tag:blogger.com,1999:blog-4900303239154048192.post4692043441426694675..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: The Shadow KnowsUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4900303239154048192.post-85449005082536722002010-04-06T10:07:10.399-04:002010-04-06T10:07:10.399-04:00In a repo agreement the less stated aspect of the ...In a repo agreement the less stated aspect of the over all understanding is that the asset will be repurchased by the seller.<br />In effect the repo sale is a loan that puts cash on the balance sheet of the seller without indicating a liability to repay. Nothing was "borrowed" in the classic sense. It was a "sale" of an asset to the "buyer" which was actually a lender in such a case. Shall we say that the repo agreement is fraudulent. As reports have indicated recently, especially pertaining to the Lehman case, repo agreements have the intention of hiding level of debt of the seller by putting cash in the bank, or by removing a toxic asset from the seller's books. The time bomb is the aggreement to repurchase the asset.<br />Isn't the assumption that the seller will repurchase the asset with funds obtained through some improvement in that seller's overall financial situation?Jackhttps://www.blogger.com/profile/12971442888151627894noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-66587628139788549942010-04-04T09:15:38.098-04:002010-04-04T09:15:38.098-04:00M--C...P...C'--M'
If you can just cut out...M--C...P...C'--M'<br /><br />If you can just cut out all the hassle and just do M--M' why not:)'travishttp://www.rppe.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-23127713593387838392010-04-03T13:48:58.465-04:002010-04-03T13:48:58.465-04:00"Does this sound remotely plausible?"
T..."Does this sound remotely plausible?"<br /><br />The "economics" profession is spending itself in attempting to justify its own existence while protecting the financial "industry". The purpose of the financial sector is to create money with which to fatten its own wallet while producing absolutely nothing. It all stems from the insane idea that money is capital and the religious tenet that capitalism is like holiness.TheTruckerhttps://www.blogger.com/profile/10346127768102862741noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-41180988908596738782010-04-02T18:05:13.194-04:002010-04-02T18:05:13.194-04:00Indeed he does... :-).Indeed he does... :-).Barkley Rosserhttps://www.blogger.com/profile/13114257724762074636noreply@blogger.com