New York Fed Adjusts TALF Guidelines, Promotes Rating Shopping

Tyler Durden's picture

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AR's picture

The U.S. Government sponsored PONZIE Scheme continues in full force. Finally, does anyone else out there have the same eerie feeling that we do about the market?  We can't help but remember the days and weeks leading up into October 1987.  Anyone else out there old enough to remember those days?  Today's markets feel closely similar to us...

VegasBD's picture

Nope. In 87 my biggest worry was doing good in pop warner practice =)

TumblingDice's picture

the Federal Reserve Bank of New York will conduct a formal risk assessment of all proposed collateral

How reassuring, especially considering that they can create money out of thin air. So technically, to them, there is always no risk.

ZerOhead's picture

I was thinking... since they just 'imagine' this money into existance... why don't we just 'imagine' that we've already paid them back?

ZerOhead's picture

Or would Timmy and Benny get upset?

TumblingDice's picture

Not if we offer up some excellent collateral for out imaginative actions. I think my basketball signed by the whole wizards team (won it in a raffle and mostly used it to play an not store it in my trophy case, since the wizards suck and all)  should be enough to imagine my student loans away.

Hondo's picture

More insanity.  The NY Fed doesn't have the expertise to evaluate any credit bond.  I know they have been hiring like crazy but I still believe it's a scam by the Federal Government of massive proportions.  We already know that both the TSY and the FED lie to the market and public for their own benefit.  Buy this crap at your own risk......or if well connected enough to get bailed out.



AN0NYM0US's picture

meanwhile Barney wants to redirect TARP to help unemployed homeowners -  that would be a good Poll question - will what ever is left of TARP ever make it back from whence it came or will it morph into assorted Pork Cutlets

lizzy36's picture

TARP is a  revolving credit line for congress. 

It will NEVER make it back to where it came from.

deadhead's picture

"...will what ever is left of TARP ever make it back from whence it came or will it morph into assorted Pork Cutlets"

I hope this is not a serious question.  Those phucks in Congress and the chicago gang in the shit house on pennsylvania avenue are just starting to spend money.  They are going to take down the USA in a blaze of orgiastic money printing. 

MsCreant's picture

Confidence is high! Gold on a small tear.

Gilgamesh's picture

Confidence that the Fed will act in perfect opposition to its charter...  Yes, that is quite high (good thing it can be traded - via gold).

Assetman's picture

This reminds me of the Progressive insurance commerical with that fake retail outlet where you can compare different premiums.

What not include the TALF/NRSROs in the comparison?  You can by the damn stuff in a box and talk to Flo about "power to the people" at the same time.  Talk about lowering your standards....

Gilgamesh's picture

Incoming MGM post from TD.  Checking back often!

DaddyWarbucks's picture

"The reason: to "enhance the Federal Reserve's ability to ensure that TALF collateral complies with its existing high standards for credit quality, transparency, and simplicity of structure."

Is it just me or does that sound like an admision that, up until now, the collateral hasn't been complying with the "high" standards?

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