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Federal Reserve drafting new rules.

917601

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#1
A private organization instituting " law".

CHAIRMAN Ben Bernanke says the US Federal Reserve is drafting rules to close large insolvent banks without bringing down the broader financial system, one of many steps regulators must take to prevent another financial crisis.

Bernanke said the absence of a process to deal with systemically important institutions in 2008 left regulators facing the "terrible choices of a bailout or allowing a potentially destabilising collapse".

Bernanke is making the comments at a conference sponsored by the International Monetary Fund.

The financial overhaul law passed by congress in 2010 gave regulators better tools to close down large financial institutions, he said.

The Fed and other regulators are working to implement those rules now.

"Our continuing challenge is to make financial crises far less likely and, if they happen, far less costly," Bernanke said.

At the IMF conference, Bernanke was asked about whether enormous growth in student loan debt could trigger a future financial crisis.

He said that the debt was a drag on the economy but not a threat to the overall financial system.

Student loans prevented many in the United States from buying homes or making other big-ticket purchases, he noted.

http://www.heraldsun.com.au/busines...-powers-bernanke/story-fni0xqe4-1226756295740

www.jsmineset.com
 

Ebie

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#2
"...close large insolvent banks..."

When?
What will this do to M2? M3?
What will this do to the price of PM?
 

Argent Dragon

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#3
A private organization instituting " law".
I'd like to agree with this premise, but the law was already passed by Congress as per the article posted (see below).

The financial overhaul law passed by congress in 2010 gave regulators better tools to close down large financial institutions, he said.

The Fed and other regulators are working to implement those rules now.
Of course, I don't see any difference other than being more 'streamlined' & efficient for the vulture capitalism that's going on already. These steps seem like it would avoid a stimulus and allow competition to gain ground directly without the wait of and insolvent situation that has to pass through Washington first.
 

TAEZZAR

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#5
Hey, let's just close down the FED, after all, it's the largest finacial institution.
Would'nt that also end the debt !!
 

Argent Dragon

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#6
Hey, let's just close down the FED, after all, it's the largest finacial institution.
Would'nt that also end the debt !!
Great idea, now we just need to find out how to make them 'insolvent'..........oh crap, they have control of the printing presses.
 

Ebie

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#7
Thought we already instituted the bank bail-in policy.
The article talked about closing banks.
And making new rules possibly making it more regulated on issuing loans--but I thought that they were pretty stringent now.
 

917601

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#8
I'd like to agree with this premise, but the law was already passed by Congress as per the article posted (see below).



Of course, I don't see any difference other than being more 'streamlined' & efficient for the vulture capitalism that's going on already. These steps seem like it would avoid a stimulus and allow competition to gain ground directly without the wait of and insolvent situation that has to pass through Washington first.
The Dodd Frank law was passed, but my problem is it apparently gave The Federal Reserve the power to make the rules, not the US Treasury, nor Congress.

"CHAIRMAN Ben Bernanke says the US Federal Reserve is drafting rules to close large insolvent banks".
 

Ebie

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#9
The Dodd Frank law was passed, but my problem is it apparently gave The Federal Reserve the power to make the rules, not the US Treasury, nor Congress.

"CHAIRMAN Ben Bernanke says the US Federal Reserve is drafting rules to close large insolvent banks".
Which large insolvent banks?
Which large banks are insolvent?
 

Ahillock

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#10
The article talked about closing banks.
And making new rules possibly making it more regulated on issuing loans--but I thought that they were pretty stringent now.
I know. I'm just curious why they need to close the large banks when they can just give the depositors a hair cut and then make the banks no longer insolvent. Sorry I was a little cryptic in my post without meaning to be.
 

oldgaranddad

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#11
Which large insolvent banks?
Which large banks are insolvent?
All of them. Either by their own incompetence or by design so that they can be controlled.
 

Ebie

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#13
I know. I'm just curious why they need to close the large banks when they can just give the depositors a hair cut and then make the banks no longer insolvent. Sorry I was a little cryptic in my post without meaning to be.
Let the depositors lose capitol?
That would scare other depositors.
In 2008 PMs dropped and treasuries strengthened in a similar scenario--I think.
Closing banks?
 

oldgaranddad

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#14
It's their currency, why shouldn't they make the rules?

If you don't like it, then why support it? No, seriously.
Because they are the only game in town. It is FRNs or nothing. The days of treasury notes circulating at the same time as FRNs are long over.
 
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#15
Because they are the only game in town. It is FRNs or nothing. The days of treasury notes circulating at the same time as FRNs are long over.
If EVERYBODY thought that way, we'd all be f***** over, wouldn't we?

If you wonder why so many people are losing at this game, maybe it's because they play it!
 

Ahillock

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#16
Let the depositors lose capitol?
That would scare other depositors.
In 2008 PMs dropped and treasuries strengthened in a similar scenario--I think.
Closing banks?
It is bound to happen, only a matter of time.
It is low hanging fruit for them.
Cyprus was just a test.
Why would they care about scaring other depositors? The other depositors won't know what happened until it was too late.
 

phideaux

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#17
It's their currency, why shouldn't they make the rules?

