phatbubble Posted September 29, 2009 Report Share Posted September 29, 2009 EDIT: After reading the reviews, sounds like not too much substance except for a chapter or two. For a book intended to raise mass awareness, he prolly needed to keep it simple. A deep dive on the Fed-related issues that we jabber on about week in & week out here would put most folks to sleep. Link to comment Share on other sites More sharing options...
Takachi Posted September 29, 2009 Report Share Posted September 29, 2009 For a book intended to raise mass awareness, he prolly needed to keep it simple. A deep dive on the Fed-related issues that we jabber on about week in & week out here would put most folks to sleep. Like, Why would the Fed buy futures when they can buy stocks today? Link to comment Share on other sites More sharing options...
phatbubble Posted September 29, 2009 Report Share Posted September 29, 2009 Like, Why would the Fed buy futures when they can buy stocks today? Maybe it's an availability thing. TJ's already bought all the stocks. Link to comment Share on other sites More sharing options...
shorty Posted September 29, 2009 Report Share Posted September 29, 2009 Why didn't they like IBM on such a fine bull day today? maybe because the POS common shares are worthless negative net tangible aSSet value Link to comment Share on other sites More sharing options...
shorty Posted September 29, 2009 Report Share Posted September 29, 2009 Like, Why would the Fed buy futures when they can buy stocks today? Like, because for a margin deposit of slightly over $10 Billion they can control the entire open interest in the front-month electronic S&P 500 stock index futures. Next question please. Link to comment Share on other sites More sharing options...
shorty Posted September 29, 2009 Report Share Posted September 29, 2009 "Arse-blarstin' fer $100 please Shorty." "THE ANSWER IS: 'BEHIND THE WOODSHED'." "Ummm......Ummm........." "BZZZZZZZZZZZT!!!!!!!!!!!!!!!" Link to comment Share on other sites More sharing options...
patents Posted September 29, 2009 Report Share Posted September 29, 2009 Like, Why would the Fed buy futures when they can buy stocks today? In addition to all of the above given reasons, I repeat what I said this weekend. (The following comments are for a normal business, and I believe that the CFTC exempts the major market players from even the standard margin requirements for individuals and other businesses.) 1. The accounting treatment for Futures and stocks are vastly different. The nominal value of futures do not appear on most financials. 2. The amount of money needed (assuming that the Fed would have to have margin, which I think is not a good assumption) is vastly different. The margin tied up or encumbered for a future is a much, much smaller percentage of the nominal value of the amount controlled versus stocks. 3. For stocks they would have to pay "money" to buy. For a future, only existing funds are encumbered (at worst) and no actual money changes hands when the future contract is purchased or sold. If the Fed or any other business entity bought a future contract, I am not sure where the nominal value of the future contract would appear on any financial statement. I think only the mark-to-market change would appear at the close of the accounting period. Finally, the purchase of stocks leaves footprints or fingerprints (shows and can be traced on financials for example). On the other hand, the purchase of futures leaves few fingerprints or footprints for tracing purposes. These are the mechanics of the system that I struggle to understand and would sincerely appreciate any corrections if I am wrong in my analysis/reasoning. Link to comment Share on other sites More sharing options...
psyche doctor Posted September 29, 2009 Report Share Posted September 29, 2009 Like, because for a margin deposit of slightly over $10 Billion they can control the entire open interest in the front-month electronic S&P 500 stock index futures. Next question please. And $10 billion is mere pocket change for banana ben, like a couple pennies wedged in your car seat or a dime that fell into the urinal. Link to comment Share on other sites More sharing options...
Goldmember Posted September 29, 2009 Report Share Posted September 29, 2009 "Arse-blarstin' fer $100 please Shorty." "THE ANSWER IS: 'BEHIND THE WOODSHED'." "Ummm......Ummm........." "BZZZZZZZZZZZT!!!!!!!!!!!!!!!" ...everytime I sit in my leather La-Z-Boy I laugh my ASS off. Link to comment Share on other sites More sharing options...
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