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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: The Duke
The better question is, how would it be inflationary? Absolutely no dollars are being added to the economy.
21
posted on
10/13/2007 8:59:58 PM PDT
by
VegasCowboy
("...he wore his gun outside his pants, for all the honest world to feel.")
To: glorgau
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?
How does this "reward" anyone? This plan represents large banks putting forth their own cash and capital to maintain liquidity in the market. Nobody will be bailed out of anything.
22
posted on
10/13/2007 9:02:15 PM PDT
by
VegasCowboy
("...he wore his gun outside his pants, for all the honest world to feel.")
To: bruinbirdman
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. The difficulty has not been "assigning a value"; the difficulty has been for the big banks in "swallowing the true market value".
Which, by the way, is what the market is willing to pay for it. Seeing as how it's mostly all junk quality merch. with the backed assets that are declining in value, the corresponding price for the security/instrument should reflect that fact.
If it walks like a duck and quacks like a duck...
23
posted on
10/14/2007 7:44:19 AM PDT
by
adm5
(Courtesy of the Fred, White & Blue.)
To: bruinbirdman
“superSIV”????
Somebody fire the marketing director!
24
posted on
10/14/2007 7:49:32 AM PDT
by
G Larry
(HILLARY CARE = DYING IN LINE!)
To: adm5
There are lots of high-quality securities that are not trading at all due to a lack of liquidity. Any trades that have occurred have been at fire-sale prices as hedge funds dumped their good stuff to try and stay afloat.
25
posted on
10/14/2007 11:01:39 AM PDT
by
VegasCowboy
("...he wore his gun outside his pants, for all the honest world to feel.")
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