I asked earlier: I just want to know if this means the Fed will take equities from hedge funds as collateral for new money to then leverage and speculate in whatever they desire to push up and dump on the public.
This is like somebody falling down a set of stairs, but being able to slow their tumble several times along the way. You're still gonna hit the ground eventually.
This is like a captain faced with a ship that's taking on water. You stay at sea and sink, or go full bore for the shore and run her aground. The upside is that you're no longer going to sink. The downside is that you can no longer use it as a ship.
Crazy financial engineering got us in this mess so crazy financial engineering will get us out.
Am I rite?
Let me suggest that financial engineering, whether it is done by Wall Street or the Federal Reserve, amounts to nothing more than finding new ways to trick people in to paying more for something than it's worth.
The value of the underlying assets does not change with financial engineering.
On the ways in which we misrepresent their values in the markets.
I am willing to sing a contract to work for entire next decade for 50% of my existing salary in return for the entire salary for the duration is paid upfront now.
I thought I read that part of the feds latest plan is expanded rules for bank affiliates to access the fed.
As an AIG creditor why not tap the fed for what ever I am into AIG and pass it on to AIG in hopes it helps. At the end of the day either you end up owing the fed or getting jobbed by AIG you are out the same amount either way. And by accessing the fed for them at least you give them a chance.
staticfinal, the timing of that article could not be better at discrediting the fool. Reminds me of the scene w/ Kevin Bacon at the end of Animal House.
I am willing to sing a contract to work for entire next decade for 50% of my existing salary in return for the entire salary for the duration is paid upfront now.
Nemo writes: Did they actually use the words "safety and soundness"?
Well, having caused this all to happen, they want to make sure that the barn door is really adequate. That horse that ran away and was eaten by cougars back in 2001 was really valuable.
I loved Greenspan's 'once in a century event'. Taking refuge behind exceptionalism, Alan? Wouldn't be that a once-in-a-century bungler like yourself was the real key component in the equation, and everything proceeded like water flowing downhill from there.
"The steps we are announcing today, along with significant commitments from the private sector, are intended to mitigate the potential risks and disruptions to markets."
I gently repeat the more these fools do the worse thins is going to get.
$70 billion - suppose that would be cash right? Stacks of Ben's - a single stack would be 678 meters tall. Funny that's the exact height of the palladium ceiling in the Bear Stearns HQ.
More ice, maestro.
So, if the CDO you own is still investment grade [rated BBB- or better], they will trade it for US treasuries. Every dollar I ever worked for is now toast. Thanks a lot, fed fux
Luskin is insane. I could be insane, too, for the right money.
"McCain campaign adviser and former U.S. senator Phil Gramm was right in July when he said that our current state 'is a mental recession.' Maybe he was out of line when he added that the United States has become 'a nation of whiners.' But when it comes to the economy, we have surely become a nation of exaggerators."
Yes! Count me among the realists. I'm ready to VOLUNTEER in this "time of unity and shared vision"! I am will to work for freedom!
At the rate BofA is acquiring financial institutions, I think the number of failed banks will be exactly 1. The Bank of America which by then would have gobbled up all the other banks in an attempt to live up to its name.
I am in the private sector. I would like to pledge several rookie season baseball cards and pack of camel cigarettes once held by a friend of Madonnna. I would expect several million dollars since this is the value of these items on my books.
I repeat: Bagehot is spinning in his grave.
Taking equities.....What time does Lefty's open tomorrow?
Well this is bound to end well.
Hands large cup of Organic Nicaraguan coffee to CR.
I asked earlier: I just want to know if this means the Fed will take equities from hedge funds as collateral for new money to then leverage and speculate in whatever they desire to push up and dump on the public.
I wretch on the Federal Reserve!
We are all Argentina!
before the end of the year, they will accept "options".
We gonna see 1000 visitors on a Sunday night?
Sounds like intervention in the equity market now......Is this the begining of the end or the end of the begining...
What about Second Generation Star Trek trading cards? I have 2 Khans.
to crispy&cole:
As a Brazilian, I feel sorry for you if this is the case.
Big Flashy Citibank ad on cnbc just now -- we're the sh*t. Look at them go.
How do you short the Fed?
This is like somebody falling down a set of stairs, but being able to slow their tumble several times along the way. You're still gonna hit the ground eventually.
The Fed and Treasury's job is now to usher in an orderly Depression.
You're still gonna hit the ground eventually.
Are you sure it isn't stairs all the way down?
to VHB:
short the dollar.
Holy Shit.no,unholy shit.oh shit.
And then you fall over a turtle, JP.
Did they actually use the words "safety and soundness"?
Wilbur Ross on CNBC Asia!!
