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Negative 121 Billion dollars!!!! Fire up the printing presses!!
Like the Entertainment industry run by Morons
The Fed is in quite the pickle. Japan the largest holder of treasuries will be force to sell a bunch of those off to rescue its failing Yen. This while the Fed is going to need to sell a bunch of US Treasuries to finance our ever increasing debt. Between that and the Fed’s need to control inflation expect higher rates and a market collapse in the not too distant future.
They need to act, but they won’t.
Yeah sure…….Congress will fix it……
Maybe they should act by going on extended leave so the country can have some time to recover from the messes they already made.
I guarantee you that 99.9% of freepers (and the public) have no idea what this “scary” number means.
What exactly is the fed reserve capital? Is it the same as assets? Does it have to do with capital reserve? What are the possible consequence of this “scary” number?
Considering the fact that the fed deals with trillions of dollars, is 160 billion even a round off error?
And can’t the fed cover this “loss” with its printing press?
LOL! Just like they’ve acted on voter fraud and illegal immigration over the years?
I can’t see how it matters. Although this is an unprecedented situation for the Federal Reserve, there is no entity which will “call their loans,” short-sell their shares, demand payment, or otherwise force them into bankruptcy.
Certainly the politicians in Washington DC need the Fed’s ability to do print money, conduct QE in all its forms, change US bank reserve requirements, etc... to monetize the massive Federal Government debt being issued.
Throw more taxpayer money at the banks...NOW!! IT IS AN EMERGENCY!!
The Federal Reserve Board should be disbanded.All they are is the noose around the neck of the working man.
Look what they have done to the value of the U.S. Dollar. It’s valueless.
if this were a real problem the price of gold would explode rather than slowly go upward as has recently.
The Fed is not pleased with this answer. In addition to its “Deferred Asset” gambit, it frequently and publicly asserts that negative capital does not matter if you are a money-printing central bank. The idea seems to be that a central bank can always print up more money. The Fed further declares that it is not in business to maximize profits. Even were all this true, it fails to change the correct capital number: negative $121 billion.
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with this type performance, any normal bank would have been shuttered and bankrupted years ago.
Read this book by Dr. Murray Rothbard on The Fed
https://mises.org/library/book/case-against-fed
It will not surprise me at all if if Congress were to change the Fed charter and let them buy anything and everything in the market and become the market like the Bank of Japan has done for the last 30 years.
The MBA in me would call that a current liability.
The article does not allow me to know what the Congress is supposed to do. ?? Of course asking the Congress to do anything is like asking Klaus Schwab for a $million gift.
Well, the gaming myth of the Fed for the past few years is playing out to resolution - a resolution that renders pain to the American people - whoever that is now with an ongoing massive invasion.
REPUBLIC❗
SURPRISE💥 They were ALL carpetbaggers... call them in Monaco...
I guess those mortgage backed securities they were buy might not have been a good idea after all?