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My guess is Goldman Sachs

"1320 GMT [Dow Jones] The trouble in Europe presents risks to the US, said St. Louis Fed's Bullard in the text of a press release for a speech. The central banker is worried about the "fallout" from government debt defaults "as conditions continue to deteriorate in Greece and other countries."...

Krugman makes a good point, Greece has an around 8.5% of GDP primary deficit(deficit before interest payments). Which means even if you were to cut down Greek debt through a reestructuring they would still be running unsustainable deficits and likely would have high interest rates from private...

is there anything in the law?

Nice summary by Rosengren. Figure 8 in particular is quite supportive for the front end http://www.bos.frb.org/news/speeches/rosengren/2010/050510/050510b/index.htm

In theory the IMF can take TARP money

Rate hikes wouldn't help the EUR because it would implode the union

It would still be problematic as the future earnings would be converted at different exchange rates with a bias toward more AUD per USD, thus capping the upside of the trade

Can't you just post the minimum margin possible(hedged by shorting the AUD) and convert the gains daily to USD while providing more AUD in case of mtm losses?

You are correct. However, the ZQ would benefit even more from that scenario you mentioned. At the very least you could have shorted the EUR as a hedge

Jun GE down almost 6bps, market pricing in almost 0.55% for that period in Libor. You better be right ralph that this is temporary, there wont be much profit if you are wrong

This Greece bailout ain't all that bad. Apparently the money will be released in tranches and the fiscal reform will be monitored, so in theory it could be cut. They will probably look the other way for a while if Greece doesnt follow the plan but only for so long. At some point the money will...

I'm waiting for correction :cool:

Stocks and corporate bonds bought at the right time

The massive government deficits arent going nowhere so I'm not sure I accept the idea that everything is temporary

You were a shareholder(like me) in NLY during 2008, so you know how crazy people can get. Remember FNM and FRE spreads over USTs blowing out?It was unjustified in my view, Sec Paulson even hinted the US gov would not bail them out(Q1 2008 IIRC), people got even more crazy, NLY crashed. The whole...

I dont understand this view with your positioning, specially with the Dec11 exposure

Martin, are you aware if the FX Swap lines from the Fed uses the section 13.3 of the Fed Act of 'unusual and exigent' situations?

If my concern was safety yes(like parking billions of cash just to wait and see). For levered speculation I wouldn't do it

I meant that I didnt like the long end of the gov debt trade