This smells a lot like bad money driving out good...
I worry that Government "credit price controls" (forcing lending at below-market rates) are starting to drive out private sector supply. Just like the 1970s oil price controls caused supply to decline and shortages to appear. Now, everyone will go to the government for loans that they "need", and those who get the limited supply will be receiving non-market competitive advantages over those who borrow at market rates.
Government, of course, will lend money based on "to each according to his need", and since we already tax based on the ability to pay, the complete Corporate Communist paradigm will be enacted...
Not good... this experiment in has to be unwound gracefully ... somehow.
"From each according to his ability, to each according to his 'need'".
When the bureaucrats get to decide who's "needs" come first, the cult of government looting really gets up and running.
This smells far too much like Atlas Shrugged... except we don't have any heroic capitalists fighting this dysfunctional system. They're all lining up for handouts!
As the hyperinflation took over, how did the people actually get the $10 billion bills? If their savings are in the pre-inflation times, it would, let's say, $1000, or so...
So did the government just literally hand out $10 Billion bills ?
The Federal Reserve bought commercial paper valued at $145.7 billion in the first days of the program aimed at backstopping the market, indicating the central bank is generating most of this week's record gains in short-term corporate borrowing.
The central bank extended $144.8 billion of loans as of yesterday to a unit that paid $143.9 billion for the debt, the Fed's weekly balance-sheet report said today."
This makes my head hurt. What's with the $900 million gaps between the value of the CP bought by the Fed, the loans extended by the Fed as of yesterday, and the amount paid by "a unit" for the debt? Is that some sort of negative commission? Are those first two paragraphs talking about two or three different things? Apparently, I'm either a) not smart enough to understand this mess or b) asking questions where none are allowed.
I'm only ringing the doorbell of the Fed on Halloween, and I'll keep going back until they tell me to stop or the bag o' money is empty. BTW, I think I am going to dress up as PIMCO founder Bill Gross. Anyone have a five-head mask I can borrow?
A surprise approach from US Secretary of State Condoleezza Rice has led to her having a phone conversation with Finance Minister Michael Cullen about the global financial crisis as the world's biggest economies prepare to hold a crucial meeting.
Dr Cullen took a break from the campaign trail at around 11.45am yesterday to speak to Dr Rice by telephone as she sought views ahead of the Group of 20 meeting to be held in Washington on November 15.
The meeting is viewed as potentially pivotal in deciding what more can be done to address the crisis.
The Herald understands the US State Department approached Dr Cullen's office seeking the conversation [snip]
Earlier in the morning Dr Cullen told the Herald that the conversation was initiated by the US
Bwahahahaha!
Seeking advise from little old NZ, you guys are so screwed...
(cause we don't have any good ideas except running Govt surpluses.)
That is one amazing balance sheet -- leverage is 50 to 1!
I'm curious about the various FR Banks -- can Richmond decide that it doesn't like what NY is doing and get out of the system?
This makes my head hurt. What's with the $900 million gaps between the value of the CP bought by the Fed, the loans extended by the Fed as of yesterday, and the amount paid by "a unit" for the debt?
From what I understand from a friend that works for an NGO in central Africa, the short answer is "yes."
Basically, what happens is that general inflation kicks in (e.g. Mugabe needs to pay his gangsters with fiat money), so initially people start having to carry more of the existing bills. Of course that becomes burdensome, so the central bank issues more the larger denominations. People see the larger denominations more frequently, so they demand higher prices, etc. rinse repeat.
AIG Rescue May Expand After $20.9 Billion Request (Update1)
By Hugh Son
Oct. 30 (Bloomberg) -- American International Group Inc., the insurer with a $122.8 billion credit line from the U.S., got another $20.9 billion under the Federal Reserve's commercial paper program designed to unlock short-term debt markets.
Your savings in local currency evaporate quickly and a reserve currency emerges. If you are fortunate enough to have a job, but unfortunate enough to be paid in local currency you will convert to the stable currency as quickly as you can. Your nominal salary goes up with every paycheck (one month you get 5,000 local units, the next month you get 50,000 local units), but your real salary goes down quickly.
ANd this is definitely OT, but hey...apologies if repost
GM-Chrysler Merger May Cost 74,000 Jobs, Report Says (Update2)
By Mike Ramsey
Oct. 30 (Bloomberg) -- A merger of General Motors Corp., the largest U.S. automaker, and Chrysler LLC may cost 74,000 jobs and close half of the smaller company's plants, according to a report from an accounting firm.
The combination may eliminate all but seven of Chrysler's car and truck models, Grant Thornton LLP said. Chrysler, the No. 3 U.S. automaker, would keep the Dodge Ram pickup, minivans and some Jeep models, the report said. GM and Chrysler owner Cerberus Capital Management LP are studying a merger, people familiar with the plans have said.
The automakers will probably have a tentative agreement before the Nov. 4 U.S. presidential election, said Kim Rodriguez, who leads Grant Thornton's automotive restructuring group. Still, a tie-up will be impossible without an infusion of cash to bolster the balance sheet of the new company, she said.
The proceeds will help refinance AIG's outstanding commercial paper and pay down AIG's original $85 billion loan from the Fed, the firm said in a regulatory filing.
Umm. The whole purpose of the Libor + 800 bps loan was to punish AIG.
Since the FED reported earlier that commercial paper outstanding is up $100.5b for the week. With this report, isn't the change in outstanding paper net of FED purchases ($44b)? Nice tiered release.
In the weeks after the election, as the political stalemate persisted, the value of Zimbabwes currency plummeted. Before crossing the border from South Africa, I had exchanged a hundred American dollars for three trillion five hundred billion Zimbabweanthirty-five billion to a dollar. Most of the cash was newly minted five-, twenty-five-, and fifty-billion-dollar notes, with pictures of giraffes and grain silos. A few days later, the going rate was a hundred billion to one. Food prices tripled overnight, and many salaries were made virtually worthless. Cash was becoming nearly impossible to obtain; banks were allowing customers to withdraw the equivalent of only one U.S. dollar per day. The effect was a state of existential madness. Prices bordered on the fantastic, and ordinary people had to grapple with calculations in the trillions for the most prosaic transactions. One day, I wandered into a supermarket to buy some water. The price for a half-litre bottle was $1,900,000,000,000 Zimbabwean, or nineteen U.S. dollars. On a nearby shelf, I found a bottle of Johnnie Walker Black for $83,000,000,000,000.
If the markets can close at or above these levels tomorrow, then from a weekly perspective, we've set up that "nice rally" some are forecasting - probably lasting into mid-November, probably 10% higher. But that would only lead to another "nice shorting opportunity" imo.
