I just got this alert:
Fed accepts mortgages as collateral in lending $7 billion to banks via 14-day repo
Isn't this old news? I thought I read that yesterday.
M
Old News?
Started by
OEXCHAOS
, Aug 23 2007 08:25 AM
2 replies to this topic
#1
OEXCHAOS
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Mark S. Young
Posted 23 August 2007 - 08:25 AM
Mark S Young
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#2
TradeMark
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Posted 23 August 2007 - 10:16 AM
Yes, it is old. It was in the news last Friday when Fed announced the Discout Rate cut
#3
bulls_make_money
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Posted 23 August 2007 - 11:50 AM
The Fed is willing to take (almost) anything as collateral now. It's like they are screaming to the markets,...
"Give me your sick (bonds rated below BBB-), your tired ( A+ rated bonds will little liquidity), and your infirmed (bonds having no bids whatsoever). Let the Fed be your bag holder!"
Another fascinating point is that the Fed went from only offering overnight loans at the discount window to offering 30 day loans. So what happens 30 days from now? Another "recap" when the problem will likely be a whole lot worse (due to ever-increasing mortgage defaults)?
Mind boggling. It'll be very interesting to see how this thing unwinds,...
"Give me your sick (bonds rated below BBB-), your tired ( A+ rated bonds will little liquidity), and your infirmed (bonds having no bids whatsoever). Let the Fed be your bag holder!"
Another fascinating point is that the Fed went from only offering overnight loans at the discount window to offering 30 day loans. So what happens 30 days from now? Another "recap" when the problem will likely be a whole lot worse (due to ever-increasing mortgage defaults)?
Mind boggling. It'll be very interesting to see how this thing unwinds,...
Edited by bulls_make_money, 23 August 2007 - 11:51 AM.
