Symmetric Chaos
Fractal King
Gender: Male Location: Ko-ro-ba
Enormous Profits For The Fed!
http://finance.yahoo.com/news/Fed-p...123775.html?x=0
quote: WASHINGTON (AP) -- The Federal Reserve generated record profits last year, reflecting money made off its extraordinary efforts to rescue the country from the worst economic and financial crisis since the 1930s.
The central bank announced Tuesday it logged a record windfall of $52.1 billion. Of that total, a record of $46.1 billion gets turned over to the Treasury Department.
It marks both the biggest profit and payment to Treasury on records dating back to 1914, when the Fed began operating. The previous record payment turned over to the Treasury -- of $34.6 billion -- was registered in 2007. In 2008, the Fed reported a payment of $31.7 billion.
The Fed's efforts to end the crisis are separate from the $700 billion taxpayer-funded financial bailout program authorized by Congress in 2008 and overseen by the Treasury Department.
Originally set up to shore up banks, money from the publicly-derided program also has been doled out to rescue other types of companies, including General Motors, Chrysler and GMAC. President Barack Obama is weighing a levy aimed at recovering tax dollars from government-rescued financial institutions.
The bigger profit reported by the Fed came from $46.1 billion in earnings from the securities it held last year.
Such income went up as the Fed's holdings of securities mushroomed.
The Fed launched several securities-buying programs last year to help revive the economy. Its goal is to drive down rates on mortgages and other consumer debt.
Under one program that ended last year, the Fed snapped up $300 billion worth of government debt. Under another program, the Fed is on track to buy $1.25 trillion in mortgage securities from Fannie Mae and Freddie Mac, and an additional $175 billion in debt issued by the mortgage giants. Those programs have boosted the value of securities held by the Fed.
The Fed faces a risk, however. The Fed could lose money if the central bank had to sell those securities and their prices were to fall. The Fed might need to sell the securities to sop up some of the unprecendented amount of money pumped into the economy during the crisis.
The Fed is funded from the interest earned on it vast portfolio of securities. It is not funded by Congress.
After covering its expenses, the Fed gives what is left over to the Treasury Department.
Besides the income from its securities, the Fed said it earned $5.5 billion from holdings related to the takeover of investment firm Bear Stearns and insurance company American International Group. The Fed also earned $2.9 billion from loans extended to banks, investment houses and others.
It certainly sounds like a good sign for America but I'm not sure exactly what this means. Still with all of the money that governments can float around 50 billion dollars doesn't seem like all that much.
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Jan 12th, 2010 06:39 PM
Liberator
Mums Gardener
Gender: Male Location: United Kingdom
Some recession, eh?
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Jan 12th, 2010 07:42 PM
Darth Jello
Cheese Spelunker
Gender: Male Location: Denver Metro, CO
Yeah, enormous profits for the FED. It's called redistribution of wealth upward. Ronald Reagan's smelly, rotting corpse is probably having its biggest orgasm since the marines were bombed in Lebanon and 9/11.
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Land of the free, home of the brave...
Do you think we will ever be saved?
In this land of dreams find myself sober...
Wonder when will it'll all be over...
Living in a void when the void grows colder...
Wonder when it'll all be over?
Will you be laughing when it's over?
Jan 12th, 2010 07:57 PM
Shakyamunison
Nam Myoho Renge Kyo
Gender: Male Location: Southern Oregon,
Looking at you.
It is all just on paper.
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Jan 12th, 2010 08:01 PM
Symmetric Chaos
Fractal King
Gender: Male Location: Ko-ro-ba
quote: (post ) Originally posted by Shakyamunison
It is all just on paper.
All money is just paper or just metal or just data.
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Graffiti outside Latin class.
Sed quis custodiet ipsos custodes?
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Jan 12th, 2010 08:03 PM
Symmetric Chaos
Fractal King
Gender: Male Location: Ko-ro-ba
edit
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Graffiti outside Latin class.
Sed quis custodiet ipsos custodes?
A juvenal prank.
Jan 12th, 2010 08:03 PM
Shakyamunison
Nam Myoho Renge Kyo
Gender: Male Location: Southern Oregon,
Looking at you.
quote: (post ) Originally posted by Symmetric Chaos
All money is just paper.
But you know what I mean, right? None of this is real. People in the government are manipulating the books to make it look good.
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Jan 12th, 2010 08:05 PM
Bardock42
Junior Member
Gender: Unspecified Location: With Cinderella and the 9 Dwarves
quote: (post ) Originally posted by Symmetric Chaos
All money is just paper or just metal or just data.
That's bull.
Some is metal.
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Jan 12th, 2010 08:08 PM
Symmetric Chaos
Fractal King
Gender: Male Location: Ko-ro-ba
quote: (post ) Originally posted by Shakyamunison
But you know what I mean, right? None of this is real. People in the government are manipulating the books to make it look good.
Do you know that for certain or just think it's likely?
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Graffiti outside Latin class.
Sed quis custodiet ipsos custodes?
A juvenal prank.
Jan 12th, 2010 08:26 PM
dadudemon
Senior Member
Gender: Male Location: Bacta Tank.
This is a good thing.
However, I'm one of the people that thinks the fed should be dissolved and never made into a Fed. system again. (For the U.S.)
The budget is so horrible right now that a little income should be a good thing.
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Jan 12th, 2010 08:26 PM
Shakyamunison
Nam Myoho Renge Kyo
Gender: Male Location: Southern Oregon,
Looking at you.
quote: (post ) Originally posted by Symmetric Chaos
Do you know that for certain or just think it's likely?
Know that for certain? No, I do not have any insider information. I've just seem it over and over again. As the old saying goes; if it looks like duck...