We feel very well capitalized,'' Zlatkus said in the conference call.But in terms of would we access the Capital Purchase Program, if that's available -- we certainly think there are favorable terms as we see it and we would look to do that.''
U.S. life insurers reached out to Treasury officials last week in hopes of securing some of the $250 billion set aside to prop up ailing financial companies. Some of the firms asked the government to make participation mandatory because they don't want to identify themselves as needing government intervention, said an industry official with knowledge of the discussion.
PeakVT writes:
The Bush administration is on track to nationalize the entire finance sector by the end of the year, and yet Obama gets called a socialist.
Truman gets the credit for dropping the atomic bomb.
"Schwarzman, the founder and CEO of Blackstone and a prominent Republican donor, argued that the crisis was caused by too much regulation in the banking and brokerage industries."
PeakVT writes:
The Bush administration is on track to nationalize the entire finance sector by the end of the year, and yet Obama gets called a socialist.
Hmmm.
And they say the media is liberal.
WE have no compass in this country regarding anyting, let alone morality.
What happened to honor, country, duty?
People throw things out into the ether and just hope it sticks.
Maybe Jas is right, we are all born and bred dopes.
White House spokeswoman Dana Perino said Thursday that the secretaries of the Treasury, Commerce and Energy departments are talking with the automakers.
"We understand that they've been facing tough times for a while. They've made business decisions that unfortunately have put them in this position..."
What am I missing? The banks did the EXACT same thing!
The internal auditor resigned and is now in seclusion, according to a former colleague. His account, from a prepared text, was read by Representative Henry A. Waxman, Democrat of California and chairman of the House Committee on Oversight and Government Reform, in a hearing this month.
Nemo:
Fed is getting OIS + 100 bps for unsecured plus a 100 bps fee and OIS +300 for secured. Also, registration costs 10 bps of whatever the company registers for.
Germany plans to introduce a range of steps worth up to about 30 billion euros ($39.17 billion) to boost investment in Europe's biggest economy, cabinet minister Michael Glos said on Thursday.
"We could get to about 30 billion euros with the support package," conservative Economy Minister Glos told reporters on the sidelines of an event in Berlin.
The plans, due to go to cabinet next Wednesday, will include support for the auto sector and building renovation as well as tax breaks enabling companies to write off a share of their investments, several German newspapers reported. ...
The sorrows never cease, because they refuse to make a choice to adopt more modern methods. The best continuously flee to the West, causing Brain Drain on a immense scale.
Everybody wants the West to help Africa, but we tried Colonialism, we tried Post Colonialism, what we need to try is simply letting them figure out what they want on their own. If they choose to be savage and inhumane, remember at times in our history, we were too.
They have their own destiny, and they need to make it- and tugging at our heartstrings for change will do nothing to change what an entire continent does.
While my heart bleeds for the people, the head knows that whatever we do, it will amount to nothing until they decide to make it different.
Mugabe is the perfect symbol of what I am talking about. The respect of the ANC has allowed a fool to plunder and destroy a country. Now they reap the whirlwind of refugees and broken economic systems outside their cities.
I am not responsible for their decisions. I can't be, without making myself their dictator, something I have no desire to do.
AIG's 8K Statement:
On October 27, 2008, four affiliates of American International Group, Inc. (AIG) applied for participation in the Federal Reserve Bank of New Yorks Commercial Paper Funding Facility (the CPFF). AIG Funding, Inc., International Lease Finance Corporation, Curzon Funding LLC and Nightingale Finance LLC may issue up to approximately $6.9 billion, $5.7 billion, $7.2 billion and $1.1 billion, respectively, of commercial paper under the CPFF.
These AIG affiliates will be participating in the CPFF on the same terms and conditions as other companies that have recently announced plans to participate in the CPFF.
Proceeds from the issuance of the commercial paper will be used to refinance AIGs outstanding commercial paper as it matures, meet other working capital needs and make voluntary prepayments under AIGs $85 billion credit facility with the Federal Reserve Bank of New York.
Argentine Pension Fund Investments in U.S. Are Frozen (Update3)
By David Glovin
Oct. 30 (Bloomberg) -- A New York federal judge blocked Argentina from transferring out of the U.S. investments held by its pension funds, granting a request by bondholders holding a $553 million judgment against the South American country.
These were the private pension plans of ordinary Argentinos, similar to our 401k Plans, that were nationalized by the government earlier this month.
NorkaWest
NOW this is big news. One - it is another country (governments get involved) and Two they need it for their current accounts.
Serious question - Is there any limit to the Fed's balance sheet ?
That is a serious question. My best guess is as long as other countries are in the same or worse shape the fed can get away with it. No way does this crap stay sterilized either.
China is interesting as they have very little debt as far as I can tell. The yuan could double over night if it were un-pegged.
Serious question - Is there any limit to the Fed's balance sheet ?
That is a serious question. My best guess is as long as other countries are in the same or worse shape the fed can get away with it. No way does this crap stay sterilized either.
China is interesting as they have very little debt as far as I can tell. The yuan could double over night if it were un-pegged.
Phew... looks like I just got outta BsAs just in time (yesterday)... probably would have been hard/dangerous to get out of EZE flashing my American passport.
bearly writes:
Serious question - Is there any limit to the Fed's balance sheet ?
As I understand it (and I'm probably wrong), the Treasury is required by the U.S. Constitution to expand the National Debt; however, the Federal Reserve can expand its balance sheet by creating money "out of thin air", with accommodation from the Treasury. The controversy, of course, is how an exponential increase in the Fed's balance sheet would affect the U.S. dollar and interest rates. So the answer is technically no - but we live in the "real world" where such an infinite balance sheet would lead to consequences that would limit the balance sheet to a finite number.
Argentine Pension Fund Investments in U.S. Are Frozen (Update3)
By David Glovin
Oct. 30 (Bloomberg) -- A New York federal judge blocked Argentina from transferring out of the U.S. investments held by its pension funds, granting a request by bondholders holding a $553 million judgment against the South American country.
U.S. District Judge Thomas Griesa in New York yesterday granted a bondholder request for a temporary order freezing the investments after Argentina moved to nationalize $26 billion in private pension funds. The bondholders said that as many as five private Argentine funds may hold assets in the U.S.
I should proof read before publishing. I meant to write: As I understand it (and I'm probably wrong), the Treasury is required by the U.S. Constitution to obtain approval from Congress to expand the National Debt... with implication being the Fed requires no such approval.
