REAL left social progressives have shouted these few decades---they revenue lost in these US city subprime mortgage frauds both residential AND COMMERCIAL----could have kept 99% OF WE THE PEOPLE fully employed as US industry moved overseas -----we did not have to have this mass unemployment in our US cities -----those pesky 5% pols and players wanted to harm those 99% of black, white, and brown seeking wealth for themselves.
BALTIMORE LOOKS LIKE WW2 FIRE-BOMBED DRESDEN GERMANY BECAUSE OF THESE SUBPRIME MORTGAGE LOAN FRAUDS AND PEDALING THAT DEBT OVERSEAS.
'Commercial Loans Blog
The Subprime Commercial Lenders Are Back Making Nonprime Commercial Loans
Posted by George Blackburne on Thu, Jun 11, 2015
Commercial loans were soooo easy to find after the Great Recession. It was like shooting ducks in a barrel. Banks had stopped making commercial real estate loans, and many were even offering their existing borrowers a huge discount to pay their commercial loans off early. These were called discounted pay-offs (DPO's), and my private money commercial mortgage company, Blackburne & Sons, must have financed sixty DPO's in the last three years. Man, do I ever miss those days'.
Baltimore seeks developer for Acme Business Complex
By: Adam Bednar Daily Record Business Writer August 8, 2017
Baltimore is seeking developers for three parcels of land dubbed the Acme Business Complex, previously used for industrial purposes, that the city has owned for more than a decade and for which it's been unable to find private investors. The Baltimore Development Corp., the city’s quasi-public economic development agency, issued a request for proposals for the ...
When we look at where our US cities once industrial cities built their corporate campuses and corporate factories ----it was right where global 1% want to drop global corporate campuses and global factories right down in our US cities deemed Foreign Economic Zone low-income, black market, drugs, violence communities. When all that subprime mortgage loan fraud and planned foreclosure was handed to global Wall Street banks-----making those investment firms move from millionaire to billionaire----all of that wealth depends on getting those real estate in US cities in MOVING FORWARD. See why global 1% are pushing so hard with the corruption of all US institutions----corruption of US elections----buying that 5% to the 1% global Wall Street player GREEKS AND FREEMASONS to create societal chaos?
THAT'S RIGHT---ALL THOSE LOSSES TO US 99% OF CITIZENS AND ALL THAT WEALTH FROM OUR PUBLIC TRUSTS WILL NOT BE LOST UNLESS MOVING FORWARD GLOBAL CORPORATE CAMPUSES AND GLOBAL FACTORIES COME BACK ----UNLESS ALL THOSE FRAUDULENT US TREASURY BONDS AND CURRENT SUBPRIME MORTGAGE FRAUDS ARE ALLOWED TO MOVE FORWARD.
Our global 1% are BILLIONAIRES on paper only-----they want that real estate-----civil unrest/martial law/forced eviction of 99% of WE THE PEOPLE.
The 5% to the 1% pedaling that mortgage loan fraud was GREATER BALTIMORE COMMITTEE, BALTIMORE DEVELOPMENT, JOHNS HOPKINS----URBAN LEAGUE/URBAN INSTITUTE/NAACP/CASA DE MARYLAND. Most of these 5% are indeed identified from our GREEKS and FREEMASON groups.
This article is right-----some subprime mortgage loans commercial and residential were legit----but watch as those most TOXIC----the one given to people with not a cent, no job, not even a pulse end up being that most valuable of real estate in US cities deemed Foreign Economic Zones now in the hands of global 1% hedge funds/global investment firms.
When 99% of WE THE PEOPLE get angry ======don't fight and harm that 99% of black, white, brown citizens ----hold those 5% TO THE 1% CLINTON/BUSH/OBAMA NOW TRUMP accountable! They have always been FAR-RIGHT WING EXTREME WEALTH EXTREME POVERTY----
So all those real estate 5% players pushing subprime mortgage loan fraud from last few decades are now rushing in to be those 5% players getting a commission from predetermined real estate sales----know what? These 5% will be under the bus in a decade or so ---they are only living for today.
Commercial Loans Blog
The Subprime Commercial Lenders Are Back Making Nonprime Commercial Loans
Posted by George Blackburne on Thu, Jun 11, 2015
Commercial loans were soooo easy to find after the Great Recession. It was like shooting ducks in a barrel. Banks had stopped making commercial real estate loans, and many were even offering their existing borrowers a huge discount to pay their commercial loans off early. These were called discounted pay-offs (DPO's), and my private money commercial mortgage company, Blackburne & Sons, must have financed sixty DPO's in the last three years. Man, do I ever miss those days.
But like a forest mending itself after a fire, the commercial mortgage market is returning to health. A-quality commercial mortgage requests are once again getting financed by banks, rather than by private money (hard money) lenders.
Wall Street subprime lenders have even returned to the market. Most have joined C-Loans.com, and you can find them by inputting your commercial loans - not into one of our gray buttons - but rather into the six-part (but still immensely easy) automated and free commercial loan submission system found at the top of our home page.
The return of Wall Street subprime commercial loans - now called nonprime commercial loans - doesn't surprise me. I always thought that the subprime commercial loans made in 2004, 2005, and 2006 were perfectly fine loans. Sure, commercial real estate fell by 45% during the Great Recession, but not because a ton of Wall Street subprime commercial loans defaulted. I don't know the actual numbers, but I would be surprised if more than 15% to 18% of these loans eventually came back in foreclosure.
Commercial real estate fell because commercial property investors were frightened. The economy contracted. GDP fell. There was a genuine panic that a deflationary vortex would start - a cycle where companies started to fail because demand was weak, which would lead to more layoff's, which would lead to even weaker demand, which would cause even more companies to fail, which would leads to even more layoff's...
But commercial real estate did NOT fall 45% because a ton of Wall Street subprime commercial loans went bad. The vast majority of these loans were good loans, loans that Blackburne & Sons would have loved to have in its portfolio.
So Wall Street is now back and poaching in my fishing pond. It's largely the same product - commercial real estate loans that are just barely too flawed for a bank. Only the name has changed. These loans are no longer called subprime commercial loans. They are called nonprime commercial loans.
Just remember: You can find them almost all of these prodigal Wall Street nonprime commercial lenders on C-Loans.com.
Commercial Mortgage Bankers: You should be calling on commercial real estate loan officers at your nearby commercial banks asking for their turndowns. Remember, the typical commercial loan officer turns down seven or eight commercial loan applications for every one that he approves. If you meet a banker who makes commercial loans, be sure to trade the contents of his business card for a free directory of 2,000+ commercial real estate lenders.
Because of all of the ballooning commercial loans, the next three years promises to be the most profitable time in the history of commercial real estate finance. It is a great time to be a commercial mortgage broker. It's time that you actually learned the profession, as opposed to just winging it.
How would you like to get the above $549 video training course for free? Got a banker buddy who makes commercial loans? Just click on the red button below and forward the page to him. If he joins C-Loans, you'll earn a free training course of your choice (you may want to become a hard money lender yourself), plus $250 every time he closes a deal for us.
The wise commercial mortgage banker submits every commercial loan request to Blackburne & Sons, even if he also submits it to a few banks. At no cost, we'll issue a Loan Approval Letter. You can then show that approval to your banker. "You can beat this, right Mr. Banker?" Just like girls are attracted to boys with a pretty girl on their arm, bankers are attracted to commercial loans that other lenders have approved. So give us a chance to issue an approval for your borrower. Then, if your banker suddenly leaves you standing there at the altar looking stupid (that never happens, right), you and your borrower can always fall back on Blackburne & Sons.
