Afternoon Links 5-10
Moody’s CEO and Buffett dump shares the day SEC sends notice of investigation (Blodget, Clusterstock)
Merkel loses majority on unpopularity of Greece bailout (RTTNews) Merkel is trying to structure a bailout that doesn’t require legislative approval. Speaking of which….
The Fed re-opens swap lines (Federal Reserve) This is Ben Bernanke’s way of pitching in to bail out holders of Greek sovereign debt. Follow the money: euro banks want out of Greek bonds and into safe U.S. Treasuries. The currency transaction that has to happen to affect the trade is a sale of euros and a purchase of dollars. Normally the trade would happen directly between a European bank and an American bank, for instance. But American banks have no interest in dodgy euro area debt. Hence the spike in LIBOR late last week. The ECB now says it will be the buyer of last resort for Greek debt. And Bernanke is giving Trichet the dollars he needs to pay for them…
Fannie asks for another $8.4 billion (Daly/Adler, Reuters) The total draw on Treasury from Fannie and Freddie is now $145 billion and counting. Keep that in mind next time someone says we “made money on the bailout.”
Betty White highlights on SNL (snowspot media) Fantastic.
This makes me laugh…