MMIFF !
Not MILF, you perverts -- MMIFF! Its the latest Fed funding mechanism, the Money Market Investor Funding Facility:
"The Federal Reserve Board on Tuesday announced the creation of the Money Market Investor Funding Facility (MMIFF), which will support a private-sector initiative designed to provide liquidity to U.S. money market investors.
Under the MMIFF, authorized by the Board under Section 13(3) of the Federal Reserve Act, the Federal Reserve Bank of New York (FRBNY) will provide senior secured funding to a series of special purpose vehicles to facilitate an industry-supported private-sector initiative to finance the purchase of eligible assets from eligible investors. Eligible assets will include U.S. dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions and having remaining maturities of 90 days or less. Eligible investors will include U.S. money market mutual funds and over time may include other U.S. money market investors."
And I said 2 to 3 trillion! How quaint . . .
>
Sources:
Federal Reserve announces the creation of the Money Market Investor Funding Facility (MMIFF)
Federal Reserve October 21, 2008
http://www.federalreserve.gov/newsevents/press/monetary/20081021a.htm
Fed Sets Up New Program to Buy Money-Fund Assets
Craig Torres
Bloomberg, Oct. 21 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=agNqzG4X0j0I&
Tuesday, October 21, 2008 | 09:56 AM | Permalink
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Comments
Yeah...
BUT WILL THEY TAKE MY ARP'S???
Posted by: I-Man | Oct 21, 2008 10:06:37 AM
so when does the Fed start issuing CDOs and CDS and whole brand new derivatives we haven't even thought of yet? How about TITS==Treasury Institutionalized Trust Securities?
Posted by: cloudy | Oct 21, 2008 10:14:33 AM
Xenu damn it, all my taxpayer money going to this crap, it's got me MMIFFed!!
(Sorry, had to, still need coffee...)
Posted by: Dr. Kenneth Noisewater | Oct 21, 2008 10:15:14 AM
You need some Advanced Structure Securities to go with those TITS?
Posted by: Dr. Kenneth Noisewater | Oct 21, 2008 10:16:18 AM
noisewater:
So on the trading floor you would hear
"TITS up" and "Dump those ASSes"
Posted by: cloudy | Oct 21, 2008 10:20:59 AM
Half to three-quarters of GDP is what I'm guessing this bailout is going to cost. So many zeros, so little time...
Regards,
TDL
Posted by: TDL | Oct 21, 2008 10:21:00 AM
Headline says Fed to provide $540 Billion to MM funds... from whence do all these $$ come? ...have mercy on us
Posted by: Strasser | Oct 21, 2008 10:25:19 AM
How about Securitized Asset/Liability Assessment Derivatives?
"The numbers came in below expectations.. Damn my SALAD's gettin tossed!"
And brokers for that? SALAD Shooters...
Posted by: Dr. Kenneth Noisewater | Oct 21, 2008 10:27:03 AM
Or Collateralized Liability Index Trades?
I'll stop now, still need coffee ;)
Posted by: Dr. Kenneth Noisewater | Oct 21, 2008 10:28:25 AM
folks - so many of you don't seem to understand what a cost is...when the gov't INVESTS money and gets it back, that's not a COST...get a clue and get educated!
Posted by: ted | Oct 21, 2008 10:29:00 AM
ted, what do you call it, then? "A sure thing."?
Posted by: cloudy | Oct 21, 2008 10:37:31 AM
Ted,
Really? You are telling us to get a clue? The key part of your statement is "gets it back"!!!! Has it gotten any of it back yet? Are you so naive as to think that the gov't will get it back in its entirety? If not then how much of it will it get back??? Based on the rank incompetence displayed by the gov't and the unbridled greed displayed by the banks, I think its safe to assume that the gov't will get next to nothing back.
Come on Ted... come join us in the reality based community.
Posted by: That Guy | Oct 21, 2008 10:38:16 AM
We're in the money, la da da da da.
