Fed now buying Commericial Paper

I wonder if they will buy my used honda at the price I paid 4 years ago?

Yay, another “we can’t try to help the market stay liquid because it’s too interventionist”. Too bad you probably know nothing about how the CP market’s been acting.

spierce Wrote: ------------------------------------------------------- > Yay, another “we can’t try to help the market stay > liquid because it’s too interventionist”. > > Too bad you probably know nothing about how the CP > market’s been acting. you’re right, i am completely out of touch with the markets. If things are really bad, then let’s just create money and buy everything nobody wants.

They need to do something like that to unlock the CP market…otherwise you will quickly see a looooooot of company going down in the next months… GE was just a small taste…

MFE Wrote: ------------------------------------------------------- > spierce Wrote: > -------------------------------------------------- > ----- > > Yay, another “we can’t try to help the market > stay > > liquid because it’s too interventionist”. > > > > Too bad you probably know nothing about how the > CP > > market’s been acting. > > > you’re right, i am completely out of touch with > the markets. If things are really bad, then let’s > just create money and buy everything nobody wants. As opposed to letting the world’s economy collapse because temporary liquidity issues? I love people who run around looking for simplistic and utterly stupid alternatives to problems they cannot fathom. Ask one person who went through the Great Depression if they think we should just say “fvck it, let’s have another try!”. I am sure you don’t care about anybody, or anything, outside of your egalitarian viewpoints taught in textbooks which completely ignores the humanitarian side and the viability of the world’s economy. It’s like people read economic theory or some libertopian bullspit and think “OMG, this solves *ALL* problems!” If only life could be reduced down to a simplistic viewpoint of binary nature.

can someone on a berg give us the LR OIS spread? us0003m index - ussoc cmpn curncy (i think those are right)

The problem is the government becomes interwined with the economy. So in a few years the market doesn’t crash but the government as well…

tsx11 is this what you want? us0003m index 4.32 ussoc cmpl curncy 1.477

PtrainerNY Wrote: ------------------------------------------------------- > The problem is the government becomes interwined > with the economy. So in a few years the market > doesn’t crash but the government as well… The government has time to unwind itself, the economic system doesn’t. The whole problem behind 1929+ was that the government (Fed) told the banking system to sit and spin. Liquidity dried up, which was exactly what the Fed was created to prevent. It was supposed to be a liquidity provider of last resort to maintain an orderly financial system. Successive runs undermined the system then, inept management of the banking system caused it, as well as a disaggregated strategy (or lack of any strategy thereof). However, gold monetarists screamed to protect the dollar. What they forgot is that a strong dollar is worthless if nobody has a dollar to spend.

muddahudda, thanks a ton! i think that is indeed what i was looking for. 285 still so wide! it’ll be interesting to see how this reacts to the Fed’s announcement.

spierce Wrote: ------------------------------------------------------- > PtrainerNY Wrote: > -------------------------------------------------- > ----- > > The problem is the government becomes > interwined > > with the economy. So in a few years the market > > doesn’t crash but the government as well… > > > The government has time to unwind itself, the > economic system doesn’t. The whole problem behind > 1929+ was that the government (Fed) told the > banking system to sit and spin. Liquidity dried > up, which was exactly what the Fed was created to > prevent. It was supposed to be a liquidity > provider of last resort to maintain an orderly > financial system. Successive runs undermined the > system then, inept management of the banking > system caused it, as well as a disaggregated > strategy (or lack of any strategy thereof). > > However, gold monetarists screamed to protect the > dollar. What they forgot is that a strong dollar > is worthless if nobody has a dollar to spend. I’m curious to know what happened during the lost decade/deflation in Japan. Didn’t the central bank and government intervene massively?

spierce is dead wrong as usual,the liquidity crunch in 1929-1932 was caused by people hoarding cash and not spending money because they lost faith in the banking system -someting the central bank can do nothing about.The central bank had indeed tried to create liquidity by purchasing over 1.1 billion $ worth govt securities -but bank reserves didnt rise that much at all -people just hoarded cash at home.banks were no longer safe -that explains the liquidity crunch.velocity just died. you can print as much as you want,nobodys gonna spend anything until confidence in the solvency of these institutions return . -so either go the socialist way by taking over the banks OR let them die. trying to create a romantic 'delicate balance’is idiotic btw,whats the IMF doing?it was so patronizingly advocating delinking govt from business and the importance of fiscal discipline for the asian govts in 1997 and for russia in 1998 -wonder why they are changing their tune.irrelevant dweebs.

good, maybe GE will stock going down

the US GOVT stands to make alot of money from this mess!