See why global 1% have those5% GREEKS AND FREEMASONS who pledge to do anything they are told? HISTORY REPEATS ITSELF.
We talked about those global hedge fund/investment firms holding much of these subprime mortgage fraud loans ---they are the global banking executives OBAMA, US JUSTICE DEPARTMENT, STATE ATTORNEY'S OFFICES were supposed to bring down --breaking up banks and sending those fraudulent gains back to our government coffers and people's pockets----but those 5% continued MOVING FORWARD ONE WORLD ONE GOVERNANCE EXTREME WEALTH EXTREME POVERTY COMING NOW TO US.
We discuss the top player US FED from many angles in this ROBBER BARON mess-----these few days we will look at what is a great big portfolio of the most TOXIC OF SUBPRIME MORTGAGE LOANS----see why the US FED has the most TOXIC? They are the ones in US cities soon to be those most valuable US city center real estates.
If we look below at where that US FED BRANCH is located---we see US CITIES DEEMED FOREIGN ECONOMIC ZONES and yes, this is from where these US subprime mortgage loan frauds were directed-----looking at BALTIMORE CITY STAT -----courtesy of BALTIMORE MAYOR O'MALLEY.......................................
Baltimore for example is tied to the RICHMOND US FED----this is why we are shouting what happens in Baltimore and Prince George's County will be moving south from northern VA to Greater Richmond. No doubt that is why the FAKE ALT RIGHT AND ALT LEFT protests occurred at UNIVERSITY OF VA.
Federal Reserve Bank President
Boston Eric S. Rosengren............................
New York City . William C. Dudley............................
Philadelphia Patrick T. Harker..................................
Cleveland Cincinnati, Ohio................................
Pittsburgh, Pennsylvania Sandra Pianalto........................
Richmond Baltimore, Maryland..........................
Charlotte, North Carolina Vacant...........................
Atlanta Birmingham, Alabama........................................
New Orleans, Louisiana.......................................... Dennis P. Lockhart
Chicago Detroit, Michigan.......................................
Des Moines, Iowa Charles L. Evans..................................
St Louis Little Rock, Arkansas...................................
Memphis, Tennessee James B. Bullard.........................................
Minneapolis Helena, Montana Neel Kashkari..................................
Kansas City Denver, Colorado......................................
Oklahoma City, Oklahoma................................................
Omaha, Nebraska Esther George..............................................
Dallas El Paso, Texas................................................
San Antonio, Texas Robert Steven Kaplan....................................
San Francisco Los Angeles, California............................................
Salt Lake City, Utah............................................
Seattle, Washington John C. Williams..........................
Can the Fed unload its toxic assets successfully?
How much longer the Fed can give the banking sector billions of dollars to hold on to its reserves of toxic assets is questionable. The bank's exit strategies could pose significant risks.
By David Howden, Guest blogger August 4, 2010
The Federal Reserve Bank of Minneapolis recently interviewed macroeconomist Robert Hall for the June issue of its quarterly magazine, The Region. His words on the Federal Reserve's ability to enact an exit strategy to unwind its unconventional policies were clear and sure: "There are two branches to the exit strategy: There's paying interest on reserves, and there's reducing reserves back to normal levels. They're both completely safe, so it's a nonissue."
Before addressing the question of whether the exit strategy is really "completely safe" or a "nonissue", we must first address the specifics of these two components.
In the wake of the credit crisis of late 2008, the Federal Reserve flooded the banking sector with liquidity. The Fed purchased troubled assets in exchange for base money. Since the banking system was not prepared to immediately loan this new base money, the system's reserves increased dramatically. The Fed concomitantly commenced paying interest on these reserves to remove the incentive for them to be fully used. In theory, by removing the incentive to loan out reserves, price inflation would be minimized: banks would not be constrained by their troubled loans and bad assets, and the Fed would retain credibility as an "inflation fighter."
The result was immediate and effective. As bad assets were removed from their balance sheets, banks were not forced into fire-sale situations by selling their assets to maintain regulatory capital levels. At the same time the Fed was able to save the banking sector via an increase in available credit without causing inflationary pressures to build.
While the short-term effects were seemingly beneficial and controlled, the long-term outlook is much less certain.
The Fed's liquidity injection was made by issuing credit to banks and simultaneously buying back troubled (i.e., subprime) banking sector assets. While the banking sector's balance sheet ballooned with cash and cash equivalents, the Fed's own balance sheet witnessed a sharp rise in the very troubled assets it was removing from the banking system. As Philipp Bagus recently noted, the Fed had become exactly the type of "bad bank" it had tried to rescue.
The figure below outlines the growth in the Fed's balance-sheet policies during the crisis.
Some of the enacted programs were self-liquidating, and now pose minimal danger to the financial system (central-bank liquidity swaps spring to mind, as does the money-market mutual-fund liquidity provision). Other programs have continued growing and cannot be so easily phased out. Over $1.1 trillion of mortgage-backed securities have been purchased since March 1, 2009. These assets, typically rated subprime, are of questionable quality (with total assets of almost $2.4 trillion as of July 1, 2010, nearly half of the Fed's total assets are subprime). More troubling is that these mortgages cannot be properly valued until they are sold to a willing buyer — buyers who are increasingly in short supply.
This "qualitative easing" — the purchasing of low-quality assets from the banking sector in exchange for high-quality assets from the central bank — persisted until central banks lacked adequate high-quality assets to continue the policy. It was only at this point that the more obvious policy of "quantitative easing" was pursued.
Philipp Bagus and I have been among a minority of economists who have signaled the occurrence of this policy (both by the Fed and the European Central Bank), and, more importantly, its detrimental ramifications. The long-term implications of this policy are now becoming evident.
As the Fed withdrew these troubled assets from the banking system, they were offset by issuing increasing amounts of Federal Reserve liabilities — cash. By offering an interest payment on reserve holdings, banks were incentivized to hold on to this newfound liquidity, thus nullifying any inflationary effects the policy could immediately cause. And as Robert Hall correctly notes, one exit strategy the Fed now has is the continual payment of interest on these reserves. As long as banks can profitably hold the 1.1 trillion extra dollars of monetary base that the Fed has created since August 2008, no inflationary pressures will build.
The reality may be very different from what Hall's theory suggests. As the figure below shows, the banking system now receives around $230 million each and every month for doing nothing other than holding on to the assets they passively received in exchange for their low-quality mortgage-backed securities.
Figure 2: Monthly Federal Reserve System interest paid on reserves Source: Federal Reserve Board of Governors release H.3 (Aug. 2008 — Jul. 2010)
Three billion dollars a year in interest payments is a large portion of the Fed's annual operating profits. The recipients — America's large and not-so-large banking establishments — are now much less hindered by subprime loans than they were two years ago. How much longer the Fed can give the banking sector billions of dollars to hold on to these reserves is questionable. Politically, it seems unlikely that Americans will continue to support these payments. Economically, the Fed is losing a large portion of its operating profits to these payments.
Despite these troubling aspects, the banking system's subprime situation is being alleviated. The Fed continues its policy of buying these mortgage-backed securities from the banking sector in order to maintain stability. This is a show of force, an attempt to demonstrate that the Fed is in full control of the situation.
