.com
Categories: Bernanke · German bund · Treasuries · sovereign credit
The Federal Reserve has certain assets — about $800 Billion in Treasuries. Once it lends away the additional $200 Billion announced today, and counting the TAFs (Term Auction Facilities), about one-half of the Fed’s reserve of Treasuries will be gone. This chart shows the Fed’s reserves before this additional $200 billion is given out, so you’ll have to continue that line downwards to imagine what it’ll look like by the end of March:

Categories: Ben Bernanke · Bernanke · Fed · bank insolvency · bank nationalization · bank reserves · banking system · federal reserve
Categories: Ben Bernanke · Bernanke · CDO · Fed · PPT · Plunge Protection Team · banks · counterparty · credit derivatives · deleveraging · federal reserve · market manipulation · monetary policy · monolines
January 21, 2008 · 1 Comment
Milton Friedman died in 2006. If he were living, what would he say about the current economic situation?
It may be instructive to review what he said about the dot.com bubble in 2000. Friedman believed that in the event of an equities bubble burst, the Federal Reserve should pour in money to cushion the economy - but not indefinitely. For example, using the Great Depression as an example, when the bubble burst in 1929, from peak to trough, the equities market lost about 80% of its value over about 3 years. Friedman believed that had the Federal Reserve followed “correct” policy, the market would have bottomed sooner and not fallen so far. Friedman was quick to point out that precisely how much and how long to “pour money in” is tricky to figure out, and that the Fed should not pour money in for so long that it creates another bubble.
Here is part of the transcript from a Hoover Institution (by Peter Robinson) interview with Milton Friedman recorded March 10, 2000:
(more…)
Categories: Alan Greenspan · Ben Bernanke · Bernanke · Greenspan · bubble · equity bubble · friedman · milton friedman · monetary policy · money supply
Watching this testimony live, without benefit of transcript, Bernanke incredibly is saying there will NOT be a recession! Forecasting slower growth picking up in late 2008. Some decent questions from Congresspeople re: why would a rebate actually improve economy? Shift from pro-savings economy to pro-debt, etc.
Comments?
Why is Bernanke talking so optimistically (yet looking terrible)?
What will Congress do on fiscal side?
Will Bernanke lower rates on 1/30 and if so why?
Cheers!
Categories: Ben Bernanke · Bernanke · Economy · Fed · bush economic plan · economic forecast · economic outlook · economy 2008 · federal reserve · fiscal stimulus