Fixing the mess of the mortgages will need to be done mortgage by mortgage. The derivative model is flawed because the 'bonds' are not bonds but debentures. To fix the mess, each institution create issues real mortgage bonds secured by the mortgages themselves, not just a pool with a trash heap of debentures used to borrow to buy mortgages.
Think in terms of old fashioned first mortgage bonds, issued with a collateral of the mortgage. Do this mortgage by mortgage, take daily until symptoms disappear.
Bet that Poulson and Nancy will create a $600 Billion dump of the toxic derivatives instead. We will pay for this s#((.
Maybe we could make one mortgage bank wealthy and show them how. But as the joker said to the thief, the hour is getting late.
but I am noticing a different pattern. I am noticing the banks with heavy foreign controlling interests and/or investments, particularly in China are coming out clean, whereas the ones that didn't....eh, not so good.
That's an investigation in and of itself, but is anyone else noticing that?
Banks with strong China & Dubai ties:
Citigroup
Goldman Sachs
Bank of America
Merrill Lynch
JP Morgan
Ok, now the buzz words are systemic risk. But do we really know this is true as it's getting dumped onto the US taxpayer in masse?
And while they make their deals behind closed doors there is a huge, huge difference between the New Deal, which was Keynesian and built from the bottom up, gave the money to the people, created jobs for it's citizens and rebuilt the nation...
in this case is it all simply to keep these bastards in the money and in power? I mean they did it. They were warned about the ticking time bomb of derivatives, they leveraged themselves 40:1, 50:1 even 70:1, they (and who is completely sure how they even work) created default credit swaps...
So, are they rebuilding the manufacturing base of this country? Are they going to put US citizens to work? Are they going to fund public works to rebuild infrastructure, fund college education for US citizens, R&D for Americans to work in?
I mean what the shit is going on here? We have a huge drop in the stock market and that means the world is coming to an end and they have to do the mother of all bail outs?
Yet when has a banking failure or panic in history been completely bailed out by the taxpayer? So, could be a panic and then an atom bomb upon the federal debt?
... with the critical question whether its more like the Panic of 1890 or the Panic of 1893.
The Panic of 1890 in the UK, following the collapse of City of London investments in the Southern Cone of South America was, I take it, nipped in the bud ... but then given that the US Panic of 1893 may be considered to have persisted (and internationally spread) through 1897, it may be that the short-term success in the Bank of England bailing out Baring Brothers allowed the structural problems to continue building.
RO, this my good man, will set the pillars of creating a nation that the plutocrats want. A modern day antebellum industrial/plantation system for the whole nation...if not the continent.
Basically they imply no one understood the new "exotic mortgage and investment vehicles" so the software which models risk didn't update the risk appropriately.
and I'm seeing other people (God, I was having a wonder if I was alone) shaking heads saying the real problem is these companies are leveraged 30:1, 40:1, 50:1 and no one is addressing these credit default swaps or derivatives.
Another guy is shaking his head saying that press meeting was the most frightening thing he had ever seen because now they are throwing the kitchen sink at Wall Street bailing it out.
Are you sure? The reason I say that is because it's policy, assuredly not party. We have Clinton and Chris Dodd starting much of this mess in 1999 with some deregulation. Then we have....the Bush administration but the blame is bicameral same as bad trade deals.
So, just simply getting a government with the "D" label is not enough, especially considering the lack of a plan from Obama. I mean a $500 tax rebate for those being foreclosed on? I don't think so! On top of it, Obama and McCain's plans are basically the same.
We just saw Pelosi, Dodd, Paulson, Bernanke claim they want to insulate main street from Wall street but they claim the problem is housing prices are correcting. How about default credit swaps? How about derivatives and how about the massive leveraging these institutions took on irresponsibly?
I don't ever hear anything about bailing out main street here. They never seem to have the money to bail out main street but always have the money to bail out wall street. Now the claim is systemic risk and that claim is going completely unchallenged without analysis and proof.
Can the US default on it's debt? Over in the Instapopulist I have a Reuters current cost tally and others had $800B. I would imagine this would put the federal deficit in a spike @ 40% of GDP and that is not the worst the United States have ever had as a ratio, but at the same time these corporations have offshore outsourced the jobs or insourced and displaced US workers, turned stable careers into disposable workers and have turned buying a home playing roulette and just looking at it in terms of short term housing costs. So, that's different from past absurd ratios of debt to GDP. We also now have phantom GDP where they subscribe growth here when they are counting offshore outsourced jobs in the equation.
