The post below is based on a report about the Maiden Lane I, II, and III programs from 2008. They are among dozens of vehicles that have erupted since, used to move, quietly, perhaps trillions of dollars of mortgage and
betting slips complex derivatives behind the veil of Federal Reserve. Yet with a record number of foreclosures, reportedly a new record notified for next year, unemployment payments spotty, more jobs at risk, and house values marked to certainly questionable values, it makes me wonder what we are being told, and not, and if it is just a delaying action, what the long-term plan is.
Worth keeping a bit of an eye on...what we are allowed to see, anyway.
Should We Buy Fed’s Reports of Gains on AIG Bailout Vehicles?
Readers may recall that the Federal Reserve created three vehicles to hold dodgy assets it obtained via the Bear and AIG bailouts, namely Maiden Lane (for Bear), Maiden Lane II (for AIG residential mortgage backed securities) and Maiden Lane III (for CDOs the Fed bought as part of taking out AIG credit default swap counter parties at 100% of notional value).
...
Yves here. The question is how seriously do we take this report. The authorities have a funny way of touting mark to market gains, even in bubbly markets, as a sign that All Is Well, then deriding the same MTM values as irrationally depressed when they don’t like the outcome.
...
Tom’s bottom line is that while he finds the change in value reported this quarter to be not entirely implausible, he finds the earlier valuation to be exaggerated. In other words, the percentage gains shown may be defensible, but they were applied to a base number that looks inflated
...
More here...A more comprehensive list, updated periodically, is the Bailout Tally Report which can be read
http://nomiprins.squarespace.com/storage/reports/bailouttallyjuly2010.pdf">here.
Enjoy!
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
