Agoracom: Small Cap Investment - Firstgold Corporation - Industry Bulletin - Bernanke Is Not Saving The Day, Just Delaying D-Day

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Industry Bulletin - Bernanke Is Not Saving The Day, Just Delaying D-Day

posted on Mar 12, 2008 08:45AM

Dear Shareholders,

In an effort to keep you up to date on all pertinent information regarding the resource sector, please take a moment to read today’s AGORACOM Blog.

Bernanke Is Not Saving The Day, Just Delaying D-Day

March 12th, 2008 As you already know by now, the US Federal Reserve today announced that it would inject $200 Billion into the banking system in exchange for debt that includes mortgage-backed securities. This is an unprecedented move in an effort to stave off a a credit crisis of epic proportions.

This is not to be confused with the Term Auction Facility announced in December to loan funds to banks in exchange for - amongst other things - mortgage debt. Today’s move includes the actual securities (whose value we’ll discuss in a minute) that were created by bundling a bunch of crappy mortgages. If you need a lesson on this, please take a minute to review the following cartoon but educational illustration of how sub-prime really works.