Paulson to Discuss G7 Crisis Coordination at 3 PM ET
Submitted by
CalculatedRisk on Wed, 10/08/2008 - 10:35am (532 comments)
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2 for 2
What's to discuss? It ain't workin.
Should be interesting.
U.S. bonds fell after the Treasury Department sold $66 billion in debt to ease ``severe dislocations'' prompted by shortages of government securities amid turmoil in global financial markets.
Ten-year note yields surged 24 basis points to 3.73 percent, the biggest increase since Sept. 19. That widened the gap with two-year securities to as much as 213 basis points, the biggest difference since May 2004.
Is good, oui!
Each of these countries are going to vying to come out ahead/on top of this crisis.
They won't all be ready to play ball until they have to.
Don't know that we are there quite yet.
So much for the rally in the DOW. If yesterday is any indicator, we'll be at 8500 before he pauses to take a breath.
Disclaimer: I am usually not just wrong, but spectacularly so.
The security's price was about $30 per bond lower at auction than in the open market, which amounted to ``a Christmas gift'' to dealers, said Andrew Brenner, co-head of structured products and emerging markets in New York at MF Global Inc.
Financial Crisis
The Federal Reserve of New York also cut the minimum fee it charges dealers to borrow securities from its open market account as part of its daily securities lending program.
A record $3.545 trillion in failures, an indication of scarcity in Treasury securities, occurred during the week ended Sept. 24, according to Fed data. Dealers often let trades in the repurchase agreement, or repo, market go uncompleted, or fail, when it is difficult to obtain the securities or the cost to get the securities becomes too expensive.
Hey Rocky watch me pull a rabbit outta my hat....nothin' up my sleeve.
Good stuff Kona.
Oh boy. Time to duck and cover.
The difference between what banks and the Treasury pay to borrow money for three months, the so-called TED spread, widened to 3.89 percentage points from 1.10 percentage points a month ago, the most since Bloomberg began compiling the data in 1984. The spread increased from 3.54 percentage points yesterday.
The International Monetary Fund said the world's advanced economies next year will grow at the slowest pace since 1982, easing inflation pressures and boosting unemployment from Japan to Iceland. The median estimate of 81 economists surveyed by Bloomberg News is for the U.S. economy to grow by 1.50 percent in 2009.
I stopped listening to the snake oil salesman when I uncovered his true identity as Satanson.
I think executive officials are making too many announcements. They're reducing the chance that their actions have an impact, because at least half the efficacy of a plan to restore confidence is based on you wowing the crowd.
When 'Main St' rolls their eyes at ~a dozen special broadcasted announcements in under a month, you might even be losing Wall St's ear -- or at least their trust (if that's the right word)
Send Kashnkari to do a low-key press conference, better yet a conference-call.
Would these guys just STFU?
anyone else not getting sound from the cnbc live feed?
Wow, seems like just last week a 'bailout' was going to solve all our problems. Is it possible that is more complicated than simply cutting a government check?
make that "former wealthy industrialized countries"
G7:
France
Germany
Italy
Japan
UK
USA
Canada
Talk about outdated. How are you going to have global coordination without India, China, and Russia?
To discuss coordination failure...
Would these guys just STFU?
They need to talk the market down to 5,000 before they get scared enough to back off.
The G-7 has de-septupled.
He MUST mention the CDS market. MUST.
I am usually not just wrong, but spectacularly so.
Redwood
LOL. This was written into my wedding vows.
Everyone's getting ready to hit the sell button in five..four...three...two...one !
He MUST blame the minorities. MUST.
...no doubt about it, I gotta get another hat.
Japanese Finance Ministry official downplayed the need for Group of Seven nations to take joint action on currencies or interest rates to stem the deepening global financial crisis.
Finance ministers and central bankers won't necessarily coordinate action just because they are meeting this week, the official told reporters today on the condition of anonymity. Joint action on currencies and rates should depend on market and economic conditions of each country, the official said.
It's Clinton's fault
Look at the auction results on federalreserve.gov (we discussed the last $150bn one overnight for you nightsleepers)
bid to cover was 0.92, stop out was 1.39%.
Banks could deposit some illiquid securities with the Fed, and then turn around and lend on the commercial paper market for a 2-3% positive carry with no liquidty risk
The fact banks left $12bn on the table, at rates which would have been below 1.39% had the auction not been underbid shows that banks are either choosing to not make money, or they are all spent and further liquidity through the banks is useless until they are recapitalized
Adding more liquidity now is like opening the bath faucet further when water is spilling over the edges of a full tub
Alo writes:
He MUST blame the minorities. MUST.
UGH. Please God no. This is coming and it will be heinous. The foundations are already being laid. Of all I fear, this is where I most hope I am wrong.
CR:
Just wanted to say thanks for all of your work during this crisis. I will get you some $$$ in the tip jar later today!
Thanks,
Tom Servo
Bloomberg has a feed as well
Bloomberg Television Live
Paulson slowly takes the podium:
"You rang?"
The FT reports that the $62 trillion credit derivatives (CDS) market faces its biggest test in October as billions of dollars worth of contracts on now-defaulted derivatives on Fannie Mae, Freddie Mac, Lehman Brothers and Washington Mutual are settled.
Of the CDOs that sold WaMu default protection, 514 were in the U.S., 752 were in Europe, 122 were in Japan and 138 were elsewhere in the Asia-Pacific region.
