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Ex OMB chief Stockman: "It is the biggest speculative disaster in human history."
Zero Hedge ^ | March 01, 2015 | Tyler Durden

Posted on 03/31/2015 7:59:48 PM PDT by concernedcitizen76

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"David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan."
1 posted on 03/31/2015 7:59:48 PM PDT by concernedcitizen76
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To: concernedcitizen76

i’m in cash in my 401k and not contributing any longer. i’m long cash as i can be as a united states serf.


2 posted on 03/31/2015 8:02:51 PM PDT by kvanbrunt2 (civil law: commanding what is right and prohibiting what is wrong Blackstone Commentaries I p44)
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To: concernedcitizen76

.


3 posted on 03/31/2015 8:04:26 PM PDT by doc1019 (Blue lives matter)
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To: concernedcitizen76

This guy is like John Dean. He never goes away.


4 posted on 03/31/2015 8:06:08 PM PDT by 2ndDivisionVet (You can help: https://www.tedcruz.org/donate/)
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To: concernedcitizen76
And then capture the profit or the spread between the cheap money that the fed is putting into the overnight market and the yield or profit they're making on the asset, and they're leveraging way up.

Why would the Fed be putting money into the overnight market?

5 posted on 03/31/2015 8:11:25 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: kvanbrunt2

“Add six years. 2015.”

David Stockman: There’s really no magic numbers here, but it’s remarkable that these central bank driven bubbles tend to peak after about six years. The dot com bubble started really in mid-1994 with the famous Netscape IPO. It crashed in March 2000, six years. The housing bubble roughly started in 2002. It totally crashed in 2008. Six years. The meltdown on Wall Street bottomed in March 2009. Add six years. 2015. I think we’re at the end of this bubble simply based on the fact that they can’t expand forever. They reach an asymptotic peak, and then confidence is lost, a catalyst occurs, a black swan appears, the selling begins, and there’s nothing under this market. There is no safety net under this market.


6 posted on 03/31/2015 8:11:27 PM PDT by concernedcitizen76
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To: concernedcitizen76

1. Welcome to FreeRepublic.

2. Thanks for posting an interesting article.

3. Thanks *especially* for posting it in full.


7 posted on 03/31/2015 8:13:39 PM PDT by shibumi ("Vampire Outlaw of the Milky Way")
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To: Toddsterpatriot

Federal Funds Rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight.

The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other.

The federal funds rate is one of the most influential interest rates in the U.S. economy, since it affects monetary and financial conditions, which in turn have a bearing on key aspects of the broad economy including employment, growth and inflation.


8 posted on 03/31/2015 8:15:03 PM PDT by concernedcitizen76
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To: concernedcitizen76
The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other.

I know, so why did he say the Fed was doing it?

9 posted on 03/31/2015 8:17:59 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: shibumi

Stockman is so rigt . We are near a run on the banks and a complete collapse in the stockmarket bloated on printed money. If you are in this market — get the hell out and get into land and bullets.


10 posted on 03/31/2015 8:22:48 PM PDT by iowacornman (Speak out with courage!!)
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To: Toddsterpatriot

It’s traders from the big institutions who are borrowing at the overnight rate of 5 basis points from the Fed and then plowing the borrowed money into other debt instruments for big gains risk free.


11 posted on 03/31/2015 8:24:29 PM PDT by concernedcitizen76
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To: 2ndDivisionVet

This guy is like John Dean. He never goes away.


So what if he doesn’t go away.
John Dean is a total POS. Stockman is not.


12 posted on 03/31/2015 8:25:30 PM PDT by laplata ( Liberals/Progressives have diseased minds.)
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To: concernedcitizen76
It’s traders from the big institutions who are borrowing at the overnight rate of 5 basis points from the Fed

How much is the Fed lending overnight? Link?

13 posted on 03/31/2015 8:30:57 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: concernedcitizen76

thx cash out


14 posted on 03/31/2015 8:34:42 PM PDT by kvanbrunt2 (civil law: commanding what is right and prohibiting what is wrong Blackstone Commentaries I p44)
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To: concernedcitizen76

Wrap it up and shut it down.


15 posted on 03/31/2015 8:44:56 PM PDT by Paladin2
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To: kvanbrunt2

I fail to understand what good cash will be when we have notes similar to Zimbabwe.
I understand precious metals for the long haul; but for the short to mid, cash won’t buy anyone much in a collapse. I can get FAR more for a Bic lighter or a can of spam in trade before a U.S. dollar. Better to spend greenbacks now on “beans and bullets” and metals for after the collapse.


16 posted on 03/31/2015 8:46:44 PM PDT by Ghost of SVR4 (So many are so hopelessly dependent on the government that they will fight to protect it.)
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To: Ghost of SVR4

Fuel is valuable.


17 posted on 03/31/2015 8:47:38 PM PDT by Paladin2
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To: Toddsterpatriot
Why would the Fed be putting money into the overnight market?

Have you ever noticed that David Stockman is never around at the same time as Paul Craig Roberts?

Coincidence? I think not.

18 posted on 03/31/2015 8:47:52 PM PDT by Mase (Save me from the people who would save me from myself!)
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To: Toddsterpatriot

Bernanke, and now Yellen, have kept the the key overnight fed funds rate near zero to encourage large financial institutions to take nearly interest free loans and put the money into bonds or stocks. This has kept the debt expansion going and drives speculation in the stock market. All to good for fiend Obama. Obama enriched the 1% and .1% spectacularly. Their money feeds his campaigns, his pockets, and other lib pockets. On the flip side, enrichment of elites feeds class warfare, Obama’s stock in trade. It also gives Obama a battle cry to use in attacking the 1% and harping on middle class social justice and the rest of the Marxist talking points.


19 posted on 03/31/2015 8:49:34 PM PDT by concernedcitizen76
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To: concernedcitizen76
Bernanke, and now Yellen, have kept the the key overnight fed funds rate near zero .....

Yes, I know. So how much are they lending overnight? Link?

20 posted on 03/31/2015 8:52:07 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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