Why are they doing this?

Maybe protecting incomes of elites while leaving the rest of us to compete globally for jobs.

The US is noted for the most mobile work force in the developed world, perhaps the vision is to expand that model into the wide wide global competitive labor jungle.

Just musing ….

$25 billion looks a lot like

http://www.nytimes.com/2008/10/14/business/14sorkin.html

“Just how much junk will be the focus of investors on Thursday, when Citigroup will report what Ms. Whitney says will be “ugly” third-quarter results. Citigroup has already marked down the value of $22 billion of mortgage-linked securities on its balance sheet to 61 cents on the dollar — a figure some analysts say they believe is still far too high.”

I say mark the junk to zero. It will surprise on the upside for a change if it ever recovers.

looking at the figures of the recapitalisation plan, I couldn’t help but notice how small the actual numbers are. For instance, Citibank receiving $25B, which won’t make a dent in the steaming pile of sh** on its books.

What’s the point of this plan so early in the game, spreading out all these money when it isn’t even clear who is worth it?

interesting that october’s LIBOR is still the lowest in 4 years.

looking at this chart:

http://www.erate.com/Libor.htm

is simply amazing after reading conjure’s white paper on LIBOR over at calculated risk on sunday night.

here’s my favorite line from it–

LIBOR contributors on the other hand provide the rate at which they believe they could borrow should they propose so to do.

that line alone deserves the daily show treatment.

It had nothing to do with liquidity. It was always about solvency.

” at a hefty 420bp. “These developments suggest that the market is reducing the odds of imminent financial Armageddon, but that significant year-end funding issues remain,” said TJ Marta, strategist at RBC Capital Markets.”

If unbridled credit expansion infested human consciousness then unbridled credit contraction will insist on invading human reality.

Who is Hank Paulson?

Who are Goldman Sachs?

Why are they doing this?

It makes no sense.

In times of turmoil when there are very few real-world transactions — why use interbank borrowing when the central banks will hand you cheap money? — a bunch of twenty-somethings sitting in a City pub and making it up as it and their alcohol uptake goes rules the public financial policy of the world.

ARM’s reset every 6 months or every year, after the initial fixed rate period, usually 2 years, and LIBOR is taken and set on a strike date, depending on the date when the loan was closed.

1) does anyone know the $ amount of ARM mortgages attached to LIBOR currently outstanding?

2) for a monthly payment on an ARM, on what date do they usually take for the LIBOR calculation (or is it a monthly average)?

i’m googling right now, but efforts have so far been futile, so any assistance is much appreciated.

Apparently you’ve yet to recieve the new and improved* 0.00 APR Federal Reserve credit card,,,must have been the holiday.

*A nice rhodium/platinum alloy.

This would certainly buoy consumer spirits and promote consumption.

That would be putting my taxes to work!