Subprimes Not Dead for American General
Asset Backed Alert, Harrison Scott Publications Inc. (March 26, 2010)
American General is about to start shopping the second in what could be a series of securitizations this year, this time in the form of a deal backed by subprime mortgages. The offering, totaling $800 million, is set to hit the market within the next two weeks via lead underwriter Deutsche Bank. It would be backed by 30-year fixed-rate loans that were mostly written 3-7 years ago through American General's own branches, with no credits newer than 18 months old.
The transaction is separate from a securitization the Evansville, Ind., unit of AIG is poised to price in the coming days. RBS is leading that $1 billion issue, backed by alternative-A credits written through brokers. The alt-A deal was seen as a rarity when it hit the market just over a month ago, as it was among just a few private-label mortgage securitizations to go into development since the global credit crisis intensified in late 2008. Even then, however, subprime-loan issues were presumed extinct.
I watched a program concerning unemployment in Michigan on PBS last night. The idea seems to have originated with some polling professional to get people from various perspectives publically to expostulate on the crisis they were personally experiencing. The governor of Michigan was there, always lecturing, never listening, to what was said. What struck me most was how pathetically incapable these people were both at grasping the reasons for their dilema and finding effective ways to organize solutions. It never even occurred to anyone that the problem was the governor herself and that they might use the occasion right then and there to demand answers of her as to why politicians like her are owned by lobbies and why they shouldn't one day see to her arrest and public trial. These folks were so clueless, so dumbstruck that to rely on them at this point to initiate authentic change appears a most forelorn hope. They think solely within the existing structures, engendering contempt instead of admiration and sympathy. Much more pain will be required - even in Michigan - before a beginning can be made on the future.
Debt-financed expansion is a false prosperity that enriches the top one percent, and sends industrial investment abroad. But, it has been the economic policy of the United States government since 1950 - the only changes are
1. the little guy has become debt saturated.
2. it is probably over.
Now, is the time to shorten hours of work, like the enlightened politicians wanted to do in the 30s.
But, the problems created by the solution adopted to address the unemployment (debt financed economic expansion) is what we are currently dealing with in this crisis.
I disagree -- the debt financed economic expansion you speak of is the stimulus going overseas, principally to China, to aid their economy and continue transferring wealth upwards to the upper percentage of the top one percent.
The debt-financing is the monetization of debt (transferring the private debt to public debt) -- which derives from all those debt-financed billionaires who caused, and profited from, the peddling of debt on Wall Street.
Nothing really has been done to improve the American economy by way of debt-financed expansion --- simply reinflating those financial services bubbles -- which now comprise the vast bulk of the American pseudo-economy.
But, the problems created by the solution adopted to address the unemployment (debt financed economic expansion) is what we are currently dealing with in this crisis. I think that partially explains why many are rejecting simply upping the ante on Great Depression era solutions in this crisis.
There was also a failed attempt to reduce hours of work during that period, which is a solution of far greater relevance to us now. It was called Black-Connery and it passed the Senate only to be kneecapped by FDR.
If you've ever watched Glenn Beck or listened to Rush Limbaugh, it's astounding. They describe public outrage, anger and then spin it to claim the solutions are these multinational corporate agendas! I guess people are so oblivious to the realities of economics and no surprise I guess since payday loans and cash checking services are huge bucks, when they could simply open up a free checking account...and when it comes to figuring out interest paid on a loan, that obviously goes over most people's heads because they sign up for deals that are way worse than any Mafia loan shark would have demanded....
I also think it is because over and over again, Government really is also multinational corporations and lobbyists. They do not act in the national interest or the general public's interest. Even on bills that are supposed to, well, let's say green jobs as an example, there ya go, they ship the funds and jobs overseas. They give companies like IBM huge contracts, even grants, who turn around and....ship the jobs overseas....
So, with a government like that, who needs enemies?
This is the only legitimate thing I can see which makes sense to me. I mean, they save the banksters, who turn around and do their routine executive compensation theft, meanwhile We have 4 million foreclosures projected for 2010.
But these people need to get a clue, and realize they are being manipulated for even more pain and heartache by these glorified corporate public relations people, like Glenn Beck, who are capturing the Populist rage and seriously misdirecting it.
and I swear, the editors at HuffPo really need to understand what exactly they are linking to sometimes because it's bullshit. It does that usual claim productivity is all technological advances debunked over and over again by not just me, but even a hard line business cycle analyst. Here is Let's Chat Labor Productivity, which is just one of many pieces on how they like to claim technological advances when it's global labor arbitrage!
