Posted on 08/25/2010 2:18:06 PM PDT by E. Pluribus Unum
That was last week.
Could that lady put some of her money in CD in foreign currencies like the Canadian and Australian dollar plus Swiss Franc?
There is a bank in St. Louis that had them.
Everbank.com has world and multi currency CDs. The 3 month CDs on Austrialian dollar and Brazilian Real look pretty good. A$ is 3.03% and Brazilain Real is 6.14%
They also have a currency basket CD. The best appears to be 25% A$, 25% B Real, 25% C$ and 25% Norwegian Krone is 2.3%.
Oh wow, your post has just made me sit up. I have a 1966 Mustang sitting in my garage. It hasn’t moved for 20 years.
In gold. Physical gold in your own control outside of a bank.
I was thinking this AM that the PPT is just trying to keep the market in an orderly descent. With light summer volumes it isn’t hard, but the mutual funds are all selling as investors leave the funds. The longer term outlook is down and bonds aren’t good option now that they have run up. Time to sit in cash..and wait.
That's like saying the existence of the Mississippi river is BS.
The PPT exists, there is no denial of it. The principles have testified about it in Congress. They keep no minutes of their meetings, so there is nothing to discover with FOIA requests.
Slick.
Here is their most recent public statement:
October 6, 2008
HP-1177
Statement by the President’s Working Group on Financial Markets
Washington, DC-- The President's Working Group on Financial Markets issued the following statement today:
Conditions in U.S. and global financial markets remain extremely strained. The President's Working Group on Financial Markets (PWG) is working with market participants and regulators globally to address the current challenges and restore confidence and stability to financial markets around the world.
With the passage of the Emergency Economic Stabilization Act of 2008 (EESA), Congress has granted important new authorities to the Treasury, Federal Reserve, and the FDIC. These new authorities will be employed in conjunction with existing authorities to restore market confidence by strengthening the balance sheets of financial intermediaries and improving overall market functioning.
The diversity of institutions and markets under stress, and the magnitude and complexity of the adjustment underway, requires that the tools available to policymakers, regulators and supervisors be used in forceful and coordinated ways across regulatory and supervisory agencies in the United States and throughout the world. This will involve moving with substantial force on a number of fronts. These broad initiatives are outlined below.
Strengthening Financial Institutions
The Treasury Department will move rapidly to implement the new authorities in EESA to help strengthen financial institutions that are struggling with troubled assets and/or need to raise capital. It will be done in a transparent and methodical fashion. In the coming days, Treasury will work with the Federal Reserve and other financial regulators to develop strategies that deploy these tools to maximize their effectiveness in strengthening the financial system while protecting the taxpayers' interests.
The new legislation adds broad, flexible authorities to allow Treasury to buy troubled assets and provide guarantees, and address capital raising. The new legislation also enables Treasury to directly strengthen the balance sheet of individual institutions. These authorities allow Treasury to act to remove some of the uncertainty regarding financial strength, and provide financial institutions with greater operating flexibility and enhance their ability to raise additional capital in the private marketplace.
FDIC Stand-alone Assistance
The FDIC has broad powers to protect depositors and mitigate instability in our banking system. In addition to the coverage that it provides to insured deposits, the FDIC has the ability to use its insurance fund and its substantial lines of credit with the Treasury to address the risk to the financial system posed by the possible failure of a bank.
As the regulatory community confronted the risks posed by a potential failure of Wachovia Corporation, the Board of the FDIC, the Board of Governors of the Federal Reserve System, and the Secretary of the Treasury in consultation with the President determined that they should invoke the systemic risk exception to the traditional bank resolution process.
We will work together in the future where similar approaches are necessary for the stability of the financial system.
When systemic risk determinations are necessary and appropriate in the future, the FDIC will use its authority and its resources, on an open or closed-bank basis, to protect depositors, guarantee liabilities, facilitate orderly wind downs, mergers, or adopt other stabilizing measures.
Increasing Liquidity to Financial Markets
With regard to liquidity, the Federal Reserve has introduced a series of innovative facilities and policies to enhance liquidity in our markets. These include the Term Auction Facility, Primary Dealer Credit Facility, Term Securities Lending Facility, and Currency swaps.
The Federal Reserve will continue to take a leadership role with respect to liquidity in our markets. It is committed to using all of the tools at its disposal to provide the increased liquidity that is now required for the effective functioning of financial markets. In this regard, the authority to pay interest on reserves that was provided by EESA is essential, because it allows the Federal Reserve to expand its balance sheet as necessary to support financial stability while conducting a monetary policy that promotes the Federal Reserve's macroeconomic objectives of maximum employment and stable prices.
The Federal Reserve and the Treasury Department are consulting with market participants on ways to provide additional support for term unsecured funding markets.
Cash / Money Markets
Bank deposits and money markets funds play an important role in the savings and investing of Americans. These savings and investment vehicles are critical to investor confidence. They also provide funds for financing activity that is so critically important to our credit markets.
Last month, the Treasury Department announced a temporary guarantee program for money market mutual funds. That program began operations last Monday. This action was complemented by the Federal Reserve providing additional liquidity to money market mutual funds with their Asset Backed Commercial Paper (ABCP) Money Market Mutual Fund (MMMF) Liquidity Facility (AMLF) program, which has brought liquidity to the ABCP market. Today, the Federal Reserve is taking additional actions to enhance the flexibility of bank holding companies to provide support to their bank sponsored funds.
In addition, the Securities and Exchange Commission and the FASB issued a clarification regarding the valuation of assets, including commercial paper, during such periods of market stress.
In addition, the recent legislation temporarily increases the amount that the FDIC insures in bank and thrift deposits from $100,000 to $250,000. The legislation also increases the FDIC's ability to borrow from the Treasury if needed.
