Oh Dear : Us Federal Reserve Is Broke

[sappatz]

http://www.bloomberg.com/apps/news?p...iW8&refer=home

[AlfredJPruffock]

Watch the Grenbacks tumble
Feel the Sterling Crumble
You need the luck
To make a buck
But you're living on instict

Better keep cool on Wall St - when you're index is low

[chef]

"the Treasury said it would sell $30 billion in 20-day cash management bills with a closing competitive bid time of 11:30 a.m. New York time and $30 billion in a 76-day cash management bill with a closing competitive bid time of 1 p.m. "

can someone explain this to a none finance market savvy geek like me please..

are they effectively releasing more cash into the system?
what is a 20-day cash management bill?
how would you bid for $30 billion? surely the bid should be $30 billion or nothing?

[BrilloPad]

Cant they just print more money?

[BrilloPad]

"the Treasury said it would sell $30 billion in 20-day cash management bills with a closing competitive bid time of 11:30 a.m. New York time and $30 billion in a 76-day cash management bill with a closing competitive bid time of 1 p.m. "

can someone explain this to a none finance market savvy geek like me please..

are they effectively releasing more cash into the system?
what is a 20-day cash management bill?
how would you bid for $30 billion? surely the bid should be $30 billion or nothing?

looks like the fed is borrowing money. who has got the money to lend them? I guess it is sovereign funds.

[HairyArsedBloke]

It's the US Treasury that are doing the borrowing from the market. Who will lend them the money? All those people who doing want to hold US Stocks and want to hold 'safer' US Bonds.

[ThomasSoerensen]

looks like a credit downgrade of US treasury bonds by the rating agencies is due - will it happen? Whaddayathink?

[ace00]

Cant they just print more money?

They are, probably 1/2 trillion $ (that's a guesstimate).
$ would already have taken the hit but as everything is getting hit where do you go?
They are eating money!!

[BrilloPad]

It's the US Treasury that are doing the borrowing from the market. Who will lend them the money? All those people who doing want to hold US Stocks and want to hold 'safer' US Bonds.

Good question! I guess its the sovereign funds? Probably Arab and Chinese?

Soon USA is going to be owned by them - what will happen then? A massive shift of power?

[HairyArsedBloke]

Good question! I guess its the sovereign funds? Probably Arab and Chinese?

Soon USA is going to be owned by them - what will happen then? A massive shift of power?

Well, I don't want to worry everyone but....

International Holdings of US Treasuries:

1. Japan
2. China
3. UK

Source: US Treasury