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interestrateripoff

San Francisco Housing Dips, What Crisis Is Next Up?

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http://www.zerohedge.com/news/2014-10-28/has-never-happened-without-massive-bubble-bursting

San%20Fran%20housing%20market_0.jpg

Historically has SF dipped before and nothing happened, a limited time frame given here. So what gets written above? Jordan announcing she's having another breast op?

Edited by interestrateripoff

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Popping of the government/bond bubble.

Banks are in a much better place that they were in 2008 and can handle a crash.

You might want to reconsider that last statement. The Fed has just restarted its emergency Term Deposit Facility suspended from 2009. Essentially, an ongoing handout to the world's biggest banks courtesy the American taxpayer, the stampede to take advantage of it again has been nothing less than spectacular.

Maybe Yellen is using the TDF to cover her ass through the taper? Or maybe there's something else afoot?

NEW YORK (Reuters) - The Federal Reserve awarded $219 billion of seven-day term deposits to banks, a record amount, at a test auction held on Monday, it said in a statement on Tuesday.

The U.S. central bank allotted them to 69 banks which will receive an interest rate of 0.26 percent.

This compared with the $171.86 billion in deposits awarded a week earlier to 66 banks which received an interest rate of 0.26 percent.

The Fed has ramped up testing of its term deposit facility after the 2008 financial crisis to help policymakers drain cash from the banking system when they decide to tighten monetary policy.

On Sept. 4, the Fed said it plans to conduct a series of eight seven-day TDF operations starting in October. These tests will have an early withdrawal feature in which banks can enter into the TDF and pull the money out before the maturity date if they pay a charge.

In the first four operations, there is a $20 billion cap per bank and the interest rate paid on the deposit is set at 0.26 percent. The next four operations, the interest rate paid will rise "in small steps" but it will not go above 0.30 percent.

Read more: http://www.businessinsider.com/r-us-fed-awards-219-billion-of-term-deposits-2014-10#ixzz3HU1hvouB

Edited by zugzwang

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The mind boggles.

It's outright theft! The banksters receive the original QE monies for nothing, now they're getting 26 basis points on top of that. Free money from free income! 69 banks, $219bn! No wonder US markets have been screaming higher for the last two weeks.

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You might want to reconsider that last statement. The Fed has just restarted its emergency Term Deposit Facility suspended from 2009. Essentially, an ongoing handout to the world's biggest banks courtesy the American taxpayer, the stampede to take advantage of it again has been nothing less than spectacular.

Maybe Yellen is using the TDF to cover her ass through the taper? Or maybe there's something else afoot?

Not sure what point you are trying to make.

Tapering surely is entirely consistent with this policy.

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What happened to all those option ARM resets that were supposed to partially destroy the planet.

Good question. I'm guessing the near 0% rate possible allowed enough to refinance, preventing a crisis. However googling doesn't seem to reveal any sort of answer apart from giving the links to the stories about them starting to implode.

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