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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (107669)	9/21/2014 5:48:03 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 219715

Elroy what you miss in your explanation is the fact that the FED is in charge of the financial sector and the lending practices of the financial entity some of which masqueraded as banks or WS brokers or insurance companies. The lack of proper oversight is what brought us to the last financial debacle out of pure political interests and that of those well connected. Is it not strange that no one was persecuted?, at a time that Mike Milken, Boesky, Levin, Keating, Ebbers, Fastow, Skilling and the other nice guys did go to jail? They acted no much different that the WS firms before the financial debacle (Lehman being a clear example - and AIG full of stupidity) or more recent JPM, same think under a different financial instrument definition.

To: Elroy Jetson who wrote (107669)	9/21/2014 12:31:19 PM
From: bruiser98	Read Replies (2) \| Respond to of 219715

Excerpt from Understanding the Modern Monetary System (page 19) >>>>> It’s important to note that the Federal Reserve could, in theory, control the entire yield curve of government debt. As the monopoly supplier of reserves there is nothing stopping the Fed from pegging the long end of the US government bond yield just as it pegs the overnight Fed Funds Rate. That is, if they wanted to pin long rates at 0% there is nothing stopping them from achieving this aside from political and public backlash. In this regard, it’s important to understand that the Fed only allows the marketplace to control long rates on US Government Bonds to the degree that the Fed permits. In this regard the term “don’t fight the Fed” is most appropriate since the Federal Reserve can always set the price of the instruments it buys. This of course does not apply to the entire spectrum of financial system assets since the Fed is only permitted to purchase government guaranteed assets. <<<< papers.ssrn.com It's an interesting paper from the Pragmatic Capitalism website. pragcap.com My perception has been that in the early 1980's "Bond Vigilantes" forced interest rates higher than the FED desired. The truth must be that the FED wanted rates to go higher.