Rep. Grayson and the FRB’s IG

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    Posted: 29 June 2009 02:20 PM

    I’m always amazed at how gullible people can get in believing that the worst of the economic mess is now past. Now the FED cannot account for missing trillions. Some day soon investors are going to wake up and realize that nothing has changed and in reality the mess is worse than it ever was.

    Federal Reserve Cannot Account for $9 Trillion

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    “Whatever happens in the stock market today has happened before and will happen again.”    - Jesse Livermore

         
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    Posted: 29 June 2009 02:55 PM #1

    cramar - 29 June 2009 05:20 PM

    I’m always amazed at how gullible people can get in believing that the worst of the economic mess is now past. Now the FED cannot account for missing trillions. Some day soon investors are going to wake up and realize that nothing has changed and in reality the mess is worse than it ever was.

    Federal Reserve Cannot Account for $9 Trillion

    I saw a report on Reuters over the weekend that one of Obama’s advisors was talking about how a second stimulus package might be required, or that one wouldn’t be ruled out. I couldn’t help but think: “hold on, has the money from the first one all been spent, and if the economic data is all pointing to a recovery, why would a second stimulus package be required?”

    As far as I can see, we have unemployment still going up with fewer jobs being created, and the improvements in economic activity is more related to a rebuilding of inventory that got dumped when everyone was panicking about it being the end of the world. So, the apparently good data is masking the underlying problems in the economy.

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    Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. ? Jesse Livermore

         
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    Posted: 29 June 2009 03:03 PM #2

    cramar - 29 June 2009 05:20 PM

    I’m always amazed at how gullible people can get in believing that the worst of the economic mess is now past. Now the FED cannot account for missing trillions. Some day soon investors are going to wake up and realize that nothing has changed and in reality the mess is worse than it ever was.

    Federal Reserve Cannot Account for $9 Trillion

    Fractional reserve systems are faith-based monetary systems. As such, all we need to do is accept moving the goal posts and the music can continue to play on. Because 2/3rds of the market participants understand this fact, the market can appear irrational. The market becomes irrational only when enough people determine to withdraw faith in the system from a higher point to a lower point. When a market exceeds faith, it is said that a bubble has formed.

    Common sense participants want nothing to do with markets at anytime because they lack faith.

    Faith: it can move mountains.

    :wink:

    [ Edited: 29 June 2009 03:07 PM by Eric Landstrom ]

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    Black Swan Counter: 9 (Banks need money, Jobs needs a break, Geithner has no plan, Cuomo’s grandstanding, .Gov needs a hobby, GS works for money, flash crash, is that bubbling crude?).

    For those who look, a flash allows one to see farther.

         
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    Posted: 29 June 2009 03:49 PM #3

    Eric Landstrom - 29 June 2009 06:03 PM
    cramar - 29 June 2009 05:20 PM

    I’m always amazed at how gullible people can get in believing that the worst of the economic mess is now past. Now the FED cannot account for missing trillions. Some day soon investors are going to wake up and realize that nothing has changed and in reality the mess is worse than it ever was.

    Federal Reserve Cannot Account for $9 Trillion

    Fractional reserve systems are faith-based monetary systems. As such, all we need to do is accept moving the goal posts and the music can continue to play on. Because 2/3rds of the market participants understand this fact, the market can appear irrational. The market becomes irrational only when enough people determine to withdraw faith in the system from a higher point to a lower point. When a market exceeds faith, it is said that a bubble has formed.

    Common sense participants want nothing to do with markets at anytime because they lack faith.

    Faith: it can move mountains.

    :wink:

    Doesn’t work that way.  We’re in this mess because we moved away from the fundamental wealth and strength and levered up.  Leverage increases risk.  The more leverage, the more risk.  No amount of faith will change this.  You’re just adding floors to a house of cards that when collapsed, will collapse that much further.  And there’s no way we can reignite the past few years of insane monetization and securitization.  There will be no buyers for such products.