Full control, however, is exactly what the Fed does not have. The alternative exit strategy, if financial stability is to be maintained without runaway inflation, is for the Fed to simply swap the "bad" assets on its own balance sheet for the "good" assets of the banking system.
Herein lies the rub. Inflationary pressures could be neutralized if the aggregate value of the assets originally purchased by the Fed is equivalent to the aggregate value of the assets now being returned. We should take comfort in knowing that at least one of these numbers is known with some degree of exactness. The cash now resting as reserves, and more importantly excess reserves, on the banking system's balance sheet can be valued at par: more or less, there are $1.1 trillion waiting on the sidelines for the Fed to reabsorb.
The value of the mortgage-backed securities that the Fed holds is far less certain. While the reported value on its balance sheet is $1.1 trillion, we should note that the Fed is balancing its books based on the current face values of these securities. These trillion odd dollars represent the outstanding principle on this debt, which is guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. While these assets may have been purchased originally by the Fed for this recorded amount, the maintenance of this value is questionable.
At what discount are securities backed by and comprised of Las Vegas gambling parlors and Miami vacation rentals selling today? We don't know for certain, and more troubling, we won't know what discount a trillion dollars worth of these securities will sell at until the market finds buyers for them. Presumably, the Fed purchased the lowest-quality assets that the banking system held: removing the most "toxic" assets to aid bank capitalization levels. Knowing that the Fed now holds the most toxic of the subprime assets the banking system could create during the roaring 2000s should leave us with some concern.
What then of the Fed's exit strategy?
Ben Bernanke and Robert Hall, along with a multitude of fellow central bankers and economists, have stressed that there is no technical problem in exiting these positions. This is theoretically true — until reality sets in.
Any Fed-enacted swap of its subprime assets for the excess reserves of the banking system will result in some degree of inflation if the two values do not coincide. An upper and lower bound for future price inflation can be approximated from this differential.
At the upper bound, as several commentators such as Robert Murphy have warned, is the outcome where the Fed does nothing to reign in excess reserves. In this case, the Fed will have created $1.1 trillion worth of inflation.
More importantly, we can estimate the lower bound for the Fed-created inflation. The value differential between the excess reserves in the banking system and the subprime assets held by the Fed will remain in the banking sector indefinitely. As the Fed can only purchase back from the banking system reserves of equal value to its available assets, any drop in the value of its own assets will result in excess reserves remaining in the hands of the banking sector — waiting to manifest as price inflation when finally utilized.
Neither bound, upper nor lower, seems particularly attractive.
The silver lining in all this may be that any inflationary pressures will have to wait for another day. The Fed will not enact either exit strategy until the banking sector is back on firm footing, lest a tenuous situation worsen. With several banks entering insolvency weekly, the Fed is in no position to start unwinding any of its balance-sheet policies designed to aid the struggling sector.
Until the day comes when the Fed deems the banking sector able to stand on its own two feet — either with its subprime mortgages back, or without the interest payment on its reserve holdings — inflationary pressure on prices will remain low. But until the Fed finally decides to unwind its subprime balance-sheet positions, entrepreneurs will have to function in an era of uncertainty as to what price inflation lies ahead.
If we look at that list of US FED BRANCHES to see the appointments to these branches---we see many of these branches have no appointed leader----the director Yellen is due to be replaced ----so who has the power of the coming US CITY DEEMED FOREIGN ECONOMIC ZONE REAL ESTATE WINNERS----well, Trump will be deciding this with a captured Congress----Trump and Congress CLINTON/BUSH/OBAMA----SAME GLOBAL 1% PLAYERS.
This is from where those REAL ESTATE BONES are to be thrown to the 5% -----and we know there will be NO BONES FOR THE PLAYERS.
We went to a RICHMOND US FED meeting in their Baltimore office to watch that 5% player selling to the 99% the game of participation-----you are in this with us. There were NAACP/Black Charities, Casa de Maryland, all the FAKE 'labor and justice' organizations pretending they are LEFT SOCIAL PROGRESSIVE waiting to hear how they will be players in these RICHMOND US FED MOVING FORWARD.
We are already hearing everything Trump campaigned on and pretended to be installing with this media circus of first 100 days IS PHONY----he is doing just as Obama---in MOVING FORWARD. The installation of Trump was simply throwing those 5% CLINTON/OBAMA players under the bus. Don't worry---those 5% Trump players are going with them.
Remember, US citizens and voters took pols out of office with PITCHFORKS tied to these global banking US FED structures including their players THE FREEMASONS all through 1700s and 1800s----this is why. Sadly the early 1900s saw WE THE PEOPLE THE 99% thrown into deep depression allowing only those very global players to install that US FED ----this is where our US 99% of citizens both right wing and left wing SHOULD HAVE BEEN COMING AFTER POLS AND PLAYERS WITH PITCHFORKS----it is NOT too late---let's just get rid of all global Wall Street pols and 5% players!
How the Federal Reserve may change under President Donald Trump
By Mike Cetera • Bankrate.com
Anadolu Agency/Getty Images
When it comes to the economic policies the new presidential administration will adopt, Federal Reserve Chair Janet Yellen has said the nation's central bank is "operating under a cloud of uncertainty."
She may well have been talking about the Fed's own future under President Donald Trump.
But Yellen demurred repeatedly during a press conference in late 2016 when asked about how her job and that of the Fed's rate-setting committee might change under Trump.
"I do intend to serve out my four-year term. I haven't made any decision about the future," Yellen said. "I recognize I might or might not be reappointed. It's a decision I don't have to make and don't have thoughts on at this time."
Here's what we know will occur: Two seats on the Fed's seven-member Board of Governors already are vacant, and the new president has the prerogative to fill them, pending Senate confirmation. And a third governor, Daniel Tarullo, announced he will leave the central bank "on or about" April 5.
Further, both Yellen's and Vice Chairman Stanley Fischer's leadership terms are set to expire in 2018. Their Board of Governors' terms extend beyond that, but board members who exit leadership typically resign their seats.
If that occurs, Trump appointments would make up a majority of the board, which is responsible for regulating banks and helps set the nation's monetary policy.
Trump has not said what type of person he's looking for when it comes to a board appointment, but he was highly critical of the Fed during the campaign, saying it held interest rates low for too long (to favor Democrats, no less) and created an equities bubble. The Trump administration has interviewed David Nason, the president and CEO of GE's financing arm, as a possible board appointee, the Wall Street Journal reported.
Here are two possible routes Trump could take:
- He'll leave things essentially as they are, as the Fed has suggested it plans to raise interest rates gradually in the coming years in response to improving economic conditions.
- He'll reshape the Federal Reserve by diluting its independence and its power over interest rates.
The case for the status quo
Some experts expect things at the Fed to carry on in the trajectory they have been heading, meaning higher interest rates to come, as is favored by conservative economists, but there will be no great shake-up.
"President Trump is going to be different from candidate Trump, and President Trump needs the economy to keep humming along," said Greg McBride, CFA, Bankrate's chief financial analyst.
That means, in McBride's estimation, a rapid acceleration of interest rate hikes is unlikely.
"From the standpoint of monetary policy and the economy, higher interest rates, sharply higher interest rates, would not be beneficial to ongoing economic growth," he said.
