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NEW -> Contingent Buyer Assistance Program
[quote author="usctrojanman29" date=1221799776][quote author="awgee" date=1221798427][quote author="usctrojanman29" date=1221794734][quote author="No_Such_Reality" date=1221792841]Ugh, me and my big mouth. <a href="http://news.yahoo.com/s/ap/20080918/ap_on_bi_st_ma_re/wall_street_458">Wall Street Rumors of a second Resolution Trust Corp...</a></blockquote>
My question is...how the FOCK will they value those assets they want to buy and will the banks be willing to take deeply discounted prices for them??? I hope they don't do this!</blockquote>


They are going to do it.



Discounted? Deeply? I doubt it. What good does it do the bank if they sell them at a discounted price?



Isn't the more important question; where will the Treasury Dept. get the money?



Hint: Wayne Angell, former federal reserve governor said today on CNBC, "The Federal Reserve has an infinite balance sheet."</blockquote>
They better build some more printing presses because they'll have to be working overtime. If they end up buying that garbage at anything more than 20-25 cents on the dollar I'll be pissed. I still don't see how this will solve the foreclosure item. Banks got greedy and got burned so they need some time to lick their wounds before they get greedy again.</blockquote>


If they buy a BBB tranche CDO for 30 cents on the dollar, how much will it be worth three years from now?
 
[quote author="Allison C." date=1221806292][quote author="awgee" date=1221798427][quote author="usctrojanman29" date=1221794734][quote author="No_Such_Reality" date=1221792841]Ugh, me and my big mouth. <a href="http://news.yahoo.com/s/ap/20080918/ap_on_bi_st_ma_re/wall_street_458">Wall Street Rumors of a second Resolution Trust Corp...</a></blockquote>
My question is...how the FOCK will they value those assets they want to buy and will the banks be willing to take deeply discounted prices for them??? I hope they don't do this!</blockquote>


They are going to do it.



Discounted? Deeply? I doubt it. What good does it do the bank if they sell them at a discounted price?



Isn't the more important question; where will the Treasury Dept. get the money?



Hint: Wayne Angell, former federal reserve governor said today on CNBC, "The Federal Reserve has an infinite balance sheet."</blockquote>
Err...I saw Wayne Angell on CNBC last night too, does he really believe what he says or is he being sarcastic? Am I missing sth? Was I wrong to have the urge to choke him?</blockquote>


Why would he be sarcastic? Why would he not believe it?



It is true.



I would explain it to you, but I am afraid you may choke me if I ever meet you.
 
<a href="http://longorshortcapital.com/">This site</a> can be a little raw at times, but <a href="http://longorshortcapital.com/bailing-out-the-bailer-outer.htm">this</a> was too good not to mention.



<blockquote>

Bailing Out the Bailer-Outer

by Kaiser Edamame



Today the US treasury announced they are bailing out the federal reserve bank. They are concerned that the federal reserve bank - after taking over the debt of Bear Stearns, Fannie, Freddie, AIG et al. is ?over-leveraged?. The obvious question is, who will bail out the Treasury? The answer is paper. More specifically the ?Bureau of Engraving and Printing?. We are so long the Bureau of Engraving and Printing as we see it as the only financial institution in the country that will always ?find? enough liquidity to fund itself. If you?d like to get long them we recommend you check out <a href="http://www.moneyfactory.gov/">www.moneyfactory.gov</a>. Yes that?s the real name of their government website. Money doesn?t grow on trees, but you can cut the trees down send them to a money factory and presto pronto prego DINERO!



Recommendation: In any mania, don?t invest in the company that mines the ?gold?, buy the company that supplies the ?shovels? and ?picks?.

</blockquote>
 
[quote author="EvaLSeraphim" date=1221828420]

<blockquote>Recommendation: In any mania, don?t invest in the company that mines the ?gold?, buy the company that supplies the ?shovels? and ?picks?.

</blockquote></blockquote>


Sounds oddly familiar...

<a href="http://www.irvinehousingblog.com/forums/viewthread/2269/#53075">Deja Vu</a>
 
[quote author="IrvineRealtor" date=1221833719][quote author="EvaLSeraphim" date=1221828420]

<blockquote>Recommendation: In any mania, don?t invest in the company that mines the ?gold?, buy the company that supplies the ?shovels? and ?picks?.

</blockquote></blockquote>


Sounds oddly familiar...

<a href="http://www.irvinehousingblog.com/forums/viewthread/2269/#53075">Deja Vu</a></blockquote>


IR2 has the memory of... something... what's it called again? Nevermind, the fact that he remembers anything from more than 2 days ago says something. I bet he even has searched the archives of the old days of IHB. So... where is NIR these days anyway? I do miss her.
 
Sen. Jim Bunning, R-Ky., describing himself as "outraged" by the Fed's assertiveness, sounded a similar theme: "The only difference between what the Fed did and what Hugo Ch?vez is doing in Venezuela is Ch?vez doesn't put taxpayer dollars at risk when he takes over companies. He just takes them."
 
[quote author="EvaLSeraphim" date=1221828420]<a href="http://longorshortcapital.com/">This site</a> can be a little raw at times, but <a href="http://longorshortcapital.com/bailing-out-the-bailer-outer.htm">this</a> was too good not to mention.



</blockquote>


LOL!



