90% of QE2 went to bailing out foreign banks. The truth comes out.

[Liberty]

Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge

 

[Liberty]

no lefties have any retorts on this? lulz.

 

[CrusaderFrank]

In any educated country, the Fed would be audited then burned to the ground while its directors were tried before a military tribunal for treason

 

[uscitizen]

Our banks are mostly controlled by foreign interests?
Not a suprise to me.

 

[Epsilon Delta]

Welcome to the Third World, guys. Plastic cups and beer are out back.

Please sit down and enjoy the salsa.

 

[Liberty]

Welcome to the Third World, guys. Plastic cups and beer are out back.

Please sit down and enjoy the salsa.

when you put it that way, it doesn't seem too bad.

 

[editec]

Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge

I don't know about your numbers, but here's WHY money went to foreign banks....

BECAUSE THOSE BANKS WERE HOLDING DEBT INSTRUMENTS ISSUED BY AMERICAN BANKS.


Now if your complaint is that the US taxpayer ought not to have stoood behind ANY debt issued by PRIVATE BANKS, and that the people who bought those debt instruments ought to have taken the loss, instead of the US taxpayer taking on that debt?

I quite agree.

 

[boedicca]

Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge

I don't know about your numbers, but here's WHY money went to foreign banks....

BECAUSE THOSE BANKS WERE HOLDING DEBT INSTRUMENTS ISSUED BY AMERICAN BANKS.


Now if your complaint is that the US taxpayer ought not to have stoood behind ANY debt issued by PRIVATE BANKS, and that the people who bought those debt instruments ought to have taken the loss, instead of the US taxpayer taking on that debt?

I quite agree.

Please provide some evidence that QE2 was used to compensate foreign banks for holding U.S. debt instruments.

 

[boedicca]

editec won't find any evidence because the real use of QE2 has been to forestall the cratering of the EU as the PIGS economies unravel:

That's right, out of 20 Primary Dealers, 12 are.... foreign. And incidentally, the reason why we added the (if any) above, is that since this cash is fungible between on and off-shore operations, what happened is that the $600 billion in cash was promptly repatriated and used by domestic branches of foreign banks to fill undercapitalization voids left by exposure to insolvent European PIIGS and for all other bankruptcy-related capital needs. And one wonders why suddenly German banks are so willing to take haircuts on Greek bonds: it is simply because courtesy of their US based branches which have been getting the bulk of the Fed's dollars in 1 and 0 format, they suddenly find themselves willing and ready to face the mark to market on Greek debt from par to 50 cents on the dollar. And not only Greek, but all other PIIGS, which will inevitably happen once Greece goes bankrupt, either volutnarily or otherwise. In fact, the $600 billion in cash that was repatriated to Europe will mean that European banks likely are fully covered to face the capitalization shortfall that will occur once Portugal, Ireland, Greece, Spain and possibly Italy are forced to face the inevitable Event of Default that will see their bonds marked down anywhere between 20% and 60%.

 

[Toddsterpatriot]

Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge[/url]

Trading low yielding reserves for low yielding Treasuries is a stealth bailout?
And how does that hurt the domestic economy?

 

[Liberty]

Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge[/url]

Trading low yielding reserves for low yielding Treasuries is a stealth bailout?
And how does that hurt the domestic economy?

Macroeconomics, Overview, Basics, Principles, 101 Introduction Information

if i were you id look over that.

 

[Toddsterpatriot]

Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge]

Trading low yielding reserves for low yielding Treasuries is a stealth bailout?
And how does that hurt the domestic economy?

[Macroeconomics, Overview, Basics, Principles, 101 Introduction Information]

if i were you id look over that.

Do you imagine that would show the foreign bank is helped by holding excess reserves earning 0.25% instead of a 2 year Note yielding 0.4%?

 

[FiscalSanity]

The problem is that the banks around the world are so interlocked with each other that bank failures in Europe or Asia can lead to failures here, and vice versa.

Whats truly scary is that none of them really know just how much money of them actually have, because so much of it only exists on the books. We already know that our banks balance sheets are a tissue of lies, and nothing I've read or heard about the European banks makes me think they are any different. As for the Middle East and Asia, they throw the rule book out the window when it comes to accounting, so you can't trust any of their numbers. Face it, the entire worlds financial structure is a house of cards, and one really good gust of wind could make it all tumble down.

 

[hellofromwarsaw]

As usual, a deregulatin', non-enforcement Pub Administration ruined the world economy...the nerve! or the ignorance...

 

[Toddsterpatriot]

As usual, a deregulatin', non-enforcement Pub Administration ruined the world economy...the nerve! or the ignorance...

What deregulating do you imagine the Bush administration did? Please spell it out.....

 

[Oddball]

90% of QE2 went to bailing out foreign banks. The truth comes out.

Which in turned dumped their dollars for hard commodities.

Who woulda guessed?

 

[Toddsterpatriot]

90% of QE2 went to bailing out foreign banks. The truth comes out.

Which in turned dumped their dollars for hard commodities.

Who woulda guessed?

The chart at the top of the thread shows they increased their cash assets by $630 billion. If you were correct, their cash assets should have decreased, right?

 

[iamwhatiseem]

Where's truthmatters?
He has a thread saying QE2 was the smartest thing America has ever done.

 

[Avorysuds]

Where's truthmatters?
He has a thread saying QE2 was the smartest thing America has ever done.

TM won't disclose what her education is but likes to call the Republican party anti education. She is not the best source of logic or factual information.

 

[iamwhatiseem]

Where's truthmatters?
He has a thread saying QE2 was the smartest thing America has ever done.

TM won't disclose what her education is but likes to call the Republican party anti education. She is not the best source of logic or factual information.

The last person on this forum...well...bottom 5 anyway...of who I would want factual or objective information from is TM.