I should proof read before publishing. I meant to write: As I understand it (and I'm probably wrong), the Treasury is required by the U.S. Constitution to obtain approval from Congress to expand the National Debt... with implication being the Fed requires no such approval.
I liked your original wording better. It actually explains what's going on.
Here is a news item guaranteed to drive savers further out of their minds:
"WASHINGTON (AP) - With defaults on credit card debt spiraling amid a global financial downturn, banks already reeling from the mortgage crisis are losing billions more from unpaid credit card bills.
Big banks have formed an unusual alliance with consumer advocates to urge the government to allow huge portions of credit card debt to be forgiven, a turnabout from recent years when the banking industry lobbied strenuously to make it harder for consumers to erase their credit card debts in bankruptcy."
REBear writes:
Maybe China will buy a part of Argentina and build a military base or something.
They already control the Panama Canal. (Hutchison Whampoa operates the ports at each end.) Now, they need to gain control of the Cape Horn by helping the Argentines and the Cape of Good Hope by bribing the ANC.
Stock investors cut borrowings by 50 percent in September from August as the market faltered on Lehman Brothers' collapse, eroding faith in equities and scarce credit, according to New York Stock Exchange data on Wednesday.
Credit balances in so-called margin accounts fell to roughly $193 million from a yearly high of $386 million in August. A year earlier, balances were 7 percent higher at about $208.5 million. Balances have grown steadily since 2006. ...
Scary link:
In the current environment of financial distress, many governments are likely to soon become major holders of financial assets, but the debate focuses only on short-term market stabilization. This Demonstration shows that government intervention and propping up are likely to lead to bubbles and possibly chaos. The critical value of capital that generates discontinuities is the reciprocal of the product of the proportion squared and the impact.
This just in, the ladies of The Penthouse Club Las Vegas have vowed to do their part to “firm up” the economy. Effective Friday, October 17th The Penthouse Club has a “stimulus package” for government officials and joe six pack’s alike. Now everyone can enjoy a $33 Open Bar! Yes for only $33 you drink all night and have fun! These ladies have never met Dow Jones… but they’re pretty sure that no matter how much trouble he’s in, it’s nothing an evening at The Penthouse Club can’t fix.
Jello Biafra proposed amnesty for all student loan payments. Where are the proposals for the gov't forgiving the most strangling kind of debt that one can't even default on?
"They have their own destiny, and they need to make it- and tugging at our heartstrings for change will do nothing to change what an entire continent does."
There are folks in other countries that have the same thoughts about us.
I guess it's time to break out the credit cards and use all that free money per Anoddamoose and after seeing MOT's ad regarding the penthouse girls in vegas...
The Fed has made a lot of mistakes, but it got to the point where stepping into the commercial paper market was necessary. I think it probably staved off GD 2.0 - honestly, without commercial paper functioning the economy was very close to total collapse.
I actually suspect they could have let the banks rot and just taken over commercial paper to keep the wheels greased while the system got cleared out.
"At times Schwarzman seemed frustrated, turning red while Wasserstein spoke and telling Serwer, "I'd like to finish this, OK?" after he cut to Wasserstein. But he was lighthearted and earnest when it came to answering the morning's most memorable question whether, knowing what he knows now, he would take back his lavish 60th birthday party, which reportedly cost over $3 million and included a performance by Rod Stewart.
"Obviously, I wouldn't have wanted to do that and become some kind of symbol of that period of time," Schwarzman said. "Who would ever wish that on themselves? No one."
Clueless jerk...you're only sorry because you'll be famous for rich jerk conspicuous consumption.
I saw Gaspers on that Donny Doufus's show last night on CNBC and he definitely was on some amphetamine, screaming about Obama the Communist (I really could care less about the political view). Funny stuff. Guess his Daytime meds are different
You guys should see the shameless ads Barney Frank is running in MA. Totally ignoring the fact that he has been the head of the Finance committee for the past two years and did nothing in that time, and voted for the bailout, he is acting like he is the populist hero standing up to financial interests. Sickening.
Jes' like I tol Barney, "Barney, if'n youda tuk the reciprocal of the product of the proportion squared you wouldn't be in the mess yore in t'day. But he wouldn't lissi
I see some names coming up in this latest news on the investigation into CW. Some may fall and that is truly a good thing!! It is seriously ABOUT TIME!!!
"Jes' like I tol Barney, "Barney, if'n youda tuk the reciprocal of the product of the proportion squared you wouldn't be in the mess yore in t'day. But he wouldn't lissin"
If you're going to lift straight from Faulkner you could at least give credit.
The Feds balance sheet is getting bloated and ugly. Do people not realize that the USD is backed by CDOs, CDO squared, sythetic CDOs, and other toxic structured finance waste?
Anybody ever hear of the DTCC? The Depository Trust Clearing Corporation? They technically own 99% of the securities in the US - unless you have the stock certificate in your posession, you are only the 'beneficiary' of the proceeds. A company called CEDE really 'owns' the stocks and bonds.
Check it out, there are links to their sites and everything:
Can anyone track down that spambot and shoot it? It's getting annoying.
In other news:
... So there you have it. Instead of using our money to prevent a depression of their own making, banking giants are using it to help themselves ride out said depression. And what happens to us citizens, the largest new shareholders in these banks? Expect a rash of layoffs at smaller banks that could have been saved. Expect requirements making it harder for qualified consumers to obtain mortgages or credit cards. As consumer spending continues to tank, therefore, expect the financial crisis to get worse. ... CreditBloggers: What was that $750 billion for?
God. It's just the huge corporate banks buying out the last of the small and somewhat honest local ones.
With our tax money.
Fried, yes, I visited the two banks recommended by SafeWealth (and I visited their platinum and silver storage vault at the Zurich airport), read their audited financial statements, met with the bank investment advisors, and feel perfectly comfortable sending my money there, now.
AllenM, that was great, and unfortunately it applies equally well to us.
AllenM writes: ...The sorrows never cease, because they refuse to make a choice to adopt more modern methods. ... what we need to try is simply letting them figure out what they want on their own. If they choose to be savage and inhumane, remember at times in our history, we were too.
They have their own destiny, and they need to make it- and tugging at our heartstrings for change will do nothing to change what an entire continent does.
While my heart bleeds for the people, the head knows that whatever we do, it will amount to nothing until they decide to make it different.
Paulson is the perfect symbol of what I am talking about. The respect of the RNC has allowed a fool to plunder and destroy a country. Now they reap the whirlwind of refugees and broken economic systems outside their cities.
