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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: jimmg who wrote (76452)	12/22/2006 7:42:40 PM
From: bart13	Respond to of 110194

The SOMA account is the asset side of the Fed's balance sheet and currency is the liability side. All currency (federal reserve notes) is backed by us treasury obligations which are acquired in the SOMA. I stand corrected, my data was old (a balance sheet from the '94) and I seldom use the bottom portion of H4.1. My point is still valid though - fed credit is not there, there's nothing about any effects of fractional reserve or base changes, gold is valued at $42.22 instead of market, and I'm sure I could find many more if needed. That $2600 figure only tells a very small part of the whole story, and can be misleading. I'll take a pass on commenting on your coupon pass explanation. Most bears think a coupon pass is part of the grand conspiracy to screw them out of their righteous profits they are so deserving on their short positions. I don't know if you were directing that specifically at me but if so, its only one potential element in having a bearish posture or position. Are you really seriously suggesting that most bears trade on coupon passes as part of some grand conspiracy?