It's in the release: "The Board is also announcing a change to the Reserve Banks' usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower."
"Thank goodness we won’t let some hedge funds and banks that made bad loans pay the price." A money losing CDO is still a money losing CDO.
Not if the underlying assets are financed by helicopter ben; no loss there, except to savers and taxpayers.
"Since we are socializing and monetizing all the crap mortgage loans, who wants dollars anymore?" How are we socializing and monetizing all the crap mortgage loans?
Gee, i dunno. let's see... I am a banker with some crap loans that I can't sell. well, shucks, lemme just put them on the fed for 30 days and kick the can down the road. let the fed take and finance what the market won't.
That's nice but how is that "lowering the cost for banks to offload crap"?
Not if the underlying assets are financed by helicopter ben; no loss there
The hedge fund still owns the CDO, the hedge fund still has the loss, not the taxpayer.
Gee, i dunno. let's see... I am a banker with some crap loans that I can't sell. well, shucks, lemme just put them on the fed for 30 days and kick the can down the road. let the fed take and finance what the market won't.
And in 30 days or 60 days or 90 days, after paying the Fed interest on my borrowings, I get the crap loan back. I'm still losing money. Try again?