Now what do you say?

[jbdhere]

Senate hearing on how the Federal Reserve lost $9,000,000,000,000. Lost as in went missing. $1,000,000,000,000 from September.

http://www.youtube.com/watch?v=SIM8x5wLtR4

 

[Twangbanger]

When your #1 line of business is monetizing U.S. taxpayer debt...who's counting losses?

 

[Classic]

A $1,000,000,000,000 here, a $1,000,000,000,000, pretty soon you're talking some real money.

 

[IndyBeerman]

I know this was not a court of law, but in the famous words of Tom Griswald, of
Q95's Bob & Tom Show......

Bailiff, Gun Please

 

[cwillour]

Old news (I am pretty certain the Bloomberg report referenced was in 2009)


Posted in May, 2009:
http://www.youtube.com/watch?v=PXlxBeAvsB8

YouTube Clip of Lawmaker, Fed Official Draws 166,000 (Update1) - Bloomberg

 

[Baditude]

I wish they would lose some of that my way

 

[ZombieApocolypse]

I wish they would lose some of that my way

Then you'd get arresting for stealing. I was going to purple that, but now that i think about it, they would do that.

 

[AtTheMurph]

FRB: H.4.1 Release--Factors Affecting Reserve Balances--January 6, 2011

The Fed is screwed and by association so are we.

They are buying trillions of bonds at wildly inflated prices with the expectation that they will be able to sell them in the future. But when they sell them in the future, presumably at higher rates when the economy somehow manages to grow faster than it is now, they will lose money on those bonds (because bond rates move counter to interest rates).

It used to be that the Fed could not print money to monetize. It used to be that they Treasury had to fund any shortfall in Fed operating expenses but those smart people in DC and NYC changed the rules (as noted above) to allow the Fed to simply print money to cover it's shortfalls. Which of course they know are coming in huge waves.

So the Fed will print to keep rates low and it will print if they allow rates to rise. In other words they will PRINT, PRINT, PRINT until it's over.