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#46 DrStool

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Posted 07 December 2009 - 09:37 PM

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#47 DrStool

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Posted 07 December 2009 - 09:40 PM

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.

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#48 Rationalize

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Posted 07 December 2009 - 09:40 PM

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" <_<
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#49 DrStool

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Posted 07 December 2009 - 09:43 PM

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.

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#50 Trader Joe

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Posted 07 December 2009 - 09:51 PM

Aw....

Everyone remember this cute little fella from the hit sitcom "Family Ties"?

Posted Image
______________________

Well these days......eh.....not so cute

Posted Image

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"

#51 patents

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Posted 07 December 2009 - 09:57 PM

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.

#52 Drano

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Posted 07 December 2009 - 09:58 PM

I just looked at the tab on my Firefox browser for this page. It reads:

Day of Infamy UNCH - Stool Pig


:ph34r:
Of course I'm caustic!

#53 Rationalize

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Posted 07 December 2009 - 09:59 PM

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".
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#54 Rationalize

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Posted 07 December 2009 - 10:10 PM

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.
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#55 psyche doctor

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Posted 07 December 2009 - 10:22 PM

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. :lol: :lol: :lol:
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#56 Charmin

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Posted 07 December 2009 - 10:24 PM

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.

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#57 Trader Joe

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Posted 07 December 2009 - 10:50 PM

Anyway, I am going to have to go find something to break.

Thanks for ruining my evening, TJ. :lol: :lol: :lol:


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

TV.jpg

This is what we "manufacture" in the New America......plastic panels....technological innovation at its best....just great.....friggin great.....

#58 Trader Joe

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Posted 07 December 2009 - 10:55 PM

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!

#59 psyche doctor

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Posted 07 December 2009 - 10:57 PM

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.
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#60 DrStool

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Posted 07 December 2009 - 11:05 PM

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.

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