And you thought this particular tool was limited to poorly funded PE firms or drowning investment banks selling sludge to their own off-balance-sheet vehicles. Nope. The way the Wall Street Journal tells it:
The joint ventures would enable the Treasury to sell assets quickly because, under the structure being discussed, the Treasury would finance the partnership. In other words, if a pool of assets was sold for, say, $5 billion, the private partners might put up $1 billion and the Treasury would essentially lend the partnership the other $4 billion.
The number of arrows required to describe cash and debt flows to and from the Treasury and the Fed is getting difficult to diagram on an 8.5x11" page. We're considering going to legal sized paper for awhile, and maybe switching to landscape view.
U.S. May Help Private Funds To Purchase Troubled Assets
Posted by artie help , Oct 08, 2008 3:20PM
why are you defending cluzo Bess??
Posted by guest , Oct 08, 2008 3:26PM
As much as you were kidding about the Treasury / Fed relationship diagram, I would be very interested in seeing one put together.
Posted by guest , Oct 08, 2008 3:34PM
Maybe you should switch to wooden arrows....
Posted by ep , Oct 08, 2008 3:35PM
"why are you defending cluzo Bess??"
Reading is Fundamental, idiot.
Posted by Investorcluzo , Oct 08, 2008 3:38PM
@1 - ??? wtf? ep wrote the article and I have nothing to do with it. you don't know me, let's keep it that way. feel free to respond, but you will not get a reaction from me. ep's post says it all.
Posted by guest , Oct 08, 2008 3:46PM
cluzo got served by arthie help. AGAIN!
Posted by Investorcluzo , Oct 08, 2008 3:50PM
@6 - how do you figure? see post 4 above. now who got served? and wtf are you?
Posted by artie help , Oct 08, 2008 3:58PM
Hey cluzo I get it, ep is your lover, who has come to your defense. And I am a big trader with a hedge fund.
Posted by guest , Oct 08, 2008 4:06PM
@7
OHH! cluzo got served for the third time today! KNOCKOUT by the hedgie! Hedgies rule!
Posted by guest , Oct 08, 2008 4:08PM
cluzo shut up man
Posted by guest , Oct 08, 2008 4:10PM
hey ep: in accordance with #2, diagrams can be fun. use landscape size.
also what about a special investigation... maybe deep undercover... into the CDS exchange deal with CME/Citadel... what's the scoop?... is there some shamwow smokescreening going on? will it work?