Posted by: wally | Oct 21, 2008 10:45:43 AM
Markets I'd Like to Flee? What's perverted about that?
Posted by: Namazu | Oct 21, 2008 10:48:14 AM
"and gets it back"
The words, slim and none, come to mind.
Posted by: Blackhalo | Oct 21, 2008 10:49:33 AM
really, do they have program to create these names or what and who set it to suggestive titles
Posted by: Robert | Oct 21, 2008 10:57:07 AM
So those who sat in Government money funds received less interest, while those who took additional risk and received additional interest get bailed out. They need to throw out all the econ books about risk/reward tradeoffs and emphasize that in America, there is a "free lunch". If an investor received 3% returns in the traditional money fund, while those in govt money funds received 1.5%, couldn't they absorb some small hit to NAV? I become more pissed everday.
Posted by: jamman | Oct 21, 2008 10:59:16 AM
Sorry, I've been too busy surfing internet porn to keep up with the news. Did you say there's a MILF crisis? Holy sh*t!
If we run out of MMIFFs we can always turn to the Barely Legal Twins: Paulson Supply Side Yield and the Bernanke Jumpstart.
Posted by: Transor Z | Oct 21, 2008 11:07:12 AM
IMHO it is useless to discuss every single funding mechanism.
The question is if the FED/ CBs should step in to replace interbank lending. If the answer is yes, why collateral at all? Interbank lending is usually without collateral. If the FED shouldn't do the job for banks, then collaterals don't matter either.
So if we replace interbank lending, where should all the collateral come from (practically speaking)? Banks now issue bonds on their credit portfolio and use it as collateral at the CBs (at least in Europe). Lots of operational problems, but nothing gets better by doing so.
The mistake banks (and corporations) did in the past was to ignore matching maturities. A rule I learned some 30 years ago. Wonder how banks will earn money in the future if they change that back.
Posted by: AG | Oct 21, 2008 11:10:08 AM
Jamman, as someone who moved my $ from the Vanguard Prime MM to the Vanguard Treasury MM about a year ago I totally agree with you. It says right in the F-ing prospectus that a MM is not insured and you can lose principal.
So if they break the buck and lose 3% BFD, they were taking a risk. Worse is the people getting the bailout are the ones with the least need. The president balked at spending a few billion for poor children's health care (S-CHIP) and now its OK to bailout the MM funds of millionaires!
Posted by: R. Timm | Oct 21, 2008 11:15:34 AM
I only wish the Fed would leverage up 30:1 so we taxpayers could earn some real money for a change.
Posted by: Winston Munn | Oct 21, 2008 11:25:22 AM
Well at least we have the best and brightest auditors working on the TARP...
Treasury hires PricewaterhouseCoopers, Ernst & Young to help with bailout plan.
Tough Questions for AIG's Auditors (Pricewaterhousecoopers)
PricewaterhouseCoopers was Freddie Mac’s auditor
Lehman Brothers was audited by the New York office of Ernst & Young
I know that's not really fair b/c the Big 4 were all tied into the financial firms, but it seems like this could be a PR nightmare for Mr. Paulson.
Posted by: Brian | Oct 21, 2008 11:27:14 AM
R Timm, we manage money and moved all our clients to treasury funds about 18 mos ago. We are no longer a capitalist economy..nuff said.
Posted by: jamman | Oct 21, 2008 11:28:30 AM
those guys have already done a good rehash of this new idiotic program.
http://ftalphaville.ft.com/blog/2008/10/21/17276/revenge-of-the-siv/
Posted by: baychev | Oct 21, 2008 11:31:35 AM
I am waiting for the "mutual fund made whole" bailout provision. No fund left behind...Americans deserve better than to experience anything less than 8% per year returns. After all that is the minimum they were planning on, due to the Greenspan put.
Posted by: jammman | Oct 21, 2008 11:39:59 AM
