It is time we checked back in on the Fed's Garbage Barge.
Last time we looked in, the Federal Reserve had expanded its negligible 'non-standard' assets (assets other-than USG and Agency securities) from 4% of total assets in September 2007 ($38 Billion out of $893 Billion) up to 60% of total assets in October 2008 ($906 Billion out of $1.5 Trillion).
Like the original Garbage Barge, the Fed's scow continues to drift, with no final port of call in sight...
Today we find 'non-standard' assets of $1.4 Trillion accounting for a whopping 72% of the Federal Reserve's total assets ($1.9 Trillion, as of January 28th).
This $1.4 Trillion includes the alphabet-soup of funding facilities (TAF, TSLF, CPFF, MMFF, ABCPFF, etc.), as well as the toxic waste dumps 'Maiden Lane' I (Bear Stearns) and 'Maiden Lane' II & III (AIG), and 'Other Loans'.
(Keep in mind that these 'Assets' are what supports the Fed's Liabilities - the green pieces of paper in your wallet).
In a related article, the WSJ reports that ultra-large Mega-ships are putting additional stress on an industry already suffering from over-capacity. The MCS Daniella, carrying 13,800 containers, is the first of a wave of such gargantuan ships to be scheduled for launch in the coming months.
With harbors filling with surplus ships, and shipping rates at their lowest levels in years, the Federal Reserve may want to take the opportunity to book a mega-ship or two to carry its growing cargo...
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I think a better title for the article would have been Mega Garbage On A Ship. Im just kidding, but I figured I would add some humor. It was a good read.
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I have never had the opportunity to see those ship that they took the trash to an island. I think that it is the best way to do it. but it is better to have all the trash outside the main city. but some of that trash can fall to the ocean and increase the pollution that it is high enough. hr32
ReplyDeleteAmazing, is something almost insane the high levels of trash that a country like the USA or china produce in one day, i wonder if this trash in treated or something or even some recycle.
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