Jesse's Café Américain:
Have you wondered why the Treasury asked for a $700 Bn emergency package with the full force of the Fed behind them, and gave the Congress less than a week to deliver it?
Either these fellows have lost their nerve or the markets are riding to a fall, and it could be terrific.
We've been looking for some event, something that would have created such an extraordinary set of actions as we have seen in the past few days.
This just might be it. Special thanks to Yves Smith for flagging it.
Time to start settling those Credit Default Swaps for Fannie and Freddie (Oct. 6), Lehman Brothers (Oct. 10) and Lehman Brothers (Oct 23).
LIBOR is eight standard deviations from the norm, because the banks don't know who is holding what in their cards, but there might be some Aces and Eights in there. The TED spread is at an all time record high.
An insurance company is said to be heavily exposed.
Do you need to buy a vowel? Let's hope we get lucky.
Brace for impact.
Postscript 4 October - Given that the Congress has now passed the 'Economic Stabilization Act' and Hank and Ben have a fresh roll of walking around money, we'd like to think that a crisis can be averted on Monday. Obviously they have seen this coming and have not only a plan, the willing cooperation of the holders of the swaps, but also now sufficient taxpayer money to persuade certain institutions to accept settlements that are 'reasonable.'
Let's watch carefully how the Treasury acts this week, as best we can, for it will speak volumes."
Have you wondered why the Treasury asked for a $700 Bn emergency package with the full force of the Fed behind them, and gave the Congress less than a week to deliver it?
Either these fellows have lost their nerve or the markets are riding to a fall, and it could be terrific.
We've been looking for some event, something that would have created such an extraordinary set of actions as we have seen in the past few days.
This just might be it. Special thanks to Yves Smith for flagging it.
Time to start settling those Credit Default Swaps for Fannie and Freddie (Oct. 6), Lehman Brothers (Oct. 10) and Lehman Brothers (Oct 23).
LIBOR is eight standard deviations from the norm, because the banks don't know who is holding what in their cards, but there might be some Aces and Eights in there. The TED spread is at an all time record high.
An insurance company is said to be heavily exposed.
Do you need to buy a vowel? Let's hope we get lucky.
Brace for impact.
Postscript 4 October - Given that the Congress has now passed the 'Economic Stabilization Act' and Hank and Ben have a fresh roll of walking around money, we'd like to think that a crisis can be averted on Monday. Obviously they have seen this coming and have not only a plan, the willing cooperation of the holders of the swaps, but also now sufficient taxpayer money to persuade certain institutions to accept settlements that are 'reasonable.'
Let's watch carefully how the Treasury acts this week, as best we can, for it will speak volumes."
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