The Phaserl


This Can Cause The Entire Financial System To Collapse

from KingWorldNews:

“Do We need A Dodd-Frank Rule For Central Banks? – I was paging through my friend, John Hussman’s latest report and came across this rather astounding paragraph:

A brief update on the bloated condition of the Federal Reserve’s balance sheet. At present, the Fed holds $3.84 trillion in assets, with capital of just $54.86 billion, putting the Fed at 70-to-1 leverage against its stated capital. Given the relatively long maturity of Fed asset holdings, even a 20 basis point increase in interest rates effectively wipes out the Fed’s capital. With the present 10-year Treasury yield already above the weighted average yield at which the Fed established its holdings, this is not a negligible consideration.

That becomes even more astounding when you add in this little tidbit from a recent Peter Tchir analysis:

Art Cashin continues @

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2 comments to This Can Cause The Entire Financial System To Collapse

  • Frank Zak


    The sky is falling.


  • karate kid

    frank I fail to see your point?

    what are you trying to say facts are a joke or

    or the jokes on the American public

    I remember back in 2006 everyone was doing great .
    now i kow everyone is hurting except me prepare and live make jokes and die
    my friends that laughed are now more broke than every and complaining pretty funny when they get the facts they ridicule you then end up the biggest whiners

    my name is chiclen little and karate kid is my alias

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