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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (28458)	1/17/2012 9:36:27 PM
From: FCom777	Read Replies (1) \| Respond to of 222572

Thanks Kirk, StockGamer, and Wayners for the Federal Reserve financial info .... I read through it and although it was helpful and seemed to buttress your arguments regarding the revolving door nature of the Fed loans to various financial institutions, it wasn't at all clear to me the quality of monies that were loaned by the Fed versus the quality associated with the various repayments. Based on the financial data I reviewed, it is entirely possible that the Fed loaned out relatively high quality monies (i.e. TBills) and accepted repayment in lower quality paper (i.e. the risky crap off of everyone's books) but is booking the repayment at values much greater than fair market value. In this way, they can claim that they were re-paid but the fact is the US Taxpayer could still at the end of the day holding a bag of near worthless paper. This is what I think has occurred although I can't claim I have a conclusive case based on the data I reviewed. I didn't see the typical Footnotes might shed additional light on the financial data. I did notice that the portfolio ratings of the Maiden Lane Portfolio was included and recall that a very high percentage (80% or so) was rated BB or Lower. It is also possible that I could be an eternal Fed pessimist since I readily admit that I don't trust them at all. Having said that, I really don't want to clog this board with these type discussions during the trading week when as someone aptly noted - we should be focusing on trades to make money - regardless of what the Fed is doing. I thought it would be a good weekend discussion .... And frankly I need to get more focused as far as trading. Kind of got busy at work and the futures data updates from a different data source have been more troublesome than I would have liked. Managing all the different contract months and continuous data files for the 80 markets being tracked still has a few bugs ... Thanks again.