Jim,

This is truly comical at this point.

CIGA BJS

Investors’ fears are eased on Talf
By Tom Braithwaite in Washington and Nicole Bullock in New York
Published: August 17 2009 20:05 | Last updated: August 17 2009 23:35

The Federal Reserve and the US Treasury on Monday extended a $200bn programme designed to revive the securitisation market, bringing relief to investors concerned that the supply of cheap government financing was set to end.

The term asset-backed securities loan facility (Talf), in which the Fed lends to investors wanting to buy securitised loans, is to be extended by three to six months from the original year-end expiry date.

“Conditions in financial markets have improved considerably in recent months,” the Fed and Treasury said. “Nonetheless, the markets for asset-backed securities backed by consumer and business loans and for commercial mortgage-backed securities are still impaired and seem likely to remain so for some time.”

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Jim Sinclair’s Commentary

For those that believe OTC derivatives are victimless crimes, read the following.

Jim,

I didn’t realize what awful effects might occur when a bank is closed by the FDIC.

Greeley bank auction may bury farmers
Today’s sale of failed Greeley bank’s notes "could be devastating"
By Miles Moffeit
Posted: 08/18/2009 01:00:00 AM MDT
Updated: 08/18/2009 11:53:49 AM MDT

The federal government today will auction off 418 farm loans stranded on the books of failed Greeley-based New Frontier Bank.

The auction is believed to be the largest sale of farm notes since the aftermath of the 1980s savings-and-loan crisis, and it has many Colorado farmers fearful they will lose their property as a result.

Farmers suspect investors or banks will snap up their notes at fire-sale prices, then liquidate their collateral to score a quick profit.

"It could be devastating," said Bob Winter, a board member of the Colorado Farm Bureau. "That is what’s going to happen with many of the loans. The buyers will take what equity they will get and move on."

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