|
|
| Page 1, 2, 3, 4, 5 |
Fed to Purchase U.S. Commercial Paper to Ease Crunch
|
Omega 
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:44 AM
Report abusive post | Fed to Purchase U.S. Commercial Paper to Ease Crunch
| Quote |
Thats it right there, we are going Wiemar.....
Fed to Purchase U.S. Commercial Paper to Ease Crunch (Update1)
By Craig Torres
Oct. 7 (Bloomberg) -- 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.
The Treasury will make a deposit with the Fed's New York district bank to help set up the special purpose vehicle. The central bank will also lend to the program at policy makers' target rate for overnight loans between banks. The Fed Board invoked emergency powers to set up the unit, the central bank said in a statement released in Washington.
Today's action follows a slide in the commercial-paper market to a three-year low of $1.6 trillion last week as investors fled even companies with few links to the subprime mortgage crisis. Companies from newspaper firm Gannett Co. to electricity producer Southern Co. have been forced to tap credit lines or forego raising debt because of the market's disruption.
The Fed didn't say how much commercial paper, which hundreds of companies use to finance payrolls and meet other cash needs, it plans to purchase.
Stocks climbed and Treasuries sank after the Fed's announcement. Futures on the Standard & Poor's 500 Stock Index gained 1.9 percent to 1,073.60 at 9:15 a.m. in New York. Yields on benchmark 10-year notes climbed to 3.55 percent from 3.45 percent late yesterday.
Bernanke Speech
Today's announcement came hours before Fed Chairman Ben S. Bernanke speaks on the economic outlook at 1:15 p.m. in Washington. He and Treasury Secretary Henry Paulson held discussions yesterday as stock markets slid and money market rates climbed as the crisis deepened.
The Fed's new unit will buy three-month dollar-denominated commercial paper at a spread over the three-month overnight- indexed swap rate, which is a measure of traders' expectations for the Fed's benchmark rate.
Commercial paper purchased by the vehicle must be rated at least A1/P1/F1, the Fed said. Issuers will pay the unit an upfront fee based on the commercial paper initially sold to the vehicle. The vehicle will cease buying commercial paper on April 30, 2009, unless the Board of Governors agrees to extend it.
The Fed yesterday said it will double its cash auctions to banks to as much as $900 billion, and telegraphed today's announcement by saying it was looking for other ways to alleviate liquidity strains.
To contact the reporters on this story: Craig Torres in Washington at ctorres3@bloomberg.net.
Last Updated: October 7, 2008 09:31 EDT
Yahoo IM omega375hh |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:46 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
And the result.....
Treasuries Tumble as Fed Agrees to Purchase Commercial Paper
By Dakin Campbell and Bo Nielsen
Oct. 7 (Bloomberg) -- Treasuries declined after the Federal Reserve said it will purchase commercial paper through a special unit in an effort to thaw short-term lending markets, damping demand for the haven of government debt.
Two-year notes fell for the first time in five days, pushing yields up from the lowest level since March, after the central bank invoked emergency powers to support the financing needs of corporations. The U.K. may invest as much as $79 billion in the country's three largest banks, while Iceland today took over Landsbanki Islands hf, the island nation's No. 2 lender, and pegged its currency to a trade-weighted index.
The yield on the 2-year note rose 10 basis points to 1.54 percent as of 9:11 a.m. in New York, according to BGCantor Market Data. The 4 percent security maturing in August 2018 dropped 7/32, or $2.19 per $1,000 face amount, to 100 28/32.
To contact the reporter on this story: Bo Nielsen in Copenhagen at bnielsen4@bloomberg.net
Last Updated: October 7, 2008 09:15 EDT
Yahoo IM omega375hh |
|
FHL(C)
Extrapolator
User ID: 519634
10/7/2008 9:47 AM
 | |
markusmaximus
Rawr.
User ID: 148742
10/7/2008 9:48 AM
 | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
Omega, it will get worse before it gets better. Buying up commercial paper is just a first step in a larger debt-acquisition game.
According to yesterdays most fear-inspiring finance article:
"As for the US itself, it has not yet exhausted its policy arsenal. It can escalate further up the nuclear ladder. The Fed can cut interest rates from 2pc to zero. If that fails, it can let rip with the mass purchase of US debt.
'The US government has a technology, called a printing press,' said Fed chief Ben Bernanke in November 2002. (His helicopter speech)."
[link to www.telegraph.co.uk]
What? You think you're the only person that gets sick when he doesn't get his jellybeans? |
|
Anonymous Coward
User ID: 442346
10/7/2008 9:48 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
This would get my vote for the webbots October 7th prediction of Doom. It qualifies as a "release point". This is huge. Most people are focused on the Dow. This is the real story today. We are indeed doomed! |
|
D. SMith
User ID: 436409
10/7/2008 9:49 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
I had posted this article by Ben Stein in its own thread early this morning, but I think its going to fit nice and cozy in here,
Posted on Monday, October 6, 2008, 12:00AM
1) Have a fiscal policy that creates immense deficits in good times and bad, burdening America's posterity with staggering burdens of repaying the debt.
