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Banks And U.S. Treasury Discuss $100 Billion Support Fund
Forbes ^
| 10/13/2007
| Forbes.com staff
Posted on 10/13/2007 12:35:10 PM PDT by bruinbirdman
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To: ex-Texan
2
posted on
10/13/2007 12:39:03 PM PDT
by
stephenjohnbanker
(Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
To: stephenjohnbanker
Get the Feds, I mean the taxpayers, to guarantee the deal and off we go into another round of spend fast.
3
posted on
10/13/2007 1:09:07 PM PDT
by
B4Ranch
(( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share." ))
To: bruinbirdman
How would this not be inflationary? And how would inflation work to the advantage of those holding mortgages? Sounds like an act of desperation to me.
4
posted on
10/13/2007 1:11:41 PM PDT
by
The Duke
(I have met the enemy, and he is named 'Apathy'!)
To: bruinbirdman
Citicorp, which invented the SIV in the 1980s, has seven such funds with $100 billion in assets. I'm sure it's just a coincidence that they want a $100 billion buyout fund.
5
posted on
10/13/2007 1:42:30 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: bruinbirdman
The focus of the fund would be structured investment vehicles, off-balance sheet funds created by banks and which issue short-term debt such as commercial paper to acquire and finance specific longer-term assets, recently subprime mortgage-backed securities and similar assets. Isn't off-balance sheet what Enron did with the help of Citicorp?
6
posted on
10/13/2007 1:45:36 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: bruinbirdman
Why not create a Federal agency. They could call it the RTC or FADA.
7
posted on
10/13/2007 1:47:23 PM PDT
by
PAR35
To: B4Ranch
Why should those who are saving for a home be penalized by rewarding all the people who took out loans they couldn’t pay back?
Houses would be a lot cheaper if traditional lending standards - home loans for 3x-4x annual income with 20% down - were followed.
For example, the median house price in California was North of 500K. that implies an annual income of at least 125K. 125K is _not_ the median household income in California.
8
posted on
10/13/2007 1:57:23 PM PDT
by
glorgau
To: Moonman62
"I'm sure it's just a coincidence that they want a $100 billion buyout fund.""creating an up-to-$100-billion fund to stave off the danger that there could be a fire sale of shaky mortgage-backed securities, collateralized debt obligations and other distressed assets following the recent global credit crunch.
It appears to me Citicorp is attempting to create some collateral behind the SIVs. Like a bank has to have a reserve before it can lend. Like $7 in reserve for a $100 loan.
Since there had been little liquity (buying and selling) in SIVs before (they were rolled over), there was difficulty assigning a value to "shakey" securities. Establishing liqudity prevents panic or sales at any price.
I see no bailout here. The banks are talking to the Fed about setting up a "bank sponsored funds" for their own SIVs.
yitbos
9
posted on
10/13/2007 1:59:54 PM PDT
by
bruinbirdman
("Those who control language control minds." -- Ayn Rand)
To: glorgau
>Why should those who are saving for a home be penalized by rewarding all the people who took out loans they couldnt pay back?<
It is NOT PC to require people to be responsible for their actions or inactions! If you were stupid, as I was, and used self control when you bought your home, then you (and I) were foolish.
10
posted on
10/13/2007 2:07:15 PM PDT
by
B4Ranch
(( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share." ))
To: bruinbirdman
Why not just drop $100 bills from a helicopter?
11
posted on
10/13/2007 2:13:57 PM PDT
by
FightThePower!
(Fight the powers that be!)
To: FightThePower!
That was going to be Hillary's proposal next week. Are you in her campagn or what?
Now true criminal behavior is treated as seriously by both parties I believe.
12
posted on
10/13/2007 2:23:16 PM PDT
by
DManA
To: FightThePower!
Screwed up the previous post. I meant it for you: That was going to be Hillary's proposal next week.
Why not just drop $100 bills from a helicopter?
13
posted on
10/13/2007 2:25:20 PM PDT
by
DManA
To: B4Ranch
It is NOT PC to require people to be responsible for their actions or inactions! It's hard to find a candidate who subscribes to these values, mister. I can only seem to find one...
14
posted on
10/13/2007 2:37:22 PM PDT
by
Old 300
To: bruinbirdman
I went looking for other articles on the subject, and apparently the Treasury approached the banks rather than the other way around. It looks like these SIV’s are one step up the food chain from mortgage backed securities and are the next potential liquidity problem.
15
posted on
10/13/2007 4:37:00 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Moonman62
"and are the next potential liquidity problem."Eh,eh. 12 cents on the dollar instead of zero. Would like to see the "bid, ask" on them.
yitbos
16
posted on
10/13/2007 5:12:12 PM PDT
by
bruinbirdman
("Those who control language control minds." -- Ayn Rand)
To: bruinbirdman
What about “free markets” and all that?
To: Altura Ct.
"What about free markets and all that?"Buyer beware.
yitbos
18
posted on
10/13/2007 5:19:08 PM PDT
by
bruinbirdman
("Those who control language control minds." -- Ayn Rand)
To: The Duke
In the 80's, we got FIRREA
This round of bailout is clearly got to be called DIREA (Dumb Idiots Reacting Emotionally Again)!
19
posted on
10/13/2007 5:25:08 PM PDT
by
pointsal
(q)
To: All
For crying out loud, this is the private sector putting up its own money to create liquidity in the market. This kind of action is a GOOD thing. I’m surprised by some of the comments on this thread.
20
posted on
10/13/2007 8:03:18 PM PDT
by
VegasCowboy
("...he wore his gun outside his pants, for all the honest world to feel.")
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