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Bruce Krasting
Posts
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Blog Archive
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2012
(73)
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April
(14)
- On Student Loans, Accounting Gimmicks, Electric Ca...
- On the Social Security 2012 Report to Congress
- Is Exim going to flop?
- On the Swiss, the IMF and the G-20
- Down to a Trickle
- A Different Buffett Rule - One That Would Work
- Yellen Vs. Geithner - Two Views
- Three Conversations
- Houston - We have a problem, in Switzerland
- Betting on the race to the bottom
- A Laugh
- On FX
- Bernanke - I'm Slowing Down the Ship
- Social Security – Good News, Bad News
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March
(12)
- Bernanke - 'The Fed never makes mistakes'
- Pests
- Bernanke: "I Want to Bring Back Irrational Exubera...
- On Slime and Water
- Is the Ten-Year going to 3%?
- On Sweet Deals and No Deals
- There's Nothing "Fair" about it
- On FX and Notes from D.C.
- On Politics, Social Security and Spine
- Bernanke Leaks, Spoils the Punch
- A default that isn’t a default and a sale that isn...
- On Israel and Iran
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April
(14)
About Me
- Bruce Krasting
- Westchester, NY, United States
- I worked on Wall Street for twenty five years. This blog is my take on the financial issues of the day. I was an FX trader during the early days of the 'snake' and the EMS. Derivatives on currencies were new then. I was part of that. That was with Citi. Later I worked for Drexel and got to understand a bit about balance sheet structure and corporate bonds from Mike Milken. I was involved with a Macro hedge fund later. That worked out all right, but it is not an easy road. There was one tough week and I thought, "Maybe I should do something else for a year or two." That was fifteen years ago. I love the markets. How they weave together. For twenty five years I woke up thinking, "What am I going to do today to make some money in the market". I don't do that any longer. But I miss it.
Perpetual preferred stock!! I like it--and since the Fed will own it, all of the interest comes right back to the Treasury. . .
ReplyDeleteAfter all, 100% conversion of the debt would eliminate it entirely. Problem solved!
And Blackhawk Ben could still claim he wasn't printing money :>)
Equity always gets paid more due to risk, and to wipe out the debt by conversion to equity would mean the govt instantly would be unable to pay the preferred 'dividend'.
ReplyDeleteSo then later the equity can be wiped out easily when the govt is declared to be insolvent by Moodys. All the 'equity' holders get screwed and facefucked.
Nice Bruce...did you dream this BS up all by yourself or did you have help?
I wonder what happens when the whole yield curve is at 0% ?
ReplyDeletecuz you know he won't stop if 600bio doesn't work.
if someone gives me and everyone else 30yr money at 0% what then? will banking cease to exist? theres no point in them being around anymore. in a weird matrix kinda twist will ben have destroyed itself?
c'mon ben, answer this, we know you're reading...
anon at 12:33
ReplyDeleteThis is all me. I wanted to try the cartoon thing. This was my effort. I learned along the way. Next time will be better.
bk
Do that again, and they will arrest you for having too much fun.
ReplyDeleteSeriously, though, I can see the Fed/Treasury trying some sort of forced debt exchange/currency conversion in the future. Carmen Reinhart mentioned it as a possibility at a talk at the Cato Institute last June.
Gentilemen,
ReplyDeleteThe recent recession has exposed many rough edges in our ecomomy and our government is having problems dealing with them. Could you all please bring these matters to the attention of your audiances. The most glaring thing that I see wrong is that......
NO ONE IS ASKING WHERE DID THE JOBS REALLY GO?
It is not rocket science as our government wants us to believe. Here are the simple bassic causes:
1. We launched upon the free trade programs which dropped our protective tarrifs that protected the American Jobs from extinction.
2. Exactly as expected, our manufacturing industries moved the jobs overseas where they could buy the labor for much less.
3. Exactly as expected, they moved the profits overseas to avoid the high corporate tax rate. Ireland is the current place but that could change.
4. Exactly as expected, our people and the Governments at all levels began to go into debt in order to replace the missing revenue.
5. Exactly as expected, there is a devistating flow of our hard earned wealth overseas to developing economies at the expense of the American Middle Class. As this continues The American Middle Class will become extinct along with the jobs that were lost.
6. Exactly as expected, we are in an extremely difficult situation brought about by Free Trade and Globalization.
Can We get the jobs back?
Of course we can fix this problem. Just simply put the tarrifs back in place and the jobs will come home. Don't tell me that the most powerful nation in the world can't do this.
It does not take an economist to figure this out. Think about it !
Can anyone tell me how the American People have benifited from Free Trade and Globalization ?
I have asked this question hundreds of times over the past seveal years and all I get is blind dumb looks. Isn't it about time to apply some common sense to the problems of the day?
We have known about the potential problem for 208 Years !!!
Thomas Jefferson, 1802:
"I believe that banking institutions are more dangerious to our liberties than standing armies."
"If the American People ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent our fathers conquered"
My fellow Americans. Where are you ?? Lift up your head from the daily grind and look around you.
The children Thomas Jefferson spoke about 208 years ago are the un-employed today. They are being deprived of their wealth by a Government that is owned by big banks and industry and they are in fact waking up homeless on the continent their fathers conquered !
Wake up America this truely is the 11 th hour!
Tell your employees in congress to fix the problem with common sense !
Bruce,
ReplyDeleteNow would be a good time to use your talents to do a cartoon on free trade.
these cartoons have a way of explaining things to the public that all the PHDs in the world can not come close to.
Bruce,
ReplyDeletePlease explain the logic deducting interest income?
My monkey mentality leads me to conclude that Social Security is a pension plan required to invest in US Government Bonds. Do pension plans typically deduct income from receipts to determine how much they can pay out to retirees? I don't think so.