tag:blogger.com,1999:blog-2761684730989137546.post9018233456302057076..comments2024-03-28T04:13:36.779-04:00Comments on Mike Norman Economics: ECB "Writes the Check"mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2761684730989137546.post-72635043422428904522011-08-19T01:53:56.667-04:002011-08-19T01:53:56.667-04:00ahh I see. Yes rather funny for the CB to do that....ahh I see. Yes rather funny for the CB to do that. I mean the whole point of them purchasing them is b/c of the fact that their market value is so terrible, so who do they think they are "fooling" anyway!?!? LOL<br /><br />That's great news to hear about the spending. These politicians are weird folks man. Weird.Mariohttps://www.blogger.com/profile/00905402431684735610noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-40591734505088250392011-08-18T19:21:32.068-04:002011-08-18T19:21:32.068-04:00Mario,
I think usually, if you say that you are h...Mario,<br /><br />I think usually, if you say that you are holding a bond to maturity, the regulators let you carry it at book, even though the market value of the security may have fallen. <br /><br />This is a CB anyway so it is different as the ECB more or less can do anything it wants. One reason I highlighted it was that it is basically absurd for a CB to even be concerned about such issues. The concern about "held to maturity" would definitely apply to member institutions, but it may give the wrong impression about a CB...<br /><br />Resp,<br /><br />btw I looked at the US govts net spending (fiscal flow) for the 5 statement days ending yesterday (Weds) and they seem to be back on: $36B net for the 5 days, if you base a month on 20 statement days, that is a flow of over $130B/mo, much higher than when we were at debt ceiling, the "soft spot" may have ended as Geithner may be opening the spigot to wide open...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-34284941958234163952011-08-18T18:34:00.759-04:002011-08-18T18:34:00.759-04:00"Both portfolios are accounted for on a held-..."Both portfolios are accounted for on a held-to-maturity basis."<br /><br />what does that mean exactly? They are holding the bonds until maturity? <br /><br />I'm really starting to get pissed off with this whole forex swap line with the Fed. WTF man!!!<br /><br />Ramanan has a point about the Fed being its own entityMariohttps://www.blogger.com/profile/00905402431684735610noreply@blogger.com