tag:blogger.com,1999:blog-30643134.post8125779457286538872..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: TALF: Quicker, easier, more seductiveAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-30643134.post-21011029652769835532008-12-21T13:45:00.000-05:002008-12-21T13:45:00.000-05:00"But how is this going to get the private buyers o..."But how is this going to get the private buyers of asset backed securities back into the market."<BR/><BR/>Does that matter right now? The idea is to faciliate a trade between willing buyers wanting credit and willing sellers. If the feds can establish low cost credit, confidance can be built that a bottom is forming. People will then want to buy these securities in a more normal manner.<BR/><BR/>If the feds expand the eligibility of borrowers they must establish a bottom sooner or later with a low interest and none recourse program.<BR/><BR/>If this then facilitates a "normalisation" of world trade where all countries are supporting the feds then we are heading in the right direction for adjustments to be worked thru.Andrew Juddhttps://www.blogger.com/profile/17556323062946182741noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-32017339747294374862008-12-20T22:10:00.000-05:002008-12-20T22:10:00.000-05:00This comment has been removed by the author.Andrew Juddhttps://www.blogger.com/profile/17556323062946182741noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-1206252559550543042008-12-20T03:29:00.000-05:002008-12-20T03:29:00.000-05:00Something I don't quite understand... doesn't some...Something I don't quite understand... doesn't someone still need to buy the lower quality tranches in order for this to encourage lending?santcugathttps://www.blogger.com/profile/03954580358605135521noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-25608269807041537342008-12-19T19:13:00.000-05:002008-12-19T19:13:00.000-05:00I understand your logic in terms of the Fed's purc...I understand your logic in terms of the Fed's purchase of these assets liquifying those currently holding the paper and the point about the arbitrage opportunity. But how is this going to get the private buyers of asset backed securities back into the market. Or did I misunderstand your last point.<BR/><BR/>I agree that this will give the Fed a great deal of control over consumer lending rates. Do we really want to be there? Government control of prices has rarely seemed to work well.Tom Lindmarkhttps://www.blogger.com/profile/11183410384408575859noreply@blogger.com