RGE - Several Auctions in October: How Does A CDS Settlement Work?
Does G-7 mean Geriatric 7?
Jehosophat, what doom is here! Rain ruth on them, sire! The
wing of Moykill cover him! The Bulljon Bossbrute quarantee
him! Calavera, caution! Slaves to Virtue, save his Veritotem!
Bearara Tolearis, procul abeat! The Ivorbonegorer of
Danamaraca be, his Hector Protector! Woldomar with Vasa, peel your
peeps ! And try to saviourise the nights of labour to the order of
our blooding worold!
Tom, you are welome - don't bother with the tips - I appreciate the thought and I wouldn't do this if it wasn't interesting for me!
Best to all.
Talk about outdated. How are you going to have global coordination without India, China, and Russia?
Argento | 10.08.08 - 2:56 pm |
They are still on a different level when it comes to financial system development. What would their help be? A suggestion to shut down stock markets indefinitely?
Face it, the BRICs have their reserves tied up helping their own people obtain fuel and food, never mind that their citizens also just lost their life savings in that bank called the local stock market
Talk about outdated. How are you going to have global coordination without India, China, and Russia?
Argento
The banks in those countries that you mentioned have limited exposure to the toxic stuff but of course will feel the brunt of the crisis.
That's why i think they were excluded.
He'll ask for 70 trillion dollars to be spent be him and him alone with no legal recourse by any country. He'll say he doesn't know if it will work but it is their only chance.
They're taking their best shot here. If it works, we sink slowly. If it doesn't...
It's Clinton's fault
This is all just payback for Woodstock and the Summer of Love.
Damn hippies and communists destroyed the world.
He'll ask for 70 trillion dollars to be spent be him and him alone with no legal recourse by any country. He'll say he doesn't know if it will work but it is their only chance.
And a secret island volcano base.
"Talk about outdated. How are you going to have global coordination without India, China, and Russia?
Argento
The banks in those countries that you mentioned have limited exposure to the toxic stuff but of course will feel the brunt of the crisis.
That's why i think they were excluded."
So we go cap to hand begging China, Saudia Arabia etc.. to continue buying our debt but exclude them from public consultation?
I'm SURE that will go down well with China.
A Goodbye Kiss for Paris
FASHION REVIEW; A Goodbye Kiss for Paris - NY Times
So one of the strangest Paris seasons ended, made confusing by deepening economic worries, bouts of real creativity and the feeling that, as hard as some designers worked, retailers will have to work even harder next spring to get customers to come into the stores just for a look.
Also hear: YouTube - Edith Piaf - Non, je ne regrette rien (1961)
Haha...there goes the market.
Why don't these guys get it.
And a secret island volcano base.
Builder Bob
LOL
Anyone have a transcript ?
has he started? I'm getting nothing on the screen?
Bernanke, Paulson, McCain, Obama, Congress, Senate, et al are about 10 years behind the reality curve and this bullshit is not gonna cut it, in the Derivative Contagion!
Nay say all you want. Just cover your shorts. The market is going to rally. I have no idea for how long, but cover for now.
Jack! Sure, that old humbugger was boycotted and girlcutted
in debt and doom, on hill and haven, even by the show-the-flag
flotilla, as I'm given now to understand, illscribed in all the
gratuitouses and conspued in the takeyourhandaways. Bumbty,
tumbty, Sot on a Wall, Mute art for the Million.
Ursula Andress bikini scene
YouTube - Ursula Andress bikini scene
They need to get ready for the LEH CDS settle - end of the week?
So we go cap to hand begging China, Saudia Arabia etc.. to continue buying our debt but exclude them from public consultation?
I'm SURE that will go down well with China.
Pissed in California
In a perfect world everyone would be co-existing peacefully.
As it is, this is the reality.
G7 is still the world's best group to organize free capital. BRICs are developing, but that money is tied up in new infrastructure first because those yields are superior to the equity markets.
When you have a financial crisis, you need mobile capital. Given that the South Korean Won is at 1997 levels I don't think too many countries who have had to endure being bailed out by the IMF want to do anything to bring them a step closer to that.
There's political reasons on top of it all, but for practical reasons the BRICs simply aren't interested.
This is crazy...You can tell he's from wallst. and not mainst. One meeting after another just to promote and piss on his territory.
Snake oil! Get your snake oil! Cures what ails you and the economy!
I love those shells she has!
that's eye-gore....please
EESA money
What hump?
uh oh, does he really think this is a crisis of confidence? That isn't reassuring...
Paulson is scaring me ...
He is trying to tell us that the U.S. is strong and has always worked through all problems. Hmmm ... yeah, we worked through the Depression, but we'd kind of like to avoid that this time.
Best to all.
Paulson doing a good job READING from his script.
Fucking Tool.
Everyone is confused so far. What's he getting to?
Markets don't know whether to piss or get off the pot
The main problem with G7 is Paulson being in it, they will kick him out, if God has any say in this matter!
cnbc link takes me to some silly HUD meeting. OY!
Shout Out by paulson to President's Working Group
Is he taking up prime time TV just to reiterate what has already been announced? To rehash the failure his regulators have overseen?
His tie knot is too large for his body. He should use a half-windsor - nicely symmetrical, with some body but not too much bulk.
That zabuton-looking thing under his chin is an outrage.
Anyone else's CNBC feed just cut out?
