Friday
Jun122009
Citigroup Sells $1 Billion Of Paper Without An FDIC Assist (Video)
It was miracle Wednesday in the disturbing land of soylent green shoots. What the hell am I talking about? Citigroup managed to sell $1 billion in commercial paper without an FDIC backing after the close yesterday. But, there's that pesky coupon @8.25%, about 4.5% above Treasuries. That's not cheap money, and it demonstrates that risk taking and certifiable insanity are closely related. Citigroup paper can be found at your local supermarket in absorbent rolls of 8 or 16.
Reader Comments (16)
Mortgage guidelines have become increasingly strict -- not to mention regimented -- as the private secondary-mortgage market has all but disappeared in the past 24 months. But according to the Wall Street Journal, appraisals are increasingly becoming one of the biggest hurdles for new purchase and refinance transactions.
http://www.minyanville.com/articles/jpm-fre-fnm-mortgage-banks-lender/index/a/22994?ref=patrick.net
http://theconversation.blogs.nytimes.com/2009/06/10/advice-for-high-school-graduates/?em
http://www.nytimes.com/2009/06/11/business/economy/11commodity.html?em
http://happydays.blogs.nytimes.com/2009/06/07/the-joy-of-less/?em
http://www.nytimes.com/2009/06/10/business/economy/10leonhardt.html?em
http://optionarmageddon.ml-implode.com/2009/06/11/fed-data-de-leveraging-has-only-begun/
http://mortgage.freedomblogging.com/2009/06/10/economists-disparage-foreclosure-relief/11781/?ref=dailybail.com
http://www.cnbc.com/id/31207397?ref=dailybail.com
http://www.latimes.com/business/la-fi-loans9-2009jun09,0,329853.story?ref=dailybail.com
So others can see why you are upset, here is the link again.
http://www.minyanville.com/articles/jpm-fre-fnm-mortgage-banks-lender/index/a/22994?ref=patrick.net
Better yet, borrow the money to buy the bonds. Call it a Bailout Arbitrage play. If you're Goldman Sachs, say, and Uncle Ben is just giving you free money, why not put up some shitty collateral and buy some Shiti debt? In fact, get all your friends to do it, leverage up on that stuff 30-1 and then you're probably all "systemic." These are salad days indeed, if you're a bankster.
The buyers were probably all decided in advance, wise guys using leveraged money, which perhaps came, by one route or another, out of another TARP bank or Citi itself or one of the Wall Street welfare queens.
Sure glad the Treasury keeps outsmarting those money people...