EXCLUSIVE: Federal Reserve INCOMPETENT

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EXCLUSIV E: Federal Reserve INCOMPETENT

By Gerald; Internet Anthropologist Think Tank

Oct 3 08

In December of 2007 I posted this.
And the Fed Reserve didn't know?
If I didn't they should have.

Why were money markets were illiquid?

"Possibilities:
1) Large country pulling funds.
2) Sub-prime some how affecting money markets
3) Derivatives based on Money Market rates: crashing?"

My post:here.

If I could see it the Feds surly should have note this.

They had 9 months to do something.

They knoew the worlds money markets were having problems and THEY knoew the cause,

Sub-prime investments in money markets and they knew the bad loans were making the money markets il-liquid.

AND THEY DID NOTHING FOR 9 MONTHS....

SOME ONE NEED TO BE FIRED.

tHEY SAT ON THIS FOR 9 MONTHS AND DECLARED AN EMERGENCY TO PUSH LEGISLATION AT THE LAST MIN.

whores IN CONGRESS.

GERA;D

SERIES 7 AND 11

Q.

How does the sub-prime problem have an effect on credit avaiability?

Real Estate loans are bundled together as a security, and sold like bonds.

The Income from house payments produced the cash flow.

So these "bonds" backed by real estate provide the interest payments from

house payments.

So far so good, nothing wrong with that.

Unless the loans are junk, as soon as we get massive defaults

the Interest on the RE bonds stops as home payments stop.

Now you have a Investment backed by real estate without income.

And as we all know Real Estate is il-liquid, you can't convert it to cash

in 15 min, kind of thing.

Well these Real Estate bonds found their way into Money Markets!

Now I'm not sure how that works, I expect deritavites.

But when these RE bonds quit payment and became Il-liquid

they crippled money markets, probally one of the worlds safest

and most liquid investments.

The money used to make loans are stored/ invested in money markets.

When the money markets coudn't be cashed because the RE bonds quit paying

interest/home payments, they couldn't be cashed our as they are il-liquid.

Now this probally would have worked just fine, except for sub-prime

sleaze, Bankers writing loans they know won't pay off, the barrowers

default, because the banks know they won't get stuck they sell them

to Freddie mac or Sallie may.

AND some other sleaze worked them into money markets. causing the

credit crunch.

Seems the SEC didn;t notice the RE bonds in money markets,

and the Federal Reserve couldn't figure out 7 months ago RE bonds had got into

money markets, I did why didn't they? Where is Paul Volker when you need him?

Gerald

The regulators need to get RE bonds to hell out of money markets.

I have no attempt to do this, maybe they hope buying up the RE bonds 

will remove them for money narkets, get th e deritvites out of the money markets.

Regulators need to be replaced. And the Federa; reserve let this develop into 

a distaster, and then came up with a poor soultion, and shifted risk on to the taxpaysr.

Banking lobbyiest did a great job buying the congress men.

Anybody know who the cingressmen are that accepted the banking lobbyist money and how much? HEADS SHOULD ROLL,  AND THE BIGGEST PRISION TERMS IN HISTORY TO MATCH 

THE BIGGEST BAIL OUT IN HISTORY.

i EXPECT SOME CONGRESSMEN WILL PROTECT THE BANKING CEOS FROM PRISION.

.

.

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Congress not listening

I got an email from my congressman, about how the Bail out isn't really a bail out.

The voulme of email to congress thru its form system has been so great it brought down the server.

UPDATE:

Server brought down by putting the bill on line:

Read it here:

http://www.house.gov/

"This webpage is not available.

The webpage at http://www.house.gov/ might be temporarily down or it may have moved permanently to a new web address."

The public are tired of banking industry's criminal activity and the power lobbyist weld on Congress.

Usuary interest rates while congress turns it head. Multiple million dollar Golden parachutes for failed, criminal CEOs. Sub-prime fraud and letting these real estate bonds into money markets, Where are the regulators?

This is a wake up call for congress.

and they SNOOZE.

