fed

Given what's happening in the markets, there's been talking about going to work for government agencies such as the Fed and the Treasury.

What do you guys think about the exit-ops coming out of a program like that? What is the expected pay for an entry level analyst? Thanks

Did today’s speech by the Fed Chairman fall on deaf ears, or is it just too little too late? Although he didn’t come right out with it, he hinted heavily at a possible rate cut, mentioning the ever dwindling consumer spending (well, what the hell, who has money to shop these days…we don’t even know if we’ll have jobs tomorrow for Christ’s sake) as well as the fact that “that the outlook for economic growth has worsened and that the downside risks to growth have increased” (duh) We all know the bleak outlook of the market when it closed today, so was the subtle undertone of the rate cut disregarded, or is there such pandamonium at this point that nobody notices or cares?

WSJ just reported that JP Morgan will acquire most of WaMu's operations.

Further details on the transaction are expected Thursday night.

Not a real surprise here. It has long been rumored that JP Morgan has been in talks to acquire a portion of WaMu. It seems now that the bailout has been pushed thru JP Morgan feels comfortable enough to proceed with the deal.

Hey Folks,

What are your thoughts on the proposed Trouble Asset Relief Program (TARP) that Hank Paulson continually is banging on the table this past weekend? The chief concern of most people (including myself) are the necessary oversight measures that will be placed into the program and to ensure that the American taxpayer won't be screwed over by purchasing bad debt from banks at overvalued prices.

$700B is too high of a price tag for the American people to receive nothing tangible other than "improved market sentiment."

For more info checkout the following Bloomberg article or the NYTimes article.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1zdgVfpxvWA&refer=h...

http://www.nytimes.com/2008/09/21/business/21gret.html?_r=1&8dpc&oref=lo...

Okay so the fed said they didn't want to cut the overnight rate to prevent inflationary effects. I'm just wondering won't the few hundered billions used in the bailouts also have the same effect as cutting the interest rates? Where are they getting this money from? Are they doing an open market operation? But won't this reduce the money supply and then increase it again once the money is spent on the bailouts, having no net effect?

Have you complainers even read the terms of the loan? (yes, loan)

Basically, the Fed agreed to loan AIG up to $85 billion at LIBOR + 850bps. (!) That's about 11% interest. And in exchange, AIG gave the Fed 80% of the company - for keeps. AIG common and preferred get nothing, bonds get pennies on the dollar.

AIG has about $1 trillion in assets. As I understand it, the Fed just received claim to about $800 billion of (albeit illiquid) assets in exchange for LOANING AIG $85 billion. Not to mention that because AIG remains a going concern, the stock will likely appreciate over time as we come out of this mess.

In summary, this is no bailout. No taxpayer money has gone out the door. The loan is secured by the assets of AIG, and the creditor (the Fed) now controls the company, and has authority to cancel any dividends and force asset sales to repay the loan. This is about as safe a loan as I can imagine. If anything, the Fed/Treasury will make a profit on this one.

Unbelievable! The Fed has stepped in to save AIG to the tune of $85 Billion! Can anyone explain to me how they figure out which fuckwits qualify for corporate welfare and which ones don't? If I was Lehman or Merrill, I'd be pretty pissed right now. As it is, I'm just stunned.

http://www.iht.com/articles/2008/09/17/business/17insure.php