Comment #4

konane — Tue, 13 Apr 2010 13:53:21 GMT

Thanks Rick! Sorry my remark above was so crude and coarse but in my estimation that's just what they've done with the US Constitution. I must have been asleep when the Fed replaced the US Treasury and Congress for that matter.

Comment #3

Rick G — Tue, 13 Apr 2010 11:43:53 GMT

LOL...

Comment #2

konane — Tue, 13 Apr 2010 01:08:02 GMT

Thanks Rick! Actually it's the latest design roll ... US Constitution print embellished with skid marks.

Comment #1

Rick G — Tue, 13 Apr 2010 00:35:48 GMT

Do their balance sheets come in the Ultra Double roll or is it single-ply from all the erasures?

Original Blog Entry: "Did The Fed Just ( Surreptitiously ) Bail Out Europe?

konane — Tue, 13 Apr 2010 00:23:25 GMT

Monday, April 12. 2010

Posted by Karl Denninger in Federal Reserve at 13:57

Did The Fed Just (Surreptitiously) Bail Out Europe?

Source The Market Ticker

No, not just Greece - all of Europe. Without Congressional authorization or notice, of course.

Hattip to a nice emailer....

Or if you prefer it on a one-year time scale...

That nice little vertical line is a gain of $421.8 billion dollars of outstanding loans and leases in one week's time.

WHERE THE HELL DID THAT MONEY GO AND WHAT COLLATERAL WAS TAKEN AGAINST A FOUR HUNDRED BILLION DOLLAR INCREASE IN OUTSTANDING LOANS?

You won't find anything like that in the records - because it's never happened before. That's beyond unprecedented, it's ridiculous, and assuming it's also accurate, someone has some 'splaining to do on what clearly appears to be some sort of back-door game being run.

Update: It has been suggested that this may be related to the FASB changes and securitized loans coming back on the balance sheet. If so, where's the alleged memorandum items on the other side and the footnote on FRED? The latter is missing, but the necessary data on FRED to confirm that is not yet updated.

Nonetheless, if this is the case, it's still bad (just not catastrophic) as this will directly hit capital ratios. Or, put another way, where's the additional capital that should be there to support what is now on balance sheet and was previously off (never mind that it was crooked as hell to have it off in the first place!)

http://market-ticker.org/archives/2186-Did-The-Fed-Just-Surreptitiously-Bail-Out-Europe.html

... [ More ]