Congress complains the public doesn't understand,

Its congress that doesn't understand.

There is a huge problem, and its on the HILL.

Dow -777

g

I warned THEM ABOUT SUB-PRIME LEAKING INTO MONEY MARKEts ON 1/22/2008 02:14:00 PM...Gerald

"3) Derivatives based on Money Market rates: crashing?"

( Personal note: I'm tired of McCain and Obamma, they tattle on each other like 8th graders, ( in the debates. ))

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bail out reception

House rejects bail out plan 205 to 228

Did it work?
By Gerald: Internet Anthropologist Think Tank
Sept 29, 08

Boy congress was tough on all the CEO's that were involved in the Criminal Banking activities that almost lead to a disaster.

"Companies that participate in auctions, or other market-making mechanisms, and sell more than $300 million in troubled financial instruments to the government, will be barred from making any new employment contract with a senior executive that provides a golden parachute in the event of “involuntary termination, bankruptcy filing, insolvency or receivership.”"

They have to just keep all those old golden parachutes, but no new ones.

Such is the power of the banking lobby over congress.

The big Q is will this work?

I'm not sure it addresses the fundamental problem of liquidity.

Some of this "yellow paper" the "Real estate bonds", got into money market funds.

Which are suposed to be liquid, the "Real estate bonds" are not liquid die to defaults.

Will the RE bonds become liquid now?

If the Government guarantees them, that should put the Money market valuations back to

a dollar a share, ie liquid again.

How do you feel buying money market funds backed by the Gov?

Are there any more surprises lurking?

Lets see how the markets feel.

Market Update

09:40 am : Stocks tumble at the open. Selling interest is driven by concerns related to the government's financial rescue plan, news that another bank was forced to sell itself to avoid collapse, and the bailout of several European financial firms.

The Con... more »

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Warning needed

Photo by Gerald, cr 2008

HAD TOLD US..
By Gerald Internet Anthropologist Think Tank
Sept. 26,08


If only someone had warned us about the sub-prime problem and how it could lead to
money market crash?

The the Feds could have been prepared.................1/22/2008 02:14:00 PM


If someone had warned us we would NOT have to be in a crisis mode in congress right now.

Gerald
Series 7 & 13

I Just saw a video about how the Banks were FORCED to write bad loans.
http://www.youtube.com/watch?v=H5tZc8oH--o
Video is in error in reference to the Bank Corps.

It completely discounts the power of the Banking Lobby in congress.

This law did not get passed without the bank Lobby's approval. Big cash up front and pass risk on to uncle sam ( Freddie Mac ) or the public in the form of ( real estate ) bonds.

The real estate bonds are backed by homes, which are illiquid.
And translated into bonds which are liquid.

If the bonds go into default ( they quit making payments ) Then the RE bonds are backed by illiquid real estate, no income, but an asset none the less.

The fraud and big losses will occur where the buildings or homes are frauds, not worth the loan.

So the money/value is there real estate. But when the market went down
an liquid asset turned Illiquid,
Causing a run on credit.

And cascading into the other liquid assets like money market funds.

Long term these real estate bonds
are solid.
Short term they are illiquid.

This threatens to locks up the liquid market, freeze it.
Potentially Causing a run on cash.
And a crash of the financial markets world wide.

These BAD assets are sound financially
just illiquid right now.

The question becomes how many of these
real estate bonds are backed by junk real estate, how greedy were the banks?

I fear it is VERY HIGH. And in a bailout high risk for the US Taxpayer.

If the banks were honest and didn't send trash real estate bonds out to the public then these are fire sale prices.

But I don't trust the Bank Corps,
40% intrest rate credit cards,
re writting the bankruptcy laws to allow pursuit into the old folks homes
for payments.

Naaa their crooks

Gerald
If only someone had warned us about the sub-prime problem and how it could lead to
money market crash?

The the Feds could have been prepared.................1/22/2008 02:14:00 PM


If someone had warned us we would NOT have to be in a crisis mode in congress right now.

.