I am not responsible for their decisions. I can't be, without making myself their dictator, something I have no desire to do.
first?
I just got some in the mail today. The FED wants me to hold it for 90 days and then send it back.
Well, I will take the bronze
This smells a lot like bad money driving out good...
I worry that Government "credit price controls" (forcing lending at below-market rates) are starting to drive out private sector supply. Just like the 1970s oil price controls caused supply to decline and shortages to appear. Now, everyone will go to the government for loans that they "need", and those who get the limited supply will be receiving non-market competitive advantages over those who borrow at market rates.
Government, of course, will lend money based on "to each according to his need", and since we already tax based on the ability to pay, the complete Corporate Communist paradigm will be enacted...
Not good... this experiment in has to be unwound gracefully ... somehow.
Where does one find the list of companies the fed is buying paper from? Anyone know?
When does the Fed start issuing Letters of Credit, as well?
bow to the Master Ledger!
"From each according to his ability, to each according to his 'need'".
When the bureaucrats get to decide who's "needs" come first, the cult of government looting really gets up and running.
This smells far too much like Atlas Shrugged... except we don't have any heroic capitalists fighting this dysfunctional system. They're all lining up for handouts!
Re-post: Anyone can help?
Serious question regarding Zimbabwe:
As the hyperinflation took over, how did the people actually get the $10 billion bills? If their savings are in the pre-inflation times, it would, let's say, $1000, or so...
So did the government just literally hand out $10 Billion bills ?
What was that transaction ?
I'm sure GE's not a big part of that number...after all they're only going to use the program based on their customer's needs.
All is well.
The Federal Reserve bought commercial paper valued at $145.7 billion in the first days of the program aimed at backstopping the market, indicating the central bank is generating most of this week's record gains in short-term corporate borrowing.
The central bank extended $144.8 billion of loans as of yesterday to a unit that paid $143.9 billion for the debt, the Fed's weekly balance-sheet report said today."
This makes my head hurt. What's with the $900 million gaps between the value of the CP bought by the Fed, the loans extended by the Fed as of yesterday, and the amount paid by "a unit" for the debt? Is that some sort of negative commission? Are those first two paragraphs talking about two or three different things? Apparently, I'm either a) not smart enough to understand this mess or b) asking questions where none are allowed.
I'm only ringing the doorbell of the Fed on Halloween, and I'll keep going back until they tell me to stop or the bag o' money is empty. BTW, I think I am going to dress up as PIMCO founder Bill Gross. Anyone have a five-head mask I can borrow?
Wow, that didn't take very long.
A surprise approach from US Secretary of State Condoleezza Rice has led to her having a phone conversation with Finance Minister Michael Cullen about the global financial crisis as the world's biggest economies prepare to hold a crucial meeting.
Dr Cullen took a break from the campaign trail at around 11.45am yesterday to speak to Dr Rice by telephone as she sought views ahead of the Group of 20 meeting to be held in Washington on November 15.
The meeting is viewed as potentially pivotal in deciding what more can be done to address the crisis.
The Herald understands the US State Department approached Dr Cullen's office seeking the conversation [snip]
Earlier in the morning Dr Cullen told the Herald that the conversation was initiated by the US
Bwahahahaha!
Seeking advise from little old NZ, you guys are so screwed...
(cause we don't have any good ideas except running Govt surpluses.)
That is one amazing balance sheet -- leverage is 50 to 1!
I'm curious about the various FR Banks -- can Richmond decide that it doesn't like what NY is doing and get out of the system?
This makes my head hurt. What's with the $900 million gaps between the value of the CP bought by the Fed, the loans extended by the Fed as of yesterday, and the amount paid by "a unit" for the debt?
Neil Kashkari's signing bonus?
Interesting Times:
From what I understand from a friend that works for an NGO in central Africa, the short answer is "yes."
Basically, what happens is that general inflation kicks in (e.g. Mugabe needs to pay his gangsters with fiat money), so initially people start having to carry more of the existing bills. Of course that becomes burdensome, so the central bank issues more the larger denominations. People see the larger denominations more frequently, so they demand higher prices, etc. rinse repeat.
And the CP markets ramped by ~$100 B or so? So another ~$45 B of CP went away for the net gain...
I for one have not borrowed a dime from the Fed. Can I haz pony now?
Deflation is starting to look like insulting gunfighters in my current vid link.
Fed to market- You don't like my mule?
Have some more lead.
More shorts driveby shootings.
I told you folks this was going to be contained, no matter what.
Now we have the long drawn out bottom in real business.
As for the deflationistas- you are going to be mowed down by the fed, once again.
Someday this war's gonna end...
This sure seems topical...
AIG Rescue May Expand After $20.9 Billion Request (Update1)
By Hugh Son
Oct. 30 (Bloomberg) -- American International Group Inc., the insurer with a $122.8 billion credit line from the U.S., got another $20.9 billion under the Federal Reserve's commercial paper program designed to unlock short-term debt markets.
AIG Rescue May Expand After $20.9 Billion Request (Update1) - Bloomberg.com
CR, what is 'Ads by Google" doing in the middle of the post.
Interesting Times:
Your savings in local currency evaporate quickly and a reserve currency emerges. If you are fortunate enough to have a job, but unfortunate enough to be paid in local currency you will convert to the stable currency as quickly as you can. Your nominal salary goes up with every paycheck (one month you get 5,000 local units, the next month you get 50,000 local units), but your real salary goes down quickly.
ANd this is definitely OT, but hey...apologies if repost
GM-Chrysler Merger May Cost 74,000 Jobs, Report Says (Update2)
By Mike Ramsey
Oct. 30 (Bloomberg) -- A merger of General Motors Corp., the largest U.S. automaker, and Chrysler LLC may cost 74,000 jobs and close half of the smaller company's plants, according to a report from an accounting firm.
The combination may eliminate all but seven of Chrysler's car and truck models, Grant Thornton LLP said. Chrysler, the No. 3 U.S. automaker, would keep the Dodge Ram pickup, minivans and some Jeep models, the report said. GM and Chrysler owner Cerberus Capital Management LP are studying a merger, people familiar with the plans have said.
The automakers will probably have a tentative agreement before the Nov. 4 U.S. presidential election, said Kim Rodriguez, who leads Grant Thornton's automotive restructuring group. Still, a tie-up will be impossible without an infusion of cash to bolster the balance sheet of the new company, she said.
GM-Chrysler Merger May Cost 74,000 Jobs, Report Says (Update2) - Bloomberg.com
AIG sure went through the money fast.
