Federal Reserve Raises Interest Rates By 25 Basis Points

[Tom Paine 1949]

Fed should not being manipulating American finances over an arbitrary “magic line” 2% inflation rates
It’s exactly like when CDC tried to control the air.

You are not making yourself very clear.

Do you want to “abolish” the Federal Reserve? Are you saying the Fed should not try to control inflation at all? That it should accept a higher inflation “norm”? That it should change its structure? Just change particular policies?

Which ones? Should it temporarily ease off its QT and interest rate hikes? Should it give up the “discount window” loans it provides to backstop weak banks facing liquidity problems or temporary bank runs? Should we also abandon all FDIC insurance, bank and financial security market regulations?

Here’s a modest concrete proposal I included in a separate discussion entitled: A little sanity on the latest bank “crisis”

 

[WEATHER53]

You are not making yourself very clear.

Do you want to “abolish” the Federal Reserve? Are you saying the Fed should not try to control inflation at all? That it should accept a higher inflation “norm”? That it should change its structure? Just change particular policies?

Which ones? Should it temporarily ease off its QT and interest rate hikes? Should it give up the “discount window” loans it provides to backstop weak banks facing liquidity problems or temporary bank runs? Should we also abandon all FDIC insurance, bank and financial security market regulations?

Here’s a modest concrete proposal I included in a separate discussion entitled: A little sanity on the latest bank “crisis”

My writings are clear. I don’t write to then help you comprehend it
The Fed is overreaching and trying to control things they can’t which punishes innocent Americans

 

[Toddsterpatriot]

Fed should not being manipulating American finances over an arbitrary “magic line” 2% inflation rates
It’s exactly like when CDC tried to control the air.

What about over a 6% inflation rate?

 

[g5000]

What you post says that the Board was competent, and we know that they were NOT, otherwise they wouldn't have failed.
Your bankers sold their stock before the collapse, that was smart, but still, SVB collapsed.
There are too many successful banks thriving to point to the Fed as a problem.
SVB management failed, whether as experienced bankers, or as political hacks.

Yes, management failed to hedge their huge interest rate risk, as did the other banks which have failed. And judging by the incredible amount of money being borrowed at the Fed's discount window, so did many, many other banks.

In short, the "Democrat ATM" meme you blindly parroted is horseshit.

In 2008 it was the bad loans pushed by the Community Reinvestment Act that killed the banks.

Nope. That's another bullshit meme.

I picture credulous rubes like you driving around your white town's neighborhoods and upon seeing all the foreclosed houses saying to yourself, "I had no idea Biff was a negro!"

 

[Fort Fun Indiana]

My writings are clear. I don’t write to then help you comprehend it
The Fed is overreaching and trying to control things they can’t which punishes innocent Americans

They are not overreaching. That is literally the job of the central bank.

And raising rates to quell inflation is a tested and effective method.

Literally every word of your post was wrong.

 

[Toddsterpatriot]

And judging by the incredible amount of money being borrowed at the Fed's discount window, so did many, many other banks.

How much is being borrowed?

 

[g5000]

How much is being borrowed?

More than was borrowed in 2008.

Far more.

See post 4.

 

[Toddsterpatriot]

More than was borrowed in 2008.

Far more.

See post 4.

Thanks

$150 billion?

Total deposits at all commercial banks is $17.5 trillion.

 

[g5000]

Thanks

$150 billion?

Total deposits at all commercial banks is $17.5 trillion.

And what were the total deposits in 2008?

 

[Toddsterpatriot]

And what were the total deposits in 2008?

About $7 trillion.

 

[g5000]

About $7 trillion.

And they borrowed "only" $110 billion and the entire system still collapsed.

 

[Toddsterpatriot]

And they borrowed "only" $110 billion and the entire system still collapsed.

The system collapsed? Link?

 

[g5000]

The system collapsed? Link?

Were you n a coma?

 

[Toddsterpatriot]

Were you n a coma?

How much in customer deposits were lost?

In the Great Depression 9000 banks failed, $7 billion in customers deposits evaporated, money supply shrank by about 30%.

Maybe you have a different definition for collapsed?

 

[g5000]

How much in customer deposits were lost?

In the Great Depression 9000 banks failed, $7 billion in customers deposits evaporated, money supply shrank by about 30%.

Maybe you have a different definition for collapsed?

Were you in a coma in 2008?

 

[Toddsterpatriot]

Were you in a coma in 2008?

You think the system collapsed in 2008?
They threw trillions at it so it wouldn't collapse.
It collapsed in the Great Depression.

