Replies to post #311155 on Liberal Free Chat Zone (NOLIB)

[realfast95]

Sorry I'm not buying it. The JPMorgan excuse is too complicated. Buybacks can't be done with deposit money. The JP Morgan story was a plant, bs, to disguise the truth.

I believe the first scenario. That the Federal Reserve bailed out Deutsche Bank. A German bank. If Trump learned the truth, he would have fired the FED, all of them. Powell be damned!

First of all, the September excuse was tax payments were too much and the FED had to step in. Well that doesn't explain October.

Deutsche Bank had already announced laying off +20,000 employees. They were shrinking the bank.

REPOS don't have to be paid off the next day.

The big banks didn't want to bail out Deutsche Bank, because they didn't think they would be paid back. And they didn't want to get stuck with Treasuries in which they already had too much of.
And the big banks didn't believe they would get the treasuries because if Deutsche Bank went bankrupt, the treasuries might get locked up before sent to the big banks.

The reduction of QE by the FED last year, is a process in which, they buy back fewer treasuries that expire. Lets say $100B expire and they buy only $75B. It was supposed to reduce the price of Treasuries because the US debt is still increasing the the FED was buying less. But it didn't. Until 5 weeks ago.

The FED resumed QE but lets not call it QE. Now it's REPO's.
That was supposed to make the Treasury Notes go even higher.
But that isn't the case. The Treasuries peaked 5 weeks ago. Interest rates have been going up.
The FED has lost control.

Remember Europe's interest rate is below zero. Why would anyone buy notes with negative value? Because they expected rates to go even lower and they could sell those notes at a gain.
Uh Oh. Now interest rates are going up. The bag holders are not happy.

[realfast95]

Fed Will Not Disclose Which Banks Are Receiving Repo Cash For At Least Two Years

https://www.zerohedge.com/markets/fed-will-not-disclose-which-banks-are-receiving-repo-cash-least-two-years

If you want to know which investment houses have been getting the infamous "repo" loans from the Federal Reserve Bank of New York in recent weeks, as GATA has wanted to know, you'll have to wait two years, according to a letter received from the bank today in response GATA's request for the information.


The delay, the New York Fed's letter says, is authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Perhaps more interestingly, the New York Fed's letter, signed by Corporate Secretary Shawn Elizabeth Phillips, contends that the bank is exempt from the federal Freedom of Information Act but tries to comply with its spirit.

Such a claim of exemption was not made by the Federal Reserve's Board of Governors during GATA's FOIA lawsuit against it in 2011, in which GATA sought access to the board's gold-related documents. GATA technically won the case when U.S. District Judge Ellen Segal Huvelle ruled that one such document was illegally withheld and ordered the board to disclose it to GATA and pay the organization court costs of $2,670:

What kind of system of government is it when every week an entity created by ordinary legislation can create enormous amounts of a nation's currency and disburse it to unidentified parties without any oversight by the people's elected representatives, news organizations, and ordinary citizens? It sure doesn't sound like "the land of the free and the home of the brave."