tag:blogger.com,1999:blog-6616959642391988608.post3994362949272162648..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: blogging will be light todayScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6616959642391988608.post-22468712192116574592009-06-03T14:50:05.290-07:002009-06-03T14:50:05.290-07:00But I thought before the crisis we had a liquidity...But I thought before the crisis we had a liquidity glut? <br /><br />Shouldn't we be calling this a credit quality crisis versus a liquidity crisis?<br /><br />The policy prescriptions would be vastly different but that may be exactly where this ship went wrong...Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-38766538352113915842009-06-02T17:31:32.424-07:002009-06-02T17:31:32.424-07:00I'll try to be impartial here. I think the Fed wou...I'll try to be impartial here. I think the Fed would properly be considered to be "monetizing the debt" if they made significant purchases of Treasury securities with the objective of keeping interest rates low or stimulating the economy. If you look at the chart here:<br /><br />http://blogs.wsj.com/economics/2009/05/28/a-look-inside-feds-balance-sheet-52809-update/<br /><br />you can see that Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14080811322154913172009-06-02T17:12:19.274-07:002009-06-02T17:12:19.274-07:00Here you go Scott:
Liesman:"Treasury is issuing o...Here you go Scott:<br /><br />Liesman:"Treasury is issuing over time and not so much time trillions of dollars of debt. The Fed's buying $300 billion of Treasuries. Why is this not the dreaded concept of monetizing the debt which so many economists would warn against?"<br /><br />GEITHNER: There's no risk of that in the United States because, again, we have a strong independent central bank whoseSlingblade9119https://www.blogger.com/profile/07254335163162335034noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-73531577968978718532009-06-02T16:47:30.646-07:002009-06-02T16:47:30.646-07:00There is a fund similar to what you mentioned (UCD...There is a fund similar to what you mentioned (UCD) that looks like a decent way to get commodity exposure, albeit with some leverage. It has delivered on its promise to return double the rise in the DJAIG total return index, which is a reputable index, but I note that it quite small--$24 million market cap.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-38734048822304080302009-06-02T16:38:48.671-07:002009-06-02T16:38:48.671-07:00Can you point me to a transcript of Geithner's res...Can you point me to a transcript of Geithner's response to Santelli?Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34850885498195135292009-06-02T16:26:04.931-07:002009-06-02T16:26:04.931-07:00Congrats! I was looking for a way to play the new...Congrats! I was looking for a way to play the new commodities bull market (which I think has more legs due to the coming inflation). I was thinking about buying the DowJones-UBS Commodity Index Fund as a broad way to play it. What do you think?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-16399091625782789502009-06-02T10:58:55.002-07:002009-06-02T10:58:55.002-07:00Scott
When you get back - perhaps you could help ...Scott<br /><br />When you get back - perhaps you could help me (and others) make sense of Treas Sec Geitnher's response to rick Santelli's question about montizing the debt? Im confused - he says this is impossible becasue we have a "strong central bank"??? Should I be worried now???Slingblade9119https://www.blogger.com/profile/07254335163162335034noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-51173353721382813552009-06-02T09:57:49.565-07:002009-06-02T09:57:49.565-07:00Congratulations. To both of you!Congratulations. To both of you!Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.com