So, is this possible that our lovely Government literally puts the United States itself into bankruptcy? Or we will just all need to learn Chinese and merge with China?
no one has any time to figure out what any of this really means, especially on the federal deficit/taxpayer at this point. I feel we're in some massive car chase and the ones running the show are trying to shake us off of their tail.
Anybody want to write about "level 3 assets" and how nobody seems to know what exactly they are? I just saw on CNBC that balance sheets are now BS versus the real health of a company. Lovely.
Day traders must be having a field day, unless you accidentally buy something that collapses if you wait and buy close enough you're almost guaranteed to hit a limit due to the volatility.
LOL. Cramer just said "let's just give every homeowner in the United States 50k and skip this $1T buy out it would be cheaper that way".
There is some massive meeting this evening on the hill on all of this.
I wrote a friend last night that the odds were, this would be a good time to buy for a short term profit. There was too much fear/panic in the market. Paulson's embrace of some kind of RTC gave the ammo necessary.
None of the markets are trading on "fundamentals" right now. It's all about emotion. If you have cash, a cool head, and access to a trading terminal, the suckers are probably easy pickings ....
So glad you posted this, I was out, expecting yet another 200 down and come back to irrational exuberance. The only thing I can think of who is making a hell of a lot of money are those insiders who predict the unpredictable.
On CNBC videos, they don't themselves allow embedding or allow you to (easily) capture them. Bad CNBC.
Both the bet and it’s insurer are examples of the greater fool theory. Who insures the bet of a fool? An even greater fool.
You can fix AIG with a trustee in a bankruptcy court cheaper than $85 Billion. We need to stop bailouts soon, just stop the FASB rules regarding marking securities to market, at least for a while. FDR did this in 1933. No write downs of the worthless bonds and mortgages and it worked for almost 70 years.
According to A.M. Best, U.S has upwards of 10,000 insurance companies. Roubini's RGE site ratings of economic development shows how the U.S. is the most insured nation on earth. We just will not run out of insurance companies any day soon.
Fixing the mess of the mortgages will need to be done mortgage by mortgage. The derivative model is flawed because the 'bonds' are not bonds but debentures. To fix the mess, each institution create issues real mortgage bonds secured by the mortgages themselves, not just a pool with a trash heap of debentures used to borrow to buy mortgages.
Think in terms of old fashioned first mortgage bonds, issued with a collateral of the mortgage. Do this mortgage by mortgage, take daily until symptoms disappear.
Bet that Poulson and Nancy will create a $600 Billion dump of the toxic derivatives instead. We will pay for this s#((.
Maybe we could make one mortgage bank wealthy and show them how. But as the joker said to the thief, the hour is getting late.
here
but I am noticing a different pattern. I am noticing the banks with heavy foreign controlling interests and/or investments, particularly in China are coming out clean, whereas the ones that didn't....eh, not so good.
That's an investigation in and of itself, but is anyone else noticing that?
Banks with strong China & Dubai ties:
Citigroup
Goldman Sachs
Bank of America
Merrill Lynch
JP Morgan
....
Peter Schiff does an excellent job of explaining what is going on. Listen to Sep 17th file.
http://www.europac.net/radioshow_archives.asp#
It's all bad news, but people need to understand the truth because TV isn't showing it.
Oops, sorry if I double post.
Bad Debt Plan May Cost Up to Half a Trillion Dollars CNBC is reporting now.
Good f**king God, we're now at $1.4 trillion in a matter of a few weeks.
Ok, now the buzz words are systemic risk. But do we really know this is true as it's getting dumped onto the US taxpayer in masse?
And while they make their deals behind closed doors there is a huge, huge difference between the New Deal, which was Keynesian and built from the bottom up, gave the money to the people, created jobs for it's citizens and rebuilt the nation...
in this case is it all simply to keep these bastards in the money and in power? I mean they did it. They were warned about the ticking time bomb of derivatives, they leveraged themselves 40:1, 50:1 even 70:1, they (and who is completely sure how they even work) created default credit swaps...
So, are they rebuilding the manufacturing base of this country? Are they going to put US citizens to work? Are they going to fund public works to rebuild infrastructure, fund college education for US citizens, R&D for Americans to work in?
I mean what the shit is going on here? We have a huge drop in the stock market and that means the world is coming to an end and they have to do the mother of all bail outs?
Seriously, let's go digging.
For those reading this and aren't up on their 3 letter mneumonics, RTC and RFC
Gives a little history on where these things originate from.
Yet when has a banking failure or panic in history been completely bailed out by the taxpayer? So, could be a panic and then an atom bomb upon the federal debt?
... with the critical question whether its more like the Panic of 1890 or the Panic of 1893.
