Tag archive for ‘Collateral’
Uncle Sam the Loan Shark
I must admit - I’m totally dumbfounded and stunned today by the article I read in the Wall Street Journal entitled, “The Paulson Plan will make Money,” by Andy Kessler. Essentially, Kessler’s argument is that somehow in all of this mess, the money spent in the proposed financial intervention plan before Congress will actually result in a windfall to the taxpayer in potentially trillions of dollars. This argument is fundamentally flawed - for it if were true, there would be no investment/financial services crisis to force the government’s hand.
ECB Worried about Liquidity Crisis
London, UK (FT.com): The European Central Bank on Thursday voiced its “high concern” at growing evidence that banks are exploiting its efforts to unblock the frozen funding markets by using its liquidity scheme to offload more risky assets than it envisaged.
Yves Mersch, a governing council member, said the ECB was now “looking very hard at [...]
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