In December, the Federal Reserve projected it could increase short-term interest rates as many as three times in 2017. That more hawkish approach -- which in the short term could impact how much interest consumers pay on credit card balances and how much savers earn on certificates of deposit -- may be what Trump wants, said Steven Gattuso, CFA, an assistant professor of economics at Canisius College in Buffalo, New York.
"There's the potential for rates to be rising certainly faster than they are with the current Fed," Gattuso, a financial planner at Courier Capital, said.
But, he said, an increasingly aggressive Fed coupled with any stimulus spending Trump proposes -- he's called for both broad tax cuts and a large infrastructure package -- "could heat up" inflation quickly.
"If the rates rise faster than the economy can absorb, that certainly could tip the economy into recession," Gattuso said.
Inflationary pressure is already mounting, though, said John Chang, the head of research at Marcus & Millichap, a Calabasas, California real estate brokerage firm.
Indeed, the Federal Reserve this month bolstered language in its statement following its latest policy meeting suggesting they would be looking closely for evidence inflation is picking up.
"There are a lot of unknowns, more unknowns than any previous transition," Chang said. "The only thing I can really say is that Trump's a business person, and I think most of the business people are at least hopeful that the decisions that he makes will be good for the economy."
Will Trump radically change the Fed?
Late last year, some reports suggested Congressional Republicans, emboldened by a Republican president, would seek to restrict the Fed's independence and move to make rate adjustments more automated.
It's a suggestion President Ronald Reagan considered in 1980, but later abandoned after meeting then-Fed Chair Paul Volcker, whom he later re-appointed to the top leadership post.
Trump has not said what his plans for the Fed are, but Gary Cohn, head of the White House National Economic Council, has been critical of the Fed's role in regulating banks.
Meanwhile, Yellen has not said if she expected to encounter an attempt to change the Fed's structure.
"I'm not going to offer the incoming president advice about how to conduct himself in policy," she said. "I'm a strong believer in the independence of the Fed. We have been given the independence by Congress to make decisions about monetary policy ... and that is what I intend to stay focused on."
Trump may prove more hawkish than people expect -- and that could force borrowers to pay more in interest charges -- but could he restructure the Fed by his words alone? That's one lingering unanswered question.
"I do think that tweeting and off-the-cuff comments aside, the Fed is still going to be subject to the same Monday morning quarterbacking from Congress," McBride said. "But as long as they have the ability to operate without any political constraints, I think that's the key point."
We discussed IN GREAT DETAIL from 2007 through 2009 how the Wall Street subprime mortgage loan frauds worked and how Bush/Obama teamed to protect those fraudulent gains......what we need to remember for today's discussion is this----all that US FED QE TOXIC SUBPRIME MORTGAGE LOAN BUYBACK DEBT-----now 4-5 trillion dollars ----is tied to our US Treasury----this is why articles as below have shouted WE THE PEOPLE THE 99% were still being looted throughout OBAMA------
It is also correct in stating the goal was taking the US to a Greek-style collapse which we were shouting in 2010---here we see the article written in 2016---this is how we know THE HARTMANN MEDIA OUTLET are global Wall Street 1% players---telling people right before the bad events occur.
'Banks Looting US Treasury $85 billion a month with Toxic Mortgage Bond Swaps until Triggering a Greek Style Collapse.
On July 23, 2016, we discontinued our forums. We ask our members to please join us in our new community site, The Hartmann Report. Please note that you will have to register a new account on The Hartmann Report.
Sep. 19, 2013 8:48 pm'
The One Percent Power Elite and their proxy political party argue austerity to justify automatic budget sequester cuts (except for what inconveniences Congress) of $2.4 Trillion dollars, cutting food stamps by $40 billion dollars, de-funding CHIP child health care by $13.3 billion dollars, government furloughs--and all the while 47 million Americans are in poverty.
And yet while enacting all these cuts to aggregate demand the Federal Reserve (Fed) has printed about $4 trillion dollars for the banks in a “stimulus” program called “Quantitative Easing (QE). This is free money transferred to Wall Street banks as the Fed buy collapsed mortgage bonds above their pre-collapse market values. The exact price is a secret. If we add to QE, special auction give aways and zero interest rate money the Fed has made available to Wall Street since 2008 it is estimated between $15 to $20 trillion dollars have been given to the banks with no strings attached.
Some economists call this money given away by the Fed to private banks a “stimulus” but it is really a massive scam by the banks off loading their toxic mortgage bonds onto the American people which will mean austerity and depression forever. The scam can be done in broad daylight because people don’t understand QE purchases; the off loading of bad debt is disguised as “stimulus” so the victims think they will somehow benefit from the mysterious bond purchases; and QE is administered as monetary policy by monetary specialists that isn’t subjected to critical review by democratic processes unlike fiscal budgetary policies. The empirical evidence shows that the four doses of QE in the last five years and provided very little stimulus.
QE is frequently called a Keynesian stimulus remedy, but Keynesians like James Galbraith disagree. If anything, the monetary policy of QE is closer to Milton Freidman’s school of economics. The economic collapse isn’t just a down turn of the classic business cycle, but goes much deeper to being a creditability trap. The 2008 economic collapse was the result of massive systemic fraud many times larger than the Enron scam. Keynesian economist, James Galbraith, believes the remedy to this economic collapse must be more radical, more systematic, and more overreaching than simply applying a fiscal stimulus fix.
James Galbraith - A Study of the World Economy Just Before the Great Crisis.
“I have considerable difficulty with framing desirable policy simply in terms of stimulus. I am sensitive to medical metaphor. This one is a jab with a syringe full of amphetamine. It is something you might doe to wake up an otherwise healthy individual that is lethargic, or sleeping in. It is not an effective approach for organ failure. The metaphor implies if you just spent taxes, cut interest rates, build up the money supply, or whatever your favorite stimulate of choice is, and do this for a short period of time then the system will kick back into motion and you will have a sustained and substantial recovery. I don’t think this is true. I don’t think this was true from the beginning of the meltdown. We suffered something we have not experienced since the thirties which was the collapse of the stability of the financial sector, the viability of the financial sector, its trustworthiness, and of the solvency of the American Middle Class because their housing values fell below their mortgages. They are not in the market to borrow so there isn’t a foundation for private sector to takeover. What you need instead? You need something which is a strategic approach. Something which is a long-term approach that builds new institutions. And we will have to dismantle some banks to make way for them which is not something that gives me a great deal of heartburn. We should of done it when the political opportunity was there and not waiting five years until they are entrenched once again with their bonuses and lobbyists…Roosevelt did not miss that opportunity in March of 1933. We are going to have to build up institutions that will let us do things that need to be done: jobs, the foreclosure crisis, energy, environment and climate change—the challenges we all know we face.” (40:00 to 42:50 minutes).
So what are the real purposes of the Fed’s QE buying of toxic bank mortgages besides getting rid of these bad bank loans? The Wall Street banks are getting billions of dollars from the US government treasury and at the same time loading the government down with bonds that will eventually implode in a Greek style collapse. This is not a bug, but a feature. The unregulated shadow-banking sector with $1.2 quadrillion in derivatives provide a infinite set of financial triggers that can be pulled at anything to start an economic collapse by which the banks will profit immensely thanks to Congress. Obama and the Democrats are oblivious to the trap the nation has stepped into. OH, REALLY??????? THIS IS HOW WE KNOW ANTI-FASCIST IS A FAKE------ An amendment to the Bankruptcy Reform Act of 2005 called “Safe Harbor” guarantees banks special bankruptcy protection by giving derivatives “super-priority” over all other claims, “including tax, and wage claims, deposits, real secured credit and insurance claims. Critically, it ensures immediacy (liquidity) for their holders.”