Collectively these actions should enhance market stability and investor confidence in such funds
Mortgage Markets
We are committed to seeing the housing GSEs serve their public purpose of providing stability, liquidity, and affordability to the housing market. The Federal Home Loan Bank System continues to be an important source of liquidity to the banking system in support of housing finance. To provide critical additional funding to our mortgage markets, Fannie Mae and Freddie Mac are increasing their purchases of agency mortgage-backed securities (MBS).
FHFA has directed the two companies to implement such a purchase program immediately. We also expect each company to continue to increase its direct support to the mortgage market through their ongoing securitization activities.
Treasury too has established a backstop secured credit facility for the housing GSEs. In addition, to increase the availability of capital for new home loans, Treasury expanded the agency MBS purchase program we announced in September. This will complement the capital provided by the GSEs and will help facilitate mortgage availability and affordability.
Market Integrity
Confidence is also enhanced by vigorous law enforcement so that those who invest know there is someone who is looking out for them. The SEC and Commodity Futures Trading Commission (CFTC) bring hundreds of cases every year directed at protecting investors. This past fiscal year the SEC returned approximately $1 billion to injured investors just as it did the year before. In the past few months, the SEC with others in law enforcement, have restored liquidity to Auction Rate Security investors in the largest securities buyback in the nation's history with tens of billions of dollars of liquidity being restored to tens of thousands of investors. The CFTC this year obtained more than $630 million in penalties against those attempting to manipulate the commodity markets and defraud customers as it continues to aggressively pursue its ongoing national crude oil investigation aimed at protecting the nation's energy markets. The SEC and CFTC have dozens of ongoing investigations related to the current market conditions and are using all of their tools to vigorously protect investors and maintain the integrity of our capital markets.
Clearing and Settlement Systems
Regulators are closely monitoring clearing and settlement systems to ensure their proper functioning as we encourage further centralized clearing for other financial instruments to bring enhanced transparency and counterparty risk management to those markets.
While addressing our challenges, we must also remind investors and lenders that we have a resilient and diverse economy and workforce. We have faced economic and financial market challenges in the past. Each time we have worked through them and emerged with stronger financial institutions and regulatory policies. While it will take time and a lot of hard work, we are confident that this time will be no different.
Leadership has been shown with decisiveness and determination by the public sector. Together, we can greatly improve the functioning of markets and move forward to rebuilding our great capital markets.
Yes. But spread the risk around. Don’t get in a situation where the failure of any one entity would wipe you out.
When he's not on vacation...
You guys are too paranoid. Those are just random anti-flash crash events. Nothing to see here, folks. Just move along...
There’s nothing in there about plunge protection.
I don't think its some shadow group working out of the bowls of the US Treasury. I think its Obama's cronies who are working on the big trading desks. They really don't want to lose power to the "unwashed" in November so they are using "retail" money (not their own) to keep the DOW above 10,000 until after the election. The question is... how long can they keep doing this?
“Where does one put retirement money?”
If you’re on the verge of retirement, it’s a relatively easy decision. Take your chips off the table, if presumably you’ve had big gains in the big bull markets of the last few decades.
You don’t need risk anymore. You need safely. And you don’t need for your money to be “working” for you any more. It’s already done its work. It’s time to let your money “retire” too when you retire.
If in IRAs or 401s, move to money market funds, or even better, to FDIC insured checking deposit accounts. Be sure to make tax-free rollovers if you open multiple new accounts and transfer money from existing accounts.
Whatever you do, don’t let some slimeball talk you into buying annuities (essentially life insurance policies). The slickest psychopaths currently preying on the elderly are the “investment adviser” seminar scum, with their free lunches and dinners.
If you’re a long way from retiring, the decision is harder. Personally, I just don’t see that the market has any fundamentals that will push it higher for a good long time, and I see lots of fundamentals to push it down. Unfortunately, I don’t think fundamentals even matter any more though, as high frequency trades account for 70% of daily trade volume and their positions are held only for seconds. The equity markets are not a place for exchanging capital investments any longer, but have been hijacked by a bunch of computers that play a sophisticated version of monopoly against each other.
Bonds are barely ok for the very short term, with all but invisible yields. But you have to be actively involved and prepared to dump them when the inevitable inflation arises some years for now. I hate bond funds as your position is constantly being whipsawed by fund transactions as others enter or leave the fund. Maybe a closed end bond fund would solve that problem. Owning individual bonds solves the problem too, but small time bond holders are raped in the market when they buy and sell.
bump
We took out half of ours and bought land.
We took the other half and put them in IRA CDs at a local credit union.
They aren't doing it for Obama - they are doing it to preserve the illusion of an real market, so the commissions will keep rolling in. When the Dow peaked in 1929, it subsequently lost 80% of its value. People abandoned the market for a generation. This time, they are have managed to keep the Dow at its year 2000 level for ten years, and are letting the necessary 80% drop happen more slowly, through inflation, so it doesn't look so bad and won't cause a panic. In 15 years the Dow will probably still be around 10,000 - but worth 20% of what it was in 2000.
The PPT can't really affect the S&P 500 they way they can the Dow, so that's the index to watch if things start to get out of hand.
I am wondering if a person bought the basket of 4 currencies and if the dollar blew up how the C$, A$, Norge Krone and Brazilian Real would hold up?
I know all the Germans wish they still had the DMark. They were proud of the DM.
The nice thing about Canada, Australia and Norway is they do not elect Muslims to run their countries.
“Is there really a Plunge Protection Team?”
Of course, silly.
Plunge Protection Team
By Brett D. Fromson
Washington Post Staff Writer
Sunday, February 23, 1997; Page H01
The Washington Post
http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm
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