The Fed bails out Wall Street again

[lil mike]

The told me if I voted for McCain, the government would be bailing out their Wall Street buddies.

And they were right!

http://www.zerohedge.com/article/guest-post-how-ny-fed-gifted-extra-157-million-wall-street-yesterday

As part of the Federal Reserve's ongoing QE2 program, nearly each day, the NY Fed purchases US Treasury securities from a select group of primary dealers in what is called a permanent open market operation (POMO). Ordinarily, the auction begins at 10:16 am and ends at 11:00 am Eastern. While the exact mechanics of the operations are not public, the NY Times published an article about the team that manages them here, divulging a few details, which we subsequently analyzed here.

Only minutes before [yesterday]'s auction was scheduled to complete (while most, if not all, offers from the primarily dealers were presumably in), the European Union’s energy commissioner warned of ‘further catastrophic events’ at Japan’s stricken nuclear power plant. Shortly thereafter, the NY Fed cancelled the POMO--to our knowledge, an unprecedented act. According to Tyler Durden of Zero Hedge, Reuters reported the cancellation at 10:57 or 10:58 am.
In the minutes that followed, equities and other risk markets tumbled, while the very 5 and 7 Year Treasury Notes the Fed would end up buying surged in price over 50 bps (0.50%). At 11:24 am, after prices had settled a bit (though were still materially higher than before), the NY Fed restarted the POMO, which finally closed at 12:04 pm. It would end up purchasing a total of $6.580 billion in Treasury securities (reported at par), with a heavy concentration in the 5 Year tenor at $5.089 billion (of which $3.209 billion had been issued by the Treasury in the last two months).


Basically, the Fed stopped the auction when the price of Treasuries was low, and restarted it when Treasuries were higher, so we bought our own Treasuries from Wall Street dealers for a higher price than we would have earlier that morning.

Merry Christimas to Wall Street!

[44nutman]

I hope people will realize that the problem is not a democratic or repubilcan one but both sides are implecit in robbing of America.

[FooFa]

I hope people will realize that the problem is not a democratic or repubilcan one but both sides are implecit in robbing of America.

That kind of summarizes my evolution with politics. Not saying that it would be for everyone but for me, there's no reason to keep putting energy into something that's broken. I agree with just about everything Kucinich and Paul say but someone like that doesn't have a chance against the money machine that puts the corporate puppet in office.

[uselesslegs]

The told me if I voted for McCain, the government would be bailing out their Wall Street buddies.

And they were right!

http://www.zerohedge.com/article/guest-post-how-ny-fed-gifted-extra-157-million-wall-street-yesterday

As part of the Federal Reserve's ongoing QE2 program, nearly each day, the NY Fed purchases US Treasury securities from a select group of primary dealers in what is called a permanent open market operation (POMO). Ordinarily, the auction begins at 10:16 am and ends at 11:00 am Eastern. While the exact mechanics of the operations are not public, the NY Times published an article about the team that manages them here, divulging a few details, which we subsequently analyzed here.

Only minutes before [yesterday]'s auction was scheduled to complete (while most, if not all, offers from the primarily dealers were presumably in), the European Union’s energy commissioner warned of ‘further catastrophic events’ at Japan’s stricken nuclear power plant. Shortly thereafter, the NY Fed cancelled the POMO--to our knowledge, an unprecedented act. According to Tyler Durden of Zero Hedge, Reuters reported the cancellation at 10:57 or 10:58 am.
In the minutes that followed, equities and other risk markets tumbled, while the very 5 and 7 Year Treasury Notes the Fed would end up buying surged in price over 50 bps (0.50%). At 11:24 am, after prices had settled a bit (though were still materially higher than before), the NY Fed restarted the POMO, which finally closed at 12:04 pm. It would end up purchasing a total of $6.580 billion in Treasury securities (reported at par), with a heavy concentration in the 5 Year tenor at $5.089 billion (of which $3.209 billion had been issued by the Treasury in the last two months).


Basically, the Fed stopped the auction when the price of Treasuries was low, and restarted it when Treasuries were higher, so we bought our own Treasuries from Wall Street dealers for a higher price than we would have earlier that morning.