This is Wall Street’s true end game. This is why Wall Street is withholding credit and not investing in productive domestic businesses because they know the future plan. With the US government collapsed, banks will have trillions of dollars to buy up government assets (privatization) for pennies on the dollar. It will be Disaster Capitalism amplified to the level of Armageddon chaos. Wall Street will not have to worry about government interference into shadow banking speculative activity. No more government deficit spending, or troublesome corporate taxes. The national economy will become a “toll booth” rentier state economy. The new laws of the Trans-Pacific Partnership (TPP) Agreement will become the new standards for global corporate behavior. The One Percent Elite will have their money safely stored in offshore havens, with their heavy industrial capital assets overseas. The local police forces have been trained in urban warfare for decades, and militarized with Pentagon weaponry at their disposal to keep domestic order once the populace realizes what is happening. Most of government spending will have already been shutdown by Congress with a series of de-funding legislation so transition from a government ran by Washington to a gangster quasi-government on Wall Street will be seamless. The American Coup by Wall Street’s weapons of financial mass destruction will have been completed and a new era of Neoliberalism begun.
This article does a good job showing what has been happening under US FED BERNANKE/YELLEN and will continue MOVING FORWARD no matter who a Trump installs. THEY ARE ALL TEAM GLOBAL 1%-----
It is the NEW YORK FEDERAL RESERVE under that top THUG TIMOTHY GEITHNER----who managed the movement of subprime mortgage loan frauds during the initial 2008 economic crash---this was the culling of subprime mortgage loan frauds determining which real estate was in the valuable US CITY CENTERS DEEMED FOREIGN ECONOMIC ZONES---and which could be thrown as fodder to the 5%. Global Wall Street banks and global hedge fund/global investment firms of course got those most valuable real estate in what would be BALTIMORE DOWNTOWN EAST/WEST BALTIMORE WATERFRONT.
What Bernanke as US FED did was bring all the MOST TOXIC OF SUBPRIME MORTGAGE LOAN FRAUD from Wall Street banks into the hands of the US FED---because-----global banking could not develop all US city real estate that fast-----we are still awaiting the coming economic crash ----WORLD BANK/IMF control of our US CITIES DEEMED FOREIGN ECONOMIC ZONE before those MOST TOXIC SUBPRIME MORTGAGE LOANS owned by US FED are handed to global 1%-----Baltimore's downtown development these several years was that first culling of subprime mortgage loan fraud properties sent to US cities via US FED branches----
MOVING FORWARD next decade or two AFTER this coming economic crash will see the US FED branches handing more of those MOST TOXIC SUBPRIME MORTGAGE LOAN PROPERTIES to global development firms in US cities.
HERE WE SEE WHO MADE THESE DECISIONS----if we look at who makes up WELLINGTON AND BLACKROCK we of course see those same global hedge fund/global banking investment 1% enriched from all these frauds. These global 1% are the ones deciding to where the most valuable US city real estate will go---THOSE MOST TOXIC OF SUBPRIME MORTGAGE LOAN FRAUDS----------------
'The New York Fed retained Wellington Management Company, LLP for trading, settlement and as a secondary provider of risk and analytics support; and BlackRock Inc. as the primary provider of risk and analytics support'.
FAQs: MBS Purchase Program
The following frequently asked questions (FAQs) provide further information about the Federal Reserve’s $1.25 trillion program to purchase agency mortgage-backed securities (agency MBS). The MBS program completed its purchases on March 31, 2010, but will continue to settle transactions over the coming months. In connection with this activity, the Federal Reserve continues to use dollar roll and coupon swap transactions to facilitate an orderly settlement of the program’s purchases.
This agency MBS program is managed by the Federal Reserve Bank of New York at the direction of the Federal Open Market Committee (FOMC). The New York Fed will continue to work with two investment managers to support the implementation of the program.
Effective August 20, 2010
What was the policy objective of the Federal Reserve's program to purchase agency mortgage-backed securities?
The goal of the program was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.
What was the volume of MBS purchased?
The FOMC directed the Desk to purchase $1.25 trillion of agency MBS. Actual purchases by the program effectively reached this target. The purchase activity began on January 5, 2009 and continued through March 31, 2010.
How were MBS purchases conducted?
MBS were purchased in the secondary market on a daily basis, with the primary dealers as counterparties. Many of these transactions were executed through external investment managers but, as described in more detail in the next paragraph, trading operations were progressively brought in-house by the Desk during the program.
Why was it necessary for the Federal Reserve to transact in the agency MBS market via external investment managers?
The operational and financial characteristics of MBS purchases are complex and require specialized technology and expertise to transact. The Federal Reserve chose external investment managers as a means of implementing the MBS program quickly and efficiently while at the same time minimizing operational and financial risks. Because of the size and complexity of the agency MBS program, a competitive request for proposal (RFP) process was employed to select four investment managers and a custodian. The selection criteria were based on the institutions' operational capacity, size, overall experience in the MBS market and a competitive fee structure. The program custodian is J.P. Morgan.
As of August 2009, the Federal Reserve streamlined the set of external investment managers, reducing the number of investment managers from four to two.
The New York Fed retained Wellington Management Company, LLP for trading, settlement and as a secondary provider of risk and analytics support; and BlackRock Inc. as the primary provider of risk and analytics support.
Beginning on March 2, 2010, the New York Fed began to use internal staff to execute MBS purchases. Subsequently, the Desk alternated trading days with Wellington before assuming full trading responsibilities by program end. Dollar roll transactions since March 31, 2010 have been executed exclusively by the Desk. For the settlement of legacy purchase and new dollar roll and coupon swap transactions, the New York Fed continues to leverage the middle office settlement support of Wellington.
Why does the Federal Reserve continue to transact in agency MBS dollar rolls and coupon swaps following the completion of program purchases?
The Federal Reserve uses agency MBS dollar rolls as a supplemental tool to address temporary imbalances in market supply and demand. A dollar roll is a transaction conducted at market prices that generally involves the purchase or sale of agency MBS for delivery in the current month, with the simultaneous agreement to resell or repurchase substantially similar (although not necessarily the same) securities on a specified future date. A coupon swap is a transaction conducted at market prices that involves the sale of one agency MBS with the simultaneous agreement to purchase a different agency MBS. Coupon swaps are transactions that allow the Federal Reserve to sell agency MBS that are not readily available for settlement, and purchase different agency MBS that are more readily available for settlement. Although purchases were completed at the end of March 2010, the Federal Reserve continues to use both dollar roll and coupon swap transactions to facilitate an orderly settlement of the agency MBS program’s remaining forward purchase commitments.
With whom does the Federal Reserve transact agency MBS dollar rolls and coupon swaps?
The New York Fed transacts agency MBS dollar rolls and coupon swaps only with primary dealers who are eligible to transact directly with it.
How are Federal Reserve’s agency MBS holdings reported?
Balance sheet items related to the agency MBS purchase program are reported after settlement occurs on the H.4.1. statistical release titled "Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks." Securities acquired in dollar roll or coupon swap transactions are also included with other holdings of agency MBS. Trade settlements may occur well after trade execution due to agency MBS settlement conventions. This report also includes information on total outstanding commitments to buy and sell MBS in a supplemental table.
