tag:blogger.com,1999:blog-4102429195693595750.post9046536367337003493..comments2024-03-22T05:15:17.042+02:00Comments on Sudden Debt: "Get 'Em While You Can"Hellasioushttp://www.blogger.com/profile/03564511281240682625noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-4102429195693595750.post-18927259156634986842007-08-26T18:04:00.000+03:002007-08-26T18:04:00.000+03:00The Feds said they will take boats as collateral. ...The Feds said they will take boats as collateral. Docking soon at the NY Fed will be the Positive Carry. The owner is a hedge fund loser; the boat goes for around 1/4 billion bucks. So, there's 1% of the $25 billion. <BR/><BR/>George likes to ride on big boats. The last one had a banner, "Mission Accomplished". This one will have only the word, "Mission Failed" as it's a smaller boat, and can't carry as many letters.GaudiaRayhttps://www.blogger.com/profile/15434508520368873470noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-81945268542034847172007-08-25T16:30:00.000+03:002007-08-25T16:30:00.000+03:00I think most traders are emotionally unstable, ove...I think most traders are emotionally unstable, overpressed, almost arrogant, stubborn and very, very eager for action.<BR/><BR/>It could be good qualities in any kind of business activity except trading.<BR/><BR/>In investment, being stubborn and emotional is the best way to be separated from your money.Sandrohttps://www.blogger.com/profile/11557277290832674333noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-11441962383967881832007-08-25T11:38:00.000+03:002007-08-25T11:38:00.000+03:00Re: Fed bending rules.This is very serious and the...Re: Fed bending rules.<BR/><BR/>This is very serious and the amounts involved ($25 billion) are very large. This is what we get for doing away with Glass-Steagall.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-865454323253109882007-08-25T09:01:00.000+03:002007-08-25T09:01:00.000+03:00Edwardo,basically correct, or at least bundled Win...Edwardo,<BR/><BR/>basically correct, or at least bundled Winnebago paper; I would only note that there's some history here.<BR/><BR/>For example, in October 1999, there was an FRB <BR/>memo <I>New Asset Types Acceptable for Discount Window and Payments System Risk</I><BR/>that, apparently because of Y2K 'contingency purposes', modified the "asset types...now acceptable for Discount Window and Payments System Risk purposes" while also noting:<BR/>"Looking ahead, the Federal Reserve anticipates approving additional asset types as collateral."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-69074729473048576492007-08-25T08:05:00.000+03:002007-08-25T08:05:00.000+03:00Seen this?http://money.cnn.com/2007/08/24/magazine...Seen this?<BR/><BR/>http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htmEdwardohttps://www.blogger.com/profile/03613197383283896190noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-53740207271814797312007-08-25T02:19:00.000+03:002007-08-25T02:19:00.000+03:00http://money.cnn.com/2007/08/24/magazines/fortune/...http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htm?postversion=2007082415%20<BR/><BR/>http://www.federalreserve.gov/boarddocs/legalint/FederalReserveAct/2007/20070820b/20070820b.pdfAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-38523250844527059272007-08-25T02:13:00.000+03:002007-08-25T02:13:00.000+03:00Can you comment on the the CNN-Fortune article on ...Can you comment on the the CNN-Fortune article on the Fed's letter to BOA-C dated August 20, 2007...The article was released at 4:31PM after the market close...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-58209834883947775732007-08-24T21:18:00.000+03:002007-08-24T21:18:00.000+03:00Great! Thanks!Great! Thanks!Shawnhttps://www.blogger.com/profile/08155630920582744324noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-25046611347019232392007-08-24T19:48:00.000+03:002007-08-24T19:48:00.000+03:00shawn,The link was on the previous post about the ...shawn,<BR/><BR/>The link was on the previous post about the window ops.<BR/><BR/>Here it is again:<BR/><BR/>http://www.frbdiscountwindow.org/discountmargins.pdfHellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-65863419674793455562007-08-24T19:29:00.000+03:002007-08-24T19:29:00.000+03:00Hellasious, thanks for the update.However, I have ...Hellasious, thanks for the update.<BR/><BR/>However, I have sources telling me that FED only accept AAA rated MBS from Fannie and Freddie.<BR/><BR/>Is there any way you can show me the link to Fed website or anywhere that state FED accept the crap BBB rated MBS? Thanks!Shawnhttps://www.blogger.com/profile/08155630920582744324noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-40671701046517258842007-08-24T18:55:00.000+03:002007-08-24T18:55:00.000+03:00Re: collateralThe Fed will take a variety of colla...Re: collateral<BR/><BR/>The Fed will take a variety of collateral, including non-AAA asset backed paper, whole loans and mortgages, etc. They will even accept it if it does not have a market price...<BR/><BR/>And that's why the banks don't want to do the switch...if the collateral was good in the first place they would lend themselves, directly. But if the customer pledges c*rap, which the Fed nevertheless accepts at face value, you can see why they would refuse to do it.<BR/><BR/>RegardsHellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-40754577232179553472007-08-24T18:16:00.000+03:002007-08-24T18:16:00.000+03:00Hellasious, I am wondering about your quote on the...Hellasious, I am wondering about your quote on the previous article, and would appreciate you shed some lights on it. <BR/><BR/>When the customer pledged say Sub-prime or AA (not tripple A) bonds as collateral for the banks, where is the bank getting the money from to grand the leveraged loan? I think the FED will not take anything less than AAA and backed by Fannie or Freddie. <BR/><BR/>Say a customer has $100 million AA bond, and use it as a collateral for a $200 million loan from BoA. How can BoA "switch" this collateral from FED since FED would not accept it? <BR/><BR/>From BoA customer's checking account? <BR/><BR/><< The banks are supposed to take their customers' collateral (loans, ABS, CDO's, etc.) and back-to-back it with the Fed, thus becoming a "liquidity intermediary", since the Fed cannot deal directly with such riff-raff. In money broking this is called a "switch". >>Shawnhttps://www.blogger.com/profile/08155630920582744324noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-60511731043144115062007-08-24T17:30:00.000+03:002007-08-24T17:30:00.000+03:00Great post, as usual....Great post, as usual....Anonymousnoreply@blogger.com