LIE # 1 ;"No market" for toxic assets

www.calculatedriskblog.com...

the above video is short and sweet

and i have read several articles with the same opinion (from active traders in the field/market) who say the SAME THING and trade/sell these security's

i.e there is a market for the so-called toxic assets and they are being ACTIVELY traded in this market everyday......Billions...............and these assets are being valued at very LOW levels...... some .10$ some .20$ some .30$ ,etc with most selling at a Deep discount.....

so in the BANKS mind there is NO MARKET that they are willing to accept ......so it the market for toxic assets is non existant TO THEM.....

then they get lobbyists to pressure the FASB board and boom mark to market is gone....but guess what (you prob. didn't hear) .... these banks never really did mark a large % of these assets to market IN THE FIRST PLACE. the banks took a small portion and marked some down partially and this resulted in a couple billion loss here and there but they were taking there sweet time....anyway

[edit on 25-4-2009 by cpdaman]

There was some market, but it's declining. March they sold 4.7B which was far less than they expected (it would take 60 years for the Fed to reach their 1 T goal). In April they sold even less - 1.7 B.

www.euroinvestor.co.uk...

ASSET-BACKED-April TALF draws less participation
07/04/2009 - 21:38

By Nancy Leinfuss
NEW YORK, April 7 (Reuters) - The Federal Reserve's TALF program aimed at unclogging the consumer debt market drew smaller participation in its second round of financing on Tuesday, as just $3.2 billion of deals sold.
Under the Term Asset-Backed Securities Loan Facility program issuers sold $8.2 billion of securities backed by consumer debt under its debut program in March. The Fed later reported $4.7 billion of the purchases were comprised of TALF investors. Based on Tuesday's sales, TALF subscriptions have fallen beneath the prior month's level.
"Obviously, the reception seems to be very low. The expectation was that it would be bigger in the second round," said Ron D'Vari, CEO and co-founder of New York-based advisory and asset management firm NewOak Capital.
"It looks like issuers didn't want to come out and at the current level it would take something like 60 years to fill the $1.0 trillion size of the Fed's program," said D'Vari. "We need to see more enthusiastic flow from issuers," he added.
...

www.streetinsider.com...$1.7B+In+Loans+Requested+On+April+7,+Versus+$4.7B+In+March/4548043.html

TALF Results Show $1.7B In Loans Requested On April 7, Versus $4.7B In March

April 7, 2009 5:19 PM EDT
The Fed released results of their April 7th TALF operation. The Fed disclosed that $1.7 billion in loans were requested, $811 million was auto-related and $897 million was credit card-related.

In the March 17-19 TALF operation, the Fed said $4.7 billion in loans were requested.

There wouldn't be any homes left on the market if they were selling at $.10 to $.20 on the dollar either.Only reason there is any action is because some folks are being forced to sell to cover other obligations. This is not a real market.

Originally posted by Dbriefed
There was some market, but it's declining. March they sold 4.7B which was far less than they expected (it would take 60 years for the Fed to reach their 1 T goal). In April they sold even less - 1.7 B.

www.euroinvestor.co.uk...

ASSET-BACKED-April TALF draws less participation
07/04/2009 - 21:38

By Nancy Leinfuss
NEW YORK, April 7 (Reuters) - The Federal Reserve's TALF program aimed at unclogging the consumer debt market drew smaller participation in its second round of financing on Tuesday, as just $3.2 billion of deals sold.
Under the Term Asset-Backed Securities Loan Facility program issuers sold $8.2 billion of securities backed by consumer debt under its debut program in March. The Fed later reported $4.7 billion of the purchases were comprised of TALF investors. Based on Tuesday's sales, TALF subscriptions have fallen beneath the prior month's level.
"Obviously, the reception seems to be very low. The expectation was that it would be bigger in the second round," said Ron D'Vari, CEO and co-founder of New York-based advisory and asset management firm NewOak Capital.
"It looks like issuers didn't want to come out and at the current level it would take something like 60 years to fill the $1.0 trillion size of the Fed's program," said D'Vari. "We need to see more enthusiastic flow from issuers," he added.
...

www.streetinsider.com...$1.7B+In+Loans+Requested+On+April+7,+Versus+$4.7B+In+March/4548043.html

TALF Results Show $1.7B In Loans Requested On April 7, Versus $4.7B In March

April 7, 2009 5:19 PM EDT
The Fed released results of their April 7th TALF operation. The Fed disclosed that $1.7 billion in loans were requested, $811 million was auto-related and $897 million was credit card-related.

In the March 17-19 TALF operation, the Fed said $4.7 billion in loans were requested.

misleading response

This (the market you speak of) is a fed created market and yes NOBODY really wants to partner with the gov't when they realize the gov't may change the rules half way thru and tax the banksters.....and this is probably why they decided to change M2M....however

but this FED TALF was just recently designed and these security's have been trading for years and STILL do in (a non-fed created) market....and that is what the guy on the video was speaking of ....and the banks don't want to accept the value's they are trading their (that would mean losses..insolvency ..etc) get it?!.........that is why the guys on the video didn't mention the TALF because that is not the market they were talking about

Originally posted by disgustedbyhumanity
There wouldn't be any homes left on the market if they were selling at $.10 to $.20 on the dollar either.Only reason there is any action is because some folks are being forced to sell to cover other obligations. This is not a real market.

ehh....

.the homes aren't selling at .10 cents to .20 cents on the dollar..so NO in fact MBS exchanging hands for pennies on the dollar would not CLEAR the market....it would just indicate foreclosure's are rampant...and of high risk....i.e forecast for high prices falls and high unemployment are the two big reasons pushing up defaults

and .10/.20 cents are mostly for the cream of the subprime crop of MBS with the highest default rates. (although alt a and prime are exchanged at discounts still )........NONE THE LESS........the assets aren't backed by just the Houses value .....but by the INCOME STREAMS trickling out from the various mortgage's.........so when people LOSE their jobs and unemployment goes up.........Like it is.........another round of foreclosures is on the horizion.........which of course will put downward pressure on houses (but again at this stage most people won't default cause the price is still going down) but due to unemployment and the MBS prices basically will stay depressed due to the collapse in employment and the apparent lack of transparency and thus risk that a investor takes (when the buy a trench of MBS) since the ratings don't mean jack

to your point that folks are being forced to sell to cover obligations .....definintely some truth there.... that would indicate low offers. however that doesn't tell the whole story.......the banks were also playing the game of "don't ask ...don't sell" not because the prices for the security's were so high even if they didn't have to sell them in distress but because the MKT price is not profitable to them...in fact they would advertise their insolvency.......so there's a market.....they just don't want to partake in it .......because it would mean losses.....so they hope that it will turn around........guess what not happening........it will bottom when house prices have fallen to affordable levels.......and the income streams will be more valuable when employment becomes higher......this does not seem to be a gaurantee anytime soon.....let's hope we can find a driver for jobs......but i can't see it.....we have a service sector economy.....dependent on high credit availability.....which is dependent on high paper values of assets.......ehhh how long does it take for manufacturing to make a come back

[edit on 26-4-2009 by cpdaman]

[edit on 26-4-2009 by cpdaman]