In addition, the New York Fed publishes the most recent weekly SOMA agency MBS dollar roll transaction activity in more detail on its external website on a weekly basis. As of October 1, 2009, consistent with New York Fed's regular practice of publishing detailed data on other SOMA holdings, such as Treasury and agency debt securities, the New York Fed also began publishing on a weekly basis detailed data on all settled SOMA agency MBS holdings. Any change in the composition of these reported holdings over time is a function of paydowns, and the program's dollar roll and coupon swap activity.
Why have there been sales from the Federal Reserve's portfolio?
As the Desk conducts agency MBS dollar rolls or coupon swaps, the Desk simultaneously buys and sells agency MBS securities. These transactions are consistent with the Desk’s directive to purchase $1.25 trillion in agency MBS, and only affect the timing and composition of the settlement of those purchases.
Will agency MBS dollar rolls or coupon swaps reduce the amount of total purchases?
No. Dollar rolls and coupon swaps, though they have certain different characteristics, are generally the simultaneous sale and purchase of the same face amount of agency MBS. Thus they only affect the timing and composition of the settlement of the Federal Reserve’s agency MBS purchases.
What will be the Federal Reserve’s investment strategy for agency MBS going forward?
On August 10, 2010, the FOMC directed the Desk to keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency MBS in longer-term Treasury securities. As a result, agency MBS holdings will decline over time. Any future decisions about the investment strategy to be employed will be made by the Federal Open Market Committee.
This is why each US city deemed FOREIGN ECONOMIC ZONE with its own BALTIMORE DEVELOPMENT GREATER BALTIMORE COMMITTEE----has absolutely no control over who gets that downtown and city center real estate....it is all decided by US FED/GLOBAL 1%. So those dastardly 5% white, black, and brown global Wall Street players in these local development organizations and tied to local Urban Leagues et al HAVE NO POWER AT ALL---they are simply doing what global 1% tells them hoping a little FODDER WILL FALL ON THEM.
What should be happening for WE THE PEOPLE THE 99% having gotten rid of those 5% players black, white, and brown citizens is this---------
ALL THOSE MASSIVE SUBPRIME MORTGAGE LOAN DEALS ARE FRAUD AND CAN BE VOIDED-------WE DO NOT HAVE TO HONOR MASSIVE FRAUDULENT WALL STREET TRANSACTIONS.
When we do this all that real estate in US cities downtown and surrounding communities COMES BACK TO THE 99% WE THE PEOPLE. If we allow these 5% players to push these Wall Street fraudulent subprime mortgage loan deals through----all real estate in US cities will belong to a global corporate tribunal.
Why is that bad---US corporations controlled our US cities last century?
THE GOAL OF MOVING FORWARD ONE WORLD ONE GOVERNANCE IS TO HAVE ONLY THESE GLOBAL CORPORATE CAMPUSES WITH SUSTAINABILITY----MEANING THE INFRASTRUCTURE THEY ARE BUILDING WILL ONLY SUPPORT THOSE INSIDE THE CASTLE OF OZ.
There will be nowhere for a 99% to go -----sent overseas to Foreign Economic Zones----sent to become PLANETARY COLONIZING MINING SLAVES----no future for US CITIZENS FILLED WITH RIGHTS -----FILLED WITH FREEDOM---FILLED WITH JUSTICE ---FILLED WITH FREE WILL AND CHOICE.
Here we see these OPEN BORDER SANCTUARY CITIES happening of course in all Western nations----Canada, Europe, and US-----this is why we shout---these UNITED NATIONS GLOBAL 1% policies will NOT protect 99% of our global immigrant citizens. They will be enslaved here in US Foreign Economic Zones just as they are overseas. The only fight from these SOROS OPEN BORDERS UNITED NATIONS groups is for those global 1% and their 2% RICH FOREIGN CORPORATIONS AND EXECUTIVES being brought to US in these subprime mortgage loan fraud real estate exchanges----
Our immigrant global labor pool are being told all kinds of things by the CLINTON/OBAMA global human capital distribution system 5%----they of course think they are coming to the OLD STRONG FREE US------they don't understand MOVING FORWARD brings US down to their third world status.
This is what has these several years foreign corporations, executives, and global 1% being handed selected real estate in US----the US West Coast saw much of this these few decades---next decade or two will see EAST COAST cities doing the same. Those 5% players on West Coast were allowed to be winners to keep the BIG CON MOVING FORWARD----but global 1% will not need the BIG CON very soon ----BYE BYE 5% PLAYERS BLACK, WHITE, AND BROWN.
Canada’s open borders and sanctuary cities defy common sense
First posted: Friday, August 11, 2017 01:15 PM EDT | Updated: Friday, August 11, 2017 01:22 PM EDT
This file photo taken on August 5, 2017 shows a girl who crossed the Canada/US border illegally with her family, claiming refugee status in Canada, as she looks through a fence at a temporary detention centre in Blackpool, Quebec. (GEOFF ROBINS/AFP/Getty Images)
Doing what we believe is right can make us feel morally superior. For example, Prime Minister Justin Trudeau virtue-signalled the surge in undocumented refugees crossing our border from the U.S. since President Trump announced his tough stand on ‘illegal aliens’.
However, the numbers could explode, since over 400,000 American residents may soon lose their Temporary Protected Status and millions are without any legal protection. So sometimes, feel-good policies defy common sense.
Are we really doing the right thing to reward people who flaunt the rules and jump the queue ahead of law-abiding applicants waiting for years to enter Canada? Is it fair, having lured them here, to send some of them back, after much delay and expense? Can our resources cope with the potential influx? Is it in our national interest to create an open-ended security risk?
These questions raise the issue of sanctuary cities. Municipal councils voted to allow migrants entering Canada illegally to receive housing, food bank, library and other services, with no questions asked about their immigration status. Not only that, city law enforcement agencies are ordered not to co-operate with federal and provincial officials regarding those undocumented immigrants.
In February of 2013, Toronto became Canada’s first sanctuary city. Others now include Hamilton, Vancouver, London and Montreal. Calgary, Ottawa, Regina, Saskatoon, and Winnipeg are considering joining the coalition of the self-righteous. The inspiration was American, including the Democratic bastions of New York, Los Angeles, San Francisco, and Chicago, totalling almost three hundred.
Could they all have it wrong? Yes.
Sanctuary cities countenance unlawful behaviour. Normally, it would be indefensible for the most junior level of government to refuse to cooperate with law enforcement officers. Compassion for refugees who gamed the system in preference to those played by the rules is hardly a justification.
ISIS boasts it infiltrated refugee populations in Europe. So there is a security risk when people arrive here without documentation. Moreover, if they later return to the U.S. and commit terrorist attacks, the Americans would naturally react by protecting the border, slowing down $2 billion a day in trade.
Let me dispose of two false comparisons. First, the underground railway. Canadian law was not violated when we did the profoundly moral thing and welcomed escaped slaves from the U.S. to what they referred to as “the Promised Land.” Second, our shameful ‘none is too many’ anti-Jewish immigration policy prior to the Second World War
condemned failed asylum seekers to Nazi terror and death, with no sanctuary.