 

[kyzr]

Yes, management failed to hedge their huge interest rate risk, as did the other banks which have failed. And judging by the incredible amount of money being borrowed at the Fed's discount window, so did many, many other banks. In short, the "Democrat ATM" meme you blindly parroted is horseshit.

Nope. That's another bullshit meme.

I picture credulous rubes like you driving around your white town's neighborhoods and upon seeing all the foreclosed houses saying to yourself, "I had no idea Biff was a negro!"

1. Yep, the discount window is setting records. Not good.

Bank Borrowing From Fed's Discount Window Hits Record High

Banks borrowed a record amount from the Federal Reserve’s discount window over the last week, racing to secure funding to offset flighty deposits. In the week ended Wednesday, banks borrowed an average of $117 billion each night, according to new Fed data. That was [up $32 billion from the prior we

www.wsj.com

2. When NBC admits SVB was a democrat ATM, believe it.

NBC News analyst admits SVB was a 'democratic ATM'

www.youtube.com

3. I don't bullshit.

New Study Finds CRA 'Clearly' Did Lead To Risky Lending

Special Series: The War On Banks Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime... Read More

www.investors.com

4. no clue what your last sentence means.

 

[g5000]

1. Yep, the discount window is setting records. Not good.

Bank Borrowing From Fed's Discount Window Hits Record High

Banks borrowed a record amount from the Federal Reserve’s discount window over the last week, racing to secure funding to offset flighty deposits. In the week ended Wednesday, banks borrowed an average of $117 billion each night, according to new Fed data. That was [up $32 billion from the prior we

www.wsj.com

2. When NBC admits SVB was a democrat ATM, believe it.

NBC News analyst admits SVB was a 'democratic ATM'

www.youtube.com

3. I don't bullshit.

New Study Finds CRA 'Clearly' Did Lead To Risky Lending

Special Series: The War On Banks Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime... Read More

www.investors.com

4. no clue what your last sentence means.

Bear Stearns was not subject to the CRA.

Lehman Brothers was not subject to the CRA.

Merrill Lynch was not subject to the CRA.

Goldman Sachs was not subject to the CRA.

Countrywide was not subject to the CRA.

AIG was not subject to the CRA.

Kaupthing was not subject to the CRA.

Landsbanki was not subject to the CRA.

Glitnir was not subject to the CRA.

The Bank of Ireland was not subject to the CRA.

Allied Irish Banks were not subject to the CRA.

Anglo Irish Bank was not subject to the CRA.

Spain's banks were not subject to the CRA.

Germany's banks were not subject to the CRA.

Britain's banks were not subject to the CRA.

Greece's banks were not subject to the CRA.

I defy anyone to explain how the negroes of Iceland brought down that country's banks.

As for my last sentence, you had to be willfully blind not to notice all those white middle class houses which foreclosed in your town.

The middle class and the wealthy can borrow more money than the poor, moron. And so they were the primary targets of mortgage brokers. And they were all offered HELOCs at the same time they were applying for a mortgage.

The idiots didn't just buy houses on borrowed money, they bought boats and motorcycles and Disney vacations.

So, yeah. I picture clueless blind people like you observing all the white middle class people in your town foreclosing and saying to yourselves, "I had no idea Biff was a negro!"

How else could you have closed the loop on your idiotic CRA meme while observing all those white people defaulting?


Because that what assholes like you do. You blame the negroes for EVERYTHING.

The CRA meme was invented by an ignorant pundit two weeks after the collapse of Lehman Brothers. And some dumbshit congressman drank that piss and asked Dick Fuld what part the CRA had to do with Lehman's collapse.

Fuld responded, "De minimus".

Because the CRA did not apply to Lehman. In fact, Lehman created their own mortgage broker feeder chain to keep their CDO machine thrumming.

 

[Toddsterpatriot]

Bear Stearns was not subject to the CRA.

Lehman Brothers was not subject to the CRA.

Merrill Lynch was not subject to the CRA.

Goldman Sachs was not subject to the CRA.

Countrywide was not subject to the CRA.

AIG was not subject to the CRA.

Kaupthing was not subject to the CRA.

Landsbanki was not subject to the CRA.

Glitnir was not subject to the CRA.

The Bank of Ireland was not subject to the CRA.

Allied Irish Banks were not subject to the CRA.

Anglo Irish Bank was not subject to the CRA.

Spain's banks were not subject to the CRA.

Germany's banks were not subject to the CRA.

Britain's banks were not subject to the CRA.

Greece's banks were not subject to the CRA.

I defy anyone to explain how the negroes of Iceland brought down that country's banks.

As for my last sentence, you had to be willfully blind not to notice all those white middle class houses which foreclosed in your town.

