As mentioned in another thread, the point of the bailout was to free up credit and lending to keep businesses able to operate. it seems to be acting in that direction, or at least SOMETHING is.Originally posted by: PC Surgeon
ROFL!
Originally posted by: bamacre
Didn't the OP create this thread about a week ago?
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
Originally posted by: PC Surgeon
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
OH BUT IT IS!!! LOOK AT LIBOR!!!! LOOK!!! FIX!!!! :roll:
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
Originally posted by: Xavier434
Originally posted by: PC Surgeon
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
OH BUT IT IS!!! LOOK AT LIBOR!!!! LOOK!!! FIX!!!! :roll:
What will you be saying in the future 5 years from now if we look back as see that the bailout really did end up working at least mostly as intended?
Originally posted by: PC Surgeon
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
OH BUT IT IS!!! LOOK AT LIBOR!!!! LOOK!!! FIX!!!! :roll:
Originally posted by: PC Surgeon
Originally posted by: Xavier434
Originally posted by: PC Surgeon
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
OH BUT IT IS!!! LOOK AT LIBOR!!!! LOOK!!! FIX!!!! :roll:
What will you be saying in the future 5 years from now if we look back as see that the bailout really did end up working at least mostly as intended?
LMAO! Please define.
Originally posted by: Xavier434
Originally posted by: PC Surgeon
Originally posted by: Xavier434
Originally posted by: PC Surgeon
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
OH BUT IT IS!!! LOOK AT LIBOR!!!! LOOK!!! FIX!!!! :roll:
What will you be saying in the future 5 years from now if we look back as see that the bailout really did end up working at least mostly as intended?
LMAO! Please define.
Freeing up credit and lending.
Originally posted by: Skoorb
If price is not the issue and banks aren't lending because they see a huge recession, well that sucks, but I don't believe the bailout was intended to do anything besides freeing up lending. I am not sure what else the gov hoped, but its best case was just to avoid complete lockup of banks by helping lending rates. Now, if they are self-locking, well unfortunately its effect wasn't as substantial as hoped, but better than nothing.
Originally posted by: Skoorb
If price is not the issue and banks aren't lending because they see a huge recession, well that sucks, but I don't believe the bailout was intended to do anything besides freeing up lending. I am not sure what else the gov hoped, but its best case was just to avoid complete lockup of banks by helping lending rates. Now, if they are self-locking, well unfortunately its effect wasn't as substantial as hoped, but better than nothing.
It's not a joke if it's close to reality. That sounds reasonable :0Originally posted by: PC Surgeon
Originally posted by: Skoorb
If price is not the issue and banks aren't lending because they see a huge recession, well that sucks, but I don't believe the bailout was intended to do anything besides freeing up lending. I am not sure what else the gov hoped, but its best case was just to avoid complete lockup of banks by helping lending rates. Now, if they are self-locking, well unfortunately its effect wasn't as substantial as hoped, but better than nothing.
Wait! I am the government and I have a solution! I say we pass a measure to force lending! If you are a bank and do not lend, you will lose your window to the FED!! See, I saved us! Government meddling FTW! :roll:
Originally posted by: PC Surgeon
Originally posted by: Skoorb
If price is not the issue and banks aren't lending because they see a huge recession, well that sucks, but I don't believe the bailout was intended to do anything besides freeing up lending. I am not sure what else the gov hoped, but its best case was just to avoid complete lockup of banks by helping lending rates. Now, if they are self-locking, well unfortunately its effect wasn't as substantial as hoped, but better than nothing.
Wait! I am the government and I have a solution! I say we pass a measure to force lending! If you are a bank and do not lend, you will lose your window to the FED!! See, I saved us! Government meddling FTW! :roll:
Originally posted by: halik
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
The way i understand it, Libor is the rate for OTC transaction, so if you're a bank in BBA, you can call up other banks and borrow at that rate. Whether banks do or don't isn't really relevant, so long the system works.
Was that the story where they had a whiteboard with a bunch of bank names on it that are looking for money and like 2 banks that were actually offering money? I heard that last weekend, it was from early Oct.
Originally posted by: halik
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
The way i understand it, Libor is the rate for OTC transaction, so if you're a bank in BBA, you can call up other banks and borrow at that rate. Whether banks do or don't isn't really relevant, so long the system works.
Was that the story where they had a whiteboard with a bunch of bank names on it that are looking for money and like 2 banks that were actually offering money? I heard that last weekend, it was from early Oct.
Originally posted by: LegendKiller
Originally posted by: halik
Originally posted by: ironwing
Yesterday NPR had a story pointing out that while the LIBOR was falling, the banks still weren't lending to each other. Price isn't the issue.
The way i understand it, Libor is the rate for OTC transaction, so if you're a bank in BBA, you can call up other banks and borrow at that rate. Whether banks do or don't isn't really relevant, so long the system works.
Was that the story where they had a whiteboard with a bunch of bank names on it that are looking for money and like 2 banks that were actually offering money? I heard that last weekend, it was from early Oct.
Also keep in mind that most floating rate contracts are indexed to LIBOR. Thus, securitization transactions, mortgages, and many other items, are greatly affected. That there was such a huge TED spread is indicative of a poorly functioning market.
I do think that the rescue plans should have included reps&warrants that they would lend, although it'd be tricky to paper up so we avoid a repeat.