Comments on: Notes From Underground: THE SWISS ARE NOT LIKE YOU AND ME; THEY HAVE A PRINTING PRESS

By: yra harris

yra harris — Tue, 04 Sep 2012 21:51:22 +0000

Mark T–not necessarily in my mind.The effort by the FED is not to de-risk the financial sector–that was the balance sheet recession.The PBC was meant to get the animal spirits revved up and willing to take on risk at ever lower reward based premiums.The throttling of the REPO market by choking off collateral was an inadvertent outcome as the central bank models fail to account for the power of the “shadow banking” system.The power of the non-banks to create huge liquidity thru leverage made the FED a side show until the system needed to be bailed out—it was the FED keeping rates too low for too long that put the the entire game into motion;but the ECB ,SNB and the FED sitting on so much high quality paper is a negative effect and is keeping the velocity of money from having a greater effect.

By: yra harris

yra harris — Tue, 04 Sep 2012 21:12:29 +0000

Professor Waspi—on of my favorite all time lines.And as I read Woodford I believe that Peter Thiel is on to something very big indeed.Sorry to step on your toes–Ha

By: mark t

mark t — Tue, 04 Sep 2012 21:02:36 +0000

Isn’t the throttling of the repo market part of the portfolio balance channel strategy, and also part of the effort to de-risk the financial sector by cutting down on the daisy chain of leverage?

By: kevinwaspi

kevinwaspi — Tue, 04 Sep 2012 20:17:59 +0000

Good for you Yra!
“Groucho Marx’s letter of resignation to the Friars’ Club: “I don’t want to belong to any club that would accept me as one of its members.” (http://quoteinvestigator.com/2011/04/18/groucho-resigns/)
Kevin

By: rob syp

rob syp — Tue, 04 Sep 2012 02:46:37 +0000

Best close to your blog ever….