Merry Christimas to Wall Street!

This is getting f'in insane.  It's beyond surreal.

[FooFa]

I'm a conspiracy nut because I tried to point out the executive order which made states the property of corporations. It's not about me though. We all know what the PA did to the constitution and how historically it had been in trouble almost since day one. Murdoch might as well have this guy talking about the constitution because we don't have one anymore and that's why Obama did the original item in this thread and why the country is going ass over tea kettle.

[Howey]

C'mon Nutty and Chuck!

Don't you guys investigate anything???

Funny thing is Mike used to always criticize blogs as sources. What about blogs written by an pseudonym of a guy who'd been fired from Wall Street for inside trading?

Sheesh! Sour grapes, much?

A 30-year-old New Yorker who was barred from the securities industry last year may be behind an increasingly popular financial blog known as Zerohedge.com, which is catching flack for its obsession with anonymity.

Daniel Ivandjiiski, whose most recently listed address is on the Upper East Side, was barred last September by the financial industry's self regulatory authority, FINRA, for insider trading.

Ivandjiiski is also suspected of being one of the founders of controversial financial blog Zerohedge.com, sources tell The Post.

Ivandjiiski didn't return requests for comment, but he recently told industry publication Hedge Fund Alert that while he writes for Zerohedge, he's not a founder.


A manifesto on the Web site suggests Zerohedge contributors are seeking to avoid the backlash their comments could unleash, saying anonymity protects "unpopular individuals from retaliation -- and their ideas from suppression -- at the hand of an intolerant society."

But its anonymity has also been a bit of a lightening rod, causing one commentator on CNBC to recently blast Zerohedge as residing in the "dark and cowardly corners of the blogosphere."

[Howey]

I'm a conspiracy nut because I tried to point out the executive order which made states the property of corporations. It's not about me though. We all know what the PA did to the constitution and how historically it had been in trouble almost since day one. Murdoch might as well have this guy talking about the constitution because we don't have one anymore and that's why Obama did the original item in this thread and why the country is going ass over tea kettle.

Thanks.

I was about ready to move this to the crazy conspiracy theories thread anyhow. 

[44nutman]

C'mon Nutty and Chuck!

Don't you guys investigate anything???

Funny thing is Mike used to always criticize blogs as sources. What about blogs written by an pseudonym of a guy who'd been fired from Wall Street for inside trading?

Sheesh! Sour grapes, much?

 

YOu linky no worky!
The thing is as much robbing as the banks have done with full governmental support, anything posted about them would not be hard to believe.

So now the POST is a bastion of journalistic intergrity. The media has lost their credibility years ago, they depend on corporate dollars to keep them on the air. Blogs have no master to answer too, think about it. It is sad I have to use overseas newspapers to get real stories of what is happening in my country.

[lil mike]

C'mon Nutty and Chuck!

Don't you guys investigate anything???

Funny thing is Mike used to always criticize blogs as sources. What about blogs written by an pseudonym of a guy who'd been fired from Wall Street for inside trading?

Sheesh! Sour grapes, much?

 

Who else is going to publish this, current employees?

It's pefectly legitimate to question the source.  I do it all the time as you note, however the pertinent issues from this post are easily verifiable.  The conclusions of what those facts mean are open to interpetation of course, and there may be a more accurate one than what "Tyler Durden" posted, however the practical results are just as he said:  The Fed halted the auction and bought high instead of the lower price they would have paid if they hadn't cancelled the original auction time.

Do we really need to pay even more for our own Treasury bonds?

Didn't WS brokers make out on this deal?

The real problem is QE2.  Devaluing our currency can only lead to higher food and fuel prices.  Good thing we don't have to worry about that yet!  

[FooFa]

U.S. Supreme Court Issues Landmark Decision: Constitution is Void

[Howey]

U.S. Supreme Court Issues Landmark Decision: Constitution is Void

Why?

Here's the thing...One can automatically assume that when something shows up on Breitbart and nine bazillion extreme right wing conspiracy websites AND NOWHERE ELSE it must be untrue.

The original source is PR newswire courtesy of "William M. Windsor."

