Tuesday, November 25, 2008

No Limit Specified........

Lets hope they still can find enough buyers of their treasuries ( see Who Will Be Left To Buy US Treasuries...... & China Slashes Lending Rate to Support Slowing Economy ) to finance their daily bailout ( see Breakdown of the Bailout Rescue Efforts & Various Fed Lending Facilities ) with a yield close to 3% .... The bigger issue down the road could be that the "investors" are demanding bonds that are not $ denominated......Got Gold.....?

Bleibt zu hoffen das die USA es weiterhin schaffen genügend "smarte" Investoren finden ( siehe auch Who Will Be Left To Buy US Treasuries...... & China Slashes Lending Rate to Support Slowing Economy ) die bereit sind dies täglichen Bailouts ( siehe Breakdown of the Bailout Rescue Efforts & Various Fed Lending Facilities ) für 3% in US Währung zu finanzieren..... Die US sollten sich schon einmal entfernt darauf gefasst machen das es in naher Zukunft bald Investoren gibt die keine US Anleihen auf $ Basis mehr abnehmen wollen.......Got Gold...? UPDATE: Netter Bericht der FTD 700 Milliarden? Ha! Es sind 8500 Milliarden

WSJ

[rescue chart]

An even better graph is coming from the NYT

Eine noch besser Übersicht liefert die NYT

bigger / größer

Barry Ritholtz has much more and slightly different data ( but what are a few trillions here and there these days ) and the quote of the day......

Barry Ritholtz hat noch mehr und leicht abweicdhende Daten ( aber was sind heutztage einige Billionen unter Freunden ) zu diesem Thema und ein Zitat das wohl mehr als alles andere die Ausmaße der aktuellen Bailouts beschreibt......

The only single American event in history that even comes close to matching the cost of the credit crisis is World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion

The $4.6165 trillion dollars committed so far is about a trillion dollars ($979 billion dollars) greater than the entire cost of World War II borne by the United States: $3.6 trillion, adjusted for inflation (original cost was $288 billion).

Go figure: WWII was a relative bargain.

No wonder the CDS on US Debt are "moving"........ Via FT Alphaville


Kein Wunder das die Absicherung gegen einen möglichen US Bakrott langsam in "Bewegung" kommen..... Dank an FT Alphaville

USA CDS

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posted by jmf at 9:17 PM

1 Comments:

Blogger jmf said...


The pictorial Quantitative Easing


In words: The Fed’s liquidity programmes, such as the TAF, have combined to inject about $1,100bn into the financial system (Figure 10) — and simultaneously jacked up the Fed’s assets. Normally the Fed offsets an increase in its assets by selling new treasuries, which decreases the amount of currency in circulation and conversely increases its liabilities. This is called sterilisation and is one way the Fed can increase assets without expanding the money supply.

Only, as Figures 11 and 13 show, the Fed’s primary method of draining the excess liquidity (The SFP programme) has only gotten rid of about $500bn of that $800bn increase. The Fed is not fully sterilising its massive increase in assets — in effect it is increasing the money supply.

There is much more in the link.....

1:42 AM  

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