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American Capital Agency Corp. Message Board

  • rogerfeldman rogerfeldman Jun 19, 2011 4:08 PM Flag

    Who's going to bailout the FED?

    QE 1,2 5, 10 etc. Yes the FED is in a world of hurt and when the time comes that the Fed ITSELF needs a bailout, who-ya-gon-a-call? Well.., in the near future it's probably going to go something like this.

    "Hello Geithner, this is Ben over at the FED. You remember that conversation we had back in 08 and again last year?"
    Tim:"You mean the one about kicking the QE can down the road a bit more, to give us some breathing room while we wait for the economy to improve?"
    Ben:"Yeah that's the one. Well it seems the can was just run over by a semi and it got flattened, I don't think we can kick it anymore. And Timmie, before you ask, the name on that semi was "China Express". I got a phone call from Phat Wang at PRC, he said they are going to start selling the hell out of their Treasury holdings loss or no loss, before they are left with only the bag."
    Tim: "So you want to initiate plan "B"
    Ben: "That's right."
    Tim: "There is only one little problem with plan "B"."
    Ben: What's that?"
    Tim: Where we going to get the MONEY to pay for the INK?"

    Next phone call from Ben:
    "Hello, Phat Wang? Do you people have a good deal on ink over there?"

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    • Nice post Roger,

      I think we should ask Quad if he has any insights into Geithner's thinking since he and Timmy graduated from the same school. They call them the men from..."The Big Green".

    • taxes bails out the fed -- the fed is us!

      • 1 Reply to fourdint
      • I remember my wealthy grandfather saying (in the 50's) he was paying up to 97% of his income to the government in taxes. I was pretty young then but I was wondering why he kept working, it just didn't make sense to me.

        I don't think this time around, the American working man/women will put up with extremly high tax rates way above 37-40% federal (which will be needed to get the budget under control even with massive cuts in spending and social benefits). It would only be a matter of time before tax cheats here begin to make their counterparts in Greece seem like pikers. There will be a large underground economy, bartering, tax evasion, high crime, etc. plus a lot of individuals who would just rather collect unemployment/welfare, rather than work and pay high taxes . And if it continues to take over a year and a half to foreclose on "homeowners" who quit paying, we could be in a downward spiral that will be much worse than the "great depression". . China probably thinks they can go it alone with their own inward consumption and government spending but eventually with exports dying off it will catch up with them also. What a mess. I guess we should have known the consequences of calling someone "Maestro".

    • I've already covered this topic. Below is a reprint:

      "As the Chinese move into the automobile, Americans will move to the bicycle and rickshaw."

 
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