Anyone can submit news stories to pr newswire, its not a news site. Once you become a member, you can submit "news" to your hearts content.

This is the case of one William Windsor, who lost a court case regarding selling tickets to a boat tour, then upon losing the case, bombarded the courts with countless appeals based on nothing.

http://www.niagarablog.com/maid-of-the-mist-legal-claim-denied/

Here's the court documents for the first denial and one of the appeals:

http://www.ca11.uscourts.gov/unpub/ops/200714214.pdf

http://www.ca11.uscourts.gov/unpub/ops/201010139.pdf

From my link above:

An Atlanta businessman with eyes on tour boat operations at the base of Niagara Falls has lost a legal battle in U.S. District Court in Washington, D.C.

In a decision rendered earlier this month, U.S. District Judge Richard Leon denied motions filed by businessman William Windsor in a case involving the owners of the Maid of the Mist Corp.

Windsor, who has raised serious questions about the procedures for granting leasing rights to Maid operations on both sides of the border, had asked the federal court in Washington to review the findings of another federal judge in a dispute involving his son’s company and its ability to sell vouchers for tickets to Maid of the Mist boat rides in the Falls.

Windsor requested a second opinion in the case on the basis that the judge who oversaw the previous proceedings denied his son’s company the opportunity to a fair trial. Windsor filed a complaint in U.S. District Court in Georgia, accusing Chief Judge Orinda Evans of professional misconduct and withholding evidence in the case. He also has insisted that Maid officials won their argument based on “lies, false sworn pleadings, false pleadings, and discovery abuse.”

In his Feb. 14 ruling, Leon dismissed Windsor’s motion for a temporary restraining order and preliminary injunction. He determined that Evans addressed all 62 motions filed by Windsor in the Georgia proceeding with “great care” and ruled that Windsor’s claims against her have no standing because she is covered by judicial immunity that renders her “immune from suit on all official judicial acts.” Leon also determined that Windsor failed to follow appropriate procedures in filing his complaints against Maid officials.

“Rather than filing a short and plain statement of his claims against these defendants, plaintiff has submitted a 505-page complaint which utterly fails to give defendants fair notice of what his claims are and the grounds upon which they rest,” Leon wrote in his ruling.

Evans sided with Maid on nearly all counts in the original dispute over the vouchers and issued a permanent injunction against Windsor and his son’s company, Alcatraz Media. As part of a decision issued in December, Evans barred Windsor from filing any additional claims, characterizing the plaintiffs’ behavior as “clearly stubbornly litigious.” An Appeals Court dismissed all counterclaims filed by Windsor as “meritless.”

Leon noted the Georgia court’s findings that Windsor engaged in “extreme litigiousness” and in his own decision characterized Windsor as a “serial filer.” In his ruling, Leon suggests that Windsor’s attempt to sue Maid officials in his court might be in violation of the court order issued by Evans on Dec. 22. As a result, Leon referred the case to the Northern District of Georgia to allow Evans to consider whether Windsor is in contempt of her order.

Windsor has vowed to fight Evans’ ruling all the way to the Supreme Court if necessary, maintaining that she was a biased judge who based her decision on inadequate information and fraudulent statements from Maid officials.

In an email sent to the Gazette on Thursday, Windsor said he will appeal Leon’s decision. He also insisted that he’s being victimized by a corrupt judicial system and said he will continue to fight for the justice he believes he deserves.

“I just pray that the Supreme Court will do something,” Windsor said. ”My lawsuit is really an indictment of the Injustice in the U.S. judicial system. The idea that a group of people in Niagara Falls can completely make up the claims in a lawsuit and then lie repeatedly and get a judge to go along with them is simply amazing to me.”

Windsor dismissed Leon’s claim that Evans enjoys judicial immunity. He also said Leon’s description of him as a “serial filer” was made without the judge realizing that Evans ignored 28 motions he filed in an attempt to get a hearing or a conference in her court. He characterized his so-called “serial” filing as a product of his efforts to get Evans to “do something — anything” on his behalf.

“She has never considered any of the facts about anything,” Windsor said. “It’s a very strange and frightening situation.”

You have, however, FooFa, accomplished your goal.