Paulson should just run a clip from It's A Wonderful Life:
Blimey
Your thinking of this country all wrong, the money isn't in America, it's in the Caymans
Calculated Risk --
Paulson is scaring me ...
The fact that the highest officials in every government on Earth feels the need to say or do something every day... That is what scares me.
The more they try to "promote confidence", the more likely they are to have the opposite effect.
Hey, did you guys all hear that? He calls it the "PWG", not the "PPT".
They cut his feed. Someone is reading CR.
QUIT READING YOUR SPEECH YOU P.O.S.
"we are working as quickly as possible. we are a few weeks away from implementation. working with president to hire a manger for eesa. will include politicians other than president so they don't get jealous."
what a waste of time
I just lost Hank too.
@ Midwest
Yep, mine died too. Moving to bloomberg
Paulson is scaring me ...
He is trying to tell us that the U.S. is strong and has always worked through all problems. Hmmm ... yeah, we worked through the Depression, but we'd kind of like to avoid that this time.
Best to all.
Calculated Risk
Sounds like he's been reading "Jimmy Carter's Guide to Political Discourse with the People".
When I say stuff like that here, it's precisely so I can get it out and not feel like I have to say it in the real world.
Mine is still on CNBC. Probably my Jedi energy.
CSC, Your on it dude! What about a bollo next time or a noose?
he's reading with his head down the whole time.
--> he didn't have time to rehearse this speech
It's on C-Span 2 also:
C-SPAN2 Live Stream - C-SPAN
Kona LMAO
Can anyone give us running commentary? Feed died
Any working live feeds to Hanky?
Thanks CR.
Urgh... C-span is blocked by my Initech company filters.
Kona: LOL...I was thinking a thin leather zipper-noose tie like we had in the early 80s. I think Hall and Oates wore them well.
Bloomberg's been working fine.
Re: I just lost Hank too.
Alien abduction, Spontaneous combustion, what?
He is talking about setting up the program EESA. They've hired people, designing systems, etc.
"Some banks will still fail"
these live feed links suck. They just crash my firefox browser constantly....or take me to nothing. Or take me to the wrong story. Useless.
Gavshire Hathaway writes:
Can anyone give us running commentary? Feed died
BLAH, BLAH, BLAH
Thanks for bailing out all my friends.
BLAH, BLAH, BLAH
Address systemic risks
BLAH, BLAH, BLAH
I think buffet blocked the signal... he's getting wise...
I always use the half-windsor. Fours-in-hand is for elementary school picture day and full windsor is for 1976.
CSC,
Great, but I still see him wearing a beret and gold chains by XMAS!
He's not announcing anything new.
"eesa won't save every financial institution, losers or firms not named GS will fail"
"we will do whatever possible to make financial system stronger"
"we will spend money in whatever way to accomplish that"
he is mentioning capital a bit more often, but is still calling it a liquidity problem
... on to the coordinated rate cut
"the house of pain"?
He is talking about setting up the program EESA. They've hired people, designing systems, etc.
"Some banks will still fail"
Calculated Risk
Did he mention anything about taking Cramer's place on Mad Money?
Geoff, C-Span2 is working for me.
C-SPAN2 Live Stream - C-SPAN
Mostly he is talking about the program. He is talking about the Fed liquidity programs and the coordinated rate cut.
OT: CSPAN2 just panned on a sweet piece of ass
Bloomberg News
Umm?!
Did anyone else get 'The House of Pain'!!
That was utterly bizarre...
citizen energyecon writes: What hump?
Whatcha gonna do with all that junk?
All that junk inside yo TARP?
my hump, my hump!
my hump, my hump, my hump!
my lovely little lumps.
my humps they got you..
SHE'S GOT ME SPENDIN'....
spendin' all yo money on me.
and spendin' time [weekends] on me.
Commerical Paper Illiquidity, explains to the lay-man what commerical paper is
Paulson whispering to Bernanke:
"We're going to need a bigger barrel"
Say CR, this is off-topic, but do you have the price-to-household income charts for individual markets available, and/or are the data readily available somewhere else online (i.e., like chart 3 from your previous post, but for a single city rather than the entire nation)?
Why not just hand out his speech to the reporters? Leadership!
Is that clear?
Special Purpose Vehicle, buying 3 month
EESA is the new buzz title. I guess Agency Set Up To Purchase Garbage Loans" was too unwieldy.
Yes, in fact, I got "the house of pain" too. Hank's been hacked.
This is like a seance for channeling Herbert Hoover.
Who is eligible to sell CP to the Fed?
Paulson: Blah Blah We're still attacking the symptoms Blah Blah
Did anyone else get 'The House of Pain'!!
Yes, and it freaked me out to no end! I'm really, really glad someone else heard that too, so I know I'm not completely insane.
Yah, The Buffett Jam, makes since he does own the switch!
YouTube - MargaritaVille
Thanks CR - there is something wrong with my computer. Ever since I switched to MAC and tried to run windows on Vmware fusion, no videos work properly, if at all. Most just crash and burn. I'll figure it out one day. Til then, just read the color commentary from the peanut gallery here.
washington post has it on,sorry not good with links
so I know I'm not completely insane
House of Pain, not, Insane in the Membrane.
"must keep mortgage credit available"
"to apply critical funding to ... FHA approved FNM/FRE purchases of agency bonds, continue to support with ongoing securitization, they are under their new supervision"
There we go. Bloomberg works. Rhodesian 1, Lumberg 0
More trash to F&F
Yep, I heard the "house of pain" from the dead CNBC feed too! Hank pwnd!