This is like a captain faced with a ship that's taking on water. You stay at sea and sink, or go full bore for the shore and run her aground. The upside is that you're no longer going to sink. The downside is that you can no longer use it as a ship.
And there's a hurricane on the horizon.
Anyone planning on writing a book on about this meltdown experience?
The link to CNBC asia is on CNBC front page.
Crazy financial engineering got us in this mess so crazy financial engineering will get us out.
Am I rite?
Let me suggest that financial engineering, whether it is done by Wall Street or the Federal Reserve, amounts to nothing more than finding new ways to trick people in to paying more for something than it's worth.
The value of the underlying assets does not change with financial engineering.
On the ways in which we misrepresent their values in the markets.
The PPT is at war with shorts ...
The Fed will underwrite the assault.
Wilbur agrees with Treasury.
There is trade unwinding in NY right now, even on Sunday.
Damn, AIG meltdown is now the story.
C&C I think you were dead on with your CDS exposure statement. Ike is also in there complicating their lives.
How many trillion dollar exposures can we absorb in one week?
CR-
ya busy?
Wilbur thinks that 1000 banks can fail before this all ends.
dude there's a line at lefty's all the way to the east river.
Clear title's to mobile homes? Paper for cash - let the printing begin.
Stop calling it financial engineering. It is financial crap
Yes. He said 1000 banks. Just to confirm.
SN: "Anyone planning on writing a book on about this meltdown experience?"
Naomi Klein has done this.
There is trade unwinding in NY right now, even on Sunday.
I predict a run on 8-balls in Manhattan tonight.
usa
7/4/1776-9/14/2008
rip
How many banks are there? 1000 out of ______?
I am willing to sing a contract to work for entire next decade for 50% of my existing salary in return for the entire salary for the duration is paid upfront now.
In company out there?????
Hey guys the economy is well check out this article from Don Luskin on The WAPO today (end sarcasm): Quit Doling Out That Bad-Economy Line - washingtonpost.com
I thought I read that part of the feds latest plan is expanded rules for bank affiliates to access the fed.
As an AIG creditor why not tap the fed for what ever I am into AIG and pass it on to AIG in hopes it helps. At the end of the day either you end up owing the fed or getting jobbed by AIG you are out the same amount either way. And by accessing the fed for them at least you give them a chance.
Wilbur interview on CNBC Asia just ended.
To complete, he also said that he is looking for depository institution to buy.
947 visitors watching Ben gas up the helicopter.
Stop calling it financial engineering. It is financial crap
They should call it what it is:
Creative lying.
over how many peoples heads is the 8 ball reference gonna go?
Dont know. He just said around 1000 banks could default.
Not mine, obviously.
But I'll be candy flipping instead.
staticfinal, the timing of that article could not be better at discrediting the fool. Reminds me of the scene w/ Kevin Bacon at the end of Animal House.
over how many peoples heads is the 8 ball reference gonna go?
Noses, not heads.
over how many peoples heads is the 8 ball reference gonna go?
Anybody who works on Wall Street is gonna get it.
I am willing to sing a contract to work for entire next decade for 50% of my existing salary in return for the entire salary for the duration is paid upfront now.
What key? You aren't William M. Later, are you?
just got a call from boss, wants me in prior to 6am...somethings cooking
ew thread is up.
49th YO
Nemo writes:
Did they actually use the words "safety and soundness"?
Well, having caused this all to happen, they want to make sure that the barn door is really adequate. That horse that ran away and was eaten by cougars back in 2001 was really valuable.
I loved Greenspan's 'once in a century event'. Taking refuge behind exceptionalism, Alan? Wouldn't be that a once-in-a-century bungler like yourself was the real key component in the equation, and everything proceeded like water flowing downhill from there.
over how many peoples heads is the 8 ball reference gonna go?
The last few days seem more like a time for acid. From my perspective, at least.
Late to table: What industry?
Any link to the WSJ article?
Understand that the MER/BSC deal is to be NO CASH, all stock. Is this an issue of new stock? If so, massive dilution.
Fire/Ice--still unclear how it ends.
So at the end of the day, did Paulson keep his word about government intervention?
Like, the magic, mystical 8 ball from the '70s, ask it a question and see what bobs up as the answer?
I thought sure they could postpone this until after the elections ...
Where is Congress to challenge this blind trust and open pocket book?
Stick a fork in Wall St financial ponzi scheme.
Maybe America will go back to making things for a living.
anybody know of a way to effectively short the NYC real estate market?
"The steps we are announcing today, along with significant commitments from the private sector, are intended to mitigate the potential risks and disruptions to markets."
I gently repeat the more these fools do the worse thins is going to get.
History in the making, and I blogged thru it.
UBS
CR:
Thanks so much for the OT work on a Sunday. This really is the best housing and economics blog on the web!
