The Fed Prepares For A Surge In New Primary Dealer Applications

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Mon, 01/11/2010 - 15:03 | 190132 Stoploss
Stoploss's picture

Tyler, go to market ticker, (you may already have) and check out the PD%. Parking huge amounts of money, with zero return. 


The bell is ringing.

Mon, 01/11/2010 - 15:58 | 190210 SayTabserb
SayTabserb's picture

North of 60%.  And just to check my memory, weren't the Indirects carrying the load (also more than 60%) just a year ago? So the positions have been flipped. Which makes it all seem kind of contrived.

Mon, 01/11/2010 - 15:13 | 190148 trav7777
trav7777's picture

Can I mark my feces to model and get in on this?  I'm thinkin 200, 250 million

Mon, 01/11/2010 - 15:36 | 190183 SayTabserb
SayTabserb's picture

Why not let some Primary Dealers from Cartagena and Tijuana in on this action? They could blow the doors off those paltry capital requirements.

Mon, 01/11/2010 - 15:41 | 190187 SayTabserb
SayTabserb's picture

But really, isn't this another example of the Fed's protean, brilliant capacity for innovation? How to cover the $2 trillion in new Treasuries along with the trillions in roll-over coming up in 2010 without massive PD support? Can the "Household Sector" really do it all, even with free vacuum cleaner attachments from the Fed's Hoover Division to suck up all the quarters between sofa cushions in this great land of ours? The Fed can keep "recapitalizing" banks off the radar; the bank-PDs can keep giving this money back to the Fed, and we're solvent, baby! How can we get rid of Bernanke, the man who invented financial perpetual motion?

Mon, 01/11/2010 - 16:02 | 190215 the grateful un...
the grateful unemployed's picture

okay so who benefits from this? inquiring minds want to know?

Mon, 01/11/2010 - 16:04 | 190217 BaronG
BaronG's picture

So, buy the banks that get approved, wait for the quarter results and hopefully take advantage of the potential gain?? Thoughts?

Makes sense, but then again, who am I kidding

Mon, 01/11/2010 - 16:24 | 190234 molecool
molecool's picture

So, if I want to I can become a PD? :-)

Mon, 01/11/2010 - 16:40 | 190248 Anonymous
Anonymous's picture

Citizens (the tax paying ones) better get ready to bend over.

Here comes a bit of what I call rusty-starfish-inflation.

Infrastructure upgrades -- w00t!

Mon, 01/11/2010 - 16:48 | 190260 Anonymous
Anonymous's picture

I have a far simpler idea that this is coming to next.


I'm looking forward to wiping my starfish with some shit tickets that say $20 on them from an ATM -- that's the best the central bank and financial "engineering" can do for me??

Sheesh what has the central bank done for you??

Mon, 01/11/2010 - 18:45 | 190395 Anonymous
Anonymous's picture

"Our rulers deliver favors to their clients...For in a predatory regime, nothing is done for public reasons. Indeed, the men in charge do not recognize that "public purposes" exist. They have friends, and enemies, and as for the rest--we're the prey."
- James K. Galbraith

Federal Reserve Seeks to Block Release of U.S. Bailout Secrets

“Bloomberg has been trying for almost two years to break down a brick wall of secrecy in order to vindicate the public’s right to learn basic information,” Thomas Golden, an attorney for the company with Willkie Farr & Gallagher LLP, wrote in court filings. He said the Fed may be trying “to draw out the proceedings long enough so that the information Bloomberg seeks is no longer of interest.”

Mon, 04/26/2010 - 14:30 | 318403 Adam33
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