AIG, wow, just wow. What in the hell do these guys have left on their balance sheet?
Is it politically correct to assume that the FED is now the World Bank and that the American Taxpayer is screwee.
Don't watch Zimbabwe for hyperinflation cues. Watch Iceland. Much more relevant.
From the AIG Bloomberg link:
The proceeds will help refinance AIG's outstanding commercial paper and pay down AIG's original $85 billion loan from the Fed, the firm said in a regulatory filing.
Umm. The whole purpose of the Libor + 800 bps loan was to punish AIG.
WTF?
Interesting Times,
What I really like about Zimbabwe currency is that it includes expiration dates:
Zimbabwe rolls out $500 million bill | FP Passport
Quite innovative, no?
ANON wondered: "AIG, wow, just wow. What in the hell do these guys have left on their balance sheet?"
Just taxpayer hides.
Expiration dates ... ugh.
Hadn't thought about that one. "New dollars" yes, but not expiration dates.
I'm sure AIG will use its interest savings responsibly.
Well, in an effort to stimulate the economy, I'm going to do a booze run.
If I purchase a new Harley on eBay using PayPal with a Wells card backed by my home can I have 5 free motorcycles? Is the purchase deductible?
Since the FED reported earlier that commercial paper outstanding is up $100.5b for the week. With this report, isn't the change in outstanding paper net of FED purchases ($44b)? Nice tiered release.
re: Zimbabwe
There is a good article from last week's New Yorker that is available online
Letter from Zimbabwe: The Destroyer : The New Yorker
fun excerpt:
In the weeks after the election, as the political stalemate persisted, the value of Zimbabwes currency plummeted. Before crossing the border from South Africa, I had exchanged a hundred American dollars for three trillion five hundred billion Zimbabweanthirty-five billion to a dollar. Most of the cash was newly minted five-, twenty-five-, and fifty-billion-dollar notes, with pictures of giraffes and grain silos. A few days later, the going rate was a hundred billion to one. Food prices tripled overnight, and many salaries were made virtually worthless. Cash was becoming nearly impossible to obtain; banks were allowing customers to withdraw the equivalent of only one U.S. dollar per day. The effect was a state of existential madness. Prices bordered on the fantastic, and ordinary people had to grapple with calculations in the trillions for the most prosaic transactions. One day, I wandered into a supermarket to buy some water. The price for a half-litre bottle was $1,900,000,000,000 Zimbabwean, or nineteen U.S. dollars. On a nearby shelf, I found a bottle of Johnnie Walker Black for $83,000,000,000,000.
If the markets can close at or above these levels tomorrow, then from a weekly perspective, we've set up that "nice rally" some are forecasting - probably lasting into mid-November, probably 10% higher. But that would only lead to another "nice shorting opportunity" imo.
We feel very well capitalized,'' Zlatkus said in the conference call.But in terms of would we access the Capital Purchase Program, if that's available -- we certainly think there are favorable terms as we see it and we would look to do that.''
U.S. life insurers reached out to Treasury officials last week in hopes of securing some of the $250 billion set aside to prop up ailing financial companies. Some of the firms asked the government to make participation mandatory because they don't want to identify themselves as needing government intervention, said an industry official with knowledge of the discussion.
MetLife Net Falls; Prudential, Hartford Post Losses (Update1) - Bloomberg.com
Interesting Times -
you should ask Prieur du Plessis, he blogs from Africa and posts occasionally about the crisis in Zim.
Also, he is a fellow FoCR - "Friend of CR".
Google will become the new World Bank.
They have enough zeros.
virgin taxpayers.
now that the kiddies have to work, the FEDs gonna be rolling in dough.
bend over and take it like a tiny fingered rug maker in sandland...
we are screwed.
Elvis,
On fire today dude.
Nostrovia,
The Bush administration is on track to nationalize the entire finance sector by the end of the year, and yet Obama gets called a socialist.
Hmmm.
Becoming overly reliant on a particular source of funding is a risk, no?
Kinda wondering if the FED is using AIG as a vortex to suck out derivatives and swaps - a clearing house of shame?
How else do you gobble up this much cash-o-la? Surely not to pay people or office supplies.
What I dont understand is who really is on the hook for losses? Say JPM places a 35M of corp paper BB-Manufacturing and then BB goes BK. Who is SOL?
PeakVT writes:
The Bush administration is on track to nationalize the entire finance sector by the end of the year, and yet Obama gets called a socialist.
Truman gets the credit for dropping the atomic bomb.
I'm going to do a booze run.
Anoddamoose
You have not stocked up? Shame on you.
Say JPM places a 35M of corp paper BB-Manufacturing and then BB goes BK. Who is SOL?
US Treasury
Someone else who holds a lot of paper. (And who seems to be smoking a little too much dope):
Stephen Schwarzman And Bruce Wasserstein Spar At Fortune Breakfast
"Schwarzman, the founder and CEO of Blackstone and a prominent Republican donor, argued that the crisis was caused by too much regulation in the banking and brokerage industries."
Joke, right? Sarcasm?
On AIG funds
AIG Already Running Through Cash - CNBC
"Also, he is a fellow FoCR - "Friend of CR"."
Pronounced 'Focker'?
I read that Ms Pelosi is so concerned about her loyal subjects that she wants to issue gas cards, so we can get to work.
I read that Ms Pelosi is so concerned about her loyal subjects that she wants to issue gas cards, so we can get to work.
We will need them to go job hunting.
Anoddamoose writes:
Well, in an effort to stimulate the economy, I'm going to do a booze run.
Talk to Lefty. Word is he's gonna participate in the no tax economy protest.
Think about it. what we are attempting is a virtue tax and sin subsidy. Why not the logical extension?
PeakVT writes:
The Bush administration is on track to nationalize the entire finance sector by the end of the year, and yet Obama gets called a socialist.
Hmmm.
And they say the media is liberal.
WE have no compass in this country regarding anyting, let alone morality.
What happened to honor, country, duty?
People throw things out into the ether and just hope it sticks.
Maybe Jas is right, we are all born and bred dopes.
THINK!!!!!!!!
.
Comrade Wisdom Seeker writes:
This smells far too much like Atlas Shrugged
Everything out of Paulson's mouth sounds exactly like one of Rand's looters.
... except we don't have any heroic capitalists fighting this dysfunctional system.
That's the part that is and always was fiction, sadly.
If this story were written by someone, it would probably be Joseph Heller.
Amazing, frigging amazing.
The end of America, this is.
Saw three secure gold vaults in Basel and Zurich on Mon. and Tue.
