Somewhat cryptic, but here is an answer to the question for Rick.
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The Fed Balance sheet is only $4 trillion. Stop repeating garbage, Long.J.
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I have asked for a rely……..and not received one yet,,,,so mind you own business, until this question is resolved……………ok,,,,,,,,,,,,,,thank…………j…..THE LONG
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- And from Rick:
- Don’t know where the item below was posted, Al, but here’s the substantiating link at ZeroHedge:
It is the banks, not the Fed per se, that has plowed $29Tr into stocks.
RA
And
On Fri, Sep 19, 2014 at 12:01 PM, Rick Ackerman <rickack@comcast.net> wrote:
…while $29Tr is a very substantial sum relative to valuations for the major stock markets, it is pin money compared to the $1 QUADRILLION derivatives shell game that conjured forth the $29Tr.
RA
As I remember:
1. The FT article included both share and bond investments.
2. I seem to remember a number from about 2012 as the total market capitalization in the US is about $20 Trillion.
A number of $29.1 trillion for central bank investment in stocks does just does not pass my smell test.
Rough Calculation:
Assuming the US is about 30% of world trade, its market should be about 30% of world stockmarkets, so $29 trillion would be about half of this estimate. That requires more investigation, because I don’t believe central banks own half of all stocks.
cfs…………I agree, SMELLS FISHY TO ME……………..CRYPTO the LONG.
Keep up the good work Jerry.
Stay firm. We need answers to a lot importance questions
around here.
I think Big AL should have Rick Rule on fof 5 minutes too.
Bring us up to date. They advertise on the site.
ONLY 5 minutes BIG AL….thats all. Lets get Rick on the
horn. Like to hear what he has to say.
A quick one and hang up. 5 momentos. Thats all we need.
SAYS GOLDS GOING UP….well….take a look around.
Thanking you kindly
I second the request for Rick Rule. Not sure I will follow him but want his opinion as a reference point. He has done it before.
Guys, I really doubt that Rick Rule has changed his tune since Wednesday, even with today’s action.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/9/17_Rule_Rule_-_Massive_Fund_Flows_Pouring_Into_Gold_%26_Silver.html
HH….HOLD THE FEET TO THE FIRE…………………….CRYPTO THE LONG.
Stockmarket valuations by country:
http://data.worldbank.org/indicator/CM.MKT.LCAP.CD
I slightly underestimated total world stocks value, but was in the ballpark.
Given that the US Federal Reserve balance sheet is about $4 trillion and is the biggest of all central banks.
Given that the Fed is mostly “invested” in Treasuries, for the purpose of keeping interest rates low, and in currency rate adjustments relative to other currencies, I am forced to believe only a tiny fraction of the Fed’s “investments are in stocks.
The $29 Trillion just does not compute.
I usually accept the FT as a good source, but I am mystified by this number.
This is one publication which, in part, appears to disagree with the FT.
The above article singles out Switzerland as a heavy investor in equities, and yet even if it invested only in Swiss stocks, that would only amount to possibly 7% ownership by the Swiss central Bank.
The $29 trillion is a really big number comparatively.
We know that central banks are primarily invested in bond-like instruments to control interest rates. Some central banks invest in Gold.
One has to assume that only a minor investment is made in stocks, which would be a totally incorrect assumption if $29 Trillion is the correct number for that investment.
http://www.moneymappress.com/pro/images/0814MMRBS/FedInsolvent.jpg
Take a look at this figure, and ask how can the Fed own $trillions of stocks.
Would it not appear as assets?
RICK A…………..THANKS FOR THE REPLY………………CRYPTO THE LONG.
J……..THE LONG………………..OOTB says:
JUST ANOTHER purchase by CENTRAL BANKS.?…..$29 TRILLION, PLUS….