Tuesday, August 21, 2007

Federal Reserve = Communism

If you haven't bothered to turn on your T.V. or read a newspaper then maybe you are unaware of the financial crises in mortgage backed securities. Maybe you are also unaware that the Fed's only response to this crisis was to cut the discount rate by a half point. In short, maybe you are too stupid to remember to breath.

I assume if you've made it this far in the article that you know a little bit about current events given you haven't yet passed out and died the blue death. Kudos to you.

What you probably don't know is that the discount rate doesn't affect consumer interest rates. That would be the federal funds rate that you are thinking of. Idiot. What you also probably don't know is that the federal funds rate cannot be "set" by anyone, but rather the Fed screws around buying and selling securities to raise or lower the reserve balances of various financial institutions thus indirectly moving the market rate where they want it. Jesus Christ, just read this thing moron: http://www.federalreserve.gov/pubs/bulletin/1997/199711lead.pdf

Getting to the point: The federal funds rate does not automatically affect consumer interest rates. "But, but, you just said…" Shut up! I said that was the rate you were thinking of. The reason you thought the federal funds rate affects consumer rates is because that's what the main stream media reports. They are idiot liberals that know nothing about markets.

The fact is that the federal funds rate can indirectly move consumer rates since it does raise or lower borrowing costs for banks. If it goes higher, the cost is passed on to consumers. If it goes lower, the savings is either passed to the consumer or pocketed by the bank.

Actually, forget I said any of that, because there are way more moving parts involved here and you obviously can't even grasp the most basic principals of all this. Thanks for wasting my time jackass.

I'm just going to dictate to you what needs to be done:

Markets work by allowing the strong to thrive and the weak to die. We have a problem right now. The banks cannot sell any mortgage backed securities, because America is a welfare state full of deadbeats that don't pay their mortgages. Since banks can't sell mortgages, they can't raise cash to pay depositors and, worse, issue new mortgages. In short, some banks are going to fail.

In order to support free and unfettered markets, the Fed needs to just outright buy all mortgage backed securities for par value from the banks and investment companies. This is to ensure that the strong don't die.

In addition, the Fed needs to mandate that banks issue mortgages at a negative rate in order to insure that I survive. I am strong and free markets reward the strong. That Nigerian bastard ran off with my daughter's money! I need to refinance my interest only loan you sons of bitches!! Give me my money!!!

Holy Christ Almighty! Am I the only one who believes in free markets?! Why isn't the Fed intervening to save us?! I'm going to lose everything!!! Discount rate! WTF?! That only keeps banks liquid in an emergency and is not sustainable! We need to free the market now and get back to infinite refinancing!!! NOW!!!! We're not asking for a bailout! We are DEMANDING that the government buy all our AAA rated CDO's and start paying us to borrow money from them!!! THAT'S NOT A BAILOUT!!! THAT'S PURCHASING AND LOANING TO A FREE MARKET!!!!

STATED INCOME!!! STATED INCOME NOW!!!

10 Comments:

At 8/23/2007 9:40 AM, Anonymous Captain John Newton said...

When the Isrealites stole from the Egyptians - God made slaves out of them. When Africans stowed away on trading ships headed for America so they could steal our tobacco and women - God made slaves of them.

Now this happens to you? When will these Nigerians learn not to steal from the white man? They will pay for their sins. Through George W. Bush - God will remove the 13th Amendment and bring back the days when all states found wealth through very low minimum wage. You will have your revenge my righteous friend. You will have your revenge.

 
At 8/23/2007 8:09 PM, Blogger Kirk said...

Captain Newton: I have faith in that my friend, but sometimes it seems like our burden never ends. God bless you and all other righteous men among us.

 
At 8/26/2007 1:20 PM, Anonymous Captain John Newton said...

Your trolling little monkey has been captured. He tells me that you have purchased a waterfall. Real estate is a wonderful investment and selling a waterfall to one of those conservationists so they can create "green" power can really turn a profit. You sir, are a genius.

I've also noticed that something beautiful is missing from the blog world. Please say it isn't so. Say you are not leaving. Nobody wants that. The surrender monkey has been to a "freeper" site and they have shown him the light. He is in the cargo hold of my trading vessel and we will set sail for Togo next Sunday where he will become an employee of a tribe of people who still hold a grudge.

I've never made you a promise before, but I give you my word that the troll will never ring your site bell again, or show up on any meters of yours or of your friends, starting next Sunday, or after you respond to this, which ever comes first. Please don't leave because of him.

God bless you my righteous righteous friend.

 
At 8/26/2007 4:25 PM, Blogger Kirk said...

Captain John: I'm sorry, but the site must remain closed at night. I've been deleting an average of 13.7 liberal comments per hour to keep the debate on this blog orderly. I simply cannot stay up 24 hours a day to monitor anti-American commenters infiltrating this site. I'm a one man operation. Even with the circuit breaker in place, I'm only getting around six hours of sleep.

 
At 8/26/2007 11:21 PM, Anonymous Capt. John Newton said...

I was referring to another site, Kirk. A site where when I click on one Bloggers name I am linked to the lovely profile of another. I believe this site can help your friend find a solution. I will have myself flogged for not making this clear the first time. Now I'll have to wait for an answer to this question before I take the little bastards blogging priveleges away from him.

Does your righteous friend plan on leaving the blogosphere, and if so is it because of the damn monkey? I certainly hope not, sir. Your friend is truly an amazing grace and I know an amazing grace when I see one.

 
At 8/27/2007 8:14 AM, Anonymous Anonymous said...

Oh my God! Are you really that decrepid looking in real life. Momma must have beaten you severely with the ugly stick. Ugh!

 
At 8/27/2007 6:42 PM, Anonymous captain johnny newton said...

Apologies. That's my troll. I have it's name, address and ph #. I'll post them elsewhere and do the waterboarding myself.

I am sorry for this. Will you answer the question I posted above?

 
At 8/27/2007 8:00 PM, Blogger Kirk said...

Anonymous: My mother beat me with a stick, because she loved me and wanted me to be a man. Of course the stick was ugly with all my blood on it! After my mom made me clean the stick it looked quite nice. Rest in piece mom… rest in piece.

Captain: I fear that you are in the grips of insanity. I've got no idea what you are asking.

 
At 8/27/2007 8:17 PM, Anonymous Capt. John Newton said...

"In the grips"? Nonsense!

You are the greatest, Kirk. A more righteous individual has never existed and never will.

My friend Gonzo is going to Togo with us now that he has some free time.

God bless.

 
At 8/28/2007 6:38 PM, Anonymous Mr. Peter said...

You my friend, have a good thing here.

 

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