Lots of Wall Street folks moving money there, now, they tell me.
I'm there right after the crash.
Interesting Times - What was the transaction that put the $10 billion bills in the Zimbabweian's hands? The gov't dropped them from helicopters
More and more, I feel like my pocket is the world's bank.
Bond Girl --
If this story were written by someone, it would probably be Joseph Heller.
Great minds think alike
"Unlimited" Ben is going to make John Law look like a gold bug. This guy is a deranged little f@cker, guys.
You and I are now supporting every broken business model, every bankrupt state and municipality and every bankrupt homeowner.
You and I are supporting them with our eroding savings.
I now have to work extra hard just to earn back what these jerks have taken away.
With negative real rates and market interventions distorting all pricing signals, I don't think on average, we're going to get ahead.
Unreal.
What fine taste in literature you have, Nemo
White House spokeswoman Dana Perino said Thursday that the secretaries of the Treasury, Commerce and Energy departments are talking with the automakers.
"We understand that they've been facing tough times for a while. They've made business decisions that unfortunately have put them in this position..."
What am I missing? The banks did the EXACT same thing!
When is the Fed gonna start issuing credit cards?
Nostrovia,
Comrade Misean is Dope writes:
When is the Fed gonna start issuing credit cards?
Christmas.
ROFL.
Nostrovia,
Forgive me for not doing my own research, but does anyone know off-hand how the Fed is deciding how much to pay for this CP?
From Bond Girl's AIG link:
The internal auditor resigned and is now in seclusion, according to a former colleague. His account, from a prepared text, was read by Representative Henry A. Waxman, Democrat of California and chairman of the House Committee on Oversight and Government Reform, in a hearing this month.
I've made some bad business decisions too:
I'm ready for my bailout plan...
Bond Girl writes: If this story were written by someone, it would probably be Joseph Heller.
I was thinking William S. Burroughs, but it's only a quibble. Rich material like this seems to transcend the limitations of even the best fiction.
Yeah, I thought it was funny he was "in seclusion" too.
Here is the real cost of our way of life.
Johann Hari: How We Fuelled the Deadliest War in the World -- and It's Starting Again
"Bond Girl writes: If this story were written by someone, it would probably be Joseph Heller.
Hence, my screen name.
Nemo:
Fed is getting OIS + 100 bps for unsecured plus a 100 bps fee and OIS +300 for secured. Also, registration costs 10 bps of whatever the company registers for.
Hence my everything.
Is it inflation or deflation when you can't trade a bar of gold for a handful of rice?
Is it inflation or deflation when you can't trade a bar of gold for a handful of rice?
It's neither inflation nor deflation. It's called starvation.
Comrade-Dope jg (jg)
Did you find a Swiss bank that you feel is safe?
Germany Eyes $39 Billion Plan to Boost Economy
Germany Eyes $39 Billion Plan to Boost Economy - Germany * Europe * News * Story - CNBC.com
Germany plans to introduce a range of steps worth up to about 30 billion euros ($39.17 billion) to boost investment in Europe's biggest economy, cabinet minister Michael Glos said on Thursday.
"We could get to about 30 billion euros with the support package," conservative Economy Minister Glos told reporters on the sidelines of an event in Berlin.
The plans, due to go to cabinet next Wednesday, will include support for the auto sector and building renovation as well as tax breaks enabling companies to write off a share of their investments, several German newspapers reported. ...
Anon, nothing new under the sun in Africa.
The sorrows never cease, because they refuse to make a choice to adopt more modern methods. The best continuously flee to the West, causing Brain Drain on a immense scale.
Everybody wants the West to help Africa, but we tried Colonialism, we tried Post Colonialism, what we need to try is simply letting them figure out what they want on their own. If they choose to be savage and inhumane, remember at times in our history, we were too.
They have their own destiny, and they need to make it- and tugging at our heartstrings for change will do nothing to change what an entire continent does.
While my heart bleeds for the people, the head knows that whatever we do, it will amount to nothing until they decide to make it different.
Mugabe is the perfect symbol of what I am talking about. The respect of the ANC has allowed a fool to plunder and destroy a country. Now they reap the whirlwind of refugees and broken economic systems outside their cities.
I am not responsible for their decisions. I can't be, without making myself their dictator, something I have no desire to do.
Someday this war's gonna end...
"My broker is EF Hutton, and EF Hutton says." .......
Serious question - Is there any limit to the Fed's balance sheet ?
Is it inflation or deflation?
one of those 'tion' words, probably starvation, or maybe malnutrition, or cannibalation.
cannibalization, that is
AIG's 8K Statement:
On October 27, 2008, four affiliates of American International Group, Inc. (AIG) applied for participation in the Federal Reserve Bank of New Yorks Commercial Paper Funding Facility (the CPFF). AIG Funding, Inc., International Lease Finance Corporation, Curzon Funding LLC and Nightingale Finance LLC may issue up to approximately $6.9 billion, $5.7 billion, $7.2 billion and $1.1 billion, respectively, of commercial paper under the CPFF.
These AIG affiliates will be participating in the CPFF on the same terms and conditions as other companies that have recently announced plans to participate in the CPFF.
Proceeds from the issuance of the commercial paper will be used to refinance AIGs outstanding commercial paper as it matures, meet other working capital needs and make voluntary prepayments under AIGs $85 billion credit facility with the Federal Reserve Bank of New York.
8-K
Curzon Funding LLC
http://www2.standardandpoors.com/spf/pdf/fixedincome/Curzon_postsaleSNAP.pdf
(S&P Post Sale Report)
Asset Backed CP Conduit
Nightingale Finance LLC
Another SIV
Argentine Pension Fund Investments in U.S. Are Frozen (Update3)
By David Glovin
Oct. 30 (Bloomberg) -- A New York federal judge blocked Argentina from transferring out of the U.S. investments held by its pension funds, granting a request by bondholders holding a $553 million judgment against the South American country.
Argentine Pension Fund Investments in U.S. Are Frozen (Update3) - Bloomberg.com
These were the private pension plans of ordinary Argentinos, similar to our 401k Plans, that were nationalized by the government earlier this month.
Germany Eyes $39 Billion Plan to Boost Economy
Bernanke is trying to find a way for us to pay for this.
Happily, the high end vodka market is being savaged by deflationary forces.
Clamato juice is still high, though.
Ask yourself:
How much Commercial paper did the Fed own last month?
How much now?
Is this an improvement?
Then Vote.
hahahahaha
OMG, Argentina is going to go up in flames.
