JP Morgan Warns: Federal Reserve Hoarding Of Trillions In Financial Assets Becoming A Danger To All Financial Stability -- Fed Is Monopolizing A Dangerously Large Share Of The US Treasury Market -------------------- This is a big deal. . . . As JPMorgan warns (not some tin-foil-hat-wearing blogger with an ax to grind) the Fed’s reverse repo facility does little to alleviate the UST scarcity induced by the Federal Reserves’ QE programs coupled with a declining government deficit. The end result, they note, is higher susceptibility of the repo market to collateral shortages and thus dramatically higher financial fragility - the opposite of what the Fed hopes zerohedge/news/2014-07-12/jpmorgan-blows-feds-we-can-control-crash-reverse-repo-plan -------------------- Okay, at the point that the Federal Reserve is hoarding SO MANY Financial Assets (mainly Treasury Bonds, Mortgage Bonds, and Gold) that they bought with OUR Money (remember, its supposedly all of our money, we just permit the Fed the privilege of creating it), that theyre causing serious collateral shortages in the US Treasury Market, which is foundational to trading or at least greatly influential in pretty much EVERY OTHER major market, isnt it high time that they DIVESTED THOSE ASSETS out to the American People, where they could do some good? Give $100,000 in Bonds and Gold to every single Poor and Middle Class family of four in America, and if Wall Street needs our Treasury Bonds for collateral, Im sure that some of us would be happy to sell some to them. When the Federal Reserves hoarding of financial assets has become so obscenely vast as to endanger the rest of the economy, why am I not surprised that its pretty much only the moronic Hammer & Sickle Clown Brigade who are *still* opposed to the suggestion that they RETURN THOSE ASSETS TO THE AMERICAN PEOPLE.
Posted on: Sun, 13 Jul 2014 11:14:05 +0000
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