I voted yes because pot has properties that can be beneficial, it makes no sense to me to have Alcohol be legal and pot not. I've never heard of a stoner doing the behavior of a drunk or withdrawal being able to kill you, unlike alcohol.
But most importantly, it's such a large cash crop already, Mexico is fueled by violent drug cartels committing horrific murder and mayhem daily, our national and state forests and parks are littered with drug cartels growing weed, with AK-47s, polluting the land. Weed can be taxed and help with budget deficits. It also can be quality controlled. Legalization can reduce the costs of very obviously ineffective law enforcement, allow them to focus in on destructive drugs (heroin is making a comeback in the U.S.) and most importantly, hopefully reduce the drug cartels power, help secure the border due to cartels not controlling it and hopefully stop the destruction of our natural resources as illegal growing areas.
So, just like prohibition, it makes no sense to me to have pot be illegal.
For the record, I am a very boring, person who does not smoke pot, have no interest in it personally or any mind altering substance for that matter, including booze.
I'm one of these people who never liked the public-private parnership...to begin with! I think what they did was used public when public was useful, and used private when private was useful!
Yup....yet another reason why I admire and respect America's Number One Toxic Avenger.
data here, is up 52.5 from 46.4. This data is for March 2010.
Ok, I decided to not write it up because frankly, I have yet to figure out what good this metric really is for except the overall mood and perception of the country.
Considering the country believes Obama is Muslim and other ridiculous stuff, unless this index is used in some real world numbers for calculating other stuff, I just don't get it...so what and who cares what Americans perceive? Does this mean that the snow job has worked well last month? It is a public relations index? Is it a marketing index?
Seriously. I need to write up something about useless data vs. meaningful data, but if someone else wishes to take this on, and or requests me to write it up in more detail than I can locate elsewhere, let me know.
administrative records, census, surveys. Businesses often report quarterly to the IRS, at least in profits amounts and I believe payroll records can be quarterly.
I have looked at the url's referenced in the article, but did not see any information about how the BEA compiles its estimates. I am trying without success to imagine sources of this data other than IRS income tax returns, and it is too early in the year for data from the IRS returns to be available for 2009. Obviously I am ignorant about something. Can you help?
Robert Oak said, "...if I had a kid these days I wouldn't be caught dead putting them (sic) in public school." Granted, more than a few public schools are horrible, and in a number of ways. But Oak's over-generalization ignores the amazing variety in the quality of public schools, from great to very bad, not only from city to city but also within most large cities. A discussion of the reasons for this variety would be quite long and also off-topic on EP, but let me give one example of excellence in public education in rebuttal to Oak: There is a public school in Pasadena, grades 6-12, to which a number of Ph.D's who work at JPL nearby have chosen to send all of their children. This says a lot.
It should be noted that such ETF's as GLD already pay prohibitive tax levels on profits. The reason is because the IRS doesn't consider gold to be an actual "investment" (15% on capital gains). It taxes gold as a "collectible", which is around 30%.
Does this sound familiar?
I watched a program concerning unemployment in Michigan on PBS last night. The idea seems to have originated with some polling professional to get people from various perspectives publically to expostulate on the crisis they were personally experiencing. The governor of Michigan was there, always lecturing, never listening, to what was said. What struck me most was how pathetically incapable these people were both at grasping the reasons for their dilema and finding effective ways to organize solutions. It never even occurred to anyone that the problem was the governor herself and that they might use the occasion right then and there to demand answers of her as to why politicians like her are owned by lobbies and why they shouldn't one day see to her arrest and public trial. These folks were so clueless, so dumbstruck that to rely on them at this point to initiate authentic change appears a most forelorn hope. They think solely within the existing structures, engendering contempt instead of admiration and sympathy. Much more pain will be required - even in Michigan - before a beginning can be made on the future.
Debt-financed expansion is a false prosperity that enriches the top one percent, and sends industrial investment abroad. But, it has been the economic policy of the United States government since 1950 - the only changes are
1. the little guy has become debt saturated.
2. it is probably over.
Now, is the time to shorten hours of work, like the enlightened politicians wanted to do in the 30s.
I disagree -- the debt financed economic expansion you speak of is the stimulus going overseas, principally to China, to aid their economy and continue transferring wealth upwards to the upper percentage of the top one percent.
The debt-financing is the monetization of debt (transferring the private debt to public debt) -- which derives from all those debt-financed billionaires who caused, and profited from, the peddling of debt on Wall Street.
Nothing really has been done to improve the American economy by way of debt-financed expansion --- simply reinflating those financial services bubbles -- which now comprise the vast bulk of the American pseudo-economy.
Which means we have no real economy at all.
