>>smell a bailout...
regardless of the size or amount, it is not going to be enough money to do more than psychologically do-si-do the markets.
Sub-prime is only the public label for the current credit market seizure.
Already "it" has spread to credit card derivative debt theatre.
I recall hearing Suze Orman on her CNBC show a couple Sat nights back, state unequivocally...
.....in the current wired clime, "banks are monitoring DAILY all FICO scores from the 3 credit agencies.
There is language in all credit contracts declaring that any sign of credit trouble--in any FICO reporting agency credit survey reporting--immediately empowers all other lenders to IMMEDIATELY hike THEIR effective interest rates to the maximum in the individual credit contract language, regardless of whether or not "their branded credit card" is being slow paid."
Since I have no reason to doubt Orman, that illuminating piece of data certainly spells all kinds of additional credit derivatives' problems for the now foreclosed homeowners on their existing if not crushing credit card debts, yes?
The commercial paper market has already absorbed in excess of $300,000,000,000 here stateside from the FR alone, in 30-120day ST bridging liquidity sand in the rathole.
Regardless of the Rubin/Schumer/Clinton led massage in the pipeline, any bailout is a token move only, trying to buy more time for the broken system, that has been broken for 9 decades minimally, at least from my perspective.
G_T |
