Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fail Banks?

What you are about to read should absolutely astound you.  During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret.  Do you remember the TARP bailout?  The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the “too big to fail” banks.  Well, that bailout was pocket change compared to what the Federal Reserve did.  As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010.  So have you heard about this on the nightly news?  Probably not.  Lately Bloomberg has been reporting on some of this, but even they are not giving people the whole picture.  The American people need to be told about this 16 trillion dollar bailout, because it is a perfect example of why the Federal Reserve needs to be shut down.  The Federal Reserve has been actively picking “winners” and “losers” in the financial system, and it turns out that the “friends” of the Fed always get bailed out and always end up among the “winners”.  This is not how a free market system is supposed to work.

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Chart of the Week – Oil’s Breakeven Price

One way to gauge support for the price of oil is to calculate the breakeven price. In other words, what is the dollar amount per barrel that would be required for an oil-producing country to balance its fiscal budget?

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The Currency War Big Picture Analysis for Gold, Silver & Stocks

I think you will admit that we are in the middle of one major crazy financial mess.  The part that makes things really crazy is that it’s not just in the United States anymore but rather serious global problem which if not handled properly could change the way we live our lives going forward or possibly even spark some type of war, hopefully things don’t get that crazy… But I do know one thing. Fear is the most powerful force on the planet and people do some crazy things when they are backed into a corner.

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Facebook IPO: How to Trade Facebook Today

The 800-pound gorilla is about to enter the room.  Facebook wants to IPO in the second quarter of 2012 with a $10 billion offering, valuing the company around $100 billion.

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You Want to See a Sobering Real Estate Chart?

For most people, Friday’s just the day before the weekend. Here at Wall Street Daily, though, it’s much more.

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Why Siri is Apple’s Silver Bullet

There’s zero question that Google’s (Nasdaq: GOOG) Android operating system is top dog right now. It lays claim to 52.3% of the smartphone market – more than double its marketshare in 2010.

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What Have The Central Banks Of The World Done Now?

The central banks of the world are acting as if it is 2008 all over again.  Desperate times call for desperate measures, and right now the central bankers are pulling out all the stops.  The Federal Reserve, the European Central Bank, the Bank of England, the Bank of Canada, the Bank of Japan and the Swiss National Bank have announced a coordinated plan to provide liquidity support to the global financial system.  According to the plan, the Federal Reserve is going to substantially reduce the interest rate that it charges the European Central Bank to borrow dollars.  In turn, that will enable the ECB to lend dollars to European banks at a much cheaper rate.  The hope is that this will alleviate the credit crunch which has gripped the European financial system by the throat.  So where is the Federal Reserve going to get all of these dollars that it will be loaning out at very low interest rates?  You guessed it – the Fed is just going to create them out of thin air.  Our currency is being debased so that Europe can be helped out.  Unfortunately, the impact of this move will be mostly “psychological” because it really does nothing to address the fundamental problems that Europe is facing.  It is up to Europe to solve those problems, and so far Europe has shown no signs of being able to do that.

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Why Most of Us Won’t Change Banks

Did you ever look at a bank’s website and think to yourself, “Why would they give you free bill pay when they charge for everything else?” Even with the super-restrictive accounts that limit ATM deposits and withdrawals; put holds on most of your checks; and demand monthly fees or regular savings transfers; bill pay is usually offered free.

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Stocks Trading for Less Than the Price Prem Watsa Paid for Them

Of Prem Watsa’s 42 stocks in his current portfolio, only three trade for a lower price than when he originally bought them. He added significantly to his holdings in each of these companies in the last quarter. Watsa is a value investor who purchases stocks of companies with excellent track records with the intent to hold for the long term. Watsa, founder and CEO of Fairfax Financial Holdings, has achieved a 154.6% 10-year cumulative return, compared to 16.4% for the S&P 500.

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Jesse Livermore and setups

Jesse Livermore was one of the most successful speculator . During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. $100 million in 1929 was close to billion of today or more. He did not lose all his money in market, lot was lost in divorce and colorful lifestyle. He committed a suicide.

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