Fed To Dump Its Balance Sheet Onto Unsuspecting Public - My Blog
“Since the 2008 meltdown, the Fed purchased many financial instruments including mortgage-backed securities to arrive at the current $4 trillion balance sheet. It seems to us that the cornerstone of an exit strategy would be to securitize the mortgage-backed securities, and sell those back into the retirement and endowment funds.
A recent estimate of the total retirement assets just in the U.S. tallied close to $17 trillion. Packaging up those securities and distributing back into the system would go a long way toward a major reduction in the Fed’s balance sheet and make room for the continuing monetization of the budgets deficits which are sure to accelerate as the onslaught of unfunded liabilities hits the public and private sectors.
Rising interest rates would impact the value of those securities, but the Fed could easily make it so that buyers could value them at par for reporting purposes. Given the mortgage rates are only likely to continue higher, the likelihood of significant refinancing affecting the pools of mortgages is very low.
KWN readers should not be surprised if the idea outlined above will also be part of the plan going forward. This would offload tremendous liabilities off of the Fed’s balance sheet and open up their ability to print even more money. All of this is extremely positive for hard assets.”
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Eric King
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Comment by Nobody Will Observe on June 21, 2013 at 12:03am
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News for Stock market down 500 points in two days
New YorkerWorst day of the year for Dow , S&P 500Fortune (blog) - 7 hours ago... fears the central bank may be preparing to wind down its stimulus policies this year. The Dow Jones industrial average tumbled 353 points, or 2.3%. That marked the biggest one-day point drop since November 2011. Including Wednesday's losses, the Dow has erased more than 550 points in two days.
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Comment by truth on June 20, 2013 at 11:43pm
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Max Keiser
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Themselves
Today one of the top economists in the world told King World News that the Federal Reserve is now in complete disarray and investors must brace themselves for more turmoil. Michael Pento, who heads Pento Portfolio Strategies, also said that despite…
- 1 day ago, 19 Jun 13, 7:51pm -- Fed To Dump Its Balance Sheet Onto Unsuspecting Public
On the heels of the Fed decision, today 40-year veteran, Robert Fitzwilson, put together another extraordinary piece. Fitzwilson, who is founder of The Portola Group, discussed what the Fed and central planners are facing and how the Fed will buy t…
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With the Fed decision taking place, and continued volatility in gold and silver, today John Embry complained about kitco’s “gobbledygook” reporting, and he stated that central panners are panicking, which is why Bernanke is leaving the Fed. Em…
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- Fed To Dump Its Balance Sheet Onto Unsuspecting Public
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Comment by Central Scrutinizer on June 20, 2013 at 11:20pm
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I predict Kryptonite will be going up up up!!! :) Bookies predicting NYSE going down down down!!
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optix Sould be going up
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How To Protect Your Retirement Assets From The Coming Crash ...
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Retirement Crisis Coming, or Here Now? | Fox Business Video
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Review & Outlook: Now He's After Your 401(k) - WSJ.com
Obama Proposes Retirement Account Limit In First "Wealth Tax ...
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I really wouldn't know James. (Seriously) Good story and linked back to site. Fair use?
Nor would I sweat it.
Disclaimer: I am not Licensed in any state to give advice. Nor do I always even follow my own advice given. Any and all comments posted here, should be considered the ramblings of a (harmless) Emphasis added ;) Law abiding citizen that loves more laws and government!
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Seriously troy, any tips on making this blog more ethical/compliant welcomed. I usually embed the whole site, yet this page impossibly formatted to do such.
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Where do you hide the mouse? ;)
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optix Nice work station!
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On KW, its hard to figure out where DMCA starts and Jim ends :)
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On sale!
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So much for the Copy Right ;)
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