And the USA will warm its toes by the fire
OMG, Argentina is going to go up in flames.
Watch what happens to food costs...
These were the private pension plans of ordinary Argentinos, similar to our 401k Plans, that were nationalized by the government earlier this month.
NorkaWest
NOW this is big news. One - it is another country (governments get involved) and Two they need it for their current accounts.
This might takes years.
Serious question - Is there any limit to the Fed's balance sheet ?
That is a serious question. My best guess is as long as other countries are in the same or worse shape the fed can get away with it. No way does this crap stay sterilized either.
China is interesting as they have very little debt as far as I can tell. The yuan could double over night if it were un-pegged.
Serious question - Is there any limit to the Fed's balance sheet ?
That is a serious question. My best guess is as long as other countries are in the same or worse shape the fed can get away with it. No way does this crap stay sterilized either.
China is interesting as they have very little debt as far as I can tell. The yuan could double over night if it were un-pegged.
Comrade Wisdom Seeker writes:
"we don't have any heroic capitalists fighting this dysfunctional system. They're all lining up for handouts!"
they always do...
Phew... looks like I just got outta BsAs just in time (yesterday)... probably would have been hard/dangerous to get out of EZE flashing my American passport.
I'm getting my handout early, too
bearly writes:
Serious question - Is there any limit to the Fed's balance sheet ?
As I understand it (and I'm probably wrong), the Treasury is required by the U.S. Constitution to expand the National Debt; however, the Federal Reserve can expand its balance sheet by creating money "out of thin air", with accommodation from the Treasury. The controversy, of course, is how an exponential increase in the Fed's balance sheet would affect the U.S. dollar and interest rates. So the answer is technically no - but we live in the "real world" where such an infinite balance sheet would lead to consequences that would limit the balance sheet to a finite number.
More drugs for the drug addict please.
Thats what this crap is doing.
"Is it politically correct to assume that the FED is now the World Bank "
The World Bank is a development bank. It works with countries that need developing. So what is the FED?
This party is just getting started...
Argentine Pension Fund Investments in U.S. Are Frozen (Update3)
By David Glovin
Oct. 30 (Bloomberg) -- A New York federal judge blocked Argentina from transferring out of the U.S. investments held by its pension funds, granting a request by bondholders holding a $553 million judgment against the South American country.
U.S. District Judge Thomas Griesa in New York yesterday granted a bondholder request for a temporary order freezing the investments after Argentina moved to nationalize $26 billion in private pension funds. The bondholders said that as many as five private Argentine funds may hold assets in the U.S.
Argentine Pension Fund Investments in U.S. Are Frozen (Update3) - Bloomberg.com
I should proof read before publishing. I meant to write: As I understand it (and I'm probably wrong), the Treasury is required by the U.S. Constitution to obtain approval from Congress to expand the National Debt... with implication being the Fed requires no such approval.
Anod,
You in Calgary sipping on a Caesar?
I should proof read before publishing. I meant to write: As I understand it (and I'm probably wrong), the Treasury is required by the U.S. Constitution to obtain approval from Congress to expand the National Debt... with implication being the Fed requires no such approval.
I liked your original wording better. It actually explains what's going on.
doh, hat tip Norka - just caught up
energyecon:
Nope California but grew up in AB
Maybe China will buy a part of Argentina and build a military base or something.
Question: What is Rep. George Miller and cronies planning on doing with our 401k Plans?
Last I saw, at about 4:30, Bloomberg was actually trying to spin this number as a positive thing.
"Happily, the high end vodka market is being savaged by deflationary forces."
I stopped buying good Scotch a few years ago when the price of a bottle went into triple digits. I would sure like to see that market take a whack...
Here is a news item guaranteed to drive savers further out of their minds:
"WASHINGTON (AP) - With defaults on credit card debt spiraling amid a global financial downturn, banks already reeling from the mortgage crisis are losing billions more from unpaid credit card bills.
Big banks have formed an unusual alliance with consumer advocates to urge the government to allow huge portions of credit card debt to be forgiven, a turnabout from recent years when the banking industry lobbied strenuously to make it harder for consumers to erase their credit card debts in bankruptcy."
Anoddamoose,
Sweet irony, after the banks rammed through the bankruptcy law changes. Now they are ready to chew off a leg in order to escape a debtor's strike.
Couldn't have happened to a nicer bunch of idiots.
REBear writes:
Maybe China will buy a part of Argentina and build a military base or something.
They already control the Panama Canal. (Hutchison Whampoa operates the ports at each end.) Now, they need to gain control of the Cape Horn by helping the Argentines and the Cape of Good Hope by bribing the ANC.
Margins cut by half--NYSE
Margins cut by half--NYSE; upswing said possible
| Reuters
Stock investors cut borrowings by 50 percent in September from August as the market faltered on Lehman Brothers' collapse, eroding faith in equities and scarce credit, according to New York Stock Exchange data on Wednesday.
Credit balances in so-called margin accounts fell to roughly $193 million from a yearly high of $386 million in August. A year earlier, balances were 7 percent higher at about $208.5 million. Balances have grown steadily since 2006. ...
Saw three secure gold vaults in Basel and Zurich on Mon. and Tue.
Comrade-Dope jg
But, did you see any gold?
Scary link:
In the current environment of financial distress, many governments are likely to soon become major holders of financial assets, but the debate focuses only on short-term market stabilization. This Demonstration shows that government intervention and propping up are likely to lead to bubbles and possibly chaos. The critical value of capital that generates discontinuities is the reciprocal of the product of the proportion squared and the impact.
The Hazards of Propping Up: Bubbles and Chaos - Wolfram Demonstrations Project
Funniest headline of the day!
"Rates on 30-year fixed mortgages surge to 6.46% from 6.06% on news of Fed rate cut"
Mortgage rates spike - Oct. 30, 2008
Las Vegas is seeing deflation, check this out.
Penthouse Club Las Vegas $33 all you can drink and no cover charge.
Penthouse.com - Penthouse Magazine official site, Penthouse Pets
Everyone Can Enjoy a $33 Open Bar!
This just in, the ladies of The Penthouse Club Las Vegas have vowed to do their part to “firm up” the economy. Effective Friday, October 17th The Penthouse Club has a “stimulus package” for government officials and joe six pack’s alike. Now everyone can enjoy a $33 Open Bar! Yes for only $33 you drink all night and have fun! These ladies have never met Dow Jones… but they’re pretty sure that no matter how much trouble he’s in, it’s nothing an evening at The Penthouse Club can’t fix.
