Good point. I think this whole rescue fund is all window-dressing and using the right moment to create something that would have been impossible to do at another time. What exactly the real purpose is I don't know either, but it's more political than practical and it smells.
They are just doing it to create a vehicle that will allow them to value their level 3 assets. Its Enron all over. John
The PPT is reving its engines for yr end. FNM talking raised limits now that it is back to regular SEC filings. Bernanke talking gov't guaranteed jumbo mortgages on the hill. earlier this week the bailout fund was apparently in trouble now a complete reversal. they have a few bullets. Will be interesting to see them try to put a patch on the credit bubble.
That's exactly what I thought. They are able to prop up their unrealistic level 3 valuations by creating a closed market for their own toxic waste. "It's worth what we say it is, damn it."
sniffle... It's a warm, fuzzy feeling to see banks getting along so well colluding this way... Like - a Norman Rockwell Thanksgiving painting.... sniffle....
You just made me $1000, Sus. Thanks. I saw your post, figured it would be good to add another short to Sterling. Did it, market opened and shot down. Owe ya a drink, mate.
A Super-size-it SIV is interesting, but aren't those CDO's bundled loans? Figuring out what's good and bad means evaluating the individual components of each? Unbundling each CDO? How would they average to a value without the individual numbers?