tag:blogger.com,1999:blog-30643134.post4407196644823516150..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Clumsy and Random ThoughtsAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-30643134.post-83978877785873079412007-12-21T15:43:00.000-05:002007-12-21T15:43:00.000-05:00discount window borrowing results:http://research....discount window borrowing results:<BR/>http://research.stlouisfed.org/fred2/series/TOTBORR?cid=122<BR/><BR/>Note aside: Bernanke's monetary policy is "tight". Apparently he learned his lesson from last year. Bernanke is a very capable Chairman.flow5https://www.blogger.com/profile/10233035883019771736noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-37801629350880689822007-12-21T09:36:00.000-05:002007-12-21T09:36:00.000-05:0093 commercial banks out of 7238 (# excluding non-b...93 commercial banks out of 7238 (# excluding non-bank, GSEs, etc.) exchanged $20b in collateral for 28day loans (until after year-end) with the Term Auction Facility (the Federal Reserve). <BR/><BR/>These depository institutions were probably forced out (didn't qualify for the lower FFs (unsecured) interest rate, & elected not to borrow at the higher discount window cost, & didn’t have other sources of fundings/arbitrage).<BR/><BR/>Unless these were major banks (hold a substantial percentage of all earning assets), and or their individual borrowings are dis-proportionately large, this seems like a manageable number.flow5https://www.blogger.com/profile/10233035883019771736noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-76740935834397864592007-12-21T09:12:00.000-05:002007-12-21T09:12:00.000-05:00There are pressures on the Fed not to cut at all.I...There <I>are</I> pressures on the Fed not to cut at all.<BR/><BR/>Inflation, which apparently now is beginning to be recognized as including the necessities of life.<BR/><BR/>The dollar.<BR/><BR/>Our creditors abroad who like to think that their loans will not become <I>completely</I> worthless.<BR/><BR/>I note that Credit Agricole, one of the real basic institutions of French life, has just announced a 2.5 billion euro loss on debt associated with American real estate.<BR/><BR/>Without dwelling on the sales job on one side and shocking stupidity on the other that went into making this debacle (the French are very good at mathematical modeling: you would think they could understand that "marking to model" might not always work), I would say that the French are not going to lend money to just anyone in the US ever again. And securitization, to the the extent it survives at all, is going to have to feature a damn iron-clad <I>mark to market</I> capability if anyone outside the 50 states is going to participate.Anonymousnoreply@blogger.com