Saturday, September 27, 2008

THE BLUNTNESS OF THE REALITY SMACKS ME DEAD INMY FACE!!

http://research.stlouisfed.org/publications/usfd/page3.pdf Please go HERE, follow link and then come back.....OK, I'll wait

Here is definition of what you are looking at (investopedia)

The total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves. This measure of the money supply typically only includes the most liquid currencies.

from Lou Rockwell :The adjusted monetary base is the only monetary aggregate that the FED controls directly.

and this
monetary base
sum of reserve accounts of financial institutions at Federal Reserve Banks, currency in circulation (currency held by the public and in the vaults of depository institutions). The major source of the adjusted monetary base is federal reserve credit. The monetary base, as the ultimate source of the nation's money supply, is controllable, at least to some degree, by Federal Reserve monetary policy. The adjusted monetary base data is compiled weekly by the Federal Reserve Board and the Federal Reserve Bank of St. Louis, and is adjusted seasonally.


**The current direction of Bubble-sustaining policymaking goes the wrong direction in almost all aspects. At some point, the markets will recognize this Bubble Predicament, setting the stage for a very problematic crisis of confidence for the dollar and our federal debt markets.

Doug Noland **
The Credit Bubble Bulletin PrudentBear.com

**OK you with me? You understand what it is? Have you looked BACK at the chart from the LINK I provided?

Does that not make you STOP, take notice and drop your JAW? the trajectory, we are talking about a MASSIVE amount of money....more than EVER BEFORE in this short period of time, maybe more than in any given year...in just a short week.

This is no accident, and when you consider that EVERYTHING HAS SEIZED UP, that a HISTORIC amount of liquidity (or attempt thereof) has not been able to BUDGE the damn thing, that we still TEETER on the edge of a financial abys.....DOES THE SEVERITY and SERIOUSNESS OF IT ALL COME THRU TO YOU?


The U.S Mint said Thursday it was temporarily suspending sales of American Buffalo 24-karat gold one-ounce bullion coins because strong demand depleted its inventory.

All in, the funds have lost around $1 billion this year, a figure that includes $270 million of personal losses. "It's my toughest run in 10 years," said Mr. Pickens, a former geologist who earned billions by building an oil company and investing in energy. "We missed the turn in the market, there's nothing fun about it."

WEBSITE FOR ARTICLES http://new.goldmau.com/index.php

SOUND FAMILIAR : First, look at the bank crisis in the making. Despite a government fix-up job in 1998 and 1999, Japan's banks are still larded with old nonperforming loans just as the economy slows down again, only two years after a recession.
http://www.businessweek.com/2001/01_05/b3717163.htm YEAR 2001 !!
Perversely, the banks are creating the conditions for a market panic. One by one, they're unloading shares from the stock portfolios they have hoarded for years. Why? They need money,

As I am not sure there is anything that can be done.....it's just to big.

list of 2008 bANK fAILURES! http://www.fdic.gov/bank/historical/bank/index.html listed by month
indy mac bank
Fannie
Freddie
AGI
Bear Sterns
COuntry wide
Lehman Bros
Merryl Lynch
Wash Mutual (largest Bank failure EVER!)
Hedge Funds liquidating http://www.hedgeco.net/news/category/closing-hedge-funds/
Money market troubleshttp://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/09/23/financial/f123622D71.DTL
HOME FORECLOSURES http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/25/BUBL134FO3.DTL and how Indy MAc mortgage holders were treated
$700B Bailout effort (largest in history)
Credit Card debt surging
No savings
Home Values declining
Banks not lending
Wall Street forever changed
BEAR MARKET

SO...how's your day going?

D

2 comments:

Jason said...

The Fed has 1 trillion dollars in US securities from their bank members on hand earning 6%. As you know the share holders get 6% as a dividend from the US although we pay 0.13% for a 30 day note holder.

nomedals.blogspot.com

Anonymous said...

Well, they have spent a lot of their holdings already on foul assets....semms like a bottomless pit. yup we get pitiful return (but do get RETURN) how we stoke bond bubble....when iT bursts int rates will defy logic.

This is FEDERAL BAILOUT (not FED RESERVE)but think of the credit markets, how and where the money will be created.....well I suspect though anticipated a DEAL will of ANY kind will be seen AT FIRST as good thing....Sunday PM futures will be first place I look and Asian mkts

I will be looking carefully at the quality of any rally...rumor bought...news sold again?

As I do not think Bear is over or this can kill it, I would accept a temp stay of execution....but still find it very dangerous and one tough to play.

Take care, thanks for adding to our blog

D