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September 14, 2008 at 8:52 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270251September 14, 2008 at 8:52 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270485
TheBreeze
Participant[quote=Arty]Add one more…Fed will accept “broader” set of collateral for loan…what’s the “broader” set? Junks that no one in their right mind will buy in the open market?[/quote]
Supposedly equities will be in the broader set. That seems ridiculous to me. Equities are very liquid so why not just sell them on the exchanges? It sounds like the Fed is trying to keep the stock market from crashing by having all the IBs, banks, and whoever else has access to the FED Discount Window trade in their equities for cash instead of selling them on the open market.
This seems quite crazy to me, but then so has this whole damn bailout.
September 14, 2008 at 8:52 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270489Participant[quote=Arty]Add one more…Fed will accept “broader” set of collateral for loan…what’s the “broader” set? Junks that no one in their right mind will buy in the open market?[/quote]
Supposedly equities will be in the broader set. That seems ridiculous to me. Equities are very liquid so why not just sell them on the exchanges? It sounds like the Fed is trying to keep the stock market from crashing by having all the IBs, banks, and whoever else has access to the FED Discount Window trade in their equities for cash instead of selling them on the open market.
This seems quite crazy to me, but then so has this whole damn bailout.
September 14, 2008 at 8:52 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270537Participant[quote=Arty]Add one more…Fed will accept “broader” set of collateral for loan…what’s the “broader” set? Junks that no one in their right mind will buy in the open market?[/quote]
Supposedly equities will be in the broader set. That seems ridiculous to me. Equities are very liquid so why not just sell them on the exchanges? It sounds like the Fed is trying to keep the stock market from crashing by having all the IBs, banks, and whoever else has access to the FED Discount Window trade in their equities for cash instead of selling them on the open market.
This seems quite crazy to me, but then so has this whole damn bailout.
September 14, 2008 at 8:52 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270563Participant[quote=Arty]Add one more…Fed will accept “broader” set of collateral for loan…what’s the “broader” set? Junks that no one in their right mind will buy in the open market?[/quote]
Supposedly equities will be in the broader set. That seems ridiculous to me. Equities are very liquid so why not just sell them on the exchanges? It sounds like the Fed is trying to keep the stock market from crashing by having all the IBs, banks, and whoever else has access to the FED Discount Window trade in their equities for cash instead of selling them on the open market.
This seems quite crazy to me, but then so has this whole damn bailout.
ParticipantBut here’s what placing the two mortgage giants in conservatorship doesn’t do: It doesn’t loosen credit and underwriting standards, which have been tight for the better part of a year. So if you didn’t qualify for a mortgage last week, your chances this week aren’t much better.
Lending standards aren’t tight. They are still pretty loose (you can still get a no-down loan from FHA). Lending standards are just not nearly as lose as they used to be. Hopefully the government won’t give in and loosen standards further.
ParticipantBut here’s what placing the two mortgage giants in conservatorship doesn’t do: It doesn’t loosen credit and underwriting standards, which have been tight for the better part of a year. So if you didn’t qualify for a mortgage last week, your chances this week aren’t much better.
Lending standards aren’t tight. They are still pretty loose (you can still get a no-down loan from FHA). Lending standards are just not nearly as lose as they used to be. Hopefully the government won’t give in and loosen standards further.
ParticipantBut here’s what placing the two mortgage giants in conservatorship doesn’t do: It doesn’t loosen credit and underwriting standards, which have been tight for the better part of a year. So if you didn’t qualify for a mortgage last week, your chances this week aren’t much better.
Lending standards aren’t tight. They are still pretty loose (you can still get a no-down loan from FHA). Lending standards are just not nearly as lose as they used to be. Hopefully the government won’t give in and loosen standards further.
ParticipantBut here’s what placing the two mortgage giants in conservatorship doesn’t do: It doesn’t loosen credit and underwriting standards, which have been tight for the better part of a year. So if you didn’t qualify for a mortgage last week, your chances this week aren’t much better.
Lending standards aren’t tight. They are still pretty loose (you can still get a no-down loan from FHA). Lending standards are just not nearly as lose as they used to be. Hopefully the government won’t give in and loosen standards further.
ParticipantBut here’s what placing the two mortgage giants in conservatorship doesn’t do: It doesn’t loosen credit and underwriting standards, which have been tight for the better part of a year. So if you didn’t qualify for a mortgage last week, your chances this week aren’t much better.
Lending standards aren’t tight. They are still pretty loose (you can still get a no-down loan from FHA). Lending standards are just not nearly as lose as they used to be. Hopefully the government won’t give in and loosen standards further.
September 14, 2008 at 8:18 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270194ParticipantWhy is BofA paying a premium for MER? And why such a massive premium? MER was trading for $17 on Friday and BofA is going to pay $29.
That’s ridiculous. The gubmint must be involved somehow.
September 14, 2008 at 8:18 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270430ParticipantWhy is BofA paying a premium for MER? And why such a massive premium? MER was trading for $17 on Friday and BofA is going to pay $29.
That’s ridiculous. The gubmint must be involved somehow.
September 14, 2008 at 8:18 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270433ParticipantWhy is BofA paying a premium for MER? And why such a massive premium? MER was trading for $17 on Friday and BofA is going to pay $29.
That’s ridiculous. The gubmint must be involved somehow.
September 14, 2008 at 8:18 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270482ParticipantWhy is BofA paying a premium for MER? And why such a massive premium? MER was trading for $17 on Friday and BofA is going to pay $29.
That’s ridiculous. The gubmint must be involved somehow.
September 14, 2008 at 8:18 PM in reply to: Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch) #270508ParticipantWhy is BofA paying a premium for MER? And why such a massive premium? MER was trading for $17 on Friday and BofA is going to pay $29.
That’s ridiculous. The gubmint must be involved somehow.
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