Headlines...

NEW -> Contingent Buyer Assistance Program
NEW YORK, Sept 12 (Reuters) - The U.S. Federal Reserve said on Wednesday it added $13.5 billion of temporary reserves to the banking system via an overnight repurchase agreement.

Federal funds traded steady at 5.06 percent in the market after the amount of the operation was announced, below the 5.25 percent target rate the Fed sets.

The Fed said it accepted as collateral $7.36 billion of Treasuries, $2.25 billion of agency debt and $3.89 billion of mortgage backed securities.

A total of $41.0 billion in bids were submitted for the operation.
 
Sub-prime woes hit US lender GMAC

Finance firm GMAC has had to take out a $21.4bn (£10.1bn) loan as it becomes the latest lender to reveal the impact of the US sub-prime mortgage crisis.

GMAC, which has borrowed the cash from Citigroup, said boosting its financial flexibility was "a prudent measure" in the current market environment.

Hit by higher US interest rates, the sub-prime mortgage sector has seen record loan defaults in the past year.

GMAC is a former unit of General Motors which still retains a 49% stake.

Private equity group Cerberus Capital Management owns the remaining 51%.

GMAC started out offering car loans before expanding into the mortgage industry.

Is it again time to short GM?
 
Ok, I'll stop now.....

Immune-Deficient Realtor Forced To Spend Entire Life In Housing Bubble

September 7, 2005 | Issue 41•36

Immunity-Deficient-C.jpg
 
Check out The OCR's Marketplace section today.

I get a kick out of the title, "But the median price, up 1.9%, stays near its record high.

Maybe this will help.

http://money.cnn.com/2007/09/13/real_estate/mortgage_rates/index.htm?postversion=2007091310
 
http://money.cnn.com/2007/09/13/markets/credit_crunch/index.htm?postversion=2007091310

The issue in the above article and the price movement of the yen are the two most vital and threatening issues to the US and global economy right now. It isn't mentioned in the article, but $140 bil of ABCP expires on September 17, (yes, the day before BB does his thang). The numbers are real. There is no one in control, least of all the Fed. These are free market operations.
 
awgee,

I am very concerned about the value of the Yen. What do you think happens if the FED lowers rates and the yen goes to 105 or 100. Wouldn't that trigger a massive short-squeeze on Yen carry-trade positions of anyone in US dollars? The excess liquidity in our capital markets allowing leveraged buyouts and commercial real estate asset inflation is totally dependent on the carry trade. If these people all have to cover their positions at once, we will have a true liquidity crisis to go along with our existing solvency crisis. The FED would have to fire up the printing presses to provide liquidity, and the result will be runaway inflation.

I still don't see how the FED can lower interest rates next week.
 
"What do you think happens if the FED lowers rates and the yen goes to 105 or 100. Wouldn't that trigger a massive short-squeeze on Yen carry-trade positions of anyone in US dollars?"

I prefer not to think about this. Seriously.
 
Awgee

You might have explained this once and I forgot, sorry, but since I am not very experienced one bit in currency trade other than China artificially pegs its currency to the dollar can you explain what you and IR are talking about when you talk about carry-trade?

I understand that many foreign countries finance our debt but when the dollar goes down how does that effect us when they already have purchased the currency at a higher ratio or what not.
 
You must log in or register to reply here.
Back
Top