Federal Reserve moves all losses onto taxpayer's back.

[RideTheDirt]

The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.
http://www.cnbc.com/id/41198789

WHAT THE F!@#:mad::mad::mad::mad::mad::mad:

[sevin]

Meanwhile, most people are busy talking about the first week of American Idol.

[tangent4ronpaul]

Meanwhile, most people are busy talking about the first week of American Idol.

It's on again? - COOL! How are the contestants this time?

:D

-t

[Maximilian American]

Make obsolete the Federal Reserve System with all thy being for the love of peace.

[Pauls' Revere]

So, they essentially transfered thier "negative liabilities" to the national debt?

[Fox McCloud]

not surprising, at all. I wonder if they did this as a possible solution to those really nasty toxic assets that had the risk of being permanently in the banking system.

[ctiger2]

So, they essentially transferred their "negative liabilities" to the national debt?

Yes

[Lafayette]

So lets clarify this ...

The FED lends banks money in exchange for worthless shit, which they pass on to the treasury. Thus raising the debt. These same banks take the money from the FED and buy US government debt from the Treasury. The FED buys this Debt from the banks via QE to keep interest rates low so the government can rack up more debt at lower rates....


Does that make sense to everyone?

Maybe it would look better as a flow chart.

[rich34]

This is good and bad, obviously it's very bad, but if this will piss Ron off enough to go ahead and decide to run then maybe there would be a silver lining?

[Pauls' Revere]

Anyone here think this is probably the reason why they want the debt ceiling raised?

:(

[leipo]

It looks like Mr. Bernanke changed his tune in a matter of days:


http://www.youtube.com/watch?v=-vB2HqWBNy8


Kent Conrad: Is it your forecast, at this point, that you will not experience losses on this extension of credit that was made during the downturn?

Ben Bernanke: As a practical matter, what matters is not losses, because those are paper losses. What matters is the amount of funds we send back to the Treasury. Under most scenarios, because our cost of funding is so low, we will continue to remit back significant amounts of money to the Treasury. Under a scenario where short-term interest rates rise very significantly, it's possible that there might come a period where we don't remit anything back to the Treasury for a couple of years. That would be, i think, the worst-case scenario.

[bunklocoempire]

Ba-bump


Bunkloco

[Brian4Liberty]

In the craft of sophisticated fraud, they are putting Bernard Ebbers and Ken Lay to shame...

[RideTheDirt]

So lets clarify this ...

The FED lends banks money in exchange for worthless shit, which they pass on to the treasury. Thus raising the debt. These same banks take the money from the FED and buy US government debt from the Treasury. The FED buys this Debt from the banks via QE to keep interest rates low so the government can rack up more debt at lower rates....


Does that make sense to everyone?

Maybe it would look better as a flow chart.
Somebody PLEASE do this!