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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (215374)	8/11/2007 1:44:48 PM
From: LindyBill	Read Replies (1) \| Respond to of 794050

They should lose their shirts just as the homeowners who haven't been bailed out but are losing their homes! I think you are overreacting, Steve. The underlying value of these mortages is not the problem. It's the short term liquidity of the bundled mortages because of Bear activity. The Fed is not going to let any market collapse for this reason. Again, it's a "credit problem."

To: Steve Lokness who wrote (215374)	8/11/2007 2:35:53 PM
From: Snowshoe	Read Replies (1) \| Respond to of 794050

>>the huge margined hedge funds. That is who was bailed out Thursday and Friday<< The Fed acted to help the banks, not the hedge funds. They used "repos", which in effect are temporary 3-day loans to keep the banking system from freezing up. It's sort of like buying a drunk a sandwich, to help stabilize his blood sugar long enough to admit him to a detox center... Federal Reserve use of repos en.wikipedia.org Repurchase agreements when transacted by the Federal Open Market Committee of the Federal Reserve in open market operations adds reserves to the banking system and then after a specified period of time withdraws them; reverse repos initially drain reserves and later add them back. Under a repurchase agreement ("RP" or "repo"), the Federal Reserve (Fed) buys US Treasury securities, U.S. agency securities, or mortgage backed securities from a primary dealer who agrees to buy them back, typically within one to seven days; a reverse repo is the opposite. Thus the Fed describes these transactions from the counterparty's viewpoint rather than from their own viewpoint.

To: Steve Lokness who wrote (215374)	8/11/2007 2:44:42 PM
From: John Carragher	Read Replies (1) \| Respond to of 794050

steve you misunderstood. i was continuing the subject of the bail out. I was quoting democrats , not my own personal feelings into the subject. i referenced that democrats have been discussing. Like Cramer has been crying about ,, bailing out the these poor people. i am not discussing my political feeling, only presenting the current politics, another example i used was some democrats are talking about 50 year mortgages to keep these people in their homes. loosen up your tie, unbutton the top button and take a deep breath.. it is the weekend enjoy it. ps the public looking for nothing down and 10% cannot longer get mortgage commitments. Only those who can put down what us old timers called 20% down, good credit history, work history will get commitments.