Federal Reserve Out of Non-Borrowed Capital

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Mahzkrieg said:
So, the Fed isn't abolished why again?
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The American people don't understand what it is, and politicians love it because they get an endless supply of money for their programs and pet projects without having to raise taxes further.

People don't know that more than half of our income tax goes towards paying off the interest on the "loans" (really just creating new money) the Federal Reserve gives out.

More spending, means more federal reserve loans, which means more money in circulation, which means higher inflation, which means lost purchasing power.

Anyone still wondering why our dollar is losing value?

shit..this depresses me just thinking about it.
 
Thats completely wrong, its not the Federal Reserve that is out of non-borrowed capital, it is the banks. Its an aggregate, so some banks are in a lot of trouble, other are ok.

We are in the middle of a credit crises which began with the collapse of subprime backed CDOs. It is spreading, it has spread, and a lot of damage is being done (credit card debt, higher grade mortgage debt, commercial debt, and so on.) Most all of the major banks are being forced to sell equity in order to raise capital and cover debts. Also a whole barrage of legal problems coming up that will continue to squeeze them.

There have already been a few failures of small banks. Others "institutions" are in big trouble, such as eTrade. Its impossible to predict what exactly is going to happen, but if the trend continues it will be foreign capital saving the day at the cost of the current owners.
 
Thanks for the clarification Andrew; I had a brain fart when posting as the depository institutions is what I was talking about. Just had the Fed itself on the brain from a previous post here that motivated me to bring this info in in the first place.

Still and yet, the report is disturbing, and looking back over the archived data I posted, it doesn't seem to have happened in a very long time.


Frank
 
Andrew said:
Thats completely wrong, its not the Federal Reserve that is out of non-borrowed capital, it is the banks. Its an aggregate, so some banks are in a lot of trouble, other are ok.

We are in the middle of a credit crises which began with the collapse of subprime backed CDOs. It is spreading, it has spread, and a lot of damage is being done (credit card debt, higher grade mortgage debt, commercial debt, and so on.) Most all of the major banks are being forced to sell equity in order to raise capital and cover debts. Also a whole barrage of legal problems coming up that will continue to squeeze them.

There have already been a few failures of small banks. Others "institutions" are in big trouble, such as eTrade. Its impossible to predict what exactly is going to happen, but if the trend continues it will be foreign capital saving the day at the cost of the current owners.
Click to expand...

Foreign as in Chinese and Middle-Eastern capital. It will be interesting to see where this all leads.
 
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