Financial crisis: Does the US face a full-scale run on its currency?
Posted By Ambrose Evans-Pritchard at Sep 23, 2008 at 20:28:09
This just arrived in my e-mail from Alex Patelis, global strategist at Merrill Lynch.
AS THE US PRINTING PRESS STARTS
Taking Stock
* Treasury buying mortgage-related assets: $700bn
* Potential supplementary stimulus package favoured by Democrats: $100bn
* Insuring money market funds: $50bn
* Treasury fortifying the Fed's balance sheet: $100bn
* Expansion of temporary swap lines with central banks: $180bn
* Loan to AIG: $85bn
* Fed purchase of agency discount notes & ABCP: amount not specified
* Fed loans through the Primary Dealer Credit Facility: $20bn through sept 17
* Fed's discount window: $33bn balance
* Treasury purchase of GSE MBS this month: $10bn
* Potential cost of Fannie/Freddie bailout: $200-$300bn
* Financing the current account deficit: priceless
Investment Implications
SELL THE US DOLLAR
--MORE--
This just arrived in my e-mail from Alex Patelis, global strategist at Merrill Lynch.
AS THE US PRINTING PRESS STARTS
Taking Stock
* Treasury buying mortgage-related assets: $700bn
* Potential supplementary stimulus package favoured by Democrats: $100bn
* Insuring money market funds: $50bn
* Treasury fortifying the Fed's balance sheet: $100bn
* Expansion of temporary swap lines with central banks: $180bn
* Loan to AIG: $85bn
* Fed purchase of agency discount notes & ABCP: amount not specified
* Fed loans through the Primary Dealer Credit Facility: $20bn through sept 17
* Fed's discount window: $33bn balance
* Treasury purchase of GSE MBS this month: $10bn
* Potential cost of Fannie/Freddie bailout: $200-$300bn
* Financing the current account deficit: priceless
Investment Implications
SELL THE US DOLLAR
--MORE--