Fed Issues EQUITY/CASH

[Digs]

I have a coy(bank) with some bad assets, I know there bad but I can a valuation thats says these assets are AAA.

The fed will take my assets and give me TBILLS.

I sell these TBills for CASH. Which I can use for re investment for hopefully better assets than I gave the fed.

So this is really a FED fund injection into my balance sheet.

Questions
1) Am I Correct ?
2) Do I have to pay the fed back ?
3) What happens to FED when they find out the true valuation ( subject to 2 above) of the asset swaps ?

If my assumptions are correct, then FED please call me too !!!!!

- This means
- All banks or one in particular is very broke.
- Mer, C, GS all have a sugar daddy.
- This proves the FED is a VERY LARGE OFF BALANCE SHEET nice to have. The USA investing public have had the largest fraud in security valuation history going on right now !!

 

[Bowgett]

You will have to take back your AAA assets and return cash in 28 days.

http://federalreserve.gov/newsevents/press/monetary/20080311a.htm

 

[Dr. Zhivodka]

Question: What sorta yield are you getting?

 

[Bowgett]

Quote from Dr. Zhivodka:

Question: What sorta yield are you getting?

You are not getting. You are paying It is an auction. Who ever pays higher yield gets TBills for a month.

 

[Dr. Zhivodka]

Christ in heaven.....no fucking shit.

Now if the first would answer up...I may have an answer for him.

Quote from Bowgett:

You are not getting. You are paying It is an auction. Who ever pays higher yield gets TBills for a month.

 

[The Kin]

Quote from Digs:

I have a coy(bank) with some bad assets, I know there bad but I can a valuation thats says these assets are AAA.

The fed will take my assets and give me TBILLS.

I sell these TBills for CASH. Which I can use for re investment for hopefully better assets than I gave the fed.

So this is really a FED fund injection into my balance sheet.

Questions
1) Am I Correct ?
2) Do I have to pay the fed back ?
3) What happens to FED when they find out the true valuation ( subject to 2 above) of the asset swaps ?

If my assumptions are correct, then FED please call me too !!!!!

- This means
- All banks or one in particular is very broke.
- Mer, C, GS all have a sugar daddy.
- This proves the FED is a VERY LARGE OFF BALANCE SHEET nice to have. The USA investing public have had the largest fraud in security valuation history going on right now !!

You are not getting T-Bills, your getting straight cash. T-Bills would defeat the purpose.

 

[Digs]

for 28 days cash for AAA assets.

But I can rotate this trade for a very long time if I pay the price.