When the trapeze high-fyler doesn’t make the swap over and hits the deck, in go the men with funny noses. And just so, now: “Hank and Ben, yer on, get out there and fake it!” But that high flyer is still just as broken and/or dead . . . .

They argue that depositors were already scared, and that having UNLIMITED amounts guaranteed within money markets will mean large depositors could easily flee their banks to the “safety” of money market funds that would have higher limits.

Therefore, another unintended consequence of the money market guarantee is that it will actually weaken bank’s deposit base.

So, when finally implemented, best guess is we’ll likely see a limit only up the $100k; similar to the FDIC limit.

But don’t money market funds offer a higher yeild for more risk?

I think so, and…., if bank recapitalization is a need; then why don’t we just raise FDIC limits rather than insure risk takers?

I’m sorry if Money Markiter’s thought x or y was safe or not! When they break the BUCK, they’re GONE!!

And holders of theese funds “just” might find safe haven in banks!

Thats all, GOV stay out!!!

“So of the five possible uses of fiscal policy – income relief to households (the 2008 tax rebate), rescue/bailout of financial institutions (Bears Stearns, Fannie and Freddie, AIG), purchase of assets of failed institutions (an RTC-like institution), recapitalization of undercapitalized financial institutions (an RFC-like institution), government purchase of distressed mortgages to provide debt relief to households (an HOLC-like institution) – the last option is the most important and effective to resolve this severe financial and economic crisis.”

http://www.rgemonitor.com/roubini-monitor/253653/we_need_a_new_holc_-_more_than_a_new_rtc_or_rfc-_to_provide_massive_debt_relief_to_the_household_sector_we_need_to_create_the_home_home_owners_mortgage_enterprise

plschwartz

This is not a done deal by any stretch.

Wall Street is expecting a detailed plan will be made public by Monday morning and that it will pass both houses and be signed by Bush before Congress adjourns Friday afternoon.

There are a lot of Republicans that oppose the MOAB on ideological grounds and there are a lot of Democrats that want to tag on a bailout for homeowners along with an extension of unemployment benefits and other safety nets. This is an election year, and each side is wary of how the other side will use this against them.

Now, I do think that SOMETHING will go through next week. But it may not be the sort of “we pay top dollar for toxic waste” plan the street thinks.

“Congressional Leaders Were Stunned by Warnings”

Seriously…do any of these people have access to a computer?

If no – do not vote for them

If yes -Have they read NC.com lately?

If no – do not vote for them

If yes – do not vote for them b/c they haven’t done anything while knowing full well the ridiculous festering problems that have been occuring for the last 2 years.

Then there are the Republican issues. Can’t see Shelby Bunning etc (and McCain??) stepping aside.
Could it be that the Uebercapitalists implode due to their internal contradictions??
Interesting times
plschwartz

Re: redemptions from money-market

A liquidity trap tends to limit the amount of race tracks and casinos that can stay open for business, so to panic now, is a little late IMHO, yah shoulda been ready a year ago…

Re: there is little left to support bond prices under the circumstances until they pull some new action Sunday night. According to Bloomberg, the 2-yrs fell the most in 23-yrs, while odds of a rate cut in the next few meetings have fallen hard. The curve has slid to a flattened pose with the 2-10-yr yield spread back at 163, after a brief trip through 200.
http://finance.yahoo.com/bonds/market_summary/article/200001/bond_ticker