Half of the states are bankrupt with California about to completely run out of money and unable to even float more bonds. Auto sales are plunging by over 30% with GM down 41% and auto sales account for 18% of all retail sales which means retail sales are plunging into the red big time. Layoffs [...]
It wasn’t Fannie and Freddie paying bankers to make risk-insane loans by buying up their garbage and transferring that risk to the taxpayers, thus paying off Republican banking interests and low income Democrat voting blocks with one stupendous scam. It wasn’t banks hiding “assets” off books and assigning any value they wished to junk paper. [...]
If this succeeds in doing anything, it will be only to delay the collapse of the currency and our government’s ability to fund its programs and departments.
We should let it fail but, we won’t until it is forced upon us. As Von Mises stated, you either voluntarily end the credit expansion and reform out of [...]
Nov. 10 (Bloomberg) — The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency [...]
I confess to still trying to get the hang of this market. But that won’t stop me from continuing to guess, as foolish as that may sound. Twice now recently, when there has been a deep downturn, in the low 8,000s for the Dow, the bulls have found an excuse to jump back in for [...]
The Fed announced that it and other central banks would be providing unlimited liquidity to anyone who wanted it, more or less.
http://www.dailyreckoning.com.au/financial-system-no-doc-loan/2008/10/14/
–Specifically, it said that participants to its new lending program, “will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction.” This is like a giant no-money down, [...]
1. Valuing distressed securities is very time consuming and the idea of an auction process is a non-starter. There’s no way that any of those securities are comparable to each other. The terms are different. The collateral is different, for example, houses in different locations have different patterns of default.
2. If the government receives [...]
Prices will correct significantly to
the downside to achieve congruency unless
some new impetus for mass borrowing by
consumers emerges…which ain’t happening.
Consumers are maxed out with debt and
the assets they used for collateral for
creating more debt are declining in value.
Show’s over folks.
Paying for McDonalds drive-thru
with a credit card should have made
it obvious we were near the [...]
By Greg Robb
WASHINGTON (MarketWatch) — The Federal Reserve on Monday announced that it was providing more liquidity into global money markets to ease recent strains. The Fed said it was boosting the size of its auctions of liquidity to commercial banks and the size of its swap agreements from a number of foreign central banks [...]
American Banker | Friday, September 26, 2008
By Steven Sloan
WASHINGTON During another turbulent week on Wall Street, lending through the Federal Reserve Board’s discount window skyrocketed to $262.3 billion on Wednesday, thanks to new lending programs unveiled during the week.
It was the second record in as many weeks and more than double from the previous high [...]
Fed Accepts $8 Bln In Overnight RPs
Last Update: 8/28/2008 9:50:53 AM
Type of transaction: Overnight RPs
Total accepted: $8 Bln
Total submitted: $22.15 Bln
Agency Collateral Operation
Total accepted: $854 Mln
Total submitted: $2.9 Bln
Stop-Out Rate: 2.05%
Weighted Average: 2.05%
High-rate submitted: 2.06%
Low-rate submitted: 2%
Treasury Collateral Operation
Total accepted: $4.715 Bln
Total submitted: $14.5 Bln
Stop-Out Rate: 2.01%
Weighted Average: 2.04%
High-rate submitted: 2.06%
Low-rate submitted: 1.88% [...]
Fed Accepts $17.25 Bln In Overnight RPs
Last Update: 5/7/2008 9:41:29 AM
Type of transaction: Overnight RPs
Total accepted: $17.25 Bln
Total submitted: $35.25 Bln
Agency Collateral Operation
Total accepted: $6.608 Bln
Total submitted: $14.6 Bln
Stop-Out Rate: 1.91%
Weighted Average: 1.91%
High-rate submitted: 1.91%
Low-rate submitted: 1.87%
Treasury Collateral Operation
Total accepted: $10.642 Bln
Total submitted: $18.4 Bln
Stop-Out Rate: 1.87%
Weighted Average: 1.89%
High-rate submitted: 1.9%
Low-rate submitted: 1.75% [...]
Moody’s has downgraded the ratings of 45 tranches from 13 Alt-A transactions issued by Citigroup Mortgage Loan Trust. Seventeen tranches remain on review for possible further downgrade. Additionally, 27 tranches were placed on review for possible downgrade. The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were [...]
UBS AG (UBS) will soon allow clients frozen in auction-rate securities to borrow
up to 100% of the par value of their holdings.
The enhanced loan program, announced Friday to its financial advisors, will allow
clients to borrow through UBS Bank USA. The interest rate on the loan will be
Libor plus 50 basis points.
Previously, clients were allowed to [...]
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