I think he is going to break into hip hop to appeal to the younger generations.
LastDopeStanding writes:
Umm?!
Did anyone else get 'The House of Pain'!!
That was utterly bizarre...
That is one of the sound effects for Cramer's Mad Money. Some sound tech either goofed up big time or has an axe to grind ... maybe he/she just lost everything.
he is just running through the last 2 months, giving plenty of insignificant details -- seems to be geared to the average voter, must have chosen mid-day to get publicity so it will play on evening news
Re: "We're going to need a bigger barrel"
I also think Hank will need new pants for the bigger gu
Geoff: Me too on the Mac. CNN often works for me though. They have it now.
Treasury is going to continue to buy MBS directly... $150B in headroom at FNM/FRE to buy as well.
Midwest Product
I was away from my PC, with CNBC up, and there it was. Hacked Hank.
THE HOUSE OF PAIN!
Very strange.
Waiting for the Dow to vote...
Started at +110..
+15...
+34...
+45...
+58...
+77...
+130...
Yup, "stability" is the desire. Not.
Hanky just asserted that ther housing bust was the "cause" of the crisis. I remind everyoe that until they admit that the housing bubble was a symptom there is no hope of curing the disease. As evidence I present the current scheme to provide more loose lending to address the effects of past loose lending.
Dow gaining back 20% of yesterday's loss.
Bottom call time? LOL.
Get a teleprompter!
TGT +2.55 = 6.42%
WMT +1.49 = 2.77%
Facts
"Economic momentum has slowed globally including emerging markets"
our markets are declining, so are emerging markets. this hurts people. partnerships we need. protect savings of citizens. must keep in contact with international counterparts to avoid working against each other. g7 meets later, "collective efforts" (
SPECIAL MEETING OF G20!!! that's the news
Anoddamoose,
cramer. That explains why I don't recognize it. No Pump Monkeys on my TV.
"Deposition...Excuse me...disposition" Seems Hank IS looking ahead after all. Send lawyers now!
: February 11, 2007 (BULLSHIT)
"Given the strong growth of the hedge fund industry and the instruments they trade, we need to be vigilant," the ministers said. "We therefore agreed to further pursue the issue."
Hedge funds, which manage vast pools of capital and operate largely outside regulatory scrutiny, have grown to become some of the largest and most important players in markets around the world, particularly on Wall Street and in London. Fortress Investment Group, the first hedge fund in the United States to go public, saw its shares rise 67.6 percent Friday, their first day of trading.
At the meeting Saturday, even the U.S. Treasury secretary, Henry Paulson Jr. whose former firm, Goldman Sachs, profits immensely from its relationship with hedge funds said hedge funds needed more attention from policy makers.
Stop with the "liquidity" already. There's only so many shots I can take!
Pizza & Beer Party for the G7 this weekend.
Hank's not buying though.
A meeting of the G20? There's a G20?
oh that "collective efforts" means paulson is a communist for all you mccarthy fans
blah blah blah stability, order. important to do it right and do it quick.
New world (dis)order.
Getting to Q&A (I hope) ...
Rob Dawg writes:
A meeting of the G20? There's a G20?
Imagine the UN from the campy 60s Batman movie.
Basically,
It's a we're working on it speech and give us some time (patience)
New ben stein post, and it seems like he almost gets it for a change:
Yahoo! Personal Finance: Calculators,Money Advice,Guides,& More
the running commentary here is the best, esp since i am @ work and lundberg blocks me too.
Thx CSC...after installing the plug in, that one at least works. (as much as Im not a fan of CNN)
220, 221, whatever it takes.
Interesting:
"It is not my place to comment on rumors of the government hoarding ponies, kittens, or ice cream."
Hanky just asserted that ther housing bust was the "cause" of the crisis
I got into an accident last week because of traffic.
he wants a special meeting of the g20.
wonder who all those buggers are.
LastDopeStanding writes:
Anoddamoose,
cramer. That explains why I don't recognize it. No Pump Monkeys on my TV.
Neither do I. The only reason I knew that was because they were breaking in a new sound tech on Monday and what they were doing was being broadcast by mistake. "The House of Pain!!" was one of the effects. I heard pretty much all the Cramer sound effects without actually having to watch the fool.
EXTRAordinary bold actions taken
blah blah blah "all resources possible to strengthen financial system, protect depositors, .... lot of repetition going on
fdic etc, use all authorities to assist in repair and recovery
Calculated Risk writes:
Getting to Q&A (I hope) ...
I think he's going to pull a Palin.
"No time for questions, got to get back to work."
G-20 major economies - Wikipedia, the free encyclopedia
Another request for patience...
Sounds like he's been reading "Jimmy Carter's Guide to Political Discourse with the People".
i can haz cardigan wits my malaize?
Getting to Q&A (I hope)
No one will mention the fact that leverage issue is the real cause.
"we will overcome"
Join hands and sing along comrades...
Ciao
MS
Now, patience; and remember patience is the great thing, and
above all things else we must avoid anything like being or
becoming out of patience. A good plan used by worried business
folk who may not have had many momentums to master Kung's
doctrine of the meang or the propriety codestruces of
Carprimustimus is just to think of all the sinking fund of patience
possessed in their conjoint names by both brothers Bruce with whom
are incorporated their Scotch spider and Elberfeld's Calculating
He said "contain." Everybody drain your glass.