2) Eliminate regulation of Wall Street and/or fail to enforce the regulations that already exist, instead trusting Wall Street and other money managers and speculators to manage other people's money with few or no regulations and little oversight.
3) Have an energy policy that disallows producing our own energy and instead requires that we buy energy from abroad, thus making our oil prices highly volatile and creating large balance of payments deficits, lowering the value of the dollar and thus making the problem get progressively worse.
4) Have Congress mandate that banks and other financial entities lend money to persons they know in advance to have poor credit ratings or none at all.
5) Allow investment banks, insurers, and banks to bet their entire net worth and then some on the premise that borrowers known to be improvident will in fact repay those loans.
6) Allow the creation of large betting pools called "hedge funds" that can move markets and control the outcome of trading, thus taking a forum for savings and retirement for families and making it into a rigged casino game that exists primarily to fleece suckers like ordinary working men and women.
7) Have laws that protect corporate officers from being sued for misconduct but at the same time punish lawyers in the private sector who ferret out such misconduct and try to make accountable the people responsible for shareholder and investor losses. If one of those lawyers gets particularly aggressive in protecting stockholders, put him in prison.
8) Appoint as head of the United States Treasury Department a man whose whole life was spent on Wall Street, who became fantastically rich through his peddling of junk bonds at his firm while the firm later sold short those same sorts of bonds.
9) Scare Americans into putting up $750 billion of their hard earned money to bail out the billionaires and their friends who created the market for loans to poor credit risks (The "subprime" market) and the unbelievably large side bets on those loans, promising that such a bailout would save the retirement savings of Americans, then allow the immense hedge funds to make the market crater immediately afterwards.
10) Propose to save the situation by surtaxing the oil industry, which is owned by our fellow Americans, mostly in their retirement plans, thus penalizing Americans for investing in companies that efficiently and legally produce an indispensable product.
11) Insist that the free market requires that banks and insurers with friends of the Secretary of the Treasury be saved but allow other entities not so fortunate to fail, thus creating total uncertainty and terror among financial institutions, and demolishing all of the confidence built up in financial circles since the days of FDR.
12) Then have the Republican candidate say he would keep on the job the Treasury Secretary who facilitated the crisis, failed to protect the nation from the crisis, got the taxpayers to pony up to save his Wall Street buddies, and have the Democratic candidate, as noted, say he would save the day by taxing the stockholders of energy companies.
There, that should do it.
Ben Stein |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:50 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
They are gonna bail EVERYONE!!!! Next up, A US Fed American Express Card-don't leave home without it-and if you miss a payment we'll send a team and burn you out ala WACO.
Wait for it,lol....
Yahoo IM omega375hh |
|
D. SMith
User ID: 436409
10/7/2008 9:50 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
I had posted this article by Ben Stein in its own thread early this morning, but I think its going to fit nice and cozy in here,
Posted on Monday, October 6, 2008, 12:00AM
1) Have a fiscal policy that creates immense deficits in good times and bad, burdening America's posterity with staggering burdens of repaying the debt.
2) Eliminate regulation of Wall Street and/or fail to enforce the regulations that already exist, instead trusting Wall Street and other money managers and speculators to manage other people's money with few or no regulations and little oversight.
3) Have an energy policy that disallows producing our own energy and instead requires that we buy energy from abroad, thus making our oil prices highly volatile and creating large balance of payments deficits, lowering the value of the dollar and thus making the problem get progressively worse.
4) Have Congress mandate that banks and other financial entities lend money to persons they know in advance to have poor credit ratings or none at all.
5) Allow investment banks, insurers, and banks to bet their entire net worth and then some on the premise that borrowers known to be improvident will in fact repay those loans.
6) Allow the creation of large betting pools called "hedge funds" that can move markets and control the outcome of trading, thus taking a forum for savings and retirement for families and making it into a rigged casino game that exists primarily to fleece suckers like ordinary working men and women.
7) Have laws that protect corporate officers from being sued for misconduct but at the same time punish lawyers in the private sector who ferret out such misconduct and try to make accountable the people responsible for shareholder and investor losses. If one of those lawyers gets particularly aggressive in protecting stockholders, put him in prison.
8) Appoint as head of the United States Treasury Department a man whose whole life was spent on Wall Street, who became fantastically rich through his peddling of junk bonds at his firm while the firm later sold short those same sorts of bonds.
