Video on the banking system

[LITE-INN]

Well I would think they would know exactly when it's corrupt if they are corrupt themselves.

I don't congress any where near any kindof money http://thehill.com/blogs/floor-actio...onetary-policy

[LITE-INN]

Yep and keep the elitist and federal reserve out of there and they will be fine. They don't need to get their greedy hands on that money.

The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion went on to say, however, that: "The Reserve Banks have properly been held to be federal instrumentalities for some purposes." Another relevant decision is Scott v. Federal Reserve Bank of Kansas City,[2] in which the distinction is made between Federal Reserve which one are the elite I would pick congress

[kidrock]

The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion went on to say, however, that: "The Reserve Banks have properly been held to be federal instrumentalities for some purposes." Another relevant decision is Scott v. Federal Reserve Bank of Kansas City,[2] in which the distinction is made between Federal Reserve which one are the elite I would pick congress

oh I know they are a private entity. The reason they were named the Federal Reserve was so the people would think they were part of the federal government. If you are going to pick congress as they elite over those that run the federal reserve then you really don't know much about the federal reserve because they control congress.

[LITE-INN]

if we voted rommney is ole ben bernake would be onthe streets just saying

[LITE-INN]

http://thehill.com/blogs/on-the-mone...on-wall-street

[kidrock]

http://thehill.com/blogs/on-the-mone...on-wall-street

And I wonder if that's why he was not elected, you think.

[LITE-INN]

And I wonder if that's why he was not elected, you think.

you double talking again time to work on taxi cab

[Bubba Smith]

Someone who understand how the system works, but can explain it to us, so we can have a better understanding whats going on.

Let me explain it to you. The 1% is gining an ass wiping to the 99%.

[ss12]

if we voted rommney is ole ben bernake would be onthe streets just saying

If Rmoney would of won the election Bernake would still be in charge of the federal Reserve. If a 3rd party would of been elected Ben would still be in charge. Ben was in charge when Bush left office. How many presidents did Greenspan go through? Be chairman of the federal reserve is the best position because you don't have to be elected into office but you have the power because you control the country's money.

[ss12]

Let me explain it to you. The 1% is gining an ass wiping to the 99%.

I figured that out several years ago. I do believe it time for 99% to return the a$$ wiping.

[kidrock]

you double talking again time to work on taxi cab

Here is litee taking our President to a health confernece in his taxi cab. lol lol





http://www.youtube.com/watch?v=fkdY4VwAE5g

[ss12]

Lite Inn I got the video you sent me of your race car. I can't remeber what your # is?

http://www.youtube.com/watch?v=Py6HzgVWaY8

[t.nie]

How is the Federal Reserve base interest rate effectively set in the economy?

(This will be a good one to separate the men from the boys and find out who really knows how our financial systemt operates.)

[LITE-INN]

Here is litee taking our President to a health confernece in his taxi cab. lol lol





http://www.youtube.com/watch?v=fkdY4VwAE5g

I was wondering what the prez does on his day off

[LITE-INN]

If Rmoney would of won the election Bernake would still be in charge of the federal Reserve. If a 3rd party would of been elected Ben would still be in charge. Ben was in charge when Bush left office. How many presidents did Greenspan go through? Be chairman of the federal reserve is the best position because you don't have to be elected into office but you have the power because you control the country's money.

an exclusive interview with FOX Business Network Thursday, presumptive presidential nominee Mitt Romney said he would not reappoint Federal Reserve chairman Bernanke when his term expires in 2014.

“I would like to select ... a new person to that chairman position, someone who shared my economic views, someone that I thought was sympathetic to the needs of our nation and I want to make sure that the Federal Reserve focuses on maintaining the monetary stability that leads to a strong dollar, and confidence that America is not going to go down the road that other nations have gone down to their peril," Romney said.

In an interview earlier this week, Glenn Hubbard, Romney’s economic advisor, said Romney should consider re-nominating Bernanke.

Romney said he hasn’t considered “a single person at this point. Given no names, any thought or deliberation. When the time comes to appoint a new Fed chairman I will give that a full analysis. But I don’t have anyone to write in to that slate right now, or anyone to write out.”

[LITE-INN]

the United States, the federal funds rate is the interest rate at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, on an uncollateralized basis. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets.[1][2]

The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

The Federal Reserve uses open market operations to influence the supply of money in the U.S. economy[3] to make the federal funds effective rate follow the federal funds target rate. The target value is known as the neutral federal funds rate.[4] At this rate, growth rate of real GDP is stable in relation to Long Run Aggregate Supply at the expected inflation rate.[dubious – discuss][citation needed]



Contents
[hide] 1 Mechanism
2 Applications
3 Comparison with LIBOR
4 Predictions by the market
5 Historical rates
6 Explanation of federal funds rate decisions
7 See also
8 References
9 External links


[edit] Mechanism

U.S. banks and thrift institutions are obligated by law to maintain certain levels of reserves, either as reserves with the Fed or as vault cash. The level of these reserves is determined by the outstanding assets and liabilities of each depository institution, as well as by the Fed itself, but is typically 10%[5] of the total value of the bank's demand accounts (depending on bank size). In the range of $9.3 million to $43.9 million, for transaction deposits (checking accounts, NOWs, and other deposits that can be used to make payments) the reserve requirement in 2007-2008 was 3 percent of the end-of-the-day daily average amount held over a two-week period. Transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement.

For example, assume a particular U.S. depository institution, in the normal course of business, issues a loan. This dispenses money and decreases the ratio of bank reserves to money loaned. If its reserve ratio drops below the legally required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the requisite funds from another bank that has a surplus in its account with the Fed. The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The nominal rate is a target set by the governors of the Federal Reserve, which they enforce primarily by open market operations. That nominal rate is almost always what is meant by the media referring to the Federal Reserve "changing interest rates." The actual Fed funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations.

Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window. These loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the federal funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, it can set a specific discount rate.

The federal funds rate target is decided by the governors at Federal Open Market Committee (FOMC) meetings. The FOMC members will either increase, decrease, or leave the rate unchanged depending on the meeting's agenda and the economic conditions of the U.S. It is possible to infer the market expectations of the FOMC decisions at future meetings from the Chicago Board of Trade (CBOT) Fed Funds futures contracts, and these probabilities are widely reported in the financial media.

[edit] Applications

Interbank borrowing is essentially a way for banks to quickly raise liquidity. For example, a bank may want to finance a major industrial effort but not have the time to wait for deposits or interest (on loan payments) to come in. In such cases the bank will quickly raise this amount from other banks at an interest rate equal to or higher than the Federal funds rate.

Raising the federal funds rate will dissuade banks from taking out such inter-bank loans, which in turn will make cash that much harder to procure. Conversely, dropping the interest rates will encourage banks to borrow money and therefore invest more freely.[6] Thus this interest rate acts as a regulatory tool to control how freely the US economy operates.

By setting a higher discount rate the Federal Bank discourages banks from requisitioning funds from the Federal Bank, yet positions itself as a lender of last resort.

[edit] Comparison with LIBOR

Though the London Interbank Offered Rate (LIBOR) and the federal funds rate are concerned with the same action, i.e. interbank loans, they are distinct from one another, as follows:
The target federal funds rate is a target interest rate that is set by the FOMC for implementing U.S. monetary policies.
The (effective) federal funds rate is achieved through open market operations at the Domestic Trading Desk at the Federal Reserve Bank of New York which deals primarily in domestic securities (U.S. Treasury and federal agencies' securities).[7]
LIBOR is calculated from prevailing interest rates between highly credit-worthy institutions.
LIBOR may or may not be used to derive business terms. It is not fixed beforehand and is not meant to have macroeconomic ramifications.[8]

[edit] Predictions by the market

Considering the wide impact a change in the federal funds rate can have on the value of the dollar and the amount of lending going to new economic activity, the Federal Reserve is closely watched by the market. The prices of Option contracts on fed funds futures (traded on the Chicago Board of Trade) can be used to infer the market's expectations of future Fed policy changes. One set of such implied probabilities is published by the Cleveland Fed.

[edit] Historical rates

See also: History of Federal Open Market Committee actions

As of December 16, 2008, the most recent change the FOMC has made to the funds target rate is a 75 to 100 basis point cut from 1.0% to a range of zero to 0.25%. According to Jack A. Ablin, chief investment officer at Harris Private Bank, one reason for this unprecedented move of having a range, rather than a specific rate, was because a rate of 0% could have had problematic implications for money market funds, whose fees could then outpace yields.[9] This followed the 50 basis point cut on October 29, 2008, and the unusually large 75 basis point cut made during a special January 22, 2008 meeting, as well as a 50 basis point cut on January 30, 2008, a 75 basis point cut on March 18, 2008, and a 50 basis point cut on October 8, 2008.[10]




Historical chart of the effective Federal Funds Rate[citation needed]

[edit] Explanation of federal funds rate decisions

When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. When additional supply is added and everything else remains constant, price normally falls. The price here is the interest rate (cost of money) and specifically refers to the Federal Funds Rate. Conversely, when the Committee wishes to increase the Fed Funds Rate, they will instruct the Desk Manager to sell government securities, thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply. When supply is taken away and everything else remains constant, price (or in this case interest rates) will normally rise.[11]

The Federal Reserve has responded to a potential slow-down by lowering the target federal funds rate during recessions and other periods of lower growth. In fact, the Committee's lowering has recently predated recessions,[10] in order to stimulate the economy and cushion the fall. Reducing the Fed Funds Rate makes money cheaper, allowing an influx of credit in to the economy through all types of loans.

The charts linked below show the relation between S&P 500 and interest rates.
July 13, 1990 — Sept 4, 1992: 8.00%–3.00% (Includes 1990–1991 recession) rate drop chart rate rise chart
Feb 1, 1995 — Nov 17, 1998: 6.00–4.75 rate drop chart1 rate drop chart2 rate rise chart
May 16, 2000 — June 25, 2003: 6.50–1.00 (Includes 2001 recession) rate drop chart1 rate drop chart2 rate rise chart
June 29, 2006 — (Oct. 29 2008): 5.25–1.00 rate drop chart
Dec 16, 2008: 0.0–0.25[12]

Bill Gross of PIMCO has suggested that in the past 15 years, every time the fed funds rate was higher than the nominal GDP growth rate, assets such as stocks and/or housing always fell. He even suggested that the best way to price the fed funds rate would be 100 basis points, or 1%, below the nominal GDP growth

[LITE-INN]

Lite Inn I got the video you sent me of your race car. I can't remeber what your # is?

http://www.youtube.com/watch?v=Py6HzgVWaY8

no you got the wrong tape thhttp://www.youtube.com/watch?v=bMvnXhMo7v8ats the soprtsman or street stocks no wait the hornets at shepps this looks like more fun anybody can race on wheels http://www.youtube.com/watch?v=bMvnXhMo7v8

[kidrock]

no you got the wrong tape thats the soprtsman or street stocks no wait the hornets at shepps speedway

No, you told us that was you at little bell-clair speedway lol lol

[LITE-INN]

No, you told us that was you at little bell-clair speedway lol lol

nope bc is dirt and smaller

[LITE-INN]

acyuall we know how tnie loves great britian I think I heard the name todd sometime in the tape hw woulld race there is they all had 602 crates lmao