Shoring up the Banking System

Shoring up the Banking System

December 19, 2007

Author:	Lee Hudson Teslik

Banks fear runs of the sort seen earlier this year at Britain's Northern Rock bank. (Press Association via AP Images/John Giles)

It’s not so often that central banks team up. This month, for the first time since 9/11, they did just that when the U.S. Federal Reserve, the European Central Bank (ECB), and three other major banks announced they would attempt to coordinate (Reuters) their responses to global credit concerns. The ECB and the Swiss National Bank said they would provide more loans in dollars (FT). The U.S. Fed, for its part, took a page from the playbook of several European central banks, setting up an auction facility (MarketWatch) through which banks can lend each other emergency funds. Commercial banks have expressed hesitancy about the process of taking short-term loans from the Fed’s discount window—the place where such funds are ordinarily doled out—due to the public stigma and possible share price implications associated with taking a loan. The new scheme aims to better cloak the process, allowing banks that aren’t at risk of collapsing—but need need short-term loans—to get them anonymously.

The news of the varying plans brought mixed reaction from economists. Martin Wolf writes in the Financial Times that “central banks must be pretty worried to take such a joint action.

SOURCE: MORE.Council on Foreign Relations

More: world money markets, ( Secret War? )

G
WHO IS WITH DRAWING THE LIQUIDITY?
WHO IS REMOVING/WITHDRAWING THE CASH? into Gold?
THEY MUST KNOW.
Somebody is buying a lot of Gold.
UPDATE 2-Gold nears record-high on dollar, Pakistan turmoil
DOES THIS HAVE AN "ASYMMETRIC" SMELL?
.
.

Mark Cuban and Brian de Palma making al Qaeda propaganda

Money for Death
During World War II, Hollywood produced hundreds of patriotic films to support the war effort. Many actors and actresses also enlisted to serve their country on the front lines. One of the most famous Hollywood directors of the time, Frank Capra, produced the "Why We Fight" series to help explain why our nation was fighting the Nazi and Japanese.

Hollywood was united in our nation's joint effort to defeat the threat of worldwide fascism. But, times have changed. Now, Hollywood producers and directors are still going to war but this time they're waging war against our own military and against our nation's intelligence gathering agencies. Does the word "treason" have any meaning?

One of the latest despicable films to be produced against our military came from the twisted mind of Brian de Palma. The film, "Redacted," was funded by Mark Cuban, owner of the Dallas Mavericks. It was produced through Cuban's Magnolia Pictures. (Cuban also founded HDNet, which airs on DirecTV. "Redacted" was shown repeatedly on this network a week ago.)

"Redacted" portrays our U.S. Marines as a bunch of boozing, dope smoking racists, murderers and rapists. Film critic Michael Medved saw the film recently and described it this way: "It could be the worst movie I've ever seen … the out and out worst, most disgusting, most hateful, most incompetent, most revolting, most loathsome, most reprehensible cinematic work I have ever encountered."

Medved says he "was close to vomiting when I saw the film … It is a slander on the United States of America …
( list of fims I won't go to, note the "stars" in these al Qaeda propaganda films, watch their careers nose dive )
"Redacted," however, isn't the only Hollywood attack in recent months on our battle against worldwide Islamo-fascism. Hollywood has given us "The Shooter," with Mark Wahlberg, which attacks our intelligence services; "The Bourne Ultimatum," another attack upon our intelligence agencies; "Lions for Lambs," an anti-military diatribe starring ultra-liberal Robert Redford; "In the Valley of Elah," about a man who fights the military bureaucracy; and "Rendition" starring Reese Witherspoon. In this film, she plays the wife of an Egyptian man who is kidnapped by our government and sent to a secret "torture" camp overseas.

http://www.christianpost.com/article/20071124/30210_Hollywood_Goes_To_War_%96_Against_Our_Military.htm

http://tinyurl.com/39nts9

Gerald
al Qaeda will promote these films on the Internet to stir hate, and cause the loss of American troops lives, Robert R. what are your residuals on that?

