Comments on: How the Fed Changes the Interest Rate http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/ This is what happens when Martin gets tired of sending mass emails. Thu, 09 Feb 2012 01:44:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dumb, Dumber and Dumbest – A Synopsis of US Fiscal Policy - Martin C. Winer http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-218 Dumb, Dumber and Dumbest – A Synopsis of US Fiscal Policy - Martin C. Winer Wed, 11 Nov 2009 06:05:23 +0000 http://www.martincwiner.com/?p=34#comment-218 [...] which is just in the process of bursting. Finally, interest rate cuts increase government debt. The way that the Fed lowers interest is by buying treasury bills with printed money. This devalues the currency and increases government [...] [...] which is just in the process of bursting. Finally, interest rate cuts increase government debt. The way that the Fed lowers interest is by buying treasury bills with printed money. This devalues the currency and increases government [...]

]]> By: s243a http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-40 s243a Thu, 25 Dec 2008 06:13:24 +0000 http://www.martincwiner.com/?p=34#comment-40 Found out how Canada does it: http://www.bankofcanada.ca/en/backgrounders/bg-p9.html Found out how Canada does it:
http://www.bankofcanada.ca/en/backgrounders/bg-p9.html

]]> By: s243a http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-39 s243a Thu, 25 Dec 2008 06:01:22 +0000 http://www.martincwiner.com/?p=34#comment-39 This link explains it better: http://invest-faq.com/cbc/regul-fed-reserve.html The fed manipulates the fund rate by buying and selling assets but sets the discount rate to be withing 1% of the fund rate. The discount rate is the rate that banks borrow from the fed. Only large banks borrow from the fed. This link explains it better:
http://invest-faq.com/cbc/regul-fed-reserve.html

The fed manipulates the fund rate by buying and selling assets but sets the discount rate to be withing 1% of the fund rate. The discount rate is the rate that banks borrow from the fed. Only large banks borrow from the fed.

]]> By: s243a http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-38 s243a Thu, 25 Dec 2008 05:40:10 +0000 http://www.martincwiner.com/?p=34#comment-38 How would this work in countries which only have capital requirements and no reserve requirements? How would this work in countries which only have capital requirements and no reserve requirements?

]]> By: mwiner http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-37 mwiner Wed, 09 Apr 2008 04:43:48 +0000 http://www.martincwiner.com/?p=34#comment-37 As the Fed sells T-Bills, the revenues go into the Fed balance sheet. The Fed can then repay the treasury or reuse these funds for further malfeasance -- correction, market monitoring. As the Fed sells T-Bills, the revenues go into the Fed balance sheet. The Fed can then repay the treasury or reuse these funds for further malfeasance — correction, market monitoring.

]]> By: harry yip http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-36 harry yip Tue, 08 Apr 2008 08:13:55 +0000 http://www.martincwiner.com/?p=34#comment-36 When the Fed receives the money from the banks that bought its Treasury Bills, what does the Fed do with the money? Does the Fed distribute the money to their employees or burn the money? When the Fed receives the money from the banks that bought its Treasury Bills, what does the Fed do with the money? Does the Fed distribute the money to their employees or burn the money?

]]> By: Walmart the Victim of Media Moulded (sic) Public Opinion « Martin Winer http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-35 Walmart the Victim of Media Moulded (sic) Public Opinion « Martin Winer Sat, 05 Apr 2008 06:28:23 +0000 http://www.martincwiner.com/?p=34#comment-35 [...] capable of manufacturing money out of thin air is the Federal Reserve, but that is the topic of another conversation. In the final estimation, Sachs was paid for her medical expenses twice and that cost will be [...] [...] capable of manufacturing money out of thin air is the Federal Reserve, but that is the topic of another conversation. In the final estimation, Sachs was paid for her medical expenses twice and that cost will be [...]

]]> By: mwiner http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-34 mwiner Tue, 19 Feb 2008 15:37:13 +0000 http://www.martincwiner.com/?p=34#comment-34 I invite you to take a look at: http://mwiner.wordpress.com/2008/01/22/the-subprime-mortgage-fiasco-explained/ However, in summary... T-Bill issuance first caused the subprime crisis. It did so in two ways 1) is lowered the interest rate to such a degree that mortgage payments could now be affordable to 'subprime borrowers'. Second, it created a housing boom. Now when this bubble burst (we're currently in the process of this bubble bursting), the Fed again lowered interest rates to asuage the economy which will, yes, you guessed it, eventually cause some sort of other bubble. I invite you to take a look at:
http://mwiner.wordpress.com/2008/01/22/the-subprime-mortgage-fiasco-explained/

However, in summary… T-Bill issuance first caused the subprime crisis. It did so in two ways 1) is lowered the interest rate to such a degree that mortgage payments could now be affordable to ‘subprime borrowers’. Second, it created a housing boom. Now when this bubble burst (we’re currently in the process of this bubble bursting), the Fed again lowered interest rates to asuage the economy which will, yes, you guessed it, eventually cause some sort of other bubble.

]]> By: Joel Teo http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-33 Joel Teo Sun, 17 Feb 2008 02:11:00 +0000 http://www.martincwiner.com/?p=34#comment-33 Well... I want to see how this T-Bill issuance ties in with the Sub-prime crisis. But an interesting analysis nonetheless! Well… I want to see how this T-Bill issuance ties in with the Sub-prime crisis.

But an interesting analysis nonetheless!

]]> By: Dumb, Dumber and Dumbest - A Synopsis of US Fiscal Policy « Martin Winer http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-32 Dumb, Dumber and Dumbest - A Synopsis of US Fiscal Policy « Martin Winer Thu, 14 Feb 2008 19:40:38 +0000 http://www.martincwiner.com/?p=34#comment-32 [...] is just in the process of bursting.  Finally, interest rate cuts increase government debt.  The way that the Fed lowers interest is by buying treasury bills with printed money.  This devalues the currency and increases [...] [...] is just in the process of bursting.  Finally, interest rate cuts increase government debt.  The way that the Fed lowers interest is by buying treasury bills with printed money.  This devalues the currency and increases [...]

]]> By: mwiner http://www.martincwiner.com/how-the-fed-changes-the-interest-rate/comment-page-1/#comment-31 mwiner Sat, 02 Feb 2008 03:13:01 +0000 http://www.martincwiner.com/?p=34#comment-31 Apropos to this post: Support the Abolition of the Federal Reserve System! http://capwiz.com/jbs/issues/alert/?alertid=10887821&type=CO Apropos to this post:
Support the Abolition of the Federal Reserve System!

http://capwiz.com/jbs/issues/alert/?alertid=10887821&type=CO

]]>