Kasriel says that Fed could get stuffed under TALF

| 4 March 2009 14:10

Marshall Auerback here. I have a few words about the Term Asset-Backed Securities Loan Facility – otherwise known as the TALF. Economist Paul Kasriel of Northern Trust confirms my interpretation, namely that we get stuffed holding these assets (See my views on this here and Ed’s here). Kasriel is one of few economists that was bearish calling for recession at least a year ago if not earlier.

talf-from-kasriel

You should also note that he sees a potential fourth quarter rebound as well.

avatar About Marshall Auerback

Marshall Auerback, has 29 years experience in the investment management business, serving as a global portfolio strategist for Madison Street Partners, LLC, a Denver based hedge fund. He also has also worked as an economic consultant to PIMCO, the world’s largest bond fund management group. He is a Fellow at the Economists for Peace and Security, a Research Associate at the Levy Institute, and a non-executive director of Pinetree Capital in Toronto, Ontario, Canada.

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2 Comments

  1. avatar john haskell says:
    4 March 2009 at 18:07

    so- TALF will get the credit markets going again, we are at or near the bottom of the recession and the FRBNY will get stuffed because investors will use TALF to finance purchase of assets which will rapidly appreciate if the first two phrases are true. WTF?!

  2. avatar P_Patel says:
    4 March 2009 at 22:10

    “that we get stuffed holding these assets”
    This is not going to happen.
    Anyone trying fradulently to pass less than AAA asset class will be in jail for “conspiracy to commit fraud on U.S. govt.” if Treasury has to take a hit.
    That is 15 yrs. jail time.
    One would be taking a less risk in robing the bank(5 yrs.), where FDIC fund takes the loss and not the govt.