logo
  Join        Login             Stock Quote

Politics, Money And OWS

 October 09, 2011 02:59 PM


The head of the IMF, Christine Legarde dropped a big bill on Tim Geithner's desk after the market closed on Friday.


 


From the WSJ article:

The IMF could offer short-term lines valued at roughly $50 billion combined to Italy and Spain.

The credit lines for those two countries could double to roughly $100 billion combined once their IMF contributions increase next year.

It's clear that Lagarde is after the ever-elusive leverage factor. In this case "creative" and "firewall" means SPV.

"We have really tried to be creative about our facilities and instruments."

The lines could be offered to a group of countries, which could "Install a firewall around the core of the system to prevent or mitigate the propagation of virulent shocks."

The new credit lines could be used cooperatively with regional financing programs such as the European bailout program.

Really? The IMF is going to be doing some leveraged lending? Bailout money? For Spain and Italy?


The USA share of any IMF bailout is 25%. So Christine thinks she can get Geithner to step up for 25 large. And that would be just for Italy and Spain. Forget all the other troubled EU countries that would be able to borrow under this facility. The USA share of the IMF bailouts could easily exceed $100 billion.


**************************


I never thought Obama's "Jobs Plan" had much of a chance of passing. After reviewing the report by the CBO on S. 1549, The American Jobs Act of 2011, I'm convinced this legislation will never see the light of day.

This legislation is being sold as a jobs creator. It's being sold as an economic stimulus. When you look at it, it's obvious that this is an attempt to swing an election. It has nothing to do with good economic or fiscal policy.

The folks at the CBO look at things on a fiscal year basis.

Next Page >>12
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageUpbeat Forecasts For US Housing Sales In March

The Fiscal Times advises that the “the housing market is about to perk up.” One of the reasons for the read on...

article imageHappy Birthday, Moore's Law - Pearls of Wisdom for Investors

As Moore’s Law turns 50, we reflect on technology’s incredible history and limitless read on...

article imageIndex Investing Is Not Inherently Socialistic

How does capital get allocated to the public stock read on...

article imageDon't Let Fear of a 'Grexit' Keep You Out of European Stocks

After nearly three years of extremely weak economic growth, the European Central Bank is finally delivering read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

3 Deep Value Stocks That Could Mount A Turnaround
More Articles on: Finance



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.