Fed auctions nearly $25 billion in Treasury securities

[OhioChick]

Source: Economic Times India

18 Apr, 2008, 0130 hrs IST

WASHINGTON: The Federal Reserve has auctioned nearly $25 billion (euro15.8 billion) in super-safe Treasury securities to big investment firms, part of an ongoing effort to relieve credit strains. The auction _ the fourth of its kind _ was held Thursday. The Fed auctioned $24.999 billion (euro15.75 billion) in the securities. Bidders paid an interest rate of 0.1000 percent. The Fed received bids of $35.1 billion (euro22 billion) worth of the securities.

In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including certain shunned mortgage-backed securities, as collateral.

In the four auctions held so far, the Fed has provided close to $158.95 billion (euro100.14 billion) worth of the Treasury securities to financial firms.

At last week's auction, the Fed had bids for $33.95 billion (euro21.39 billion) worth of the securities _ less than the $50 billion (euro31.5 billion) in securities that the Fed was making available. Some analysts read that as a hopeful sign that credit turmoil in this part of the market was easing a bit.



Read more: http://economictimes.indiatimes.com/Latest_News/Fed_auctions_nearly_25_billion_in_Treasury_securities/articleshow/2960373.cms

[Ichingcarpenter]

1. I have been keeping tabs on this since August

I've see almost 2 trillion in auctions from just adding these stories up.

[OKthatsIT]

4. Well that should tell US what we're worth, huh?

I've been upset about our retirement funds, my 401Ks will be worth nothing before the time limit is up.

I wonder why Congress doesn't permit US to save our savings by forcing the banks to lower the penalties and taxes. I need to get the money to buy metals or swiss franks.

I won't have a dime left if they don't.

[PSPS]

2. "bidding firms can put up more risky investments"

In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including certain shunned mortgage-backed securities, as collateral.

These are revolving loans. In other words, the criminals get to cash in their toxic worthless "liar loan" mortgages and swap them, 100 cents on the dollar, for treasury notes. After 28 days, the "loan" will simply be renewed ... ad infinitum. These will never be repaid.

The bottom line: We the taxpayers are bailing out bush's criminal cronies.

[SpiralHawk]

3. Bleeding the Beast - a republicon homelander strategy

To drown the government of the USA in the bathtup, and saddle Joe and Jane Mainstreet with the problem.

Republicon economics = republicon depression.

Shock and awe, baby.

Republicons trash America with anti-conservative fiscal policies.

[judasdisney]

6. It takes a village to drown democracy in a bathtub

I believe Hillary Norquist said that. Translation: What if the Supreme Court subverted a vote count in Florida, and nobody gave a fuck until it was too late?

"In a democracy, citizens get the government they deserve" said Adlai Stevenson. Hell yes.

[ThomCat]

8. And that's absolutely their intention.

Their friends, the wealthy criminals who committed all of this fraud, will get away with even more money
And we, the targets of this fraud, will get stuck with more costs.

There was never any doubt. They're doing absolutely nothing to protect anyone who isn't a large corporation or wealthy investor.

[razors edge]

5. I'll give a Bernanky

Two helicopters, and three Heidelberg printing presses. Final offer.

[judasdisney]

7. When the Fed collapses (by design), then

who will pick up the pieces?

As with the so-called "failed 9/11 intelligence" and "failed WMD intelligence," will we get another excuse to create a new Fed with no government charter -- a sweeping new private (yes, I know it's already private, but even more privately overseen and privatized) country-club "canned hunt" for the Cheney-elite and their cronies?

Just in time for the new Democratic (and compromised?) President to kneel and kiss the ring.

[darue]

9. I don't see why we couldn't have a single public bank, owned equally by all citizens

we'll form it by nationalizing all the old banks general deposit (checking/savings) accounts. it could also hold and responsibly invest the social security trust. It would be staffed and run by civil servants, hired from the general population by aptitude test scores and college graduation equivalency; they would then be trained in house on how to do the work, by the book. There would be no discussion of bank business outside 'the office'. every citizen 18 and over an equal shareholder, a set percentage of profits paid as dividends to the shareholders. So everyone gets a check every year, the size of which is based on how well the 'All America Bank' did that year.
the old banks would be free to become some sort of 'financial services' businesses, but stocks would be held by the one-banks as well, so they'd only act as your agent able to access special purpose accounts only, they wouldn't 'hold' anything for you. might be worth a try.

[formercia]

10. Dollar carry trade

At 0.1% interest, it's cheaper than the Yen.