Saturday, May 8, 2010

Fed Charts...

Above is the published value, as per the Fed, of Maiden Lane Holdings.

The holdings in this entity are the absolute crap, bottom of the barrel assets that they were forced to take when Bear Stearns failed. Well, does it remind you of anything?

Ok, the markets have swung from 666 to 1230 and these assets barely moved? Do you have a hint yet?

Ok, JPM and Goldman Sachs $115 trillion dollar derivatives books look just like this. Imaginary marks and all. Where did they get the idea for creative marking like this. You guessed it - the Fed.

There is no way in hell that assets of any kind project value the way that the chart above represents. The Fed is clearly lying, just as the other big banks are. The swings in realistic valuation are huge and would not simply be plus or minus a few percent here of there. Especially when you consider that 86% of Maiden Lane holdings is hospitality related debt. Meaning hotels.

Business is not so good for hotels and Red Roof Inn is just one example. Below is a graph of the hotels index as levitated with fed issued credits and manipulation.

Now look at the fed graph again...notice the similarity? I did not think so.
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