http://www.bloomberg.com/apps/news?p...1BI&refer=news
"Commercial Paper Fund
A plan devised by the Treasury and the largest U.S. banks to help revive the asset-backed commercial paper market also increased the odds the Fed will keep rates steady. Citigroup, Bank of America and JPMorgan agreed to form a new fund to buy assets from structured investment vehicles, which are units set up to purchase securities such as bank bonds and subprime mortgage debt. The plan would help SIVs avoid dumping their $320 billion in holdings. "
I wouldn't call it a "bailout" yet because I define a government bailout as one financed by the taxpayers. I will be mighty upset if I find out that taxpayers will be doing any funding of this so-called "commercial paper fund" and the government better not do any sort of "guaranteeing" of it either. Nevertheless, this is obviously another sign of the unfair playing field in the US capital markets imo....and how the government is in bed with the big banks.....as if this is breaking news....lol, yeah right. Would a Fund Mgr after suffering losses in risky bets in a particular asset class and on the verge of receiving redemption notices be able to devise an instrument/vehicle such as this for protection?
http://money.cnn.com/news/newsfeeds/...9_FORTUNE5.htm
http://www.marketwatch.com/news/stor...dist=sp_inthis
I do see Bernake as taking a more
proactive fed monetary approached as opposed to Greenspan (from my limited knowledge of his policies) who seemed to take a more
reactive approach......but I must say....this little tidbit spin by Bernake at the end of this article, I found amusing....
"Bernake defended the half-point cut, saying that risk management played a role in the decision.
"By doing more sooner, policy might be able to forestall some part of the adverse effects of the disruptions in financial markets, he said.
Bernanke said the Fed rate cuts; combined with the technical steps it has taken to restore liquidity to financial markets has reduced some of the pressure in financial markets.
"From the perspective of the near-term economic outlook, the improved functioning of financial markets is a positive development in that it increases the likelihood of achieving moderate growth with price stability," Bernanke said.
But the financial markets are not out of the woods, he stressed.
"Considerable strains remain," Bernanke said.
But Bernanke tried to put some positive gloss on the financial market turmoil, saying the experience might lead to a healthier financial system over the longer term."
....and when kids get in financial trouble by going out and racking up their credit cards by shopping at Saks or Nordys when they work P/T as a busboy or girl at some restaurant and then have rich Mommy and Daddy pay off those bills, I'm sure the experience they go through may lead to a healthier management of money over their longer term....ooooookay, sure.
Bailout Part Deux?
Linear Mode