"...an immediate end to current difficulties." Sorry Hanky, you just jumped the shark.
g20 = add up top 20 GDPs, it's an informal term there have been loose meetings (think within WTO)
wow...even he is admitting that once they finally DO get this turd up and running, we probably wont notice any difference. Great.
Jim in Portland? Are you online? Just wondering if anyone knows of a good blog regarding real estate in Portland OR. As we are renting until safe to jump in---would help if knew when...
Thanks! A little off subject, yes, I know.
Paulson is seriously stressed out. Head stuck leaning to one side. Tired, leaning on podium and breathing heavy
New ben stein post, and it seems like he almost gets it for a change:
WHAT HAVE YOU DONE WITH THE REAL BEN STEIN!?!?
Hank are we in recession?
Dodged interbank lending question.
G7 coordination problematic(?)
mouth breathing...the guy is tired, that is for sure. You can tell he really wants to sit down.
Paulson is seriously stressed out. Head stuck leaning to one side. Tired, leaning on podium and breathing heavy
He is stuttering like mad too now. Is he aging before my eyes?
PWG is working together to achieve stability in all financial markets.
Ok more interventions again...!
he keeps looking at his left arm.
it's not his watch, but i do suspect he has all the acronyms written there because surely nobody can remember them all by now.
I,I,I,I,I....ah,ah,ah,ah....wi,wi,wi, with different needs.
IS,IS,IS,IS
For christ sakes take a speaking course!!!
Ciao
MS
So the chances of something coming out the G7 are slim?
"uh, uh, uh, uh........ we continue to communicate, coordinate....uh uh uh..."
Stuttering Stanley!
Yep G7 coordination being soft shoe'd a bit here.
Wow, he is stuttering ... G7 countries have different needs and different policies. Yeah, he doesn't want the recapitalization like the UK.
I said my peace and won't repeat.
G20:
dryfly writes:
i can haz cardigan wits my malaize?
http://icanhascheezburger.files.wordpress.com/2008/01/funny-pictures-mr-rogers-cat-sweater.jpg
awesome! The McCain plan blown to bits. Totally not OKed with Treasury...just pulled that from butt last night. Great.
No one will mention the fact that leverage issue is the real cause.
Obscene leverage and selling insurance in an unregulated market.
@ Builder Bob
I was thinking the same thing. Dude must be exhausted.
He is doing Q&A.
Q2. Are we going to follow the EU now.
A2. G7 very different countries. No one solution is good for every country
Q3: Plan to purchase fixed rate mortgages (some McCain plan)
A3: I don't have time to read whatever stupid plan politicians are flogging. we could do anything, we are working with FHA and other parts of administration to avoid foreclosures. E.E.S.A (jar jar binks says eesa)... "Working to unclog the system" (repeated phrase throughout)
Hank how big a check would you ask for if we were in a recession?
McCain plan:
Not overwhelmed by it as he has options available -- also no details on it.
That's a no way from the sound...
"And bake sales will help us out in the short-term..."
We are so screwed....
If this is the face of confidence
Ciao
MS
For christ sakes take a speaking course!!!
Or maybe some L-Dopa...
Wiki on G20 cites the following goals:
The elimination of restrictions on the international movement of capital
Deregulation
Flexible labour market conditions
Privatisation
Enforcement of intellectual and other private property rights
Creating a business climate conducive to foreign direct investment
Global trade liberalisation (through the WTO and bilateral free trade agreements)
Cool. Which of these topics do you think Pauly is going to address? Oh yeah, #1, the elimination of restrictions on capital flows. Not.
Wow. Market didn't like the stuttering.
Q&A:
Q: Will we guarantee interbank lending?
A: I dunno. Maybe.
Q: Is it every man for himself?
A: Yes.
Q: What do you think of McCain's buying of mortgages?
A: I don't know his plan.
_
What about the Russians?
We talk with them.
Russian plan?!
Given the strong growth of the hedge fund industry and the instruments they trade, we need to be vigilant. We therefore agreed to further pursue the issue. We will exchange views with the private sector and ask the Financial Stability Forum to update its 2000 Report on Highly Leveraged Institutions.
http://www.treas.gov/press/releases/hp256.htm
Paulson is in an emergency meeting to have a discussion to chat about updating an eight year old report on the hedge industry, and meanwhile we have a $60+ Trillion systemic collapse to be in denial about!
q4:Some Russian reporter thinks Paulson cares about Russia's market.
a4:"yeah I look forward to discussing with him as I have all the way through this"
q5: does TARP recapitalize
a6: yes that's absolutely critical (Much stutt-tut-tering)
Hell, we can even see them...no problem with Russia.
@mom,
try the Portland Housing Bubble Blog
Portland Housing Blog
Q: Will the TARP rebuild the capital base of financial institutions?
A: Yes. Private capital has been reluctant to invest because of the bad assets. That is one of the goals of the program.
He will end the speak with "I regretfully resign my position as Secretary...MotherF&**#rs"
Why did he have this press conference? He isn't saying ANYTHING. Instead he's showing us that he's tired, confused, nervous, and that they really don't have a real plan.
Counterproductive.
Doesn't the short covering ban expire tonight? Are we going to hear from Cox and Bush today as well?
q7: how would you purchase them
a7: all of the above we could do, going through them now (conflict resolution , contractors) (formulate programs). working quickly, SEVERAL weeks
Thank you Last Dope Standing!
i called gov palin, and she affirmed she could still see the bastards.
no problem there.
