Kasriel says that Fed could get stuffed under TALF
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.