The Fed. Reserve reported gold continued to be "earmarked" for the account of foreign central banks (in effect exporting it from the US); $64M was earmarked up to 3PM on Thursday, bringing the total in the past week to $185M. Foreign and local bill selling reached an "extraordinarily large" total of about $100M on Thursday; bill dealers "advanced their rates sharply in a spell of nervousness;" open market rates rose 1/4% on all maturities but the Fed Reserve maintained its buying rates for bills, and left its rediscount rate at 1 1/2%; this was seen as "a virtual invitation to banks and dealers" to sell bills to it. It's believed the Fed. would welcome a large increase in bill holdings and discounts, in pursuance of its policy of "making money rates extremely easy and increasing the volume of both Fed. Reserve and general bank credit outstanding." - Friday, Sept 25, 1931:
Sunday, January 23, 2011
Then and now...the not so Federal Reserve was also not so different
Friday, Sept 25, 1931: With the Dow off 191 points from the initial bounce out of the crash, the Fed was up to the same old tricks getting everything wrong and making everything worse...the market would fall well over 50% into 1932 and then reach a sustainable bottom...However, if you review the fed bag of tricks and manipulations in the 20's and 30's they are tame compared to today. The results were horrific. Bernanke, the eloquent amature and deceptive "Me, no I am not printing money. Its coming from reserves." pathologic, will attempt to make Time's man of the year again in 2011 by stealing from all its readers while telling them he is bearing gifts. The antics of the Fed for the day are shown below:
