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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 382.95

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To: Haim R. Branisteanu who wrote (44120)	12/20/2008 7:51:02 PM
From: rich evans	Read Replies (1) of 217749

The Fed has about 45 bill in capital and used to have about 500+ bill assets.Noww they are at about 2.3 trill in assets. for a 50+ leverage ratio. They have done this to fight the deflation/recession etc. But their assets/loans are high quality. And they are a reserve bank and thus not subject to capital ratio regulations or reserve requirements. They can expand their balance sheet forever by making loans and increasing the corresponding deposit liability of their customer banks. The trick is to get those loans repaid before inflation kicks in from all the bank lending at 10-1. This lending is not occuring yet. They are pros so lets hope they know what they are doing. Rich

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