The middle class and the wealthy can borrow more money than the poor, moron. And so they were the primary targets of mortgage brokers. And they were all offered HELOCs at the same time they were applying for a mortgage.

The idiots didn't just buy houses on borrowed money, they bought boats and motorcycles and Disney vacations.

So, yeah. I picture clueless blind people like you observing all the white middle class people in your town foreclosing and saying to yourselves, "I had no idea Biff was a negro!"

How else could you have closed the loop on your idiotic CRA meme while observing all those white people defaulting?


Because that what assholes like you do. You blame the negroes for EVERYTHING.

The CRA meme was invented by an ignorant pundit two weeks after the collapse of Lehman Brothers. And some dumbshit congressman drank that piss and asked Dick Fuld what part the CRA had to do with Lehman's collapse.

Fuld responded, "De minimus".

Because the CRA did not apply to Lehman. In fact, Lehman created their own mortgage broker feeder chain to keep their CDO machine thrumming.

Bear Stearns was not subject to the CRA.

Lehman Brothers was not subject to the CRA.

Merrill Lynch was not subject to the CRA.

Goldman Sachs was not subject to the CRA.

Countrywide was not subject to the CRA.

AIG was not subject to the CRA.

Kaupthing was not subject to the CRA.

Landsbanki was not subject to the CRA.

Glitnir was not subject to the CRA.

The Bank of Ireland was not subject to the CRA.

Allied Irish Banks were not subject to the CRA.

Anglo Irish Bank was not subject to the CRA.

Spain's banks were not subject to the CRA.

Germany's banks were not subject to the CRA.

Britain's banks were not subject to the CRA.

Greece's banks were not subject to the CRA.

But they all bought crappy mortgages.

Because the CRA did not apply to Lehman. In fact, Lehman created their own mortgage broker feeder chain to keep their CDO machine thrumming.

How many crappy mortgages did HUD force Fannie and Freddie to buy?

 

[g5000]

How many crappy mortgages did HUD force Fannie and Freddie to buy?

Wall Street began moving into the subprime business in a large way in the early Oughts. This really bit into Fanny and Freddy's business, because the GSEs were restricted to making prime loans while Wall Street was going gangbusters with derivatives and subprime loans.

So then the GSEs started moving into the subprime business and buying CDS. They were the followers, not the leaders.

Nevertheless, the GSEs lost their domination of the secondary mortgage market. By 2005, their market share had shrunk to something like 30 percent.

Suddenly, the secondary mortgage market wasn't boring any more. It was flashy. It was the shit. It was hookers and blow for everyone!

In order to steal more market share from the GSEs, there had to be a transfer of ownership of our politicians. The GSEs had totally owned them for decades, but then Wall Street began donating large sums to EVERY politician. Not just Republicans. After all, Chuck Schumer is the Senior Senator from New York, which is where Wall Street is, and so he raked in YUGE sums from the broker-dealers, too.

Wall Street gave our politicians a narrative. A narrative that, if you were paying attention, made our politicians look schizophrenic.

The narrative we were suddenly given around 2004 or so was that the GSE portfolios were getting too big. They were making too many loans. Our Republican President at the time said their portfolio posed a "systemic risk", and they needed to slow down. The Democrats, whose turn it was to wear the Party of No hat, disagreed.

In some circles, this Republican President is portrayed as a hero. "He tried to stop the runaway train, but that fag Barney Frank got in his way!"

It's a tidy story, but it is total bullshit.

The part about Frank wanting the train to keep going is true, but the part about the President trying to stop the train is total bullshit.

You see, that Republican President had never been owned by the GSEs. And while he was trying to rein them in, he was very busy greasing the wheels of that train for Wall Street.


The Republican President did everything he could to relax the underwriting laws of the Universe so Wall Street could keep on building their CDOs and reaping their fees.

Here's one of the worst deregulations:
Final Rule Alternative Net Capital Requirements for Broker-Dealers That Are Part of Consolidated Supervised Entities Rel. No. 34-49830 June 8 2004




Bush's SEC voted unanimously in 2004 to waive the net capital rule for the 5 biggest broker-dealers. That waiver led directly to the demise of those broker-dealers.

All five of the broker-dealers who were given that extra special treatment by the SEC no longer exist as independent companies or converted into bank holding companies so they could be bailed out.

Bear Stearns was the first to go under. Then Lehman Brothers went under. Then Merrill Lynch went under.

Goldman Sachs and Morgan Stanley converted to bank holding companies so they could receive bailout money. Goldman was also bailed out by former Goldman Sachs CEO, Hank Paulson, who was Bush's Secretary of Treasury. Goldman Sachs received 100 cents on the dollar for their CDS's from AIG.