After almost a year of litigation, Bloomberg finally won access to information detailing the full scope of the Fed’s bailout of the banks. The chart below, detailing the daily amounts MorganStanley was borrowing from the Fed, relative to its market value should keep European officials awake at night:
Ladies and Gentlemen, this is what a lender of last resort looks like. What you’re looking at here are three lines. The black line is Morgan Stanley’s market capitalization, which tends to hover in the $40 billion range but which fell as low as $9.8 billion in November 2008. The orange line is the amount that Morgan Stanley owed to the Federal Reserve on any given day — an amount which peaked at $107 billion on September 29, 2008. And the red line is the ratio between the two: Morgan Stanley’s debt to the Federal Reserve, expressed as a percentage of its market value. That ratio, it turns out, peaked at some point in October, at somewhere north of 750%.
The lack of transparency here is bad enough, let alone the $13 billion figure.
And it isn’t only the U.S. bailing and re-bailing itself out.
If you’re looking for some good Euro-scare meat, look no further than this column from the FT’s Wolfgang Münchau. The basic gist: No really, now we’re getting into endgame. Why now? Because the increase in core yields, the failure of that German bund auction, and the increase in Spanish and Italian short-term yields, as well as the tightening of money for the banks, means it’s all almost over unless Europe immediately cooks up some kind of ECB-backed/Eurobond/fiscal union concoction.
Enter the IMF.
IMF drawing up £500bn package to save Italy, Spain and the euro
Heh: The #OccupyWallSt crowd is about 99% white:
A Fast Company survey last month found that African Americans, who are 12.6 percent of the U.S. population, make up only 1.6 percent of Occupy Wall Street.
Newt has surged to a nine-point lead over his closest rival, Mitt Romney.
Texas Governor Rick Perry can’t be all that bad on the illegal immigration issue given this news.
NBC News has confirmed with a source familiar with the matter that Sheriff Joe Arpaio of Maricopa County, Arizona, will endorse Rick Perry this week.
The DNC has released a devastating ad against Mitt Romney. To say that this is going to be a theme over the next few months is the understatement of the year.
One would think there wouldn’t be that much money to give to politicians today, given the news cited above. Perhaps this is more along the lines of investing, than donating to politicians. What goes around comes around and all that.
No wonder the cocktail circuit loves him: Colin Powell blames the tea party for “divisiveness” or something or other. If civility got us $15 Trillion in debt, perhaps its a tad overrated.
BigPeace: 28-Nov-11 World View—Four Major Party Coalitions Vie For Seats In Egypt
No justice, no peace? Or, something like that.
A senior insurgent commander planned attacks on Nato soldiers is among those to have been granted amnesty under a British funded scheme to reintegrate Taliban fighters into Afghan society.
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