Comments on: Quelle Surprise! Wall Street Reluctant to Borrow at New Discount Window http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html Sun, 22 Nov 2009 19:08:53 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Empire http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5478 Empire Wed, 19 Mar 2008 23:04:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5478 I'm with you, Anonymous at 7:34 AM. Plus I have a big stack of copier paper right here that's at least as valuable as the paper the banks are putting up as collateral. I’m with you, Anonymous at 7:34 AM. Plus I have a big stack of copier paper right here that’s at least as valuable as the paper the banks are putting up as collateral.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5471 Anonymous Wed, 19 Mar 2008 20:22:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5471 The wall street crack smokers do not like to do business in broad daylight, they like instead the old days when no one was watching. This is a fun game, where Helicopter ben offers free coke, but no one takes the bait...LOL! Cat and mouse with a systemic collapse versus someone taking charge and playing hardball. This scam is not how you re-build confidence, faith or trust, but it does make everyone even more suspect! The wall street crack smokers do not like to do business in broad daylight, they like instead the old days when no one was watching. This is a fun game, where Helicopter ben offers free coke, but no one takes the bait…LOL! Cat and mouse with a systemic collapse versus someone taking charge and playing hardball. This scam is not how you re-build confidence, faith or trust, but it does make everyone even more suspect!

]]> By: S http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5463 S Wed, 19 Mar 2008 14:50:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5463 From Alea blog...<br/><br/>"Fischer Black on Monetary Policies <br/>Active monetary policies creates opportunities for speculators, but have no significant macroeconomic effects<br/>" From Alea blog…

“Fischer Black on Monetary Policies
Active monetary policies creates opportunities for speculators, but have no significant macroeconomic effects
“

]]> By: S http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5457 S Wed, 19 Mar 2008 13:51:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5457 Per Beth Callan (LEH CFO) the haircuts on colalteral are VERY attractive. LEH balance sheet is stuffed to the hilt with bad paper - I suspect this wasn;t the last run on them Per Beth Callan (LEH CFO) the haircuts on colalteral are VERY attractive. LEH balance sheet is stuffed to the hilt with bad paper – I suspect this wasn;t the last run on them

]]> By: fmo http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5456 fmo Wed, 19 Mar 2008 13:44:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5456 yves<br/><br/>is this one nonrecourse or general obligation? the borrowing windows are general obligation, im almost sure, and one of the new term repo deals was nonrecourse...<br/><br/>is it the case that primary dealer X can post collateral given it by counterparty Y on a nonrecourse basis so the entire risk is on the fed or would primary dealer X still be liable for undercollateralization<br/><br/>this is a huge big deal if its nonrecourse as it confirms that between this and fannie/freddie the govt has agreed to virtual bailout by stuffing the risk in agencies and the fed such that it will "have" to bail them if they blow but until then it looks like the govt isnt bailing... yves

is this one nonrecourse or general obligation? the borrowing windows are general obligation, im almost sure, and one of the new term repo deals was nonrecourse…

is it the case that primary dealer X can post collateral given it by counterparty Y on a nonrecourse basis so the entire risk is on the fed or would primary dealer X still be liable for undercollateralization

this is a huge big deal if its nonrecourse as it confirms that between this and fannie/freddie the govt has agreed to virtual bailout by stuffing the risk in agencies and the fed such that it will “have” to bail them if they blow but until then it looks like the govt isnt bailing…

]]> By: S http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5455 S Wed, 19 Mar 2008 13:19:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5455 CNBC reporting that LEH and GS have already gone to the window. Then again it is CNBC. Nevertheless, some brokers out with notes talking about mas further writedowns on the $80B portfolio of mortgages on LEH balance sheet. Another PIMCO shill on TV this morning pumping dea of buying mortgages to put a floor on house prices. CNBC reporting that LEH and GS have already gone to the window. Then again it is CNBC. Nevertheless, some brokers out with notes talking about mas further writedowns on the $80B portfolio of mortgages on LEH balance sheet. Another PIMCO shill on TV this morning pumping dea of buying mortgages to put a floor on house prices.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5449 Anonymous Wed, 19 Mar 2008 11:34:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5449 If the FED wants to remove the stigma from using the discount window, they should open it to everyone one. I don't know about you but I think it would be kewl to have an account at the FED. If the FED wants to remove the stigma from using the discount window, they should open it to everyone one. I don’t know about you but I think it would be kewl to have an account at the FED.

]]> By: S http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant.html#comment-5448 S Wed, 19 Mar 2008 11:16:00 +0000 http://www.nakedcapitalism.com/2008/03/quelle-surprise-wall-street-reluctant-to-borrow-at-new-discount-window/#comment-5448 with rumors abounding that there were multiple bidders for Bear thew new facility has the appearance of hush money. Also note both Lehman and Goldman openly cheered the "cheap" financing on their calls. Lehman will go make no mistake and GS will too. I think the whole stigma is overdone at this point. don;t you think. For those not yet attune to their acions they bailed out bear, have fofrestalled a run on Lehman for now and are bailing out the commercial banks to the tune of $500 plus bilion. If they are worried about stigma there is something seriously wrong. with rumors abounding that there were multiple bidders for Bear thew new facility has the appearance of hush money. Also note both Lehman and Goldman openly cheered the “cheap” financing on their calls. Lehman will go make no mistake and GS will too. I think the whole stigma is overdone at this point. don;t you think. For those not yet attune to their acions they bailed out bear, have fofrestalled a run on Lehman for now and are bailing out the commercial banks to the tune of $500 plus bilion. If they are worried about stigma there is something seriously wrong.

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