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    The ends don’t justify the means…

         
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    Posted: 29 June 2009 05:14 PM #4

    Mayor Quimby - 29 June 2009 06:49 PM
    Eric Landstrom - 29 June 2009 06:03 PM
    cramar - 29 June 2009 05:20 PM

    I’m always amazed at how gullible people can get in believing that the worst of the economic mess is now past. Now the FED cannot account for missing trillions. Some day soon investors are going to wake up and realize that nothing has changed and in reality the mess is worse than it ever was.

    Federal Reserve Cannot Account for $9 Trillion

    Fractional reserve systems are faith-based monetary systems. As such, all we need to do is accept moving the goal posts and the music can continue to play on. Because 2/3rds of the market participants understand this fact, the market can appear irrational. The market becomes irrational only when enough people determine to withdraw faith in the system from a higher point to a lower point. When a market exceeds faith, it is said that a bubble has formed.

    Common sense participants want nothing to do with markets at anytime because they lack faith.

    Faith: it can move mountains.

    :wink:

    Doesn’t work that way.  We’re in this mess because we moved away from the fundamental wealth and strength and levered up.  Leverage increases risk.  The more leverage, the more risk.  No amount of faith will change this.  You’re just adding floors to a house of cards that when collapsed, will collapse that much further.  And there’s no way we can reignite the past few years of insane monetization and securitization.  There will be no buyers for such products.

    Come, join me. With the squeeze on the view is wonderful. BTW, I’ve got to send you something via PM. Heh.

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    Black Swan Counter: 9 (Banks need money, Jobs needs a break, Geithner has no plan, Cuomo’s grandstanding, .Gov needs a hobby, GS works for money, flash crash, is that bubbling crude?).

    For those who look, a flash allows one to see farther.

         
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    Posted: 29 June 2009 10:15 PM #5

    The “9 Trillion missing” article was put out by NewsMax, they’re as believable as a Bernie Madoff sales pitch.

         
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    Posted: 29 June 2009 10:59 PM #6

    ChasMac77 - 30 June 2009 01:15 AM

    The “9 Trillion missing” article was put out by NewsMax, they’re as believable as a Bernie Madoff sales pitch.


    Did you watch the video at the bottom of the page.

     

    :apple:

         
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    Posted: 30 June 2009 12:38 AM #7

    9 trillion missing?  Not so far-fetched.  The Federal Reserve has a few trillion on its balance sheet right now that no one even talks about when looking at:

    http://www.usdebtclock.org/

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    The ends don’t justify the means…

         
  • Posted: 30 June 2009 09:53 AM #8

    What ever happened to the two men who were caught carrying billions of dollars of US bonds hidden in their suitcases? I never saw any follow up news about them, nor the bonds (real or fake?).

         
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    Posted: 30 June 2009 10:31 AM #9

    MacCube - 30 June 2009 01:59 AM
    ChasMac77 - 30 June 2009 01:15 AM

    The “9 Trillion missing” article was put out by NewsMax, they’re as believable as a Bernie Madoff sales pitch.


    Did you watch the video at the bottom of the page.

     

    :apple:


    Initially even I didn’t, since I could not get sound from the video, but when I tried it last night it was fine. That video is totally stunning! It is obvious that the IG is clueless and the FED has no idea where the money is. The IG sounds like an 10-yr old who was suppose to watch younger siblings, the cookie jar is found empty, and is now squirming under parent’s grilling. The last 15 seconds of the video summarizes it nicely. Bottom line is that graft and corruption may be rampant throughout the enitre economic system. When there are millions, billions, and now trillions unaccounded for, you just know someone has been into the cookie jar!

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    “Whatever happens in the stock market today has happened before and will happen again.”    - Jesse Livermore

         
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    Posted: 30 June 2009 11:44 AM #10

    willrob - 30 June 2009 12:53 PM

    What ever happened to the two men who were caught carrying billions of dollars of US bonds hidden in their suitcases? I never saw any follow up news about them, nor the bonds (real or fake?).

    The bonds were fake and in denominations that the US Gov never issued, so the Italian authorities were in a quandary as to whether a crime had been committed.

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    Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. ? Jesse Livermore