The quicker the deef the safter the sapstaff, but the main
the mightier the stricker the strait. To the vast go the game! It
is the circumconversioning of antelithual paganelles by a
huggerknut cramwell energuman, or the caecodedition of an
absquelitteris puttagonnianne to the herreraism of a cabotinesque
exploser?
I left my campaign and suspended it to go back to Washington to make sure that there were additional protections for the taxpayer in the form of good oversight, in the form of taxpayers being the first to be paid back when our economy recovers
I loved this from McCain last night.
Obscene leverage and selling insurance in an unregulated market.
Aww man, let's not forget BK's 20 million illegals. It's completely the beaners that did it.
SEVERAL weeks -meaning after election...
Hank sounds just like the Jon Lovitz character from the SNL skit on Pathological Liars Anonymous.
I was thirteen at the time. Yeah.. I went to Vietnam, and I was injured catching a mortar shell in my teeth. And they made me a three-star general! And then I got a job in journalism, writing for the National Enquire.. er, Geographic! Yeah.. I was making twenty thousand a ye.. month! In fact, I won the Pulitzer Prize that year! Yeah, that's the ticket.
And then my cousin died - Joe Louis - and I took it hard. Maybe too hard - I tried to kill myself. Yeahh.. I did kill myself! Sure! I was medically dead for a week and a half! It was a woman that brought me out of it - Indira Gandhi! Yeah, right..
q8: which institutions bailed out, which left to fail?
a8: (calm) stability of paramount importance, we've been pretty clear in reminding people that the authorities (stuttering now) FDIC (stutter) systemic risk, all the tools we have. very aware of fragility right now, paramount as we work through
As the sun sets in the west, the full complements of the AIG, Lehman and Bär-Stearns Panzer Divisions have established themselves on French soil. As soldiers prepare to rest, repair equipment, or defend positions, the party atmosphere is rising as beer trucks roll into camouflaged assembly areas, where the huge pots of boiling water cast off agreeable scents of sausage. Singing can be heard to spring up here and there.
It has been a long day, subject to equipment malfunction, rain deluges and attacks by new French déposer l'argent des hélicoptères.
But as the sun sets almost over the pinnacle of the distant Eiffel Tower, the steps to the task are repeated in the minds of thousands of troops: "Paris, London, Reykjavík, New York".
Re: Paulson on Monday selected Neel Kashkari, 35, an assistant Treasury secretary, to be the interim head of the new program, and his new roommate.
Q: Guidelines for who is allowed to fail?
A: no real answer. Stuttering. Totally incoherent.
THIS IS FREAKING ME OUT!
q9: support unsecured lending to banks?
a9: we've worked closely with them. I'll leave it at that
So, several weeks before it even starts, which means the economy zooms downard all the way to Christmas. When retailers major sales season goes boom, tons of them go bust. Then we have the next major wave of banking problems, when the CRE bust goes "nucular."
Who gets the bailouts?
Talks about the fragility of the market place and dodges the question.
CSC - Yes, yes, Jon Lovitz! It was driving me nuts trying to remember where I'd heard this before.
a9 cont'd blah blah blah, we'll do what makes sense
q10: buy up mortgages to free up banks to lend, any requirements to lend
(NO READ THE LAW YOU STUPID REPORTER)
a10: Listen to EvilHP, stupid child
I think "several weeks" will be the headline out of this.
With some exceptions, the road is filled with ceo roadkill who thought Washington politics would be a piece of cake compared to big business.
G20 working together? That won't last long before everyone their own way.
Bailouts? This is a buy in and we now get to buy worthless assets at an even greater premium! Right on dude!
Q: IS there a requirement to force the banks to do lending.
A: no.
Kona, you kill me.
How about a photo of some gorgeous guy coming out of the ocean?
Are you on the Big Island?
If so, just point me to the nearest lava tube and I'll jump in!
Humorously because sadly doesn't work,
Ellen Kimball at The Old Elm Tree
The stuttering makes me want to sell all my longs holdings
I can't get over the fact that Ben Stein is saying stuff like this now:
8) Appoint as head of the United States Treasury Department a man whose whole life was spent on Wall Street, who became fantastically rich through his peddling of junk bonds at his firm while the firm later sold short those same sorts of bonds.
everyone goes
(cracked a smile)
q11: mistake to let lehman fail?
a11: looking back we made the right moves, there was no buyer willing to step in. did not have wind down authorities we needed for financial institutions. I'll leave it at that
I think lots of people will be reluctant to hold new positions through Ypm Kippur (tomorrow). Everyone be careful out there for the last 25 minutes.
tered, for a dillon a dollar,1 chanching letters for them vice o'verse
to bronze mottes and blending tschemes for em in tropadores and
doublecressing twofold thruths and devising tingling tailwords
too whilest, cunctant that another would finish his sentence for
him, he druider would smilabit eggways2 ned, he, to don't say
nothing, would, so prim, and pick upon his ten ordinailed ungles,
trying to undo with his teeth the knots made by his tongue,
retelling humself by the math hour
"Across this country, this is the agenda I have set before my fellow prisoners and the same standards of clarity and candor must now be applied to my opponent." - John McCain
YouTube -
Bearly writes:
The stuttering makes me want to sell all my longs holdings
Watching the DJIA fall, it appears you're not alone.