Jello Biafra proposed amnesty for all student loan payments. Where are the proposals for the gov't forgiving the most strangling kind of debt that one can't even default on?
30-year fixed mortgages surge to 6.46%
Banks apparently are not taking direction from the White House.
_
This is so very sad...
Re: Penthouse. Something's wrong when Saturday Night Live skits become reality.
"Banks apparently are not taking direction from the White House"
White House apparently is taking direction from Banks
McCain got the gig this Saturday over Obama for what it is worth.
horny bastards crashed the lovely ladies web server...
"They have their own destiny, and they need to make it- and tugging at our heartstrings for change will do nothing to change what an entire continent does."
There are folks in other countries that have the same thoughts about us.
my bad if repost...
Charlie gasperino today...
Charlie Gasparino Channels Towelie
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I guess it's time to break out the credit cards and use all that free money per Anoddamoose and after seeing MOT's ad regarding the penthouse girls in vegas...
I'm going to Orbitz...
The Fed has made a lot of mistakes, but it got to the point where stepping into the commercial paper market was necessary. I think it probably staved off GD 2.0 - honestly, without commercial paper functioning the economy was very close to total collapse.
I actually suspect they could have let the banks rot and just taken over commercial paper to keep the wheels greased while the system got cleared out.
"At times Schwarzman seemed frustrated, turning red while Wasserstein spoke and telling Serwer, "I'd like to finish this, OK?" after he cut to Wasserstein. But he was lighthearted and earnest when it came to answering the morning's most memorable question whether, knowing what he knows now, he would take back his lavish 60th birthday party, which reportedly cost over $3 million and included a performance by Rod Stewart.
"Obviously, I wouldn't have wanted to do that and become some kind of symbol of that period of time," Schwarzman said. "Who would ever wish that on themselves? No one."
Clueless jerk...you're only sorry because you'll be famous for rich jerk conspicuous consumption.
CR,
The in-post ads are a detraction from your otherwise excellent site.
cd writes:
my bad if repost...
OMG LOLOLOLOL!!!
I saw Gaspers on that Donny Doufus's show last night on CNBC and he definitely was on some amphetamine, screaming about Obama the Communist (I really could care less about the political view). Funny stuff. Guess his Daytime meds are different
Lend me twenty billion. I will go to vegas and bet it all on one hand. If I bust the economy is still stimulated.
[McCain got the gig this Saturday over Obama for what it is worth.
Stu ]
Not following.
You guys should see the shameless ads Barney Frank is running in MA. Totally ignoring the fact that he has been the head of the Finance committee for the past two years and did nothing in that time, and voted for the bailout, he is acting like he is the populist hero standing up to financial interests. Sickening.
Clearly the runup into the election has been a stimulus as campaign spending is reported as 3X the previous cycle. More contraction ?
Jes' like I tol Barney, "Barney, if'n youda tuk the reciprocal of the product of the proportion squared you wouldn't be in the mess yore in t'day. But he wouldn't lissi
SNL this coming week
I see some names coming up in this latest news on the investigation into CW. Some may fall and that is truly a good thing!! It is seriously ABOUT TIME!!!
stu,
cw?
Countrywide bank and the VIP Freinds of Mazilo Program.
sportsfan writes:
CR, what is 'Ads by Google" doing in the middle of the post.
He is selling ads to you in the middle of the post.
greedy american.
"Jes' like I tol Barney, "Barney, if'n youda tuk the reciprocal of the product of the proportion squared you wouldn't be in the mess yore in t'day. But he wouldn't lissin"
If you're going to lift straight from Faulkner you could at least give credit.
"Faulkner"... yeah and you expect anyone except Tanta to get that TV/literature cross reference?
Tanta, we miss you.
You makin' funna me?
they dont get it . Chrysler sucks.
If gm merges with chrysler, my only choice left will be Toyota. Who is ford gonna marry?
The Feds balance sheet is getting bloated and ugly. Do people not realize that the USD is backed by CDOs, CDO squared, sythetic CDOs, and other toxic structured finance waste?
SpeciousRiches
Specious Riches
SpeciousRiches
Anybody ever hear of the DTCC? The Depository Trust Clearing Corporation? They technically own 99% of the securities in the US - unless you have the stock certificate in your posession, you are only the 'beneficiary' of the proceeds. A company called CEDE really 'owns' the stocks and bonds.
Check it out, there are links to their sites and everything:
WHO REALLY OWNS YOUR MONEY? Part One: The Depository Trust & Clearing Corporation « Your Mortgage or Your Life…
Paulson's Swindle Revealed
: Information Clearing House
- ICH
Can anyone track down that spambot and shoot it? It's getting annoying.
In other news:
... So there you have it. Instead of using our money to prevent a depression of their own making, banking giants are using it to help themselves ride out said depression. And what happens to us citizens, the largest new shareholders in these banks? Expect a rash of layoffs at smaller banks that could have been saved. Expect requirements making it harder for qualified consumers to obtain mortgages or credit cards. As consumer spending continues to tank, therefore, expect the financial crisis to get worse. ...
CreditBloggers: What was that $750 billion for?
God. It's just the huge corporate banks buying out the last of the small and somewhat honest local ones.
With our tax money.
Fried, yes, I visited the two banks recommended by SafeWealth (and I visited their platinum and silver storage vault at the Zurich airport), read their audited financial statements, met with the bank investment advisors, and feel perfectly comfortable sending my money there, now.
The Safewealth Group
clientservices@safewealthgroup.com
Volker, yes, for the first time in my life I saw and held 400 oz. and 1 kg. gold bars. Very nice.
The Fed buys $145.713 billion through the CPFF and now owns 9.4% of the commercial paper market...in two days.
unknown
AllenM, that was great, and unfortunately it applies equally well to us.
AllenM writes: ...The sorrows never cease, because they refuse to make a choice to adopt more modern methods. ... what we need to try is simply letting them figure out what they want on their own. If they choose to be savage and inhumane, remember at times in our history, we were too.
They have their own destiny, and they need to make it- and tugging at our heartstrings for change will do nothing to change what an entire continent does.
While my heart bleeds for the people, the head knows that whatever we do, it will amount to nothing until they decide to make it different.
Paulson is the perfect symbol of what I am talking about. The respect of the RNC has allowed a fool to plunder and destroy a country. Now they reap the whirlwind of refugees and broken economic systems outside their cities.
I am not responsible for their decisions. I can't be, without making myself their dictator, something I have no desire to do.
Too perfect.
Should read:
"Fed Holds $145.7 Billion in Worthless Commercial Paper as of Oct 29"