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.”

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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Eric King

KingWorldNews.com

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Comment by Nobody Will Observe on June 21, 2013 at 12:03am

News for Stock market down 500 points in two days


New Yorker
Worst day of the year for Dow , S&P 500
Fortune (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.
Comment by truth on June 20, 2013 at 11:43pm







Max Keiser


Comment by truth on June 20, 2013 at 11:40pm
Themselves

Fed In Complete Disarray & Investors Must Brace 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 -
Comment by Central Scrutinizer on June 20, 2013 at 11:20pm

I predict Kryptonite will be going up up up!!! :) Bookies predicting NYSE going down down down!!

Comment by Nobody Will Observe on June 20, 2013 at 8:42pm

optix Sould be going up

Comment by Nobody Will Observe on June 20, 2013 at 4:40pm
Comment by Nobody Will Observe on June 20, 2013 at 4:21pm

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!

Comment by truth on June 20, 2013 at 4:06pm

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.

Comment by Nobody Will Observe on June 20, 2013 at 3:37pm

Comment by Nobody Will Observe on June 20, 2013 at 3:36pm

Where do you hide the mouse? ;)

Comment by Nobody Will Observe on June 20, 2013 at 3:30pm

optix  Nice work station!

Comment by Nobody Will Observe on June 20, 2013 at 3:16pm

I'm shocked! No really this time.

American Silver Eagle

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Best Price: $22.97

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Comment by truth on June 20, 2013 at 3:13pm

On KW, its hard to figure out where DMCA starts and Jim ends  :)

Comment by Nobody Will Observe on June 20, 2013 at 3:10pm

On sale!


Comment by Nobody Will Observe on June 20, 2013 at 3:06pm

So much for the Copy Right ;)

stocks down after fed announcement

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