This is big shit my brothers. Before now it was institutional/municipal. Now it is individual investors. Watch the run on this bank next week as account holders leave en masse exodus. http://online.wsj.com/article/SB120672890827072299.html?mod=yahoo_hs&ru=yahoo UBS Cutting Value Of Auction-Rate Securities In Brokerage Accounts
some weeks ago, wasn't it Goldman that just refused to back up accounts where ARSs were previously sold as "good as a money market" always happens on a Friday.
A house of paper cards ready to tumble. But oh we can't have that lets get the fed to step in and provide bids. Then they will charge it off to the tax payer when no one is looking. I wish everyone one would just stop paying taxes. Bet the fed would stop creating so much debt.
Glad ya'll are just waking up to the scandal that is the Auction Rate market. It's only 6 weeks old. In case you didn't know, this was a vast conspiracy by Closed end funds and Big Brokers to pork retail investors. Plenty of companies also got reamed in this one. The lawsuits and class actions are just beginning.
In case you're confused, this affects EVERY SINGLE BROKER on the street, UBS is only the first to announce a markdown Oh yeah, this doesn't affect IB. They don't sell this shit.