Comments on: Where Did the Federal Reserve Get $85 Billion for AIG? http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 01:22:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: John brock http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-253370 John brock Sun, 13 Mar 2011 18:39:10 +0000 http://www.consumerismcommentary.com/?p=3952#comment-253370 "Open market operations" = Creating money out of thin air. “Open market operations” = Creating money out of thin air.

]]> By: Riaan Nel http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-208654 Riaan Nel Wed, 11 Nov 2009 00:36:00 +0000 http://www.consumerismcommentary.com/?p=3952#comment-208654 This article is incorrect. The original $85 billion dollars did not come from a Treasury Auction. The Fed has its own assets acquired through open market operations in influencing the federal funds target rate. All indications are it sold some of these assets to have the $85 billion available for AIG. The US Treasury can only spend money it raises from an auction on legislatively approved projects. It is worth mentioning that the Fed creates money when buying treasuries through its open market operations by crediting the selling banks reserve accounts. This article is incorrect. The original $85 billion dollars did not come from a Treasury Auction. The Fed has its own assets acquired through open market operations in influencing the federal funds target rate. All indications are it sold some of these assets to have the $85 billion available for AIG. The US Treasury can only spend money it raises from an auction on legislatively approved projects. It is worth mentioning that the Fed creates money when buying treasuries through its open market operations by crediting the selling banks reserve accounts.

]]> By: Riaan Nel http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-199921 Riaan Nel Wed, 11 Nov 2009 00:35:59 +0000 http://www.consumerismcommentary.com/?p=3952#comment-199921 This article is incorrect. The original $85 billion dollars did not come from a Treasury Auction. The Fed has its own assets acquired through open market operations in influencing the federal funds target rate. All indications are it sold some of these assets to have the $85 billion available for AIG. The US Treasury can only spend money it raises from an auction on legislatively approved projects. It is worth mentioning that the Fed creates money when buying treasuries through its open market operations by crediting the selling banks reserve accounts. This article is incorrect. The original $85 billion dollars did not come from a Treasury Auction. The Fed has its own assets acquired through open market operations in influencing the federal funds target rate. All indications are it sold some of these assets to have the $85 billion available for AIG. The US Treasury can only spend money it raises from an auction on legislatively approved projects. It is worth mentioning that the Fed creates money when buying treasuries through its open market operations by crediting the selling banks reserve accounts.

]]> By: Riaan Nel http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-208655 Riaan Nel Wed, 11 Nov 2009 00:35:00 +0000 http://www.consumerismcommentary.com/?p=3952#comment-208655 This article is incorrect. The original $85 billion dollars did not come from a Treasury Auction. The Fed has its own assets acquired through open market operations in influencing the federal funds target rate. All indications are it sold some of these assets to have the $85 billion available for AIG. The US Treasury can only spend money it raises from an auction on legislatively approved projects. It is worth mentioning that the Fed creates money when buying treasuries through its open market operations by crediting the selling banks reserve accounts. This article is incorrect. The original $85 billion dollars did not come from a Treasury Auction. The Fed has its own assets acquired through open market operations in influencing the federal funds target rate. All indications are it sold some of these assets to have the $85 billion available for AIG. The US Treasury can only spend money it raises from an auction on legislatively approved projects. It is worth mentioning that the Fed creates money when buying treasuries through its open market operations by crediting the selling banks reserve accounts.

]]> By: El gato http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-196965 El gato Wed, 12 Aug 2009 19:47:24 +0000 http://www.consumerismcommentary.com/?p=3952#comment-196965 This article and others like it are as phony as the day is long! The reality is that the government is running huge deficits and they are just printing paper that is not backed up by anything but the hope that someday those who buy the treasury debt will get their money back. The reality is that that will NEVER happen. Our government is so far in debt that we are actually bankrupt, and if it weren't for the Chinese buying up almost all our debt we'd be in default. The Federal Reserve is the biggest scam that Congress ever put over on the people, and it's absolutely undemocratic and unconstitutional. We the people have been screwed, and in the not too distant future we are going to pay for our apathy! This article and others like it are as phony as the day is long! The reality is that the government is running huge deficits and they are just printing paper that is not backed up by anything but the hope that someday those who buy the treasury debt will get their money back. The reality is that that will NEVER happen. Our government is so far in debt that we are actually bankrupt, and if it weren’t for the Chinese buying up almost all our debt we’d be in default. The Federal Reserve is the biggest scam that Congress ever put over on the people, and it’s absolutely undemocratic and unconstitutional. We the people have been screwed, and in the not too distant future we are going to pay for our apathy!

