The Federal Reserve is...

[LegendKiller]

Originally posted by: IcebergSlim
I'm not arguing these points we are saying the same thing here. I agree the shareholders hold non-transferable stock and I also agree they make a profit through dividends. The controlling banks Do have a profitable interest in the fed the also holds positions to influence policy of course. The fed entity itself is not "profitable" but to claim that no one profits from the fed system is obviously false as you just reasserted. The participants holding the non transferable shares clearly do make profits through dividends.

6% isn't exactly "profit" when the WACC of most banks is far higher than that, they are making a return that is equitable to their investment. The coupon is fixed, so it isn't like they are getting a huge increase in revenues if the Fed does "better" (any additional money goes to the govt).

 

[IceBergSLiM]

Originally posted by: LegendKiller

Originally posted by: IcebergSlim
I'm not arguing these points we are saying the same thing here. I agree the shareholders hold non-transferable stock and I also agree they make a profit through dividends. The controlling banks Do have a profitable interest in the fed the also holds positions to influence policy of course. The fed entity itself is not "profitable" but to claim that no one profits from the fed system is obviously false as you just reasserted. The participants holding the non transferable shares clearly do make profits through dividends.

6% isn't exactly "profit" when the WACC of most banks is far higher than that, they are making a return that is equitable to their investment. The coupon is fixed, so it isn't like they are getting a huge increase in revenues if the Fed does "better" (any additional money goes to the govt).

im not refuting anything you've said. I said above I agree with you on all points.

 

[LegendKiller]

Originally posted by: IcebergSlim

Originally posted by: LegendKiller

Originally posted by: IcebergSlim
I'm not arguing these points we are saying the same thing here. I agree the shareholders hold non-transferable stock and I also agree they make a profit through dividends. The controlling banks Do have a profitable interest in the fed the also holds positions to influence policy of course. The fed entity itself is not "profitable" but to claim that no one profits from the fed system is obviously false as you just reasserted. The participants holding the non transferable shares clearly do make profits through dividends.

6% isn't exactly "profit" when the WACC of most banks is far higher than that, they are making a return that is equitable to their investment. The coupon is fixed, so it isn't like they are getting a huge increase in revenues if the Fed does "better" (any additional money goes to the govt).

im not refuting anything you've said. I said above I agree with you on all points.

I am just trying to clarify for people. There is a lot of mis-information about the Fed out there. As you notice, most people left the thread once people started shooting down the FUDD.

 

[HomerJS]

Think Palin can answer this question?

 

[compuwiz1]

*sigh*

It's not federal and there is no reserve.

 

[LegendKiller]

Originally posted by: compuwiz1
*sigh*

It's not federal and there is no reserve.

Lies.

 

[ElFenix]

Originally posted by: lozina
Has it? You mean the system we had in place for the first few hundred years of our nation's existence when we flourished from a backwards colonial outpost to a major superpower? The system which allowed us to keep a major portion of our earnings before this current system which requires a heavy tax burden on us including the income tax?

There was a few decades prior to the actual federal reserve being established where we had a more "lite" version of central banking system where we had all those "crazy bank panics" which paved the way for people to accept the federal reserve solution thinking it was going to solve all our problems. alot of pro federal reserve folk like to point to this period as a "reason" for having the fed, which is rather deceptive.

you want to go farm dirt out in the wilderness and have to ride a horse 2 days to get to the nearest town, go right ahead.

 

[Eeezee]

LOL at the 2 people who chose Homeland Security

 

[DanDaManJC]

Originally posted by: lozina

Originally posted by: LegendKiller

The Libertopian idea of eliminating the Fed is laughable, as their system for replacement has been proven in the past to not work and was even worse.

But of course, they'd rather see us as farmers and nail makers.

Has it? You mean the system we had in place for the first few hundred years of our nation's existence when we flourished from a backwards colonial outpost to a major superpower? The system which allowed us to keep a major portion of our earnings before this current system which requires a heavy tax burden on us including the income tax?

There was a few decades prior to the actual federal reserve being established where we had a more "lite" version of central banking system where we had all those "crazy bank panics" which paved the way for people to accept the federal reserve solution thinking it was going to solve all our problems. alot of pro federal reserve folk like to point to this period as a "reason" for having the fed, which is rather deceptive.

we had several different systems though... for a while each state had its own currency too