Market (SP500 and Nasdaq) seem determined to rally today.
Imma gonna liq liq liquidate all this junk,
all this junk,
all this junk inside yo trunk.
One of his favorite lines: "I'll leave it at that."
I think hes got a Dilliger hid inside that tie knot in case somebody asks the wrong question.
Global rate cut, ban on shorts expiring. Is it too easy of a play to short S&P or financials via an ETF? By too easy, is it destined to fail?
1 An ounceworth of onions for a pennyawealth of sobs.
2 Who brought us into the yellow world!
3 Because it's run on the mountain and river system.
4 When all them allied sloopers was ventitillated in their poppos and,
sliding down by creek and veek, stole snaking out to sea.
5 They were plumped and plumed and jerried and citizens and racers, and
cinnamondhued.
No predictions??? What about your prediction in the bottom in housing, Hank?
How long will it take the economy to recover....and Paulson has to suppress a laugh. (translation, you little peeps is forked.)
Just the fact that they called it a TARP -- a flappy, thin plastic covering-- shows how little confidence they are capable of instilling.
q12: US recapitalization of banking?
a12: would not speculate what we might do. empahsized purchase of illiquid assets, we can do whatever we want
Last Q
q13: how long take economy to recover
a13: uhhhhhh...... not going to make predictions. we will take all steps necessary to stabilize financial system, to mitigate impact, that is our priority
q13.5: seen financial markets lately?
a13.5: too early to look for encouraging signs from the credit market. still performing as normal, some aren't. take a while to work through this problem
HE ACKNOWLEDGED A PROBLEM, heretic!
I always kid that in the underwriting process it is the job of the dealer community to shoot the taxpayer in the big toe. In this instance they amputated a leg instead.
In bond market jargon that 40 basis points is known as a tail or the number of basis points from where the issue was to the level at which it stopped. Most auctions come on the screws which is more jargon for the notion that they come essentially where they are trading at auction times. A typical sloppy auction might tail 2 basis points. There are 5 basis point tails and I can recall 10 basis points and even 15 basis point tails. They are rare. Extremely. In all my years I can not recall a 40 basis point tail and shall proclaim this the record holder.
Now to place that in dollars and sense terms for the taxpayers of the USA I offer this. On that bond every basis point is worth a little more than $600 per million bonds. Multiply by 40 basis points and you get $24,000 per million. The auction size of $10 billion equates to 10000 million. Multiply by 24,000 and the product is $240,000,000.
In a market to market sense it cost the taxpayers that enormous sum to underwrite the auction today.
There are three more of these coming in rapid succession. Each will be priced at the new expensive for the taxpayer levels.
I would say that the Treasury paid too much money to rectify the delivery problems in the street.
[hat tip]
Uh-Huh
Q; How long to recover.
A: (laughs). I'm not going to make predictions. We are going to try to repair financial systems.
Q: What about credit markets?
A: Too early to look for improvement in credit markets.
Paulson: "The rescue plan will not save all firms."
Q: "Can you tell us which firms will be saved?"
Paulson: "That information is being made available on a need-to-know basis. I believe the list has been distributed to Goldman Sachs trading desks."
Q: Do you know what Russians are doing about their problem?
A: No - not really.
Q: Will the EESA help the capital base of the financial institutions?
A: I hope so.
Q: About the EESA what's the holdup?
A: We're going as fast as we can.
Q: How do you determine which banks to let fail?
A: We have no policy.
Q: Will you allow the Fed to offer unsecured lending to banks?
A: Not right now. Ask me again later.
Q: Will you require banks to lend?
A: No.
Q: Letting Lehman fail was a good idea?
A: Yep
Q: All your efforts have done nothing. Are you going to do more?
A: Not gonna tell ya!
Q: How long will it take for the economy to recover?
A: Hahahha. Oh, that was a good one.
CR, awhile back you closed a posting with the notion that "innovation" is the key. Tying that idea to your earlier post today on The Adjustment Process... what are some innovation themes you see as opportunities for this country?
In other words, where would you focus the country's resources and treasure if you were in a leadership position?
BRING ON THE CHIMP! BRING ON THE CHIMP! GET IT NEG.
Stuttering, stammering Hank could not have ever been the smartest person in the room. After watching him read and then respond--he's petrified--and I'm scared.
a:i don't know how we could enforce a requirement to make the banks lend and for lenders to request a loan.
well, has anyone tried to get ashcroft to come back to his position. or better yet, what is your position on waterboarding. has this tool been added to the tarp as one of the "tools"
DutchR writes:
G20:
Hey dutch, how come the eu is #20, when the big boys from the g7 are already on there? How about including california then?
The smartest guy in the room. Shudder.
Note to self:
We lost over $150,000 this year in our nest egg. It was time to get out yesterday.
That's what we did. I'm 69, husband is 74.
We were ready to take gas on Friday, but averted it on Tuesday. Good luck to all of you in more difficult straits.
In peace,
Ellen Kimball
AUY up 17%. Maybe long gold
that was not confidence inspiring
except that make no mistake, they will take out every weapon if needed in their never ending attempt to prevent further crashing
too bad they are running out of weapons, and they don;t have the money to pull this off
How long will it take the economy to recover....and Paulson has to suppress a laugh. (translation, you little peeps is forked.)
Geoff | 10.08.08 - 3:43 pm | #
Never mind. This defies satire.
