The 1.8 trillion dollars bailout

CNBC has made an interesting analysis on the US government bailout of the financial crisis. It’s not just 700bn$, more like 1.8trn$. Quick laundry list: 700bn$ recently announced plan to buy assets from bank 150bn$ MBS purchase by Fannie and Freddie 85bn$ for AIG 90bn$ in repayment to JPM for Lehman 200bn$ for Freddie and Fannie 300bn$ for FHA 200bn$ of currently outstanding loans Fed’s issued to...

Lehman and Merrill

OK – this is old now. I wrote it early this morning, and the world changed egain, but hey! Why should I not post it? ____________________________________________________________________________________ At the end, it did happen. A “major” financial institution has gone bust. So the FED has sort of “saved the face” with regard to Moral Hazard. Merrill would have probably been next...

Lehman

Interesting weekend. With Lehman collapsing, a lot of top dogs in Wall Street are trying to see if there is still some meat left, or if it’s just bones. The Government and the FED are trying to see if the bank can be saved without taxpayer money. Might be a bit late after having put them on the hook for a few hundred billion dollars. The Governmen and the FED are right in trying to save the bank, as Lehman is...