9) Scare Americans into putting up $750 billion of their hard earned money to bail out the billionaires and their friends who created the market for loans to poor credit risks (The "subprime" market) and the unbelievably large side bets on those loans, promising that such a bailout would save the retirement savings of Americans, then allow the immense hedge funds to make the market crater immediately afterwards.
10) Propose to save the situation by surtaxing the oil industry, which is owned by our fellow Americans, mostly in their retirement plans, thus penalizing Americans for investing in companies that efficiently and legally produce an indispensable product.
11) Insist that the free market requires that banks and insurers with friends of the Secretary of the Treasury be saved but allow other entities not so fortunate to fail, thus creating total uncertainty and terror among financial institutions, and demolishing all of the confidence built up in financial circles since the days of FDR.
12) Then have the Republican candidate say he would keep on the job the Treasury Secretary who facilitated the crisis, failed to protect the nation from the crisis, got the taxpayers to pony up to save his Wall Street buddies, and have the Democratic candidate, as noted, say he would save the day by taxing the stockholders of energy companies.
There, that should do it.
Ben Stein Quoting: D. SMith 436409
sorry didn't put the title on it. The title should read
How to ruin your Economy |
|
FHL(C)
Extrapolator
User ID: 519634
10/7/2008 9:50 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
Yes well that brings in the derivatives unwind that is going on, can they actually afford to create 50 trillion + out of thin air, will the world put up with that, i suspect not.
But your opinion would be interesting here Omega, thank you.
[link to www.geocities.com] |
|
Anonymous Coward
User ID: 489021
10/7/2008 9:52 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
The printing press?
Just exactly where is all this money coming from.....I might as well take all my money and burn it for what it's going to be worth here real soon! |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:52 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
Yes well that brings in the derivatives unwind that is going on, can they actually afford to create 50 trillion + out of thin air, will the world put up with that, i suspect not.
But your opinion would be interesting here Omega, thank you. Quoting: FHL(C)
The GSE auction actually went pretty well, 92% of asking bids. When they auction WAMU's swaps thats gonna be a different story. I think they do that Oct 14th, not sure....
Yahoo IM omega375hh |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:53 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
The printing press? Quoting: Anonymous Coward 489021
YUP, thats it right there. Heli Ben ramping up the presses....
Ooooo he's gonna give a speech at 11am Central. Stay tuned...
Yahoo IM omega375hh |
|
Anonymous Coward
User ID: 509660
10/7/2008 9:54 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
OP, in your reference to Wiemar
Thats it right there, we are going Wiemar.....
would you please elaborate on what aspects of the Wiemar republic you believe this to be taking us? |
|
Anonymous Coward
User ID: 442346
10/7/2008 9:54 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
They are gonna bail EVERYONE!!!! Next up, A US Fed American Express Card-don't leave home without it-and if you miss a payment we'll send a team and burn you out ala WACO.
Wait for it,lol.... Quoting: Omega
Not as far fetched as you might think. Tie in the national I.D. card to your idea of the financial..throw in a passport and RFID chip..and Vuala..you won't be able to piss without it. |
|
Anonymous Coward
User ID: 343765
10/7/2008 9:55 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
They are gonna bail EVERYONE!!!! Next up, A US Fed American Express Card-don't leave home without it-and if you miss a payment we'll send a team and burn you out ala WACO.
Wait for it,lol.... Quoting: Omega
This commercial paper is WORTHLESS! |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:58 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
OP, in your reference to Wiemar
Thats it right there, we are going Wiemar.....
would you please elaborate on what aspects of the Wiemar republic you believe this to be taking us? Quoting: Anonymous Coward 509660
Turning on the printing presses in the manner they are proposing will destroy this countries currency.....
Yahoo IM omega375hh |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 9:59 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
They are gonna bail EVERYONE!!!! Next up, A US Fed American Express Card-don't leave home without it-and if you miss a payment we'll send a team and burn you out ala WACO.
Wait for it,lol....
Not as far fetched as you might think. Tie in the national I.D. card to your idea of the financial..throw in a passport and RFID chip..and Vuala..you won't be able to piss without it. Quoting: Anonymous Coward 442346
True dat. Maybe I'll go sniper and shoot back.....
Yahoo IM omega375hh |
|
Anonymous Coward
User ID: 489021
10/7/2008 10:00 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
OP, in your reference to Wiemar
Thats it right there, we are going Wiemar.....
would you please elaborate on what aspects of the Wiemar republic you believe this to be taking us?
Turning on the printing presses in the manner they are proposing will destroy this countries currency..... Quoting: Omega
We don't have much currency...It's all an illusion embedded into some computer! We are toast! |
|
Anonymous Coward
User ID: 343765
10/7/2008 10:00 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
OP, in your reference to Wiemar
Thats it right there, we are going Wiemar..... Quoting: Anonymous Coward 509660
Das Wort ist WEIMAR.
 |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 10:02 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
Reason the DOW is up is they are gonna bail GE. Just watch......