The Panic of 1890 in the UK, following the collapse of City of London investments in the Southern Cone of South America was, I take it, nipped in the bud ... but then given that the US Panic of 1893 may be considered to have persisted (and internationally spread) through 1897, it may be that the short-term success in the Bank of England bailing out Baring Brothers allowed the structural problems to continue building.
RO, this my good man, will set the pillars of creating a nation that the plutocrats want. A modern day antebellum industrial/plantation system for the whole nation...if not the continent.
Risk Models article from the New York Times.
Basically they imply no one understood the new "exotic mortgage and investment vehicles" so the software which models risk didn't update the risk appropriately.
Sure.
and I'm seeing other people (God, I was having a wonder if I was alone) shaking heads saying the real problem is these companies are leveraged 30:1, 40:1, 50:1 and no one is addressing these credit default swaps or derivatives.
Another guy is shaking his head saying that press meeting was the most frightening thing he had ever seen because now they are throwing the kitchen sink at Wall Street bailing it out.
Are you sure? The reason I say that is because it's policy, assuredly not party. We have Clinton and Chris Dodd starting much of this mess in 1999 with some deregulation. Then we have....the Bush administration but the blame is bicameral same as bad trade deals.
So, just simply getting a government with the "D" label is not enough, especially considering the lack of a plan from Obama. I mean a $500 tax rebate for those being foreclosed on? I don't think so! On top of it, Obama and McCain's plans are basically the same.
We just saw Pelosi, Dodd, Paulson, Bernanke claim they want to insulate main street from Wall street but they claim the problem is housing prices are correcting. How about default credit swaps? How about derivatives and how about the massive leveraging these institutions took on irresponsibly?
I don't ever hear anything about bailing out main street here. They never seem to have the money to bail out main street but always have the money to bail out wall street. Now the claim is systemic risk and that claim is going completely unchallenged without analysis and proof.
scam ever pulled on China!
Can the US default on it's debt? Over in the Instapopulist I have a Reuters current cost tally and others had $800B. I would imagine this would put the federal deficit in a spike @ 40% of GDP and that is not the worst the United States have ever had as a ratio, but at the same time these corporations have offshore outsourced the jobs or insourced and displaced US workers, turned stable careers into disposable workers and have turned buying a home playing roulette and just looking at it in terms of short term housing costs. So, that's different from past absurd ratios of debt to GDP. We also now have phantom GDP where they subscribe growth here when they are counting offshore outsourced jobs in the equation.
So, is this possible that our lovely Government literally puts the United States itself into bankruptcy? Or we will just all need to learn Chinese and merge with China?
I'm just curious if the taxpayer's pockets are bottomless?
no one has any time to figure out what any of this really means, especially on the federal deficit/taxpayer at this point. I feel we're in some massive car chase and the ones running the show are trying to shake us off of their tail.
Anybody want to write about "level 3 assets" and how nobody seems to know what exactly they are? I just saw on CNBC that balance sheets are now BS versus the real health of a company. Lovely.
Day traders must be having a field day, unless you accidentally buy something that collapses if you wait and buy close enough you're almost guaranteed to hit a limit due to the volatility.
LOL. Cramer just said "let's just give every homeowner in the United States 50k and skip this $1T buy out it would be cheaper that way".
There is some massive meeting this evening on the hill on all of this.
I wrote a friend last night that the odds were, this would be a good time to buy for a short term profit. There was too much fear/panic in the market. Paulson's embrace of some kind of RTC gave the ammo necessary.
None of the markets are trading on "fundamentals" right now. It's all about emotion. If you have cash, a cool head, and access to a trading terminal, the suckers are probably easy pickings ....
a good spreadsheet and policy based on those numbers would tell. Time is going to get more corporate written bills and agenda.
So glad you posted this, I was out, expecting yet another 200 down and come back to irrational exuberance. The only thing I can think of who is making a hell of a lot of money are those insiders who predict the unpredictable.
On CNBC videos, they don't themselves allow embedding or allow you to (easily) capture them. Bad CNBC.
Both the bet and it’s insurer are examples of the greater fool theory. Who insures the bet of a fool? An even greater fool.
You can fix AIG with a trustee in a bankruptcy court cheaper than $85 Billion. We need to stop bailouts soon, just stop the FASB rules regarding marking securities to market, at least for a while. FDR did this in 1933. No write downs of the worthless bonds and mortgages and it worked for almost 70 years.
According to A.M. Best, U.S has upwards of 10,000 insurance companies. Roubini's RGE site ratings of economic development shows how the U.S. is the most insured nation on earth. We just will not run out of insurance companies any day soon.
Save the ammunition for the productive economy.
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