Tyler Durden: Did The Fed Secretly Open Trading Accounts To Boost The Markets?

zerohedge.blogspot.com:

It is no surprise that in order to incite a return to pre-Lehman economic levels (the administration's #1 goal bar none), not only the stock market would have to much higher from its March lows (a task largely accomplished through market increases on disappearing breadth, liquidity extraction by the likes of Goldman Sachs, and assorted last minute inexplicalbe ramp ups in the various futures and ETF markets), but also the shadow system would have to be back with a vengeance. And while new mechanisms to achieve this such as securitization replacement alphabet soups have yet to prove their efficacy, the real heart of the shadow banking system Frankenstein is and has always been the repo market.

Which is why we were greatly troubled when we learned recently on good authority that Federal representatives may have opened multiple undisclosed-type accounts with none other than State Street Global Advisors over the past few months. All of these accounts are allegedly handled by one single trader, who is cocooned and isolated from interaction with other partners.

Read the whole story: zerohedge.blogspot.com

Comments

[DakotaMinnesota]

Hmm. Who would select the name Tyler Durden? That's a pretty loaded reference.

[jsgaetano]

This must have been Bush's "Plan B" when he failed to dump all the funding for Social Security into the stock market.

[grateful4thedead]

in addition to huffpo's calling out the admin on the financial sector, keep an eye on Zero Hedge to supplement their reporting with specific financial information.

the two together can shed light on the mess we have with wall st., treasury, Fed, the banks.

[ejhickey]

This would not surprise me , but if it is true , I want my share of the dividends and interest from the accounts

[jsgaetano]

It's not there to make money, it's there to make fees for the people managing it, as well as prop up poorly run Republifundie outfits.

[ejhickey]

so they are using my money to make money but I get nothing out it? Since we have a Dem President , why is he sanctioning the propping up of 'poorly run Republifundie outfits."

[mitsie]

THIS IS NOT NEWS, IT"S A BLOG POSTING. No one should have posted this as news.

[grateful4thedead]

It's better than news.

It's Zero Hedge.

[PhilipTaylor]

Not the same FED that allowed and perhaps encouraged this?

Salary, bonuses, benefits, and luxuries were the methods of skimming or pilfering the profits of these companies for the benefits of a million Wall Street employees, especially the top 5% to 10%. Leaving the companies vulnerable to the slightest problems and taxpayer backfilling of their GREED!

This was NOT Capitalism it was mafia Oligarchy with the FED as a primary TOOL! Like every mafia scheme it eventually self-destructs under its own weight of GREED! We thought Kennedy defeated the mafia but it simply went underground into finance and surfaced as this High Level Employee Skimming of illegally generated profits form every unimaginable scheme the mafia could invent using its Ivy League Talent base of PhDs, MBAs, and PhD Financial Engineers that were indoctrinated into the ways of the clan!

It took time but the mafia is alive and well controlling Congress with its ill-gotten loot!

[PhilipTaylor]

Audit the FED!

Audit the FED!

Audit the FED!

Audit the FED!

Audit the FED!

Step ONE in eliminating this Oligarchy Creating and DEBT Creating Boondoggle!

America is #1 DEBTOR NATION for a REASON and it all points to the Wall Street Banks and FED!

[mitsie]

For God sakes, this is a blog posting not real news.

[mick7191]

Oh yeah, by the way? What happened to the 9,000,000,000,000 dollars you created? ..........­..........­...... Well, I'm waiting.

[grateful4thedead]

more on the 134 Billion US Securities seizure in Italy...allegations that it is the remaining TARP money...this one gets more and more interesting. it has been picked up by bloomberg and drudge.

http://www.asianews.it/index.php?l=en&art=15505&size=A

When in the spirit of transparency and openness is the US Treasury going to respond?

Folks 134 billion is approx 20% of total Japanese holdings of US securities...this is a huge, huge number.

how about Huff Post dig into this, please?

[Rosewren]

The link below is the best explanation I have ever read for what goes on with the Feds and markets.

http://whatreallyhappened.com/WRHARTICLES/ARTICLE2/doodoo.html?q=ARTICLE2/doodoo.html

[BetteB]

As well as what happened to American innovation. Good article, thank you Rosewren.
Love
Bette

[mitsie]

Don't post blogs as news, they are just people's opinions.

[grateful4thedead]

Zerohedge is likely the best financial blog out there right now.

What you may find interesting is that it really is not in the Dem v Rep game...it's about what is happening with your money and the concentration of power in the financial markets by a limited group.

Frankly, as history shows, this activity happens under Dem and Repub administrations.

Zerohedge is difficult to read as it is geared towards complex financial matters (that are, naturally, influenced by politicas) that typically aren't part of most american's world. that said, the important issue is that conclusions or allegations brought out tend to be based on the movement and manipulation of financial resources and by whom.

i guess that i am saying that they are bringing much more light to areas of our financial system and it is beginning to make some very uncomfortable. it is no different than HuffPo's approach and for that reason I am a fan of both and am grateful for those that make the effort bring truth to the surface.

[BurtonOerney]

What is this?

"Many of the Fed/Treasury balance sheet efforts have been basically attempts to supplant securities lenders. Sec lending funds were the biggest buyers of 1-3yr FRNs (hence, TLGP). Lenders were also the biggest buyers of AAA cards and autos (read TALF 1.0). They were the second-biggest buyers of ABCP after 2a7 funds (ergo AMLF). Indirectly they were the largest funder of LT2 bank debt (via SIVs MTNs). They're large repo counerparties, and did everything from short-dated CDS to liquidity put options on Canadian levered super-senior CDOs."

What is a 'balance sheet effort?' How would such an effort supplant a lender? I understand what federal reserve notes and repurchase agreements are but I can't understand how any of the sentences following the first sentence support it. It is completely unsubstantiated except, I guess, in that there is enough jargon there to make most people accept the first sentence and pass over the rest.

Garbage.

[mitsie]

It's just a blog posting, people need to point this out to Huff.

[jeffp26]

If the fed did this, I am actually impressed.

I have been suggesting this for months, and if they did it, they stole my idea!!!!

[desertman]

This is not news. See:

http://en.wikipedia.org/wiki/Plunge_Protection_Team

[jsgaetano]

If true, then the US truly never escaped from the conservative scam idea of dumping trillions of dollars of borrowed money into a disgustingly overvalued stock market.

I seriously hope the Obama administration isn't trying to match the numbers put out by the Bush Bullshit Economy. It was built on lies... so the only way to match it is to pile your lies much higher.