Posted on 09/20/2007 4:55:46 PM PDT by NYer
I’m quite surprised at some of the stuff I’ve been seeing lately. Well, not particularly surprised, but at least intrigued. The bees are swarming around the honey-pot at quite the rapid pace. It’s almost as if NAFTA and LOST are around the corner or something (lol).
Loans that they never have to pay back. LOL!
Yeah.....almost.
fofl!
Oh, and of course, the immigration rider as well...
Why don’t you stop trying to BS on these threads. You have half the facts and act like you have all of them. I get my information direct from people in the markets. It is direct information, yours is a reading from who knows where. You obviously don’t know how the markets work from your misguided comments.
Private equity groups are indeed allowed access to the discount window when they are affiliated with a member bank, and most are because otherwise they would not be holding that worthless bank paper.
Those affiliations are part of the problem. Banks have allowed hedge funds to buy their paper. Those funds are unregulated and are used by banks to unload debt much as Enron created SPEs to offload debt. The Bear Stearns hedge funds went out of business because they held subprime MBS that Bear unloaded on them.
Bear crafted their own bailout but never followed through. The mark to market valuations on the paper they unloaded were zero because there were no buyers for the paper. That caused margin calls throughout the sector. Those margin calls caused a huge selloff in equities causing such giants as Countrywide Financial to talk of bankruptcy. That is when and why the Fed stepped in.
To unload the worthless paper held by affiliated unregulated private equity hedge funds, the Fed cut the rate at the discount window. Those hedge funds got in line at the window with their margin call letters from member banks. That’s all they needed.
This is what the phony manufactured "housing bubble" is all about. Just another foot-in-door shot at creating the NAU.
SENATE ATTEMPTS TO STUFF AMNESTY DOWN THE THROATS OF THE AMERICAN PEOPLE AGAIN THIS WEEK
Yep, I’ve been watching those threads...
The sub-prime loan 'problem' was manufactured by media muscle. There was no problem; interest rates were holding low enough that refinancing was working smoothly until the drive-bys started screaming "housing bubble," and the sheep started to believe them. Keep on worshipping the liars.
Where have you been?
Uhhh, working.
Is that what you call it when I point out your errors?
Private equity groups are indeed allowed access to the discount window when they are affiliated with a member bank
Yes, only banks can borrow at the discount window. I'm glad I could point you in the right direction.
and most are because otherwise they would not be holding that worthless bank paper.
That's funny!
Banks have allowed hedge funds to buy their paper.
Allowed?
That doesn’t surprise me in the least. : )
A liquidity crisis occurs when you have sufficient assets, but cannot liquidate them fast enough to prevent a default.
Insolvency means that insufficient assets exist, regardless of liquidity.
Hey there...just a quick note to...note your wisdom and intellect. Ok, sorry to bother :)
Do you ever just want to crawl away from all the government stuff and just find some “news”? True and disappointing story here...I was doing some research on on government agencies, etc. a couple days ago and stumbled upon a media arm. I found a link to VOA. I didn’t realize that’s a government sponsored news outlet. Interesting.
Well, a lot of things happened, but overall, you saw lower prices for many asset classes, particularly real estate and stocks. There was some measure of deflation. A small number of institutions went under, and a large number of them consolidated. Non-performing loans (NPLs) were considerable, and were considered for a while to be the greatest systemic danger.
Many of these loans eventually began to perform again --- a circumstance that I don't think we would see here in the U.S. since we are far faster to clamp down on a non-performing loan than the Japanese.
Other things happened, such as the government borrowed a lot of money; however, they wisely also pushed interest rates very low, and thus borrowed money at very low interest rates (often at 0% in nominal terms) and thus weren't paying a lot in interest on the large sums they borrowed.
The Bank of Japan bought a lot of U.S. dollars to keep the yen down, and now holds around USD $800 billion in foreign reserves, which are held at much higher interest rates than any JGBs are paying.
The Japanese continued their massive acquisition of foreign assets, and continue (as they have since 1991) to have the world's largest international net asset position.
Yes, and the problem with picking when a bubble is going to burst, is that it can keep on expanding for years and if every early warning is heeded, much money is left on the table.
This could, but probably will not end like 1929.
The media have been screaming "housing bubble" since early 2006.
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