Why KH is shilling for QE3

[Ben Kenobi]

Always follow the money.

Top 4 banks by total Derivatives. (ratio of credit risks/assets)

1. JP Morgan Chase (300)
2. Bank of America (190)
3. Citibank (200)
4. Goldman Sachs (800)

http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq211.pdf

Can you say impending bankruptcy? That was easy. The other three all have tangible assets. Goldman? Pfft. Assets, who needs assets when QE3 is right around the corner?

[Kuciwalker]

What is the mechanism by which QE increases asset prices, BK?

[Dinner]

The fed doesn't really print money these days so much as add or subtract money electronically. That means they can "unprint" money just as fast as they can "print" money. The whole point is to modify the money supply in order to achieve price stability.

[Ben Kenobi]

What is the mechanism by which QE increases asset prices, BK?

It buys up the bad debt and leaves the bank with the good stuff. Goldman's at an 8:1 ratio is the primary beneficiary.

Look at much HSBC has gotten off the books. They used to be at 5 to 1, but are down to 1.5 to 1. Why can't Goldmans do the same?

[DaShi]

Why KH?! Why?!!!

[giblets]

Why KH?! Why?!!!

He would obviously be unemployable if Goldman Sachs went under.

[Kuciwalker]

It buys up the bad debt and leaves the bank with the good stuff. Goldman's at an 8:1 ratio is the primary beneficiary.

Uh, no. QE involves them buying US government debt.

[Aeson]

Which S&P downgraded!1!!

Fatty-backed securities

[KrazyHorse]

Always follow the money.

Top 4 banks by total Derivatives. (ratio of credit risks/assets)

1. JP Morgan Chase (300)
2. Bank of America (190)
3. Citibank (200)
4. Goldman Sachs (800)

http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq211.pdf

Can you say impending bankruptcy? That was easy. The other three all have tangible assets. Goldman? Pfft. Assets, who needs assets when QE3 is right around the corner?

I have no idea what this"analysis" is supposed to represent. I get the feeling that it's based on negative numbers not existing.

[Hauldren Collider]

Ben, can you please stick to being hilariously bad at physics? It's actually more entertaining than being hilariously bad at finance. It's more of an equal opportunity thing; more of us are good adequate okay enough at it to understand how much you suck at physics.

[giblets]

He's a renaissance ******.

[Ben Kenobi]

Ben, can you please stick to being hilariously bad at physics? It's actually more entertaining than being hilariously bad at finance. It's more of an equal opportunity thing; more of us are good adequate okay enough at it to understand how much you suck at physics.

So explain to this finance ****** why HSBC can reduce their exposure from 5:1 to 1.5:1 and Goldman's cannot.

[Hauldren Collider]

Explaining things to you is pointless. Insulting you mercilessly is a much more rewarding and deserved activity.

[Ben Kenobi]

Explaining things to you is pointless. Insulting you mercilessly is a much more rewarding and deserved activity.

And with this, Hauldron Collider moves past alva. You're catching up to Vetlegion on the list of "Polytubbies who have insulted BK the most.

[KrazyHorse]

I have no idea what this"analysis" is supposed to represent. I get the feeling that it's based on negative numbers not existing.

Based on a cursory glance through the document linked, I am correct.

WTG, ******.