Discussion in 'Economics' started by Digs, Mar 12, 2008.

  1. Digs


    I have a coy(bank) with some bad assets, I know there bad but I can a valuation thats says these assets are AAA.

    The fed will take my assets and give me TBILLS.

    I sell these TBills for CASH. Which I can use for re investment for hopefully better assets than I gave the fed.

    So this is really a FED fund injection into my balance sheet.

    1) Am I Correct ?
    2) Do I have to pay the fed back ?
    3) What happens to FED when they find out the true valuation ( subject to 2 above) of the asset swaps ?

    If my assumptions are correct, then FED please call me too !!!!!

    - This means
    - All banks or one in particular is very broke.
    - Mer, C, GS all have a sugar daddy.
    - This proves the FED is a VERY LARGE OFF BALANCE SHEET nice to have. The USA investing public have had the largest fraud in security valuation history going on right now !!
  2. Bowgett


  3. Question: What sorta yield are you getting?
  4. Bowgett


    You are not getting. You are paying :) It is an auction. Who ever pays higher yield gets TBills for a month.
  5. Christ in heaven.....no fucking shit.

    Now if the first would answer up...I may have an answer for him.


  6. You are not getting T-Bills, your getting straight cash. T-Bills would defeat the purpose.
  7. Digs


    for 28 days cash for AAA assets.

    But I can rotate this trade for a very long time if I pay the price.