One Bullet Left in the Six Shooter
We Nattered about the worlds largest pawn shop now accepting FNMA & FHLMC paper... but Yve's at Naked Capitalism astutely observes...
Subprime mortgage resets peak in August, which leads to an increase in defaults, but foreclosures average 15 months after default.
We haven't even seen the worst of the housing crisis, yet the Fed has already used a great deal of its firepower.
Paul Krugman pointed out that the Fed's last two attempts to calm the credit markets (admittedly neither of them of this scale) did not provide lasting relief.
(as) this program will leave the Fed with $300 to $400 billion for further sterilizing interventions...
The Fed has only one more move like this in its arsenal.
Fall out... US Savings Bonds are now the 2nd safest investment... Hattip to Bloomberg...
The risk of losses on U.S. Treasury notes exceeded German bunds for the first time ever.
Fabrizio Capanna, BNP’s head of high-grade corporate trading: "The U.S. government is not immune from the consequences of the credit crisis.
Support for troubled financial institutions in the U.S. will be perceived as a weakening of U.S. sovereign credit."
Subprime mortgage resets peak in August, which leads to an increase in defaults, but foreclosures average 15 months after default.
We haven't even seen the worst of the housing crisis, yet the Fed has already used a great deal of its firepower.
Paul Krugman pointed out that the Fed's last two attempts to calm the credit markets (admittedly neither of them of this scale) did not provide lasting relief.
(as) this program will leave the Fed with $300 to $400 billion for further sterilizing interventions...
The Fed has only one more move like this in its arsenal.
Fall out... US Savings Bonds are now the 2nd safest investment... Hattip to Bloomberg...
The risk of losses on U.S. Treasury notes exceeded German bunds for the first time ever.
Fabrizio Capanna, BNP’s head of high-grade corporate trading: "The U.S. government is not immune from the consequences of the credit crisis.
Support for troubled financial institutions in the U.S. will be perceived as a weakening of U.S. sovereign credit."
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