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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (2593)	8/14/2007 2:13:04 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 6370

A money market fund, wtf? Which one, unnamed? But well it could easily be that a money market fund shored up its interest income by conducting mortgage repo business. And when the music stops he has the hot paper but no repayment? Could I be right or is this a little far fetched? By the way TMA and its preferreds getting Enroned. TMA below 10...this the next LUM?

To: The Reaper who wrote (2593)	8/14/2007 4:54:47 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

kk, the following happened today, liquidity actually dried up today again but this time the reason was homemade: first the BOE announced to open an unlimited funding facility but at a penalty rate of 6.75% (+100bp). Relying on this, the ECB cut back nearly all of its funding, see: Message 23791038 But the problem was, banks didn't like the penalty interest UK facility and the ECB took out most of its liquidity except 7.5B (so they drained 60B). Banks didn't react early and the ECB didn't do a quick tender... During the day it looked good but then liquidity dried up. The geman dax traded well most of the time but fell back in concert with US markets. Well, the doctor put the patient without oxygen. It tried some time but went eventually moribund.