<em>Ratings Methodology:

Hey everyone! It?s me, Melissa Moody?not that other Moody?s you have been reading about. Actually that?s why I?m here I?m just so sick and tired of that other Moody! Their ratings stink, and they don?t know nearly as much as I do about debt, it?s true, I?m maxed out on 4 out of 7 credit cards I know I have a problem but I just can?t stop,ha ha. I can do a better job than Moody?s and that is what I?m gonna do! And let?s face it, their old ratings were too complicated. I mean Aa3, Baa1, Caa2, B1 who knows what that means? My ratings will be simple:



- BFFAE (Best Friends Forever and Ever)

- BFF

- BFFLAF (Best Friends For Like Almost Forever)

- BFFBAS (Best Friends Forever But Also a Slut)

- BFFBIHH (Best Friends Forever But I Hate Her)

- Whore </em>
 
[quote author="awgee" date=1221828236][quote author="Allison C." date=1221806292][quote author="awgee" date=1221798427][quote author="usctrojanman29" date=1221794734][quote author="No_Such_Reality" date=1221792841]Ugh, me and my big mouth. <a href="http://news.yahoo.com/s/ap/20080918/ap_on_bi_st_ma_re/wall_street_458">Wall Street Rumors of a second Resolution Trust Corp...</a></blockquote>
My question is...how the FOCK will they value those assets they want to buy and will the banks be willing to take deeply discounted prices for them??? I hope they don't do this!</blockquote>


They are going to do it.



Discounted? Deeply? I doubt it. What good does it do the bank if they sell them at a discounted price?



Isn't the more important question; where will the Treasury Dept. get the money?



Hint: Wayne Angell, former federal reserve governor said today on CNBC, "The Federal Reserve has an infinite balance sheet."</blockquote>
Err...I saw Wayne Angell on CNBC last night too, does he really believe what he says or is he being sarcastic? Am I missing sth? Was I wrong to have the urge to choke him?</blockquote>


Why would he be sarcastic? Why would he not believe it?



It is true.



I would explain it to you, but I am afraid you may choke me if I ever meet you.</blockquote>


:-) I will not choke you, your presence is vital to this forum! But his words of the Fed having an infinite balance sheet keeps haunting me. What does he mean by that? Their money supply is never ending? So they are bailing all the big boys on Wall St? (Sorry for being a dumdum, I am still very green :-S in many ways as regards to the economy. But please ask me anything about baking cakes and cookies, ;-) )
 
<a href="http://biz.yahoo.com/ap/080919/financial_meltdown.html">This headline</a> contains four words you never want to see in the same sentence: "government," "rushing," "huge," and "plan."



While I obviously don't have all the information, this action feels premature to me. Any plan should also include a requirement that the current and former senior managers of each participating entity to pay to the US Treasury an amount equal to their bonuses received from the participating entity in the last four years. Sadly, I suspect that everyone who votes on it won't even have read the bill from cover to cover. :-S



Since it has all the appearances of a fait accompli, the questions becomes, "How can I profit from this?" If anyone finds the text of the bill online, could you please post a link? <a href="http://thomas.loc.gov/">This</a> was always a good reference, but I don't know how fast they are.
 
[quote author="Allison C." date=1221865475] :-) I will not choke you, your presence is vital to this forum! But his words of the Fed having an infinite balance sheet keeps haunting me. What does he mean by that? </blockquote>


The FED doesn't have an infinite balance sheet. If they try to use it like it, the end result is Argentina.
 
[quote author="No_Such_Reality" date=1221870340][quote author="Allison C." date=1221865475] :-) I will not choke you, your presence is vital to this forum! But his words of the Fed having an infinite balance sheet keeps haunting me. What does he mean by that? </blockquote>


The FED doesn't have an infinite balance sheet. If they try to use it like it, the end result is Argentina.</blockquote>


The FED does have an infinite balance sheet. And, the end result is Argentina. What do you mean try? They are using it. They just created between $170 billion and $250 billion in the last four days. They are about to create a few trillion to buy OTC derivatives from financial institutions.



The Fed creates money. Where do you think a Federal Reserve Note comes from? What do you think the limits are to the amount of currency the Fed can create? Yes, there are consequences, but that does not mean they do not have the ability or that they are not using that ability.
 
Hey, were on the same page. If the FED continues the infinite balance sheet, our future is Argentina.



If they use it enough, nobody will buy the bonds they print. That's when they find out where the universe ends...
 
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_U/threadview?m=tm&bn=58157&tid=112937&mid=112937&tof=5&frt=2



=DJ SEC Urged To Suspend Redemption Rights On 2 Reserve Funds



.

DOW JONES NEWSWIRES





Securities and Exchange Commission staff will recommend that the agency suspend all rights of redemption from two of the Reserve Fund's money-market funds to allow an orderly liquidation of their securities.



The Reserve Fund asked the SEC to suspend those rights from its Primary Fund and U.S. Government Fund to protect each fund's shareholders. It also asked the SEC to postpone the date of payment of redemption proceeds for longer than seven days after the tender of shares for redemption.



Both funds had "unprecedented requests for redemptions" after Lehman Brothers Holdings Inc.'s (LEHMQ) bankruptcy filing Monday amid extreme turmoil in the financial markets, the Reserve Fund said. The Primary Fund "broke the buck" as a result, the first time since 1994 that a money-market fund's net asset value dipped below the $1-a-share level.



...



In 1994, the U.S. Government Money Market Fund, operated by Community Bankers Mutual Fund, fell below a $1 per share net asset value and was liquidated due to losses in adjustable-rate derivative securities. "





This mean money is completely draining away from the markets. People are pulling out their money from market funds and putting in T-bills, which is pretty much the ONLY place left where you are guaranteed to not lose any money. Money markets can lose money, bank accounts can be iffy once the FDIC runs out, stocks, commodities lose money. T-bills are the only 100% guaranteed return of capital.



Which is why the treasury yield is near zero.
 
<a href="http://lansner.freedomblogging.com/2008/09/19/foreclosures-slice-of-home-sales-soars-5-fold/">Foreclosures? slice of home sales soars 5-fold</a>



Not really "news" to those visiting the IHB, but it's nice to know the MSM is getting the word out.
 
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