Oh ****

[A'sD]

One scary looking chart, time to look for a credit union with a balance sheet that balances.

 

[Kyrie Eleison]

Link?

 

[Hayden_Horn]

shadowstats?

sounds reputable.

 

[A'sD]

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[washparkhorn]

The Fed's statement to those spooked by goldbugs:

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[zzzz]

Make of it what you will:The Link

 

[SubliminalHorn]

So can someone explain this a little for those of us who are dum?

 

[Fightin' Horn II]

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[bozo_casanova]

My friends, in this land of the free you need not fear that a tyrant will spring up from among the people. What we need is an Andrew Jackson to stand, as Jackson stood, against the encroachments of organized wealth.

 

[washparkhorn]

Nutshell - liquidity is an issue. Rather than just extending the rate cuts to 20 primary dealers, they would auction off funds through the Term Auction Facility (TAF) to all 7000+ banks in hopes that the lower rates would be extended to borrowers who were credit-worthy and in need of funds.

The jump in the chart - according to the fed - was due to that new TAF. The jump reflects a procedure change, not a problem, according to the fed, because there was different way of getting funds to the 7000+ banks.

What TAF represents is the problem of liquidity in the market. The rates are low, but no one is lending. The Fed set up TAF at the end of 2007 to try to deal with the liquidity problem.

For the goldbugs, this spike is presented as "banks are going to all fail, so you better get your money into gold." If more are interested in gold, the price of gold rises and their investment is worth more. Whether that reflects reality or an attempt a market manipulation is in the eye of the beholder.

 

[SyracuseHorn]

Some people just freak out over the smallest things. This is not a big deal, just a cheaper rate for banks to borrow short term from the Fed.

Bloomberg

 

[Wulaw Horn]

BC- thanks for that image. every time I see an AsD post I think about crucifying on a cross of gold. Was that William Jennings Bryant?

 

[bozo_casanova]

Wulaw, indeed-
Here's a much older WJB performing excerpts of it in 1923. from an NPR story recognizing the 100th anniversary of the Cross of Gold speech.

 

[froghorn717]

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