To: Hydroshock; Moonman62; Petronski
"The announcement came just a day after Merrill Lynch cut its rating on the stock to sell from buy, saying the company could run out of money with the secondary markets for mortgage securities frozen." See, here's the problem...the Fed *knows* that the entire Secondary market is illiquid. It's a complete credit crunch; dead.
...yet the Fed's job is to *provide* emergency liquidity to keep such a credit crunch from reoccuring.
Well, where is Bernanke?!
17 posted on
08/16/2007 8:06:49 PM PDT by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: Southack
The secondary market is frozen but it isn’t illiquid. It’s more like a buyers’ strike. The large investors who have been buying this paper are refusing to buy more. Until they are satisfied that ‘A’ paper is accurately rated it is going to be very difficult to find buyers for American mortgage paper.
18 posted on
08/16/2007 8:17:15 PM PDT by
Pelham
(End Anchor Babies now)
To: Southack
...the Fed *knows* that the entire Secondary market is illiquid.You need to calm down and establish facts before making claims.
19 posted on
08/16/2007 8:23:29 PM PDT by
Petronski
(Giuliani loves abortionists and they love him.)
To: Southack
He’s the one letting the actual funds rate fall to the mid 4’s in spite of the target rate being 5.25.
21 posted on
08/16/2007 8:33:26 PM PDT by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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