The Fed Fights Half the Battle (NYT Editorial Board says Fed is "captive" of Banks!)

New York Times ^ | December 27, 2014 | NY Times Editorial Board

[Toddsterpatriot]

The bank stocks plunged in mid-October and again in mid-December, “for good reason” as stated by the NY Times editorial until the liabilities that looked like the Banks were going to have to absorb were suddenly going to land on the taxpayers

What liabilities?

[Toddsterpatriot]

Ellen is funny.

And really really bad at math.

[Seizethecarp]

Derivatives like these:

http://econintersect.com/b2evolution/blog2.php/2014/12/28/russian-roulette-taxpayers-could-be-on-the-hook-for-trillions-in-oil-derivatives

“The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia. The result could be trillions of dollars in oil derivative losses; and the FDIC could be liable, following repeal of key portions of the Dodd-Frank Act last weekend.”

[Toddsterpatriot]

The result could be trillions of dollars in oil derivative losses

First of all, we don't produce trillions of dollars in oil in a year. Not even close.

The producers that might be hedged through their banks would be the smaller, shale producers, not the huge Exxon type producers.

So, as usual, Ellen is pulling numbers out of her ass.

[zeestephen]

Re: “So the banks WERE being massively shorted up until December 15 and then the shorts got killed and there was a short-covering RALLY...”

The low for the Banks and the SP 500 was 16 December.

Since that day, the SP 500 is up 6.0%.

The BKX is up 6.5%.

So, the Bank “shorts got killed,” but Banks produced a gain that was just 0.5% higher than the broad market?

Sorry, that's not a serious analysis.

I checked the four largest USA banks for short interest on 15 December.

Bank of America, JP Morgan, and Wells Fargo were all below 1%.

Citi was at 1.23%.

The NYSE reports short interest on the 15th and the last trading day of each month.

The four largest banks in the USA were not being “massively” shorted on 15 December.

[Seizethecarp]

You don’t have visibility to what is happening in the “dark pools” of, yes MASSIVE private equity around the world, but the evidence of what DID happen there is CLEAR!

Your mileage may vary!

[nathanbedford]

I believe socialists think that the existing system is illegitimate and therefore those who are successful in the system as evidenced by accumulating wealth are themselves only all the more illegitimate.

When they accumulate wealth for the cells, an extra measure of hypocrisy makes it quite tolerable, even respectable.

[ripley]

“When they accumulate wealth for the cells...”

That’s why they love printing so much “money”.

IMHO