Fed TAF auction on the 19th; crude $140 by Friday?

Discussion in 'Economics' started by The Kin, May 18, 2008.

  1. I'm under the impression that $75 billion pumped into banks this Monday via Fed TAF will allow banks to invest heavily. Just a hunch but I believe the stock market should do very good, along with bonds and commodities. So I'm calling Crude 140 by Friday.

    I realize this thread could very well symbolize a top in crude, but I just had to sharemy thoughts on how this TAF is great for banks at the expense of everyone else.
  2. FED is slowly running out of treasury bills, they have already used 1/3rd of the FED collateral.

    Down another $21B this last week alone.


    Security Type Total Par Value
    US Treasury Bills (T-Bills) 49,609,742
    US Treasury Notes and Bonds (Notes/Bonds) 421,816,020
    US Treasury Inflation-Indexed Securities (TIIS)1 39,170,613
    Total SOMA Holdings 510,596,374
    Change From Prior Week -21,144,117
  3. empee


    pretty amazing the rate at which they are exchanging treasuries for junk!

    Just amazing.
  4. TLSF is the facility for exchanging treasury bills for subprime garbage and has the $800 billion limit.

    The TAF exchanges cash for subprime garbage, and has no limit. But it is indeed absolutely amazing that the Fed would release such a large portion of it's balance sheet on Bernanke's theories.

    It would make a good horror movie. :D :p
  5. TAF is also a bailout of hedge funds via prime broker arm of I Banks - allowed deferral of hedge fund deleveraging/redemption slales i.e deferral of normal end of cycle deleveraging. Bernanke is out pof control, he has spent his whole academic non real world life myopically studying the Great depression and concluding that because they did not cut rates that was the cause of the depression, without it seems looking at Japan where they cut rates and operated the same no bank failure policy he is putting in place now. Welcome to the Great Depression as per Japan complements of the myopic academic buffoon.
  6. not a big fan of greenspan 1.0 or greenspan 1.1

    benny b-52 has little choice in what he was handed and how to deal with it

    it's a slow motion crash versus some banking shutdown and everybody rushes the food stores and empties them out

    banks restrict you to $250 withdrawals per day...etc.

    may happen anyway
  7. Currently $130...

    $10 before Friday?
  8. bellman


  9. The TSLF has a stop-out rate of .1%

    I'm really confused as to why.

    IS TAF for the banks only while TSLF open to IBs?
    #10     May 20, 2008