If you don't like it, then why support it? No, seriously.
They aren't just talking about rules related to the (phony phiat) currency, they're talking about debt forgiveness, abrogation of contracts, breach of the Rule of Law, and on and on.

I hold only enough FRNs to meet current obligations. The rest is parked elsewhere. What else can you do to not support it?

Please tell us what you do to not support the system, Dave.
 

Ebie

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#18
It is bound to happen, only a matter of time.
It is low hanging fruit for them.
Cyprus was just a test.
Why would they care about scaring other depositors? The other depositors won't know what happened until it was too late.
Deposits are insured to $250 K.
Are they going to default on that?
 

Ahillock

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#19
Deposits are insured to $250 K.
Are they going to default on that?
Lol :s9:

Two questions.
1) How much money is on deposit in the USA?
2) How much money does FDIC have?

Come back to us when you have answers to those two questions. When you do have those answers, you will answer your own question about default.

That $250k was just a fake stop gap to stop liquidity leaving the USA during 2008 meltdown. If they didn't do that, the whole system was just a few hours from falling apart. If you need info on this I can provide it.
 
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#20
They aren't just talking about rules related to the (phony phiat) currency, they're talking about debt forgiveness, abrogation of contracts, breach of the Rule of Law, and on and on.

I hold only enough FRNs to meet current obligations. The rest is parked elsewhere. What else can you do to not support it?

Please tell us what you do to not support the system, Dave.
I call Evil by its name.

I did it here. I do it in the other threads. I do it in the other areas of my life, and I am not shy about it.
 

Ebie

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#21
Lol :s9:

Two questions.
1) How much money is on deposit in the USA?
2) How much money does FDIC have?

Come back to us when you have answers to those two questions. When you do have those answers, you will answer your own question about default.

That $250k was just a fake stop gap to stop liquidity leaving the USA during 2008 meltdown. If they didn't do that, the whole system was just a few hours from falling apart. If you need info on this I can provide it.
From Wikipedia:
According to the FDIC.gov website (as of March 2013), "FDIC deposit insurance is backed by the full faith and credit of the United States government". This means that the resources of the United States government stand behind FDIC-insured depositors."[41] The statutory basis for this claim is less than clear. Congress, in 1987, passed a non-binding "Sense of Congress" to that effect,[42] but there appear to be no laws strictly binding the government to make good on any insurance liabilities unmet by the FDIC.
 

Ebie

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#22
Did Cypress have a FDIC?

Lol :s9:

Two questions.
1) How much money is on deposit in the USA?
2) How much money does FDIC have?

Come back to us when you have answers to those two questions. When you do have those answers, you will answer your own question about default.

That $250k was just a fake stop gap to stop liquidity leaving the USA during 2008 meltdown. If they didn't do that, the whole system was just a few hours from falling apart. If you need info on this I can provide it.
 

Ahillock

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#23
From Wikipedia:
According to the FDIC.gov website (as of March 2013), "FDIC deposit insurance is backed by the full faith and credit of the United States government". This means that the resources of the United States government stand behind FDIC-insured depositors."[41] The statutory basis for this claim is less than clear. Congress, in 1987, passed a non-binding "Sense of Congress" to that effect,[42] but there appear to be no laws strictly binding the government to make good on any insurance liabilities unmet by the FDIC.

You need to look at this thread if you haven't all ready and the associated video:


$700 trillion dollars in derivatives
$70 trillion dollars for world wide GDP
As a bank depositor you are a unsecured creditor
FDIC fund has $25 billion
US Deposits is $9.3 trillion
US Banks derivatives exposure $297.5 trillion
FDIC can only cover 0.25% of deposits
FDIC can only cover 0.008% of derivatives
Need to read up on Dodd-Frank bill and what that changed

The US Government doesn't have anywhere close to +$300 trillion in liquidity to cover any of the above. How far down the pecking order do you think you are? I would say we are at the very bottom.

You also need to watch Rep. Paul E Panjorski on what happened in September 2008. Once investors pull out, nothing can stop it. Not even a FDIC of $500,000. When faith is lost in fiat. Game over.

[video=youtube_share;ODBPlD0FXOU]http://youtu.be/ODBPlD0FXOU[/video]


FDIC is a joke and is to make the sheep "feel" safe when it provides no safety at all.
 
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#24
From Wikipedia:
According to the FDIC.gov website (as of March 2013), "FDIC deposit insurance is backed by the full faith and credit of the United States government". This means that the resources of the United States government stand behind FDIC-insured depositors."[41] The statutory basis for this claim is less than clear. Congress, in 1987, passed a non-binding "Sense of Congress" to that effect,[42] but there appear to be no laws strictly binding the government to make good on any insurance liabilities unmet by the FDIC.
People read this, then confuse it with "money". That's what they were taught to do. That is why they are being farmed.

Once more, Evil is called by its name.
 

Aurumag

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#25
... the whole system was just a few hours from falling apart.

...
And now it is just a few minutes from implosion but some how, some way, the system continues to limp along.

Faith in the system, IMO, has been replaced with fear of systemic collapse.