DrStool Posted December 8, 2009 Report Share Posted December 8, 2009 Latest Story Don’t Subscribe Today, Yawn – Professional Edition December 7, 2009 By Lee Adler The market’s message was clearly and unequivocally the same as it has been over the past few days. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information. Link to comment Share on other sites More sharing options...
DrStool Posted December 8, 2009 Report Share Posted December 8, 2009 Pearl Harbor Day always moves me. So does D-Day. God bless the veterans of WWII who saved our asses. Most, like my Dad, are gone now. They're the lucky ones. It's sad for those still with us to have to witness this. Link to comment Share on other sites More sharing options...
Rationalize Posted December 8, 2009 Report Share Posted December 8, 2009 All those sports superstar wives know what comes with the territory. I view this as a cynical PR move, now that she's got the new pre-nup. Tiger will announce he's going into "therapy" for his "problem," they will reconcile, and his endorsement contracts will be saved. It's probably an addicktion. "Not his fault" Link to comment Share on other sites More sharing options...
DrStool Posted December 8, 2009 Report Share Posted December 8, 2009 If those corporate types dump Tiger, it would be the height of irony and hypocrisy, after they've been screwing EVERYBODY, for so long. Hell, let's just out everybody. Link to comment Share on other sites More sharing options...
Trader Joe Posted December 8, 2009 Author Report Share Posted December 8, 2009 Aw.... Everyone remember this cute little fella from the hit sitcom "Family Ties"? ______________________ Well these days......eh.....not so cute Brian Bonsall -- who played Andy on "Family Ties" -- was arrested for allegedly hitting his best friend in the face with a bar stool ... at which point cops realized Bonsall was also wanted for another crime. Link That show is turning out to be about as cursed as "Different Strokes" Link to comment Share on other sites More sharing options...
patents Posted December 8, 2009 Report Share Posted December 8, 2009 Cap, It's not like this money is coming to back to Uncle Sugar on an incremental basis. The money was created out of thin air to begin with in order to prop up the aforementioned That's like you taking out a home equity loan for $1,000, then loaning your brother $1,000. He pays you back a year later and your walk around acting like you're $1,000 richer _____________________ In isolation.... Bonds are issued.... People (BWHAHAHA)/foreign banks/the Fed/ et. al. buy the bonds.... The friggin' bonds now need to be repaid _____________________ The more I watched the MSM and read posts like this, here and other places -- I am friggin astounded by the fact that people don't know where the money came from in the first place They think this is incrementally cashflow positive to Uncle Sugar It was funding created by a friggin' loan (T-bags) backed by the Full Faith and credit of Uncle Sugar ----- read: the tax payments we make to "the Uncle" Now the loan needs to be repaid. Ah, but there in lies the rub. Now that the "goose is loose", i.e., the money is out there and available to be spent with no further congressional action needed -- GOOD LUCK GETTING THEM TO REPAY THE EQUIVALENT AMOUNT OF DEBT THAT ORIGINATED THE TARP $ IN THE FIRST PLACE I agree, but I still have a problem fully comprehending the possibilities. The problem that I see is that we extrapolate our condition to that of the whole, which is not necessarily the case. You and I have to work on the basis of our financial statements that include an income statement and a two column balance sheet. I am not sure that the Fed has to necessarily worry about an income statement since everyone looks at its two column balance sheet. Considering a balance sheet, the power of the Fed is that its balance sheet is essentially unlimited. It can "buy" bank assets at whatever value it wants by exchanging credits to the bank, for instance. A balancing entry goes on both sides of the Fed's balance sheet. This naturally increases the bottom line on each column (the unlimited part), but the credit and the offsetting debit entries balance out. Going back to your example with an individual and their deadbeat brother. Unlike the Fed, the person (or a state government or a corporation for that matter) extending the $1000 to the brother normally cannot on their own create a counter-balancing entry on the balance sheet. A bank or a central bank can do this by the very nature of the banking system (fractional reserve system for example) in which they operate. Banks really are different from an accounting perspective than an individual or just about anything else. Bottom line - I believe that a good chunk of what we think as money literally comes from thin air and may not even require the backing of a loan thanks to the accountants. If I am wrong about this distinction, I would sincerely welcome and appreciate your pointing out what is wrong. I think that the mechanics of reality is somewhere in between the two extreme examples of an individual and a bank. I apologize if my ignorance is apparent. Link to comment Share on other sites More sharing options...
Drano Posted December 8, 2009 Report Share Posted December 8, 2009 I just looked at the tab on my Firefox browser for this page. It reads: Day of Infamy UNCH - Stool Pig Link to comment Share on other sites More sharing options...
Rationalize Posted December 8, 2009 Report Share Posted December 8, 2009 Ok. Change of plan. If I were to start up a hedge hog, I think I'd have to go with: Farting-Alpha Capital LLC -- "dispersing opaque sheet globally". Link to comment Share on other sites More sharing options...
