Several people have posted questions in the comment section. Here are the answers:
Anonymous: You are correct about the SPYs. They are the ETF tracking fund for the S&P 500.
Sven: How to I weigh technical indicators? That's a really good question. I'm a big fan of using very simple tools. Over the last 30 or so years a number of technical indicators have been developed which I am not a big fan of. It's not that they're bad, it's that I think they are too complicated. I like simple moving averages, general trend lines and the MACD. I'm also a big fan of volume analysis and indicators that incorporate price and volume. However, I'm very old school when it comes to technical analysis, relying most on the writings of Gartley, Gann and Schabacker. For anyone who wants to learn about technical analysis, I would highly recommend all three of the preceding authors.
Bohewasp: I have no idea what banks are member banks of the Federal Reserve system and I have no idea where to look. Anyone who has an idea please list in the comments.
Subscribe to:
Post Comments (Atom)
3 comments:
The US banking system
Any bank using the phrase, "National Bank" in its name must be a member of the Federal Reserve System. They must maintain minimum levels of reserves with one of the 12 Federal Reserve banks and must deposit a percentage of their customers’ savings account and checking account deposits in a Federal Reserve bank. All banks incorporated under a national charter are required to become members of the Federal Reserve System. Banks incorporated under a state charter may apply for membership.
Nationally Chartered banks are members of the Federal reserve system.
That'd include all the major NY banks, Chase, Citibank, etc., as well as Wells Fargo, Bank of America, etc.
There's quite a few.
Note that most multi-state banks are not national banks, but rather multiple state banks owned by a common bank holding company.
However, the distinction is not that critical, because almost all banks are members of the Federal Reserve system.
Each member bank in the Federal Reserve system participates in the election of the board of its Federal Reserve Bank ... one third elected by small banks, one third elected by middle sized banks, and one third elected by large banks. The board then elects the President, and the Presidents serve on a rotating basis on the Federal Open Market Committee (except for the President of the FRB-New York, who always sits on the committee) ... and the FOMC is the one that sets the most basic monetary policy instrument, the target cash rate (Federal Funds Rate).
So don't be surprised to see actions by the FOMC that serve the interests of banks ... a substantial part of the Committee is elected by boards elected by member banks.
Post a Comment