Comments on: Fed Increases Dollar Swap Facilities by $330 Billion, More than Double http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html Sun, 22 Nov 2009 19:00:29 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18270 Anonymous Mon, 29 Sep 2008 18:53:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18270 Inflating to infinity is how this legal tender system works. The alphabet soup of funding mechanisms, enacting new laws, raising the debt limits are all minor details as the printing press keeps on turning. Inflating to infinity is how this legal tender system works. The alphabet soup of funding mechanisms, enacting new laws, raising the debt limits are all minor details as the printing press keeps on turning.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18259 Anonymous Mon, 29 Sep 2008 18:40:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18259 and this is why the repubs are up in arms...Pelosi's speech...<br/><br/>http://www.webcastr.com/videos/news/nancy-pelosi-on-rescue-deal.html and this is why the repubs are up in arms…Pelosi’s speech…

http://www.webcastr.com/videos/news/nancy-pelosi-on-rescue-deal.html

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18257 Anonymous Mon, 29 Sep 2008 18:36:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18257 House Rejects Bailout Package, 228-205, But New Vote Is Planned; Stocks Plunge<br/><br/>http://www.nytimes.com/2008/09/30/business/30bailout.html?hp House Rejects Bailout Package, 228-205, But New Vote Is Planned; Stocks Plunge

http://www.nytimes.com/2008/09/30/business/30bailout.html?hp

]]> By: SlimCarlos http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18252 SlimCarlos Mon, 29 Sep 2008 18:12:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18252 >> yeah that worked well in Zimbabwe. Scare people into overvalued assets.<br/><br/>My point is that this will happen anyway. The only way out from under the debt mountain is through inflation. Avoiding this eventuality will only drag down productive sectors of the economy along with the unproductive.<br/><br/>Monetary authorities need to devalue hard and sharp and then reset the system so that this sort of excess does not happen again.<br/><br/>But devaluation is coming, one way or another.<br/><br/>ps - As for "overvalued assets" you now have solid nat gas companies trading for 2x cash flow and, if you think the ags are cheap, you try to go make money as a farmer at these "overvalued" levels. The baby is getting chucked with the bathwater. >> yeah that worked well in Zimbabwe. Scare people into overvalued assets.

My point is that this will happen anyway. The only way out from under the debt mountain is through inflation. Avoiding this eventuality will only drag down productive sectors of the economy along with the unproductive.

Monetary authorities need to devalue hard and sharp and then reset the system so that this sort of excess does not happen again.

But devaluation is coming, one way or another.

ps – As for "overvalued assets" you now have solid nat gas companies trading for 2x cash flow and, if you think the ags are cheap, you try to go make money as a farmer at these "overvalued" levels. The baby is getting chucked with the bathwater.

]]> By: Brian http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18247 Brian Mon, 29 Sep 2008 17:37:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18247 anonymous ... expanding the balance sheet, as was done last week, is essentially sterilization *if* you fund it through treasury debt auctions (which does not result in new money being created). There is also $480 billion of treasuries remaining in the Fed portfolio. So, we really cannot say yet that the Fed will be creating new money. We will need to see what transpires.<br/><br/>Is it not your understanding that the bailout proposal is to be funded via treasury debt auctions? anonymous … expanding the balance sheet, as was done last week, is essentially sterilization *if* you fund it through treasury debt auctions (which does not result in new money being created). There is also $480 billion of treasuries remaining in the Fed portfolio. So, we really cannot say yet that the Fed will be creating new money. We will need to see what transpires.

Is it not your understanding that the bailout proposal is to be funded via treasury debt auctions?

]]> By: S http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18245 S Mon, 29 Sep 2008 17:33:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18245 SlimCarlos said... <br/><br/>yeah that worked well in Zimbabwe. Scare people into overvalued assets. SlimCarlos said…

yeah that worked well in Zimbabwe. Scare people into overvalued assets.

]]> By: SlimCarlos http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18242 SlimCarlos Mon, 29 Sep 2008 17:24:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18242 The best way to get all this the money flowing again is to induce expections of inflation. In other words: use it or lose it. <br/><br/>Piling all this dough up in the pantry gets no one anywhere. The best way to get all this the money flowing again is to induce expections of inflation. In other words: use it or lose it.

Piling all this dough up in the pantry gets no one anywhere.

]]> By: spare some change? http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18241 spare some change? Mon, 29 Sep 2008 17:16:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18241 The technicals say 'short term long', the fundamentals say 'stay short'. Lots of bad economic waves are cresting right about now. The news in financials is just the froth at the peak of the wave.<br/><br/>Would not advise buying except to take profits on shorts, or to hedge. The technicals say ’short term long’, the fundamentals say ’stay short’. Lots of bad economic waves are cresting right about now. The news in financials is just the froth at the peak of the wave.

Would not advise buying except to take profits on shorts, or to hedge.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18239 Anonymous Mon, 29 Sep 2008 16:57:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18239 If you like to buy bottoms, we just announced the formation of a bottom on Nasdaq-100. With NDX at 1575 and QQQQ at 38.70, my friends, we are going long!<br/><br/>Details are below, where the series of correct bottom and top nailing continues uninterrupted!<br/><br/>http://financialtraders.blogspot.com/2008/09/nq-qqqq-ndx-qid-stock-trading-bottom.html If you like to buy bottoms, we just announced the formation of a bottom on Nasdaq-100. With NDX at 1575 and QQQQ at 38.70, my friends, we are going long!

Details are below, where the series of correct bottom and top nailing continues uninterrupted!

http://financialtraders.blogspot.com/2008/09/nq-qqqq-ndx-qid-stock-trading-bottom.html

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by.html#comment-18235 Anonymous Mon, 29 Sep 2008 16:22:00 +0000 http://www.nakedcapitalism.com/2008/09/fed-increases-dollar-swap-facilities-by-330-billion-more-than-double/#comment-18235 Problem:<br/>Mark-to-market accounting.<br/><br/>Solution:<br/>Mark-to-Hank. <br/><br/>Mark-to-Hank accounting will bring great profits for the banks. Thanks Hank! Problem:
Mark-to-market accounting.

Solution:
Mark-to-Hank.

Mark-to-Hank accounting will bring great profits for the banks. Thanks Hank!

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