Yahoo IM omega375hh |
|
yourwaysucks
make it so
User ID: 505009
10/7/2008 10:06 AM
 | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
holy freakin' crap. the Fed pretty much now has absolute control over Congress, the Treasury, the economy, currency, inflation tax, homes and mortgages, banks, insurance companies, and private business.
"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." -- William Graham Sumner
"A government that is big enough to give you all you want is big enough to take everything you have." -- Barry Goldwater
"The government is good at one thing: It knows how to break your legs, then hand you a crutch and say, 'See, if it weren't for the government you wouldn't be able to walk.'" -- Harry Browne |
|
Anonymous Coward
User ID: 489021
10/7/2008 10:09 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
holy freakin' crap. the Fed pretty much now has absolute control over Congress, the Treasury, the economy, currency, inflation tax, homes and mortgages, banks, insurance companies, and private business. Quoting: yourwaysucks
Throw the Patriot act in there along with the rest of their ridiculous acts and laws and we are in deep doo doo! |
|
yourwaysucks
make it so
User ID: 505009
10/7/2008 10:09 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." -- William Graham Sumner
"A government that is big enough to give you all you want is big enough to take everything you have." -- Barry Goldwater
"The government is good at one thing: It knows how to break your legs, then hand you a crutch and say, 'See, if it weren't for the government you wouldn't be able to walk.'" -- Harry Browne |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 10:10 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
holy freakin' crap. the Fed pretty much now has absolute control over Congress, the Treasury, the economy, currency, inflation tax, homes and mortgages, banks, insurance companies, and private business. Quoting: yourwaysucks
And there ya go. IN IM's with SHR last night he believes Obama is gonna win and provided some pretty convincing evidence I was not aware of.
That happens your statement becomes absolutely true and this country flat out becomes a totally socialist oligarchy mixed in with some good ole police state .gov has the absolute power to kill no questions asked thrown in. Won't be pretty.
Yahoo IM omega375hh |
|
Anonymous Coward
User ID: 489235
10/7/2008 10:15 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
OP, in your reference to Wiemar
Thats it right there, we are going Wiemar.....
Das Wort ist WEIMAR.
Ja, danke. |
|
D. SMith
User ID: 436409
10/7/2008 10:17 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
holy freakin' crap. the Fed pretty much now has absolute control over Congress, the Treasury, the economy, currency, inflation tax, homes and mortgages, banks, insurance companies, and private business.
And there ya go. IN IM's with SHR last night he believes Obama is gonna win and provided some pretty convincing evidence I was not aware of.
That happens your statement becomes absolutely true and this country flat out becomes a totally socialist oligarchy mixed in with some good ole police state .gov has the absolute power to kill no questions asked thrown in. Won't be pretty. Quoting: Omega
I think this may happen even if McCain wins, no champions left in our Government. |
|
Anonymous Coward
User ID: 69144
10/7/2008 10:17 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
I think were in deep doo doo regardless of which party is in control. |
|
Anonymous Coward
User ID: 489235
10/7/2008 10:17 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
holy freakin' crap. the Fed pretty much now has absolute control over Congress, the Treasury, the economy, currency, inflation tax, homes and mortgages, banks, insurance companies, and private business. Quoting: yourwaysucks
I believe that has been the plan all along and now it is in the stage of final execution. |
|
Anonymous Coward
User ID: 431562
10/7/2008 10:22 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
Omega, do share! What convincing evidence that Obama will win. I know about the polls...sounds like your source has additional info though? |
|
Omega
Total Unequivocal Bad Fuckin' News
User ID: 357757
10/7/2008 10:22 AM
| | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
holy freakin' crap. the Fed pretty much now has absolute control over Congress, the Treasury, the economy, currency, inflation tax, homes and mortgages, banks, insurance companies, and private business.
And there ya go. IN IM's with SHR last night he believes Obama is gonna win and provided some pretty convincing evidence I was not aware of.
That happens your statement becomes absolutely true and this country flat out becomes a totally socialist oligarchy mixed in with some good ole police state .gov has the absolute power to kill no questions asked thrown in. Won't be pretty.
I think this may happen even if McCain wins, no champions left in our Government. Quoting: D. SMith 436409
Please don't get me wrong, I hate McCain. I just believe it will be worse under Obama-and if he tries to go for the guns and outlaw citizen ownership of firearms its fucking on. We revolt......
Yahoo IM omega375hh |
|
Anonymous Coward
User ID: 512358
10/7/2008 10:22 AM | | Re: Fed to Purchase U.S. Commercial Paper to Ease Crunch | Quote |
Thanks Omega and all of the other intelligent people who post here keeping us informed of the latest news and its implications! |
|
| Page 1, 2, 3, 4, 5 |
|