That stuttering is strongly counteracting anything confidence-building that he might say.
It would have been better for him to take a power nap.
He's running scared, and when a guy with that much experience and expertise is running scared, well, it's scary.
Market didn't get its pony.
Dow tanking.
RhodesianGreenbackinAZ, most innovation comes from the private sector, but I think we have an opportunity for an alternative energy push that could make a huge difference.
Best to all.
a13: "We don't have economic forecasts."
wow.
and the shorts come raging back on nothing but bad news delivered as a confidence booster.
When will Paulson resign and let Roubini take over already?
Uncle Ar, think Czech Republic, Slovakia, Austria, Poland, Netherlands, Belgium, Portugal, Bulgaria, etc...
They add up to at least 1 extra country
Enough with the useless "G7" and the Atlantic Alliance. It is time to view this crisis in its real context and coordinate between the USA, the EU, and China. It's time for those 3 main actors to sit down for a new Bretton Woods. Otherwise, stagnation for a decade or more.
Paulson stuttering (and laughing about a recovery) isn't inspriing.
His howd feeled heavy, his hoddit did
shake. (There was a wall of course in erection) Dimb! He
stottered from the latter. Damb! he was dud. Dumb! Mastabatoom,
mastabadtomm, when a mon merries his lute is all long. For
whole the world to see.
Market didn't get its pony.
NO PONY, NO PEACE!!!
Hank's Place Wed. Blue Plate Special:
Squirrelmeat Nothingburger (no bun included). Lots of ums, ahs and and patience-chips on the side.
OK, so what was the purpose of that, exactly?
Seriously. I mean, in Paulson's own mind, what was the purpose?
Was there anything new? At all?
Calculated Risk writes:
Paulson stuttering (and laughing about a recovery) isn't inspriing.
His first honest expression.
New thread music (hat tip to commenter at dealbreaker):
YouTube - Stutter Rap - Morris Minor & Majors
I TOOK MY DEEP BREATH, CNN COMMENTATORS! I can't work at age 69 and won't allow my money to erode due to no fault of my own. Luckily we are seeing the Democrats polling much better.
Off topic:
Just for fun, Here's the Sarah Palin Baby Name Generator
Type in your full name and get Sarah Palin's gift of a fabulous new name:
Mine was: Spoon Archer Palin
(Guffaw gooes here!)
[URL]http://politsk.blogspot.com/2008/09/sarah_13.html[/URL]
elle
I've had a great day in the markets.
Rode both peaks up, and went short at the top. It's addictive and worthwhile to roll with the market when it swings so wildly
Thanks for helping the last leg finish down hard Hanke
Bloomberg following up with a monkey talking about a buying opportunity.
You guys really think he is scared??
He's trying to act but not doing a very good job. That's all I see with him. He's not scared but the perception is that he is and that is what you are seeing.
I'm thinking John Snow could have been a better delivery boy. however he didn't have the connection to China that stutterin' Hank has.
Can't let the market fall on Hank's revelation day can they??
Ciao
MS
remember sheeple ... rallying the market is no way to go about getting your Pony ...
only PAIN brings the Pony!
Is it just me or does Paulson remind you of John C. McGinley? YouTube - *WILD HOGS* -- John C. McGinley
At least the intentions are similar...
@This is like a seance for channeling Herbert Hoover.
lmao.
CSC, Oates maybe, but too formal for Hall.
http://farm3.static.flickr.com/2416/2264523738_cb495fc71e.jpg?v=0
This was just too good:
He'll ask for 70 trillion dollars to be spent be him and him alone with no legal recourse by any country. He'll say he doesn't know if it will work but it is their only chance.
And a secret island volcano base.
Builder Bob
LOL
It's just way too easy to see Paulson and Fuld as the Bond villains plotting the end of the world unless they are paid $700 BILLION dollars.
Crisis? What Crisis?
it's like a triple midget tag-team match on my TV everyday
I hate wrestling...phony as hell, but it gets funny when they transform their ties into Bozo wigs
Rich people don't get scared until the poor people with pitchforks knock on the door.
Here's the plan that will put a bottom (not THE bottom).
This will lead to an almost complete nationalization.
The institutions left standing, will get the prize of rebuilding the system.
If there's a future thread about me
, the music had better be either AC/DC or Rush.
I had to step out. What was the shoe level factor for this pep talk?
Darn this html.
Sarah Palin Name Link:
http://politsk.blogspot.com/2008/09/ sarah_13.html
That news conf makes me yearn for the old days. I am going to rent "Rain Man" tonight.
Remember magic shows where the beautiful girl is there to distract you while the real trick is happening? That was Paulson just now. Either they couldn't afford a beautiful girl or the AIG execs had 'em all bought up, so Hank stepped in. Somewhere, though, the real trick just happened.
We still have mountains of unpayable and unproductive debt out there.
One more thing - Paulson is a stooge.
RhodesianGreenbackinAZ,
Remember that the internet didn't exist 25 years ago or so. Think of other things that don't exist today like smart politicians, halographic invasive probes, and quality programming on network TV. That is where the innovation will come from.
The future is hard to imagine if you cannot imagine. It is bad to imagine if you imagine bad things. But, if you imagine well and fantastically, the future is bright.
Many primary dealers say situation is too fluid to pin down timing of rate cuts
No problem, let's get Peter Jackson (LOTR) to edit this up for the evening news. Special effects can do wonders.