Helping those who fear deportation to oppressive regimes reflects the best of Canadian values. But people arriving by taxi or pushing shopping carts across the border are more likely seeking economic opportunity rather than fleeing persecution. The tragic plight of the Yazidis is far more dire than refugees crossing the Canada/U.S. border.
Canada will take in 300,000 immigrants this year, over 0.8% of our population, one of the most generous rates in the world. There is general support for our immigration policy, although the attitude toward refugees is somewhat mixed.
In a poll conducted 5 months ago a slim majority favoured current numbers, but 41% believed they were too high. With a global population of 7.5 billion, hundreds of millions would eagerly immigrate to Canada for a better life, if given a chance. Obviously, we cannot open our borders to everyone.
By all means let’s welcome immigrants and refugees. However, if the government lets people to stream across our border unlawfully, it risks eroding public support for a humanitarian refugee policy. It would then only have itself to blame.
Of course all those 5% global Wall Street pols and players with insider scoops on all these stock market real estate INNOVATIVE PACKAGES were indeed allowed to ride these several years of STOCK MARKET BULL driven almost exclusively on the wheeling and dealing behind all these global subprime mortgage loan fraud deals. Packaging, repackaging, splitting, making them JUNK----that was all of US GDP during Obama.
This is why our 5% black, white, and brown citizens ---those GREEKS AND FREEMASONS think they are part of the BROTHERHOOD---they win some wealth from this stock market real estate boom to bust. They will of course lose all those gains very soon.
THIS IS WHAT WE CALL THE NON-ECONOMY-----IT WAS NEVER AN ECONOMY. ONLY THAT GLOBAL 1% PLAYED THE MARKET DURING OBAMA.
When our FAKE left social progressive POPULIST leaders now calling for reinstating GLASS STEAGALL----but they want a 21ST CENTURY GLASS STEAGALL-----the difference is this----last century 99% of WE THE PEOPLE were real stockholders allowed to participate in these stock markets. It was the breaking of THAT GLASS STEAGALL that allowed the global 1% to STEAL all our wealth via 401Ks-----pensions-----and individual investments at a time when the stock market was criminal----no one could win except those global 1%.
THE 21ST CENTURY GLASS STEAGALL promoted by global Wall Street gone ONE WORLD ONE GOVERNANCE is removing 99% of global citizens from this market====continuing the CLINTON/BUSH/OBAMA global investment for only the global 1% ------building a Glass Steagall Wall to allow that global 1% a safe place for their banking needs....remember, the 99% of WE THE PEOPLE are going to be pushed to HAVING NO ACCESS TO MONEY---GLOBAL ONLINE BANKS with global corporations direct depositing what they say are WAGES----but that disappear in the costs of the COMPANY STORE.
DAILYKOS is yet another Clinton neo-liberal outlet -----this article tells us good stuff but not the goals -------what we have seen with all these subprime mortgage loan ROLLER COASTER several years was the design of bringing the US down into economic collapse AND creating those global BANKS that ONE WORLD ONE WORLD CENTRAL BANK WANTS TO CONTROL...................
'You see, that accountability 'audit trail' on these MBS "mortgage-bond holders" can be bit hard to untangle.
In the recent MERS-era of no rules followed, no local fees paid, no clear Chain of Title established,
-- in that anything-goes era, such tedious chores of liability record-keeping was kind of handed off to the signators of Foreclosure Document Mills, and the Collateral-Risk-swappers who dominated those boom-days.
The refrain of the day was "No one will notice. And besides no one's is guarding the farm ... except for us, the oh-so clever free-market foxes" ...'
The Fed commits to Buying even More MBS, and the Market Soars in approval
Friday Jul 12, 2013 · 6:07 PM EST
Have you noticed the recent roller-coaster ride in the Stock Market?
Have you any idea what's behind it?
Well, not much except the Federal Reserve Chairman Ben Bernanke suggesting (and then later un-suggesting) that he might soon dial back his third round of Quantitative Easing (QE).
Institutional Investors like Ease; and they were not well pleased -- initially. ... SO the Fed recanted his warnings -- and as a direct result the Dow sets new record highs.
Strange animal -- this roller-coaster that gets built day-by-day. That reservoir of wealth, upon which so many future dreams, go along for the ride ... if you have a 401k or a Pension plan, well hold on your future hats.
Here's how Round Three QE quietly began last September ...
Begin Quantitative Easing, Phase III
Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases
by Joshua Zumbrun, Bloomberg.com - Sep 13, 2012
The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.
[...]Stocks jumped, sending benchmark indexes to the highest levels since 2007 [...]
“Open-ended purchases of mortgage-backed securities will politicize the Fed and add substantially to its balance sheet risks, but it will not help our economy’s long-term growth prospects,” Corker said.
The Fed has argued he is doing this to promote Job Growth -- which is among the goals of its multi-pronged mission: promote full employment.Fine, but what exactly happens when the Federal Reserve 'buys mortgage debt' anyways? Why is the buy-back program shrouded in so much free market-mystery?
Is there a 'yard-sale' somewhere where I can buy a MBS home on the cheap, from the Fed?
Is there a ghost town of properties just waiting to be flipped? or demolished? or rented? Or maybe even loaned out to the homeless?
Inquiring minds should want to know ...
FAQs: Agency MBS Purchases
New York Federal Reserve -- data.newyorkfed.org
The following frequently asked questions (FAQs) provide further information about the Federal Reserve's additional asset purchases of agency mortgage-backed securities (MBS) announced by the Federal Open Market Committee (FOMC) on September 13, 2012, and the reinvestment of principal payments from agency securities.Effective September 13, 2012
Who is eligible to transact in agency MBS with the Federal Reserve?
The New York Fed's primary dealers are eligible to transact in agency MBS directly with the Federal Reserve. Primary dealers are expected to submit bids or offers for themselves and for their customers.
How will agency MBS transactions be conducted?
Agency MBS transactions will take place in the secondary market through a competitive bidding process and in line with standard market practices. At this time, the Desk plans to continue to conduct agency MBS transactions over TradeWeb's electronic trading platform, though trading may occur by other means if desirable.
Will the Federal Reserve use investment managers, or other vendors, to conduct agency MBS transactions?
The New York Fed will use internal staff to execute agency MBS transactions. Wellington Management Company will continue to provide investment management services and JPMorgan Chase will continue to provide custodial services.
How are the Federal Reserve's agency MBS holdings reported?
Agency MBS transactions are reported after settlement occurs on the H.4.1. statistical release titled "Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks." This report also includes information on total outstanding commitments to buy and sell MBS in a supplemental table entitled "Supplemental Information on Mortgage-Backed Securities." Trade settlements may occur well after trade execution due to agency MBS settlement conventions. [...]
OK, this FAQ raises a few more questions, than it answers. For instance:
-- Who are these “primary dealers” with whom the Fed "transacts with" for mortgage-backed securities?
-- What is “the Desk” the Fed keeps talking about?
-- Where are these "Reports" which document the Fed's buyback "agency MBS holdings"?
Inquiring economically-literate minds should want to know ...
First the easy QE question -- the Fed's MBS report:
The Fed's Transparency Report
Federal Reserve Banks -- www.federalreserve.gov
FEDERAL RESERVE statistical releaseH.4.1
1. Factors Affecting Reserve Balances of Depository Institutions
Millions of dollars --
Averages of daily figures Jul 10, 2013
Reserve Bank credit 3,456,317
Securities held outright (1) 3,225,347
U.S. Treasury securities 1,948,028
Federal agency debt securities (2) 69,180
Mortgage-backed securities (4) 1,208,139
Net portfolio holdings of Maiden Lane LLC (8) 1,414
Foreign currency denominated assets (14) 23,170
Gold stock 11,041
Treasury currency outstanding (15) 45,167
4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages.
