Officially referred to as level 3 exposure. But you will also see it referred to as... Bucket 3.
And the buckets will get filled next week and having commercial paper in bucket 3 is not good. It's a little like finding out those folks who have investment banks have been printing their own funny money. And when it is held under a black light it comes up gray rather than green.
It's not that the stuff in three has no value. It's just the little problem of no one has a clue what it's value may be. And no one is offering to buy it.
Why, that sounds like a description of no value said backwards.
And since the investment banks will have way more in bucket 3 than 1 or 2 when the fiscal accounting comes due on nov 15. The are declared functionally insolvent and this is the clincher and what hurts. They have to step up and say: We are broke!
What's to be done? We'll when the cat digs the hole it has a purpose.
Seriously, I can think of only one feasible solution since they will not be able to hide it or deign it.
And that's spread the lose and as far as possible and that's us the people who they generally hold in contempt.
Which means their is a big federal bail out a coming our way. Because the major Investment Banks can't fail as they are the vehicles of the very wealthy in this country.
That is not being cynical as their is no need to be. That is just the way it is.
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