]]> By: smarty pants http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-195924 smarty pants Tue, 21 Jul 2009 00:53:38 +0000 http://www.consumerismcommentary.com/?p=3952#comment-195924 I'd lend $ at 0% if I create it out of thin air like the fed does I’d lend $ at 0% if I create it out of thin air like the fed does

]]> By: fathersez http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-182371 fathersez Wed, 24 Sep 2008 05:34:31 +0000 http://www.consumerismcommentary.com/?p=3952#comment-182371 Still looks a little dodgy to me. There must be some effects of valuation as compared to foreign currencies. For international investors to put money in at 0%, and risk inflation and currency risks looks a lot risky. Even domestic investors would have to worry about inflation. Maybe some answers will come out in a few years. Still looks a little dodgy to me. There must be some effects of valuation as compared to foreign currencies. For international investors to put money in at 0%, and risk inflation and currency risks looks a lot risky.

Even domestic investors would have to worry about inflation.

Maybe some answers will come out in a few years.

]]> By: UH2L http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-182022 UH2L Sun, 21 Sep 2008 15:27:37 +0000 http://www.consumerismcommentary.com/?p=3952#comment-182022 Valerie is spot on. The money is there, but it will be of lesser value. I would start investing in precious metals, other currencies, or equities in other countries by way of mutual funds or stocks. Valerie is spot on. The money is there, but it will be of lesser value. I would start investing in precious metals, other currencies, or equities in other countries by way of mutual funds or stocks.

]]> By: Valerie http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181672 Valerie Fri, 19 Sep 2008 19:25:50 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181672 Hey guys...how about that "printing more money" as the Plan B to pay off investors? Did any of you ever read about the inflation in Germany post WWI, when people literally were hauling money around in wheel barrows to buy staples? You can't keep devaluing the dollar forever and not pay for it eventually! Hey guys…how about that “printing more money” as the Plan B to pay off investors? Did any of you ever read about the inflation in Germany post WWI, when people literally were hauling money around in wheel barrows to buy staples?

You can’t keep devaluing the dollar forever and not pay for it eventually!

]]> By: lordbuddha http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181624 lordbuddha Fri, 19 Sep 2008 15:48:47 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181624 So, our international friends are doing us a favor by giving us money. Remember, there is no free lunch (by Milton Friedman?). So, our international friends are doing us a favor by giving us money. Remember, there is no free lunch (by Milton Friedman?).

]]> By: Flexo http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181601 Flexo Fri, 19 Sep 2008 13:52:18 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181601 lordbuddha: I don't think the Treasury releases that information, but <a href="http://www.consumerismcommentary.com/why-put-your-money-in-an-investment-earning-0/" rel="nofollow">this explains why investors bid 0% on T-bills</a>. I wouldn't be surprised if many are international investors. lordbuddha: I don’t think the Treasury releases that information, but this explains why investors bid 0% on T-bills. I wouldn’t be surprised if many are international investors.

]]> By: lordbuddha http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181544 lordbuddha Fri, 19 Sep 2008 08:27:04 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181544 who are the bidders and buyers? Who has a lot of green backs? Chinese? But investing at 0% is lunatic! Factor in inflation and it is a NEGATIVE investment! Does the Treasury say who are the buyers? who are the bidders and buyers? Who has a lot of green backs? Chinese? But investing at 0% is lunatic! Factor in inflation and it is a NEGATIVE investment! Does the Treasury say who are the buyers?

]]> By: Jim http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181445 Jim Thu, 18 Sep 2008 23:33:57 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181445 The article cited explains: "They were willing to lend the money to the Treasury for free, knowing that they wouldn't lose it in the stock market or that they wouldn't have it be held by another financial institution that could undergo some difficulties." Its certainly odd but I guess there are some people out there that just want to make sure their money is SAFE for the next month. There may be more to the story than that and there could be other specific reasons it pays someone to have money safe for a month even at a 0% rate. Jim The article cited explains: “They were willing to lend the money to the Treasury for free, knowing that they wouldn’t lose it in the stock market or that they wouldn’t have it be held by another financial institution that could undergo some difficulties.” Its certainly odd but I guess there are some people out there that just want to make sure their money is SAFE for the next month. There may be more to the story than that and there could be other specific reasons it pays someone to have money safe for a month even at a 0% rate.

Jim

]]> By: John T. F. http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181431 John T. F. Thu, 18 Sep 2008 21:40:57 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181431 How is buying a bond with a 0% interest rate an investment? This sounds like a money laundering scheme. How is buying a bond with a 0% interest rate an investment? This sounds like a money laundering scheme.

]]> By: AJ http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181418 AJ Thu, 18 Sep 2008 17:52:40 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181418 Banks like FNBO provide FDIC insurance only upto 100,000. So for any one wishing to get a insurance on their money this is the best way to protect their money. Think hedge funds or mutual funds. Banks like FNBO provide FDIC insurance only upto 100,000. So for any one wishing to get a insurance on their money this is the best way to protect their money. Think hedge funds or mutual funds.

]]> By: Tom http://www.consumerismcommentary.com/where-did-the-federal-reserve-get-85-billion-for-aig/comment-page-1/#comment-181390 Tom Thu, 18 Sep 2008 13:21:49 +0000 http://www.consumerismcommentary.com/?p=3952#comment-181390 I guess those investors haven't heard of FNBO 3.75% savings accounts! I guess those investors haven’t heard of FNBO 3.75% savings accounts!

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