Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: MulhollandDrive who wrote (109146)	3/11/2008 6:54:25 PM
From: Smiling Bob	Respond to of 306849

The only question is- How many 28 day periods before Nov elections? edit Another thought. What happens to the credit rating of America, as if it's not already in the toilet? Our dollars and Tbills backed by no bid MBS Any takers?

To: MulhollandDrive who wrote (109146)	3/11/2008 7:08:58 PM
From: Think4Yourself	Read Replies (4) \| Respond to of 306849

The fed is taking no risk whatsoever with this move. They are buying nothing. They are only accepting AAA collateral, that isn't on credit watch, for either 80 of 85 cents on the dollar. If the securities change to no longer be AAA then they can't be rolled over. The markets wanted in intermeeting rate cut. That would have been foolish and ineffective. The fed is addressing the liquidity problem without helping the gamblers or the mucked up companies. The companies with garbage securities will gain no benefit from this program. For the fed this is a brilliant move. Greenspan would have given the market the rate cut. Some people fail to understand what this is meant to do. This is meant to restore liquidity to the banks and confidence to the AAA MBS markets so those credit markets unlock. That is all it is meant to do. It doesn't bail anyone out in any way. Please show me a downside to the program. I can't find any. It's a win-win and the taxpayers aren't on the hook for anything.