Fed Liquidity Efforts `Hyper-Inflationary’ P1

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Bianco Calls Fed Liquidity Efforts `Hyper-Inflationary’: Video Oct. 21 (Bloomberg) — Jim Bianco, president of Bianco Research LLC, talks with Bloomberg’s Rhonda Schaffler in New York about the Federal Reserve’s move to provide up to $540 billion in loans to help relieve pressure on money-market mutual funds, credit market conditions and the outlook for the US economy and stock market. (Source: Bloomberg) 00:00 Fed move to buy money fund commercial paper 01:59 Commercial paper market; “shortage” of loans 04:36 US credit markets, Fed liquidity efforts 06:59 Outlook for housing, mortgage markets 07:54 Potential second stimulus a “short-term fix” 09:27 Fannie and Freddie loan, mortgage rules 11:08 Bank lending practices, housing market 13:10 Fed liquidity efforts: impact on inflation 16:01 Outlook for US dollar, stocks: strategy

13 Comments For This Post

  1. MrLaburnum12 Says:

    Im looking to purchase commercial paper . Anybody know an MTN seller

  2. thomasst2 Says:

    I agree. Bretton Woods I and Oil sales in dollars since 1973 is the basis upon which our economy achieved its current state. The dollar as the world reserve currency and a central bank all too happy to spread those dollars created so much moral hazard and get rich quick schemes in our banking and big business community and gave Govt near limitless power. We’re staring to reap the “benefits” of those actions like you described. But now the Fed is printing money to bailout the irresponsible.

  3. Yourdeadmeat69 Says:

    Europe copied our liar loan penchant, they’re in worse shape, dollars reign until inflated by 5TRILLION in Fed printed money they’ve no clue how to spend. The bottom of the pyramid, housing, is too pervasive, they’ll do nothing to efficacy, since they can’t decide, except to bailout crony’s and help banks consolidate power, as they’re hostage, as Jefferson said they’d be.

    Dr. Rubini is right. Scary, but dead on.

  4. Yourdeadmeat69 Says:

    No conspiracy, the economy has already imploded. Asset values plummet in depressions, not recessions, however mild. US’s empire, worthless wars, disposable economy printed scrip created from debt, abandonment of gold and silver mandates in the Constitution, Jefferson’s warnings about paper, the “ghost of money”, bank fallacies, are in our face today. Oil just got 60% CHEAPER. Dollars is yen carry trade unwinding, as Japan pulls into its turtle shell, not oil.

  5. thomasst2 Says:

    Our Govt will do everything in it’s power to prevent alternatives. Oil sales in only dollars keeps foreigners buying our debt and investing in our corporations, which maintains our facade of an economy. Most of the dollars sent over seas come right back to the US for foreigners to make more dollars to buy more oil. Switching to alternatives worldwide will cause capital to leave the US and the economy will implode. We need to fix our imbalances, which means more production and less consumption.

  6. thomasst2 Says:

    Depends. The dollar is still the world reserve currency because all oil sales in the world are done in only dollars (except in 2000 in Iraq, which we changed quickly, and Iran now since 2003). As long as the world needs oil, they will need dollars. As long as they need dollars they will continue to buy our debt and invest in our corporations. If oil producing countries decide to ditch the dollar, we’re screwed. The world will throw our dollars back at us and we’ll be paying $1000 for chewing gum

  7. thomasst2 Says:

    Depends on the demand for borrowing. No matter how much the Govt pumped credit to save businesses, Japan suffered a deflationary recession because the public had no demand to borrow and spend (they had an extremely high savings rate for almost 20 years. Force of habit). The US, on the other hand, spends far more and will more likely suffer an inflationary depression. Americans are used to high consumption and will most likely use the new credit to bid prices higher than ever.

  8. jfcrow1 Says:

    All BS. The fact is that banks overleveraged from greed and easy money to such an extent that the economy was fantasy land. All consumption – NO production. Reality is on its way.

  9. TheSharpenedPen Says:

    Buying gold is like saying, “down with the New World Order”.

  10. gyptrader Says:

    Deflation is a situation where general prices of goods come down because of monetary tightning, however inflation is the situation where prices go up because of monetary expansion. Alhtough the prices of things are coming down it is because the asset bubble is being deflated, this is different than a general deflation. Hope that helps.

  11. simply2ghetto Says:

    I am so much in two minds. You have people like Roubini saying this will be a deflationary recession, and you have people like Jim rogers saying it will be inflationary. I am think about holding cash for a few months and then buy gold.

  12. donaldsonb Says:

    I love Gold, I am not selling. F the Fed.

  13. vilson6 Says:

    i agree!!!!!!gold!!!

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