Free Republic

Presenting a detailed look at "Repo 105" - the next soundbite sure to fill the airwaves over the next weeks and months, as more and more banks are uncovered to be using this borderline criminal accounting gimmick to make their leverage ratios look better. This is the first time we have heard this loophole abuse by a bank, be it defunct (Lehman) or existing (everyone else). There should be an immediate investigation into how many other banks are currently taking advantage of this artificial scheme to manipulate and misrepresent their cap ratio, and just why the New York Fed can...

This following was written in late June and early July. Since the early summer, the direction of financial flows has not changed. The exception is the bond market sell off, particularly in the U.S. and Japan. Given the authorities’ (U.S., Japan, Swiss, euro, others) perpetual paper printing, the recent buying climax may be tested again in a Sisyphean charge. The chatter of June 25 inspired this diatribe, when all the talk was of whether Greenspan would cut the Fed funds rate to 1.00% or 0.75%. The debate surrounding the question is pointless, the normal jabber of the mob. But, the...