Kasriel says that Fed could get stuffed under TALF

By Marshall Auerback On Mar 4, 2009

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.

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

Marshall Auerback 138 posts 10 comments

Marshall Auerback has over 30 years experience in the investment management business and as an economic consultant. He is a Research Associate at the Levy Institute.

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4 Comments

john haskell says 15 years ago

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?!
P_Patel says 15 years ago

“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.

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