Vato
Anyone planning on writing a book on about this meltdown experience?
I'm planning to write a heroic epic about the fall of the American empire. The bankrupt economic policies will definitely have to figure in.
The facilities, the collateral, the cycles, the funds, .... all expanded. The FED is throwin' $$$$ out the window.
What a freakin' mess.
If Lewis is really sharp, he'll use all the facilities to buy Americka piece by piece.
How many containers is this now?
The Reagan Economy of supply side economics and deficits don't matter has finally matured i.e. we've all been trickled on with a golden shower.
Wow! the Fed has now taken the faucet off the pipe and the financial companies can drink direct from the money flow.
I sure hope those Fed printing presses don't overheat.
998
When I become Secretary of Everything Financial in the new McSame Administration, my first task will be to implement The Plan to save the economy.
The Plan involves:
1. Tax Cuts
2. Deregulation
3. A ban on whining
The result?
We'll all be rich, like lobbyists.
1000 visitors online!!!
The last few days seem more like a time for acid. From my perspective, at least.
Clearly, it's been a time for weed.
"The more man smoke herb, the more Bablylon fall."
Chant down Babylon, Brother.
We are all CSC now.
So let's post pone the show until mid october and finish it of with one hell of a grand finale ...
Does $44B in BofA stock HAVE TO slaughter BofA in the process?
I dunno if I've shared this one:
YouTube - Dezarie - Judgement Come
Too divisive for my tastes in terms of her general lyrical content, but her voice is awesome.
Of everything written in that release, the last para concerns me most of all. What on earth caused them to go to that extreme ?
Also, "1005 Visitors Online"
1005 Visitors Online!!!
bac to 28
I just ate a whole lotta burritos and prunes... I'll be taking my imminent "collateral" to the fed.
Nice roots, Byz.
Byzantine, nice find. I'm likin it.
She does have a sweet voice.
$70B fund of 10 banks?
Didn't this idea already fail?
Nice roots, Byz.
Thanks. Just got to see Pato Banton a couple months ago.
I know I've dropped some of these guys before but these guys are awesome, pretty much the torchbearers of modern roots.
YouTube - Be Aware - S.O.J.A
SOJA really sound like the best parts of Steel Pulse, musically, with a much more Black Uhuru-type content.
$70 billion - suppose that would be cash right? Stacks of Ben's - a single stack would be 678 meters tall. Funny that's the exact height of the palladium ceiling in the Bear Stearns HQ.
More ice, maestro.
So, if the CDO you own is still investment grade [rated BBB- or better], they will trade it for US treasuries. Every dollar I ever worked for is now toast. Thanks a lot, fed fux
Give me your tired collateral yearning to be pledged...
I don't like regulations. I should be able to do whatever I want. Also, I shouldn't have to pay taxes. Waaaahhhhh!
Vote for McCain. He will continue voodoo economics...
debora writes:
before the end of the year, they will accept "options".
debora | 09.14.08 - 9:51 pm | #
Will they accept my debt? Cuz, I ain't got no options!
Ray, I agree.
The wording suggests it's extralegal. Congress? What say you?
What would Sarah Palin do?
Markets will rally tomorrow.
masaccio writes:
What would Sarah Palin do?
masaccio | 09.14.08 - 11:00 pm |
I wouldn't blink.
Give her some slack. She is still reading the wiki page on the Bush Doctrine.
Where's Sebastian?
We need someone to set us all right on why this is no big deal.
Luskin is insane. I could be insane, too, for the right money.
"McCain campaign adviser and former U.S. senator Phil Gramm was right in July when he said that our current state 'is a mental recession.' Maybe he was out of line when he added that the United States has become 'a nation of whiners.' But when it comes to the economy, we have surely become a nation of exaggerators."
Yes! Count me among the realists. I'm ready to VOLUNTEER in this "time of unity and shared vision"! I am will to work for freedom!
This is going to leave a mark. So have we finally entered into monetizing debt.
The Chinese, Japanese, Russia etc are not going to like this.
How long before they start to unload our crappy paper.
The first to move wins.........
At the rate BofA is acquiring financial institutions, I think the number of failed banks will be exactly 1. The Bank of America which by then would have gobbled up all the other banks in an attempt to live up to its name.
Teach everyone how to hunt moose 'cos that is all there will be left to do when the conservatives are done ruining the country.
rational: Moose and squirrels.
I am in the private sector. I would like to pledge several rookie season baseball cards and pack of camel cigarettes once held by a friend of Madonnna. I would expect several million dollars since this is the value of these items on my books.
Does anyone know what are the haircuts on the collateral to the Fed money?
This is like a captain faced with a ship that's taking on water... and the captain throws in a bunch of ice cubes to cool it down a bit.