Shit Just Got Real: Primary Dealers Called To New York Fed For Emergency Noon Meeting

Tyler Durden's picture

From an email just sent out by Morgan Stanley's David Greenlaw:

The NY Fed just asked primary dealers to come downtown today at noon to meet with Fed and Treasury Dept officials. We expect to hear them outline a contingency plan for next week. Details to follow.   
More from Bloomberg which confirms this is not the previously scheduled meeting:

  • The Treasury has canceled its regularly scheduled individual meetings with bond dealers in favor of the group meeting, according to the people, who declined to be identified because the meeting hasn’t been publicly announced
  • All 20 primary dealers were invited
  • Treasury spokesmen in Washington didn’t immediately reply to a request for comment on what will be discussed at the meeting

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
midtowng's picture

Somebody is in trouble. Any guesses on who that might be?

Max Hunter's picture

Rut Roh... That would be my guess.. Too may Countrywide Mortgages..

jus_lite_reading's picture




mfoste1's picture

nah man, its not a currency and it only has tradtional value

slaughterer's picture

Haven't you heard?  They need somebody to buy BAC!

g's picture

"Somebody is in trouble. Any guesses on who that might be?"

Yes that could very well be, or it could be a ploy by those in the meeting to say something to the effect that they have come up with a solution given the recent political failure to do so, presented by the MSM as saving the 'system', maybe the next iteration of QEx under some other name.


I am undecided, usually I have a gut instinct on such matters, but I have absolutely no insight here, strange.

Cdad's picture

I'm not sure who is in trouble, but clearly what the nation needs is more secret meetings and resulting actions from criminal syndicate Wall Street bankers.

Fucking sarc off

g's picture

I decided to check out CSPAN, they are taking live calls. People are genuinely concerned about the fiscal state, debt ceiling debate, and political corruption of the country. 'Average' people are sounding scared and uncertain. I wonder what crap O'bummer will spew at 1020.

Cdad's picture

He will threaten Republicans again.  Red meat for the base.  He will offer no solutions, but rather talking points.  And what people continue to fail to understand is that Obama wants a default on US debt...and the resulting chaos.  

If the market bounces during his little chat with the nation, it will be a gift.

g's picture


He still has no plan, a leaderless leader. Watched a great speech by Chris Cristie yesterday about taking leadership risks, taking the initiative, as an executive and putting forth a plan for debate.

There will be more lame fear mongering rhetoric.


TruthInSunshine's picture



Obama is going to have a press conference, and tell everyone to eat the Black Eyed Peas and Will-I-am (with bbq sauce).

Musicians are good eats.

g's picture

One of my cats just puked on the floor, literally. An omen of things to come? Lots of wretching in the nation today, myself included.

Cathartes Aura's picture

Obama, like any other "approved President" will say what he is TOLD to say - he is "there" because he CAN read a teleprompter, and has ZERO power beyond what is allowed him.

As for this meeting, again, if you're reading about it, you're MEANT to be reading about it - if it was "secret" you would not know until the plans were settled.

Of course, act/react accordingly.

Abitdodgie's picture

He said that if the debt is not raised then it may spoil Christmas 

Popo's picture

I believe this is the meeting where they tell the PD's not to worry, because the Federal Reserve will override any cessation in Legislative-branch spending by simply flooding the markets with money-printing.

In other words:  This is the meeting where the PD's get reminded that that whole "US Government- thing" is just kabuki for the people.   And that the NY Fed is still running any and all necessary black-ops to ensure the stability of the cartel-cum-empire.

Besides, with a mere 25 basis point spread between double and triple A -- it ain't like the NY Fed can't juice the PD's with enough free money to bring out the sunshine.    

I imagine scotch and cigars will be served at the meeting.



traderjoe's picture

While I concur with the tenor and tone of your comment - a minor (but material) correction: the Federal Reserve Note MUST BE BORROWED INTO EXISTENCE. The Fed cannot print money without buying Treasuries or some other crap from the PD's (nor would they want to). 

As I like to constantly say, that is the scam of the century - that a sovereign government has granted the power to print money to private corporations and then turns around and borrows from them. 

The national interest is the grift, debt-slavery of the people is the goal. 

Popo's picture

>  "The Fed cannot print money without buying Treasuries or some other crap from the PD's . "


All true  ...  but it's the "other crap" category that essentially gives them carte blanche to print money.


traderjoe's picture

Agreed in part. I'm just so opposed to the system of debt-money that I try to draw out the distinction whenever possible. 

True printing of money is the United States Note - which was in circulation from 1862 to 1971. Now THAT is printing money (not always a panacea, but at least not debt-money borrowed from private corporations at interest). 

Popo's picture

>  "The Fed cannot print money without buying Treasuries or some other crap from the PD's . "


All true  ...  but it's the "other crap" category that essentially gives them carte blanche to print money.


lesterbegood's picture

Prior to 1860, sovereignty reside with the People in their respective free state republics; the national government (Union) has very little power. After the Civil War, the US government was incorporated in 1871, the Constitution for the Republic of the united States having been suspended and abandoned by President Lincoln in 1860, a new corporate constitution was written by a 3 man commission called THE CONSTITUTION OF THE UNITED STATES, the ALL CAPS designating this entity as a corporation. We went from a republic to a corporate democracy.

Crisismode's picture



In other words, "Just hit the bids and STFU."

Chief KnocAHoma's picture

I think I just shit in my pants.

Caviar Emptor's picture

Bankers leaving from the dock behind NY Fed, bitchez !

TruthInSunshine's picture

This is some great Kabuki they're putting on, but they're going to have to stretch even higher.

After all, we had Martial Law and Tanks in the Streets (as well as planet earth colliding  with a larger asteroid) within 48 hours of Hank Paulson/Bernank not getting a blank check last time.

So, I expect more. Much, much more.

Stealing taxpayer dollars to stuff Wall Street with is getting resistance from Main Street, and I'd love to know the sacrificial lamb, scare tactic and technique/method they're planning on unrolling this time around in order to allow them to perpetuate this theft without further resistance.


Cathartes Aura's picture

Tenth anniversary of nine-eleven will most likely not disappoint.

dick cheneys ghost's picture

Will the NYFED pick up the tab for the hookers or will they pass the hat? America wants to know........

TruthInSunshine's picture

The hookers and blow doesn't cost anything.

The companies supplying both are subsidiaries of the 'family,' so it's all in house.

N.M & Sons planned ahead.

e_goldstein's picture

Maybe. Hopefully it will be more akin to Jonestown than Jerusalem. 

PeeTee's picture

They still have the weekend. But what then?

hedgeless_horseman's picture

Paging Neel Kashkari...and bring your napkin.