I will believe it when my personal buying power increases.
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Jan 12th, 2010 08:32 PM
dadudemon
Senior Member
Gender: Male Location: Bacta Tank.
quote: (post ) Originally posted by Shakyamunison
Know that for certain? No, I do not have any insider information. I've just seem it over and over again. As the old saying goes; if it looks like duck...
I will believe it when my personal buying power increases.
During the worst part of the recession, I got 2 promotions..just three months apart.
And, since Early 2008, I've gotten 2 nice raises.
What recession?
(I thank the Lord and my employer's for not being impacted negatively by the recession.)
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Jan 12th, 2010 08:34 PM
Shakyamunison
Nam Myoho Renge Kyo
Gender: Male Location: Southern Oregon,
Looking at you.
quote: (post ) Originally posted by dadudemon
During the worst part of the recession, I got 2 promotions..just three months apart.
And, since Early 2008, I've gotten 2 nice raises.
What recession?
(I thank the Lord and my employer's for not being impacted negatively by the recession.)
Ya, but I am just pessimistic when it comes to the government saying "hay look, we made a profit". The first thought that comes to mind is, "ok, give it back".
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Jan 12th, 2010 08:42 PM
Symmetric Chaos
Fractal King
Gender: Male Location: Ko-ro-ba
quote: (post ) Originally posted by Shakyamunison
Know that for certain? No, I do not have any insider information. I've just seem it over and over again. As the old saying goes; if it looks like duck...
It certainly makes sense. Convincing people that the economy is doing better can itself be good for the economy. Not to mention that it makes the Fed and Obama look good.
quote: (post ) Originally posted by Shakyamunison
I will believe it when my personal buying power increases.
Unless you're secretly a CEO you're personal buying power is a ridiculously small portion of the economy.
My wages haven't dropped at all during the recession.
__________________
Graffiti outside Latin class.
Sed quis custodiet ipsos custodes?
A juvenal prank.
Jan 12th, 2010 08:52 PM
Shakyamunison
Nam Myoho Renge Kyo
Gender: Male Location: Southern Oregon,
Looking at you.
quote: (post ) Originally posted by Symmetric Chaos
It certainly makes sense. Convincing people that the economy is doing better can itself be good for the economy. Not to mention that it makes the Fed and Obama look good.
Unless you're secretly a CEO you're personal buying power is a ridiculously small portion of the economy.
My wages haven't dropped at all during the recession.
The fact that this make the Fed and Obama look good, feeds my skepticism.
However, the cost of everything has gone up. This has made my "small" buying power decrease.
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Jan 12th, 2010 09:02 PM
RocasAtoll
Senior Member
Gender: Male Location:
quote: (post ) Originally posted by Darth Jello
Yeah, enormous profits for the FED. It's called redistribution of wealth upward. Ronald Reagan's smelly, rotting corpse is probably having its biggest orgasm since the marines were bombed in Lebanon and 9/11.
Reagan admitted Lebanon was mistake, but other than that, this is correct.
This is good, but it doesn't change the fact that the Fed is wholly inefficient and needs to be taken down. There's also still the fact of that extra trillion dollars that was made out of thin air that still hasn't hit the market.
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Jan 12th, 2010 09:13 PM
Robtard
Senor Member
Gender: Unspecified Location: Captain's Chair, CA
quote: (post ) Originally posted by Darth Jello
Yeah, enormous profits for the FED. It's called redistribution of wealth upward. Ronald Reagan's smelly, rotting corpse is probably having its biggest orgasm since the marines were bombed in Lebanon and 9/11.
But it's supposed to trickle down to us poor rabble.
The Gipper guaranteed that if 'we' allow the rich to get richer with massive tax breaks, they'll diarrhea-squirt some of that back down to the poor, he promised, dude.
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Jan 12th, 2010 09:48 PM
WanderingDroid
THE LOOSE CANNON
Gender: Male Location: Welfare Kingdom of California
quote: The Federal Reserve generated record profits last year, reflecting money made off its extraordinary efforts to rescue the country from the worst economic and financial crisis since the 1930s.
I just don't agree with that underline.
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Jan 12th, 2010 10:40 PM
Darth Jello
Cheese Spelunker
Gender: Male Location: Denver Metro, CO
quote: (post ) Originally posted by Robtard
But it's supposed to trickle down to us poor rabble.
The Gipper guaranteed that if 'we' allow the rich to get richer with massive tax breaks, they'll diarrhea-squirt some of that back down to the poor, he promised, dude.
Let me channel our second president, John Adams for one moment.
"Shut the **** up, you rabble! You aren't even people, you shouldn't be allowed to vote. Just work and if you can't work, go ****ing kill yourselves. And don't complain you seditious pisser, or I'll have you taken to Louisiana and broken on the wheel...peasant scum..."
__________________
Land of the free, home of the brave...
Do you think we will ever be saved?
In this land of dreams find myself sober...
Wonder when will it'll all be over...
Living in a void when the void grows colder...
Wonder when it'll all be over?
Will you be laughing when it's over?
Jan 12th, 2010 11:23 PM
Shakyamunison
Nam Myoho Renge Kyo
Gender: Male Location: Southern Oregon,
Looking at you.
quote: (post ) Originally posted by Darth Jello
Let me channel our second president, John Adams for one moment.
"Shut the **** up, you rabble! You aren't even people, you shouldn't be allowed to vote. Just work and if you can't work, go ****ing kill yourselves. And don't complain you seditious pisser, or I'll have you taken to Louisiana and broken on the wheel...peasant scum..."
I didn't know we had Democrats back then.
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Jan 12th, 2010 11:32 PM
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