SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: westpacific who wrote (83890)7/19/2007 1:42:37 PM
From: bart13  Respond to of 110194
 

Bart - are you saying, the FED possibly created over 1T dollars out of thin air to bail out the system?


No - line 34 in the current H8 shows how "Large Domestically Chartered Banks" are now characterizing $1.2 trillion of their real estate loans as "securitized".

What I am saying is that in my opinion the change of character allows the Fed to step it and monetize it if needed to "save the system".



To: westpacific who wrote (83890)7/19/2007 2:14:28 PM
From: shades  Read Replies (1) | Respond to of 110194
 
Criminals, when will this all end, what is the end of this insanity. FIAT, on top of FIAT, on top of FIAT, on top of more FIAT - a system detached from all reality.

What if it never ends - what if they just keep taxing and taxing the productive folks, keep inflating, and 100 years from now the fed still hasn't blown up? They just keep taking from the rich saves to give to the poor bums. How will history reflect on those that buried gold in their backyard? I asked grace how high hillary would have to tax her income and dividends and how much inflation would she have to suffer before she would do what the founding fathers did and pick up a gun and shoot an authority figure - she still hasn't answered me. So I will ask you - how far will they have to go before you are LITERALLY going to pick up a gun and shoot someone - they will go to that point - and in your case and most everyone else here I think that point is a LONG WAY away.



To: westpacific who wrote (83890)7/19/2007 2:15:44 PM
From: $Mogul  Read Replies (1) | Respond to of 110194
 
Yes, priniting press which causes the flow of capital into the economy, driving prices higher to combat inflation.

Stocks historically rise in anticipation of inflation. Actions speak louder then words. Does not matter what the Fed "jawbones", press is on full bore.

Inflation since the begining makes these two charts possible (below). As Shiller has proved in hi sbook "Irrational Exuberance" it is inflation that has increased in value, not the price of the home. Amazing, really. Next 100 yeears will not be any different. Just a $5 bill will be = to today's $1 bill.

andexcharts.com

bubblepic.com

US has a lot of debt to work off, hence the revaluation is in the works for US investable assets.