http://www.reuters.com/article/ousiv/idUSTRE5615QL20090703"I'm just looking at the market and not getting a sense that it could survive anywhere near this way currently, without continued support from TALF," said Auerbach.
Dan Castro, chief risk officer at Huxley Capital Management in New York, said while the program has worked quite well, the biggest uncertainty facing TALF is the extension of the program.
"If the Fed pulls the plug on the loan transferability on loans already out there that's going to be a significant issue," said Castro. "Right now, you can refinance through year-end, if you sell the bond, borrow and take the loan, but after that, it won't work that way, so they need to make TALF loans transferable past the end of the year," he said.
The Fed recently extended a number of other emergency funding facilities through February 2010. The programs were established last year to extend lifelines to credit markets paralyzed by the financial crisis.
"If they don't get this done in the next 60 days or so, its going to be a problem because people are not going to do deals if they think liquidity is going to be gone," said Castro.
It's time to run this fucker aground and see who sinks and who swims.