The Fed: Money For Nothing

[KrazyHorse]

Yes, yes NYE. Pure rage is a far better guide than knowledge and intelligence.

[Naked Gents Rut]

He wasn't really addressing that picture to you, was he?

[KrazyHorse]

Yes he was. This is the man who still doesn't understand that there's anything more complicated to tax incidence than the person the tax is collected from.

[Naked Gents Rut]

[Victor Galis]

Yeah, sure dude. They're all conspiring.

Did I claim there was a conspiracy? They all have the same motivation. The banks can't admit their assets are worth little because then they become insolvent officially. They can't accept a low price for them because then they have to mark similar assets down and accept said losses.

Even if the only residual value left in those truly terrible assets was the chance that they could pawn them off on the Treasury there would be a ****ing market.

There's no market if the seller cannot accept the highest possible reasonable price, and the buyer isn't stupid.

Repeat after me: there's no conspiracy. A defunct market is a sign of mistrust and asymmetric information. In this environment a large (economies of scale!) purchasing program to divest liquidity-constrained firms of these illiquid assets will most certainly show a profit.

That's a huge non-sequitur. The first bit is obviously true, the second bit does not follow from the first being true.

[notyoueither]

Yes, yes NYE. Pure rage is a far better guide than knowledge and intelligence.

Rage? More a comment on style.

I'm not sure what you feel you are accomplishing, but it certainly is not a demonstration of intelligence. A little knowledge, maybe. The sort of little knowledge that is uninformed by intelligence and so lacks any measure of modesty.

[KrazyHorse]

Vickie, sweetheart

I've never understood this strange fetish that people have for coming back time and time again to a discussion in which their ass has been so obviously handed to them.

[notyoueither]

Either that, or you've just become a ****.

This may be more likely.

[KrazyHorse]

Rage? More a comment on style.

I'm not sure what you feel you are accomplishing, but it certainly is not a demonstration of intelligence. A little knowledge, maybe. The sort of little knowledge that is uninformed by intelligence and so lacks any measure of modesty.

Son, what I'm demonstrating is an intuitive grasp of fundamental micro, macro and finance. A grasp which Vickie (and yourself) do not share. The fact that I have intelligence (in spades) to go with it is most certainly not in question, as will be attested to by any honest person with half a brain in their own head who has spent five minutes with me. As far as modesty goes, I've never felt the need for it any further than is required by intellectual honesty. Which, again, I have in spades. When I don't know something I'm proud to admit it. It's easy for me to do because unlike most people I don't spend my entire life knowing nothing.

[KrazyHorse]

Either that, or you've just become a ****.

This may be more likely.

Become? I've always been a dick.

[notyoueither]

Vickie, sweetheart

I've never understood this strange fetish that people have for coming back time and time again to a discussion in which their ass has been so obviously handed to them.

You should be screaming at the NYTs and the FTs, not people on a forum.

What he said in his last post lines up pretty well with what I have read about the problem the banks are facing. It certainly is not an unreasonable explanation.

You might allow some latitude when sensible people have explained it as Victor has related, and we do not accept your shouting abuse as a counter argument.

[Victor Galis]

Vickie, sweetheart

I've never understood this strange fetish that people have for coming back time and time again to a discussion in which their ass has been so obviously handed to them.

You're setting up strawmen and defeating them, and also coming across as quite an *** in the process. Sure, I've been somewhat careless in some of my points, but I have a vague feeling I'll be linking this thread in about two years time when we have a better idea of what those toxic assets were really worth.

I'd have more sense than to argue physics with you.

[notyoueither]

Son, what I'm demonstrating is an intuitive grasp of fundamental micro, macro and finance. A grasp which Vickie (and yourself) do not share. The fact that I have intelligence (in spades) to go with it is most certainly not in question, as will be attested to by any honest person with half a brain in their own head who has spent five minutes with me. As far as modesty goes, I've never felt the need for it any further than is required by intellectual honesty. Which, again, I have in spades. When I don't know something I'm proud to admit it. It's easy for me to do because unlike most people I don't spend my entire life knowing nothing.

No. You're demonstrating that you are a first class ass. A smart ass is still an ass, even if you take the blue ribbon.

[notyoueither]

Become? I've always been a dick.

When you were a socialist, you at least seemed to care.

Now you're like that guy who had a huge house and was expanding it.

We are all beneath contempt because we can not move into that space, or your cranium.

[KrazyHorse]

You're setting up strawmen and defeating them, and also coming across as quite an *** in the process. Sure, I've been somewhat careless in some of my points, but I have a vague feeling I'll be linking this thread in about two years time when we have a better idea of what those toxic assets were really worth.

I'd have more sense than to argue physics with you.

Strawmen don't make somebody else confuse short rates with the yield on the bonds the Chinese government holds.

Yeah, you have the good sense not to argue physics with me. And my knowledge of this subject is nowhere near as encyclopedic as my physics (or even math) stuff is. Which is what makes it so sad that it's been so easy to **** you up.