Money for Death
UPDATE: 11.26.07
"Redacted" - which "could be the worst movie I've ever seen," said critic Michael Medved -took in just $25,628 in its opening weekend.
Don't worry al Qaeda will promote the film, ohh they wont pay depalma will thay opps.

.

worried? noise? coincidence? ATTACK?

Paradigm focusing?
Point #1)
The European Central Bank scrambled to head off a potential financial crisis on Thursday by pumping an emergency €94.8bn ($131bn) into the region's banking system after liquidity in the interbank market started to dry up, threatening banks' access to short-term funds.
Its not sub-prime problems, max. loss on that $30 Billion.USD
Was the cause of the illiquidity cash withdrawals? ( or equivalent )
Why and who would want to withdraw funds on this scale?
Attack eminent?

Point #2)
Twenty-nine bases in the tribal areas of North Waziristan and South Waziristan on the border with Afghanistan that were used to train militants have simply fallen off the radar.

The US had presented Islamabad with a dossier detailing the location of the bases as advance information on likely US targets. But Asia Times Online has learned that since early this month, neither the North Atlantic Treaty Organization-led coalition in Afghanistan nor Pakistan intelligence has detected any movement in the camps.
Withdraw troops for large scale attack?
Attack eminent?


Point #3)
The US is also looking past the issue of the security of Pakistan's nuclear arsenal. The loyalty of the conventional Pakistani military to President Musharraf is in question, according to CNN. "Musharraf controls the loyalty of the commanders and senior officials in charge of the nuclear program, but those loyalties could shift at any point," CNN reported on August 10. "There is also a growing understanding according to the U.S. analysis that Musharraf's control over the military remains limited to certain top commanders and units, raising worries about whether he can maintain control over the long term."

The United States has full knowledge about the location of Pakistan's nuclear weapons, according to the U.S. assessment.

But the key questions, officials say, are what would happen and who would control the weapons in the hours after any change in government in case Musharraf were killed or overthrown.
Coup in planning, nuke involoved? Attack eminent?

Gerald

Huge cash withdrawls??? $131bn USD

ECB injects €95bn to help markets

By Gillian Tett in London, Richard Milne in Frankfurt and Krishna Guha in Washington

Published: August 9 2007 12:59 | Last updated: August 10 2007 01:33

The European Central Bank scrambled to head off a potential financial crisis on Thursday by pumping an emergency €94.8bn ($131bn) into the region's banking system after liquidity in the interbank market started to dry up, threatening banks' access to short-term funds.

The cash injection was the biggest in the ECB's history, exceeding the €69bn provided the day after the terrorist attacks of September 11 2001. The ECB also made an unprecedented one-day pledge to meet 100 per cent of all funding requests from financial institutions.

The ECB action followed a sharp increase in the rate at which banks are prepared to lend overnight to each other. It was designed to ensure that money markets continued to function.

Brian Sack, senior economist at Macroeconomic Advisers, said: "What happened today raises more systemic risk issues. It had a feel of liquidity problems similar to some of the past episodes like 1998...I am not saying it is as intense as 1998, but it certainly looked like that."

The Dow fell 2.83 per cent, while the UK's FTSE lost 1.83 per cent, Germany's DAX index fell 2 per cent and France's CAC-40 fell 2.17 per cent.

The ECB did not offer a detailed explanation for its move, which surprised markets, but simply said it was now seeking to "assure orderly conditions in the euro money market".

The $24bn injected into US markets by the New York Fed came in two scheduled open market operations

The total is roughly double the normal amount the Fed lends to the markets, but is not remarkably high and suggests the Fed is not in outright crisis fighting- mode.

Some traders warned that market unease was unlikely to dissipate soon. Edwin Rood, global head of money markets at ABN Amro, said: "The underlying problem cannot be addressed directly by the ECB."

http://www.ft.com/cms/s/a8c5829a-466e-11dc-a3be-0000779fd2ac.html

http://tinyurl.com/2mpsqv

Related to "sub-prime" loans and closing of 3 funds or something else?

G