Rationalize Posted December 8, 2009 Report Share Posted December 8, 2009 I agree, but I still have a problem fully comprehending the possibilities. The problem that I see is that we extrapolate our condition to that of the whole, which is not necessarily the case. You and I have to work on the basis of our financial statements that include an income statement and a two column balance sheet. I am not sure that the Fed has to necessarily worry about an income statement since everyone looks at its two column balance sheet. Considering a balance sheet, the power of the Fed is that its balance sheet is essentially unlimited. It can "buy" bank assets at whatever value it wants by exchanging credits to the bank, for instance. A balancing entry goes on both sides of the Fed's balance sheet. This naturally increases the bottom line on each column (the unlimited part), but the credit and the offsetting debit entries balance out. Going back to your example with an individual and their deadbeat brother. Unlike the Fed, the person (or a state government or a corporation for that matter) extending the $1000 to the brother normally cannot on their own create a counter-balancing entry on the balance sheet. A bank or a central bank can do this by the very nature of the banking system (fractional reserve system for example) in which they operate. Banks really are different from an accounting perspective than an individual or just about anything else. Bottom line - I believe that a good chunk of what we think as money literally comes from thin air and may not even require the backing of a loan thanks to the accountants. If I am wrong about this distinction, I would sincerely welcome and appreciate your pointing out what is wrong. I think that the mechanics of reality is somewhere in between the two extreme examples of an individual and a bank. I apologize if my ignorance is apparent. To the accountants / monetary ecomonists here, please correct me. My 2c: - Don't confuse the Fed and the Treasury. - The treasury's income is interest on loans [hahaha] & tax receipts. - The treasury's expenses are interest costs. T-Bone coupon payments etc. - The treasury is a treasury. The treasury does not manage the money supply. - The Fed sets the cost of money through the cash rate. This flows through the yield curve by merkit forces. - The Fed buys T-Bones from the treasury on occasion, with newly created money. The Fed does influence the money supply. QE etc. - The Fed earns a nominal income from the T-Bones held, which may have been bought with new money. Link to comment Share on other sites More sharing options...
psyche doctor Posted December 8, 2009 Report Share Posted December 8, 2009 The more I watched the MSM and read posts like this, here and other places -- I am friggin astounded by the fact that people don't know where the money came from in the first place They think this is incrementally cashflow positive to Uncle Sugar It was funding created by a friggin' loan (T-bags) backed by the Full Faith and credit of Uncle Sugar ----- read: the tax payments we make to "the Uncle" Now the loan needs to be repaid. Ah, but there in lies the rub. Now that the "goose is loose", i.e., the money is out there and available to be spent with no further congressional action needed -- GOOD LUCK GETTING THEM TO REPAY THE EQUIVALENT AMOUNT OF DEBT THAT ORIGINATED THE TARP $ IN THE FIRST PLACE I think that most of us here realize that the money was borrowed or created out of thin air through T-bags. It is such a crime that when those recipients of the TARP pay back Uncle Sugar, that the money won't be used to repay the "original" loan(s) back. It is appalling that congress will take this money (debt) and blow it on something else, which is what they will do. Awhile back, I have greatly limited my exposure to issues such as TARP, politics, and doomsday and towards more important matters like Tiger Woods or Brittney Spears. The aformentioned causes me to get depressed and angry and effects my trading and general mental well being. Since I am a short-term trader, most of that stuff doesn't really have anything to do with what I do anyway other than sound smart during happy hour. Anyway, I am going to have to go find something to break. Thanks for ruining my evening, TJ. Link to comment Share on other sites More sharing options...
Charmin Posted December 8, 2009 Report Share Posted December 8, 2009 If the XLF is indeed building a right shoulder of sorts, then the Banking Index appears to be it's weak sister. It is Cue'd down for a 50 bar bounce trade sell. http://www.StockSharePublishing.com/ChartL..._1260238946.png Link to comment Share on other sites More sharing options...
Trader Joe Posted December 8, 2009 Author Report Share Posted December 8, 2009 Anyway, I am going to have to go find something to break. Thanks for ruining my evening, TJ. Good news boss....saw this on the local news tonight....NJ company out with TV Armour......allows you to throw your Weeee contoller, or remote at Creamer or the Lost Money crew with nary a scratch on the 'ol 56-inch LCD This is what we "manufacture" in the New America......plastic panels....technological innovation at its best....just great.....friggin great..... Link to comment Share on other sites More sharing options...
Trader Joe Posted December 8, 2009 Author Report Share Posted December 8, 2009 I apologize if my ignorance is apparent. As per Rationalize, not talking about the Fed here.....US Treasury is the culprit along with CONgress....albeit, they would be implicitly aided by the Fed if the Fed were the only one buying the debt But enuff of this type of talk..... I think I see a black van parked across the street... Whoa! Link to comment Share on other sites More sharing options...
psyche doctor Posted December 8, 2009 Report Share Posted December 8, 2009 Good news boss....saw this on the local news tonight....NJ company out with TV Armour......allows you to throw your Weeee contoller, or remote at Creamer or the Lost Money crew with nary a scratch on the 'ol 56-inch LCD I don't watch too much tube anymore. It still might be in my benefit to get one of those. you never know when I may have it on and old Benny appears. Just in case I lose it or something. Link to comment Share on other sites More sharing options...
DrStool Posted December 8, 2009 Report Share Posted December 8, 2009 Yup yup and yup. The federal treasury is .. a treasury. Something about borrowing, lending rolling... All that stuff... TARP repayment may influence rates a tiny bit, [slightly less iSSuance] butt, snot income. Reamtire some t-bones. TARP repayments will not help the market one iota. The money ain't coming from profits. It's coming from selling more debt and/or equity. Link to comment Share on other sites More sharing options...
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