The day the secondary markets died, truly a scary day.

NEW -> Contingent Buyer Assistance Program
[quote author="awgee" date=1222235957]If the real concern is the liquidity of the credit markets, why don't the banks just go to the discount window or term auction facility or any of the other avenues the Fed has made available?</blockquote>
Alternatively, why not just create a facilty to feed the credit markets directly? If the fear is that the short-term credit markets will sieze if nothing is done, why not use that $700B to keep that market running directly from the Fed and let the banks take the consequences of their bad investments?
 
[quote author="Nude" date=1222292838][quote author="awgee" date=1222235957]If the real concern is the liquidity of the credit markets, why don't the banks just go to the discount window or term auction facility or any of the other avenues the Fed has made available?</blockquote>
Alternatively, why not just create a facilty to feed the credit markets directly? If the fear is that the short-term credit markets will sieze if nothing is done, why not use that $700B to keep that market running directly from the Fed and let the banks take the consequences of their bad investments?</blockquote>
Exactly. If the collateral is not good enough for the Fed, why is a supposed profitable venture for the taxpayer.
 
<em>"If the Fed pays "Hold to Maturity" prices for collapsed OTC derivatives that will never recover, that would represent an outrageous premium to their true value.



If the Fed pays what the collapsed OTC derivatives are presently worth, they could do the entire bailout for one Rupee.



You know what is about to happen. God help us all!"

</em>



- James Sinclair
 
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