3. Supplemental Information on Mortgage-Backed Securities
Millions of dollars
Account name Jul 10, 2013
Mortgage-backed securities held outright (1) 1,208,152
Commitments to buy mortgage-backed securities (2) 106,766
Commitments to sell mortgage-backed securities (2) 200
1. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages.2. Current face value. Generally settle within 180 days and include commitments associated with outright transactions, dollar rolls, and coupon swaps.
Those are millions of millions, by the way -- or in other words $1.2 Trillion of "agency MBS holdings" so far, as of this week's QE3 tally.
And what is this “the Desk” the Fed keeps talking about?
The Announcement Effect: Evidence from Open Market Desk Data (pdf)New York Federal Reserve -- newyorkfed.org
Most of the time, open market operations conducted by the Trading Desk of the Federal Reserve Bank of New York (“the Desk”) are designed to accommodate variations in the reserve needs that stem from a variety of factors, such as changes in currency holdings, float, and large Treasury balances; to manage currency in circulation; and to accommodate other variations in the supply of reserves
Who are is these “primary dealers” the Fed keeps talking about?
The Big Banks Expect Quantitative Easing Into Early 2014
Business Insider -- 01/04/2013
The New York Fed’s primary dealers, the 21 banks with which it carries out transactions, expect quantitative easing to continue until 1Q 2014. This is according to a Dow Jones Business News report. The primary dealers’ median expectation is that the Fed will continue to purchase $45 billion worth of Treasuries each month throughout 2013, and cut that to $35 billion per month in early 2014. These findings come from a survey of primary dealers that was conducted before the December FOMC meeting. [...]
Do these “primary dealers” on the receiving end of the Fed's charity revolving line of credit, do they have names?
Primary Dealers List
New York Federal Reserve -- newyorkfed.org
Primary dealers serve as trading counterparties of the New York Fed in its implementation of monetary policy. [...]
Bank of Nova Scotia, New York AgencyBMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC.
New primary dealers will begin transacting with the New York Fed upon completion of legal, operational and technical setup.Designation of an entity as a primary dealer by the New York Fed in no way constitutes a public endorsement of that entity by the New York Fed, nor should such designation be viewed as a replacement for prudent counterparty risk management and due diligence.
SO, what does this all mean? -- this 3rd round of Fed Quantitative Easing, that can turn markets on a dime; that gives those MBS toxic mortgage owners, 'a buyer of last resort' -- still. Even after those two record-setting Wall Street Toxicity bailouts, that have already been paid by the U.S. Taypayers.The Agency Mortgage-backed securities
What the Fed Move Means
by Joe Light, wsj.com -- Sep 21, 2012
The Fed says it plans each month to buy $40 billion of agency mortgage-backed securities, which are supported by government-sponsored enterprises such as Fannie Mae and Freddie Mac. The Fed says the buying will continue until the labor market improves substantially.Unlike mortgage-backed securities that hold jumbo or subprime loans, agency mortgage-backed securities carry at least the implicit backing of the government. That means that if the home market soured and owners defaulted on their loans, mortgage-bond holders would still get their money back.
If the American People, by virtue of the Federal Reserve, are quietly being made the 'bag-holders last resort'
-- So, who are the 'bag-sellers' of last resort, receiving so far $1.2 Trillion in Round Three compensation, from the People's representative?
Who are these "mortgage-bond holders" that keep tossing the Fed (ie. us, "the guarantors of Fannie Mae, Freddie Mac, and Ginnie Mae" buybacks) -- all these MBS 'hot potatoes' -- that no one cares to hold -- still?
In other words, who are these high-rollers in the wall street woodwork ...
The MBS Mortgage Bondholders
Mortgage Bondholders Get Legal Edge, Buybacks Seenby Reuters, news.investors.com -- 07/22/2010
U.S. mortgage bond investors have quietly banded together to gain the long-sought power needed to challenge loan servicers over losses the investors claim resulted from violations in securities contracts.A group holding a third of the $1.5 trillion mortgage bond market has topped the key 25% threshold for voting rights on 2,300 "private-label" mortgage bonds, said Talcott Franklin, a Dallas-based lawyer who is shepherding the effort.
Reaching that threshold gives holders the means to identify misrepresentations in loans, and possibly force repurchases by banks, he said.
... Or repurchases by the Fed, as the case has now turned out to be.
You see, that accountability 'audit trail' on these MBS "mortgage-bond holders" can be bit hard to untangle.
In the recent MERS-era of no rules followed, no local fees paid, no clear Chain of Title established,
-- in that anything-goes era, such tedious chores of liability record-keeping was kind of handed off to the signators of Foreclosure Document Mills, and the Collateral-Risk-swappers who dominated those boom-days.
The refrain of the day was "No one will notice. And besides no one's is guarding the farm ... except for us, the oh-so clever free-market foxes" ...
The MBS Trustees and Trustors
Mortgage bondholders gain key ally in putback fight
by Tom Hals, Reuters -- Mar 15, 2011
U.S. banks may be turning on one another in the legal battle over losses on mortgage-backed bonds.Big pension funds and other investors are demanding compensation from banks that sold them supposedly low-risk mortgage-backed bonds that disintegrated in the housing crisis, a fight that ultimately could cost Wall Street $100 billion or more.
One big legal obstacle for investors has been getting documents they say will prove those bonds were anything but low-risk. Demands for documents have to come from the trustees who administer the bonds, and until recently trustees have stayed out of the legal fray.
The legal battle is complex, in part because the trustees themselves are often from big Wall Street banks, such as Wells Fargo, Citigroup and Deutsche Bank (DBKGn.DE), which also sold mortgage-backed bonds that went bad.
Mortgage bonds were at the heart of the financial crisis. Banks and mortgage companies such as Countrywide assembled the bonds from pools of thousands of home loans, often "subprime" mortgages with high rates of default. The loans were placed in trusts, which in turn issued bonds, some portions of which were given top-quality ratings.
If investors can get documents such as credit reports, details on borrowers' reported income and home appraisals, they expect to prove that banks breached their own guidelines for writing mortgages.
Fast forward to today. NOW those MBS-burdened U.S. banks are just 'turning' to the Fed instead, lobbying them to continue to back-fill their 'breach' of sound business practice; just for another 6-18 months, or so. Wink, wink.Afterall it would be SOOOO counter-productive for those “21 primary dealers” -- to sue each other into oblivion, wouldn't it? They found another eazy-mark to off-load their bad-assets to; someone who would quietly pay off their bad gambling debts, month after month. SOOO that they could survive to "invest" again, another grand free-market hey-day ... someday soon.
"It's Simply Priceless!" ... as the dispensers of consumer credit often remind us.
What in the world would we do without them? Without all their creative, cross-dealing, risk-shunning "financing"?
Maybe WE -- the aspiring home owners -- would actually live to survive, another roller-coaster building day ... without them, constantly re-leveraging our futures in their never-ending money-changing card games ...
We the Wall Street Bag-holders of Last Resort ...
Someday, may we no longer -- fill their bill ...