Old but Gold: Who owns the Federal Reserve?

From: http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#5

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Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

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Conclusion -
Yes but No, not really, but sort of...
:-)

Banking collapse

Chart of Fannie, Fredie, Lehman, WaMu, Merill

Telegraph did it again...

Tada...

here comes Telegraph.co.uk :

Beijing swells dollar reserves through stealth
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/26/ccchina126.xml

First I decided not to read this crap. However, too much people got the article serious.

Article is indeed crap, however I found the comments very interesting,
half of the people think this is scam, other half that EUR/USD will go to 1.20,
small minority thinks this is normal situation and if there any effect it will be (very) short term.

Currently I am resending the article to several people to see what they think.

Microsoft, Yahoo, Oil, The Consumer, Fast Money, "The Bird"

Not so interesting video, but worth watching...

Forex Lesons

Forex Secrets by PIPSTRADER
http://youtube.com/profile_videos?user=PIPSTRADER&search_query=secrets

Weekend readings

IMF Sales Don't Change Anything by Boris Sobolev
http://www.safehaven.com/article-9445.htm
(still not read this)

Uncle Sam Crying "Uncle!" by Antal E. Fekete
http://www.safehaven.com/article-9433.htm
(still not read this, friend said is good)

The Mother of all Bubbles by Peter Schiff
http://www.safehaven.com/article-9426.htm

HUI Leverage to Gold 4 by Adam Hamilton
http://www.safehaven.com/article-9424.htm

Inflation Killed by Recession! And Other Lies to Destroy Your Money by Adrian Ash
http://www.safehaven.com/article-9423.htm

Gold Traders see thru ECB's "Smoke and Mirrors" by Gary Dorsch
http://www.safehaven.com/article-9420.htm

Gift Card Sales Backfire by Michael Shedlock
http://feeds.feedburner.com/~r/MishsGlobalEconomicTrendAnalysis/~3/231700177/gift-card-sales-backfire.html

Now Accepting Gold And Silver by Michael Shedlock
http://feeds.feedburner.com/~r/MishsGlobalEconomicTrendAnalysis/~3/231821630/now-accepting-gold-and-silver.html

Sentiment Signs Says US$ Will Rally by Michael Shedlock
http://feeds.feedburner.com/~r/MishsGlobalEconomicTrendAnalysis/~3/231301853/sentiment-sign-says-us-will-rally.html

Treasury Market Bubble? from The Bonddad Blog
http://bonddad.blogspot.com/2008/02/treasury-market-bubble.html

What Inflation? from The Bonddad Blog
http://bonddad.blogspot.com/2008/02/what-inflation_07.html

Romanian Central Bank

Romanian Central Bank increased the base interest rate to ... 9.00 %

Eventual FED cut today

+----------+--------------+-------+------------------+
: Rate cut : USD reaction : Pips  : Buy              :
+----------+--------------+-------+------------------+
: 0.75     : down much    : 70+   : buy imediately   :
: 0.50 *   : down small   : 30-50 : wait for retrace :
: 0.25     : up small     : 30-50 : buy imediately   :
: 0.00     : up much      : 70+   : buy imediately   :
+----------+--------------+-------+------------------+

* 0.50% is expected.

The EUR/USD poll is removed

Now we know the EUR/USD high was "only" 1.49.66

With recent EUR/USD @ 1.47, will EUR hit 1.50 USD until (2007) year end

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The answers:
YES - 60% (wrong answer)
NO - 40% (correct answer)

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As you may know I personally voted "NO" :)

FED cuts...

Bernanke once again had anti-effect.

FED cuts:
0.25% from FED fund rate (called interest rate)
0.25% from FED discount rate (bank borrow from FED)

However the effect was anti-effect. USD rally against everything - EUR, GBP, CAD, Gold!?!?!

EUR/USD down to 1.46.60-90.

Stockmarket is down 1% (now is stabilized at ~ 0%)

Oil up.

Ron Paul on The Tonight Show with Jay Leno 10-30-07

http://www.youtube.com/watch?v=I1EFHgUXZaU
Here is the link.

Trade a news spike

How to speculative trade a spike:

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[1] The news comes out.
EUR/USD = 1.43.05

[2] The price spikes. Whoever is long take profit.
EUR/USD = 1.43.20

[3] The price fall to pre-news price. This is where you must enter.
EUR/USD = 1.43.10

[4] The price spikes again, usually make new high.
EUR/USD = 1.43.44

[5] The price fall and stabilize itself. This is where you sell.
EUR/USD = 1.43.30

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This is not a trading advice :-)

In fact this is highly speculative,
and you need to do it only if is in same direction with general trend

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p.s. For those who are new in forex,
I forgot to mention that this is not what just happen today,
but spikes almost always (95%+) have these five phases.