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

To: Paul Kern who wrote (109094)	3/11/2008 2:52:28 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

I don't see that game working for two reasons: 1. If securities are on credit watch negative they aren't eligible for the program. 2. If they go on credit watch or are downgraded then they can't be rolled over. The institution WILL take them back or exchange with AAA securities, OR ELSE! I have also read you only get $80 or $85 (not sure which) in treasuries for each $100 of securities you pledge. The fed appears to have thought this through quite well. Institutions who really did play in the muck will have little or no securities available for the program. Solid institutions should have no problems raising liquidity. In case you can't tell, I am VERY impressed by what they did. ;o)