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October 7, 2008
The destruction of wealth...
Fed to Purchase U.S. Commercial Paper to Ease Crunch
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAyx4qPsKSZk&refer=home
The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations.
What does this mean? The Banks can unload crap on to the Treasury balance sheet.
Comments
Define "crap." You conveniently left out the minimum credit rating of that paper which the Treasury would accept. 3 & 6 Month treasuries are being sold off so people can buy this commercial paper today. Australia cut rates a full 100 bp last night.
I think you've had your 15 minutes of fame What. The markets are all off 24-36% globally Y-T-D and the fixes are coming in. Life will go on.
Enough with the selective cut-and-paste. Why don't you try for an opinion of your own from here on?
Posted by: daveinbedstuy at October 7, 2008 9:48 AM
More info.
http://www.federalreserve.gov/newsevents/press/monetary/20081007c.htm
The Federal Reserve Board on Tuesday announced the creation of the Commercial Paper Funding Facility (CPFF), a facility that will complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets.
Why is the FED buying this crap? Because everybody know it's worthless. This is the story you should wrap your brain around on, not the regular Brownstoner shit! It's just a matter of time.
The What
Someday this war is gonna end...
Posted by: what at October 7, 2008 9:48 AM
"Define "crap." You conveniently left out the minimum credit rating of that paper which the Treasury would accept. 3 & 6 Month treasuries are being sold off so people can buy this commercial paper today. Australia cut rates a full 100 bp last night."
Then Dave why does the fed have to "buy" this paper? I will tell you because it's crap. Banks are NOT loaning money to each other. LIBOR rates are spiking and there is no Commercial Paper market. The whole thing is in VAPOR LOCK!!!!!!! Only the Central Banks can buy this worthless crap, that is what you left out!
"I think you've had your 15 minutes of fame What. The markets are all off 24-36% globally Y-T-D and the fixes are coming in. Life will go on"
Oh no Dave. You see everybody id out of bullets and the Zombies are still coming. The only way to fix this mess is to stop hiding the loses and come fucking clean. You should be able to look at a company balance sheet and see all of it's liabilities, not the mark to crack dust fantasy.
"Enough with the selective cut-and-paste. Why don't you try for an opinion of your own from here on?"
Here's one: Go fuck yourself!
The What (Dave will be unemployed by year end)
Someday this war is gonna end...
Posted by: what at October 7, 2008 9:57 AM
What..patronize one of our finer Brooklyn establishments. Go to Babeland and get something that you can use to make yourself happy.
Posted by: daveinbedstuy at October 7, 2008 10:00 AM
"What..patronize one of our finer Brooklyn establishments. Go to Babeland and get something that you can use to make yourself happy"
Dave your mother works there? Giving hummers from the Glory Hole...
The What
Someday this war is gonna end..
Posted by: what at October 7, 2008 10:02 AM
No wonder you still can't post What. Such a low life.
Posted by: daveinbedstuy at October 7, 2008 10:05 AM
I must say, real estate is looking like a better and better investment, especially Brooklyn brownstone real estate. My block looked great today!
Posted by: slopenick at October 7, 2008 10:16 AM
I knew this would happen. Reinflation is what Bernanke has always said was the answer to the GREAT DEPRESSION. I wrote that he would reinflate and he will wind up buying any security. He is doing it and it will cause big time inflation in the future. But for now deflation rules. If you guys read any papers Bernanke has published than you will see that he will buy up all assets to keep us out of the depression. I don't like that he is doing it because I am all cash and he is printing like a mad man. But I will be putting that cash to use, in the next year and a half which I believe is the time frame it will take for those homes to bottom.. Look out below.
Posted by: HOBOKENROCKS at October 7, 2008 12:09 PM
I agree slopenick. I've also noticed that people seem to be taking even more pride in their home/block/hood lately...I see more people out sweeping, more people painting their ironwork, removing graffiti, and a general feeling that we need to band together and keep things looking great.
My block was gorgeous this morning.
Posted by: 11217 at October 7, 2008 12:10 PM
Great illustration What, where did you find that?
Posted by: cobblehiller at October 7, 2008 3:23 PM
"Great illustration What, where did you find that?"
Someone posted that picture on www.tickerforum.org/cgi-ticker/akcs-www. There are a rowdy bunch of folks, LMAO.
Hey Cobblehiller how is your day going, fine I hope. Your boy The What is getting the bunker retrofitted with surface to air missiles and laser gilded smart bombs. I brought this stuff off EBAY. Some countries are trying to raise cash. They see the unfolding of the Mutant Asset Bubble and trying to restart the reality distortion field. I think they are going to rip the fabric of space.
The What
Someday this war is gonna end...
Posted by: what at October 7, 2008 3:56 PM
Hey where is Dave? Have anyone seen him? Tell him to look at this..
•Stocks in U.S. Fall, Led by Banks, REITs on Growing Concern Over Defaults
http://www.bloomberg.com/apps/news?pid=20601087&sid=aHm1aALwXuNc&refer=home
"As of the start of trading today, the S&P 500 had tumbled 32 percent from its record last October. Still, the benchmark index for U.S. equities traded at 20 times the earnings of its companies over the past 12 months, 11 percent more than its price-to-earnings ratio as the 5-year profit expansion came to a close at the end of the second quarter of 2007. The gauge is valued at 12.6 times estimated earnings of its companies over the next 12 months."
Hey Dave I'm going back to Babeland. I love when your moms takes out her dentures. I can go strait to the back of her neck.....
The What
Someday this war is gonna end....
Posted by: what at October 7, 2008 4:11 PM
"Your boy The What is getting the bunker retrofitted with surface to air missiles and laser gilded smart bombs. I brought this stuff off EBAY. Some countries are trying to raise cash. They see the unfolding of the Mutant Asset Bubble and trying to restart the reality distortion field. I think they are going to rip the fabric of space."
Now What, this bunker mentality might be taking this thing just a teensy tad bit too far, no?! Covert Ops are one thing...but this is another! [Would you consider not pointing those things down here at my hill?!] You have quite the imagination. I'm pretty sure the reality distortion field is "down and out" for the moment. And unfortunately, so is my hard drive - fatal disk error! - I'll be signing off for a bit till my better half fixes it for me.
Posted by: cobblehiller at October 7, 2008 4:34 PM
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