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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: 10K a day who wrote (85990)8/18/2007 12:27:57 AM
From: Live2SailRead Replies (1) | Respond to of 306849
 
I think that the discount window is there for someone just like a CountryWide. Their short term paper got crushed on Thursday. They had little chance for short term financing. This is a lifeline for them. My conspiracy theory is that CFC brought the mortgages to CountryWide bank from CFC just to force the Fed's hand. You can't have a big, primary bank like CW going down the tubes.

This is just one bank, though, and it is just a temporary lifeline. They need to get their house in order somehow. It's not a savior for the economy.

WTFDIK?



To: 10K a day who wrote (85990)8/18/2007 12:35:26 AM
From: CalculatedRiskRead Replies (1) | Respond to of 306849
 
Remember all these big banks have a bunch of pier loans on their balance sheet (bridge loans that went nowhere).

I guess they can give their $10 billion in Chrysler debt to the Fed. Not a bad deal in the short term - pay the Fed 5.75%, meanwhile earn 8% or 9% or whatever from Chrysler - until they can syndicate the debt.


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