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Let them eat schnitzll


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On the daily thread there was discussion of a plan, fitting into the too late category. Whereby a cockamamie idea is floated to unlock the $1.7 trillion dollars in bank reserves sitting at the Fed. Earning, using the term loosely, .25%.

 

http://www.financeandeconomics.org/Articles%20archive/2011.08.17%20Bank%20Credit%20Repo.htm

 

My alternate proposal is for the Fed to pay 5% interest to the banks on their excess reserves. They can fund it by buying every Treasury note and bond in the world. Taking the interest to pay the banks. If the reserves rise only a bit to $2 trillion that would be $100 billion a year to the banks. Thus the banks will be healthy and after all that is the only thing that matters.

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Apparently Rep. Cantor got the memo.

 

Cantor argued that digging in their heels to fight for the smaller spending level wasn't worth a government shutdown, especially since it would still leave discretionary spending in fiscal 2012 $7 billion below 2011 levels.

 

"While all of us would like to have seen a lower discretionary appropriations ceiling for the upcoming fiscal year, the debt limit agreement did set a level of spending that is a real cut from the current year level," Cantor wrote in a memo to House Republicans. "I believe it is in our interest to enact into law full-year appropriations bills at this new lower level."

 

http://online.wsj.com/article/BT-CO-20110817-710950.html

 

If even he is reduced to claiming $7 billion dollars is real savings then you must know that a lot of bricks are being excreted all over the Beltway and beyond. After the political show left town and the downgrade flap was over the temperature has dropped markedly. Good luck keeping everything quiet after they return in Sept. The political crisis will not be buried so easily.

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Lee is their really a correlation between posts on the site and market movements.

 

I've noticed, albeit anecdotally, that intra-day users + guests can sometimes act as an bull/bear interest level of sorts. The more interest here, the closer to a bottom, and the more dead it is, the closer to a top.

 

I went short today, so I am hoping it is true this time!

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Let's put it this way. No real bottom till we hit 130 users on the day thread. Conversely, something in the low 20s has almost always been associated with top formation.

 

As for this thread, check out the number of posts the day before the market fell from the top and that huge down day a couple of weeks ago.

 

There's a correlation. It's been years since I quantified it, but one of the other stoolies kept a chart of it for a while. Speak up please, whoever that was.

 

I would be willing to bet that Bloomberg and Marketwatch know exactly what the market will do based on their traffic patterns. If they don't, they should.

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