Failure to deliver and naked shorting plague Treasury market

October 26, 2008 by · 1 Comment
Filed under: Economic News 

This is something new I have come across.  Looks like we have a interesting little fact that isn’t being talked about.  First we had naked shorting of stocks, now we have naked shorting on treasuries.  According to the article, $2.29 trillion dollars of t-bill auctions failed to deliver the security.  An analysist in the article mention that is was a historic level of failures to deliver on treasury sales.

Article:

The credit crisis is causing a growing number of delivery failures with Treasury securities.  The latest data from the Federal Reserve Bank of New York showed that cumulative failures hit a record $2.29 trillion as of Oct. 1. The federal settlement period is T+1 (trade date plus one day).

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Federal Reserve boosts cash auctions to $900 Billion and may do more

October 6, 2008 by · Leave a Comment
Filed under: Economic News 

Imagine a who lot of money being printed and then a whole lot more. This is not a dream, they are turning on the faucets and firing up the helicopter. The Fed is not going down without a fight and they got a bazooka and plenty of ammo to try and quell the markets. It will not work in the end because of the United States’ fundamental problems.

Bloomberg:

The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

“The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions,” the central bank said in a statement released in Washington today. Fed and Treasury officials are “consulting with market participants on ways to provide additional support for term unsecured funding markets,” the statement said.

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