Government Is Here To Stay

The Sobering Facts:

The Federal Reserve is printing money to buy Treasuries, mortgages and agency paper to the tune of $500 Billion at last count.

The overstressed and severely underfunded FDIC is currently guaranteeing almost $350 Billion in TLGP Debt

The commercial paper (CP) market is almost entirely funded by the FRB. This figure is $250 Billion.

Municipal Bonds nicely called "Build America Bonds", are now being used to guarantee municipalities that wish to issue debt.

The Federal Reserve is providing financing for the purchase of securitization and has committed as much as $1 trillion.

The Student Loan market as you may have guessed, is being funded by the Dept Of Education.

Fannie & Freddie are buying over 60% of the securitized mortgages.

The FRB Term Auction Facility (TAF) has added $500 billion into the LIBOR market. The market has been so overwhelmed by “Federal Reserve Money” that some say it is no longer the reference rate for new short-term loans.

tradersutra.blogspot.com/2009/08/libor-lies-bank-lending.html

http://tradersutra.blogspot.com/2009/06/big-libor-failure.html

Most of the money raised by the banks have come from governments, this includes Sovereign Wealth Funds.

Government spending for fiscal 2009 is projected to be 28% of GDP.
Only 1944 and 1945 were higher in the last 150 years.

Get used to it.


With public servants like this who needs Bin Laden and Al-Queda?

"I worry, frankly, that there’s a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios.”

-Representative Barney Frank - House Financial Services Committee hearing, Sept. 25, 2003

“Mr. Chairman [Greenspan], obviously, like most of us here, this [Fannie and Freddie] is one of the great success stories of all time."

-Connecticut Senator Christopher Dodd - Senate Banking Committee, february 24-25, 2004