Kudos, dude
But, the problems created by the solution adopted to address the unemployment (debt financed economic expansion) is what we are currently dealing with in this crisis. I think that partially explains why many are rejecting simply upping the ante on Great Depression era solutions in this crisis.
There was also a failed attempt to reduce hours of work during that period, which is a solution of far greater relevance to us now. It was called Black-Connery and it passed the Senate only to be kneecapped by FDR.
If you've ever watched Glenn Beck or listened to Rush Limbaugh, it's astounding. They describe public outrage, anger and then spin it to claim the solutions are these multinational corporate agendas! I guess people are so oblivious to the realities of economics and no surprise I guess since payday loans and cash checking services are huge bucks, when they could simply open up a free checking account...and when it comes to figuring out interest paid on a loan, that obviously goes over most people's heads because they sign up for deals that are way worse than any Mafia loan shark would have demanded....
I also think it is because over and over again, Government really is also multinational corporations and lobbyists. They do not act in the national interest or the general public's interest. Even on bills that are supposed to, well, let's say green jobs as an example, there ya go, they ship the funds and jobs overseas. They give companies like IBM huge contracts, even grants, who turn around and....ship the jobs overseas....
So, with a government like that, who needs enemies?
This is the only legitimate thing I can see which makes sense to me. I mean, they save the banksters, who turn around and do their routine executive compensation theft, meanwhile We have 4 million foreclosures projected for 2010.
But these people need to get a clue, and realize they are being manipulated for even more pain and heartache by these glorified corporate public relations people, like Glenn Beck, who are capturing the Populist rage and seriously misdirecting it.
and I swear, the editors at HuffPo really need to understand what exactly they are linking to sometimes because it's bullshit. It does that usual claim productivity is all technological advances debunked over and over again by not just me, but even a hard line business cycle analyst. Here is Let's Chat Labor Productivity, which is just one of many pieces on how they like to claim technological advances when it's global labor arbitrage!
I voted yes because pot has properties that can be beneficial, it makes no sense to me to have Alcohol be legal and pot not. I've never heard of a stoner doing the behavior of a drunk or withdrawal being able to kill you, unlike alcohol.
But most importantly, it's such a large cash crop already, Mexico is fueled by violent drug cartels committing horrific murder and mayhem daily, our national and state forests and parks are littered with drug cartels growing weed, with AK-47s, polluting the land. Weed can be taxed and help with budget deficits. It also can be quality controlled. Legalization can reduce the costs of very obviously ineffective law enforcement, allow them to focus in on destructive drugs (heroin is making a comeback in the U.S.) and most importantly, hopefully reduce the drug cartels power, help secure the border due to cartels not controlling it and hopefully stop the destruction of our natural resources as illegal growing areas.
So, just like prohibition, it makes no sense to me to have pot be illegal.
For the record, I am a very boring, person who does not smoke pot, have no interest in it personally or any mind altering substance for that matter, including booze.
As businesses outsource or offshore, how do those layoffs impact the rate of fraud in the environment?
...for the link above, which I have read. I have a new appreciation for what a complicated business it is to arrive at an estimate of personal income.
Yup....yet another reason why I admire and respect America's Number One Toxic Avenger.
And, for anyone interested in those public-private partnerships, I would refer them to A Brief History of Securitization, as well as The Global Agenda: Privatizing the Planet, and The Global Agenda: Privatizing the Planet - Part Deux.
Now why wouldn't the Obama Administration, which has yet to appoint an actual economist, at least appoint Madam Professor Warren??????
Shadow economy back, Citi prices $525M CLO.
data here, is up 52.5 from 46.4. This data is for March 2010.
Ok, I decided to not write it up because frankly, I have yet to figure out what good this metric really is for except the overall mood and perception of the country.
Considering the country believes Obama is Muslim and other ridiculous stuff, unless this index is used in some real world numbers for calculating other stuff, I just don't get it...so what and who cares what Americans perceive? Does this mean that the snow job has worked well last month? It is a public relations index? Is it a marketing index?
Seriously. I need to write up something about useless data vs. meaningful data, but if someone else wishes to take this on, and or requests me to write it up in more detail than I can locate elsewhere, let me know.
I just don't get the point of this.
administrative records, census, surveys. Businesses often report quarterly to the IRS, at least in profits amounts and I believe payroll records can be quarterly.
See here, page 5.
I have looked at the url's referenced in the article, but did not see any information about how the BEA compiles its estimates. I am trying without success to imagine sources of this data other than IRS income tax returns, and it is too early in the year for data from the IRS returns to be available for 2009. Obviously I am ignorant about something. Can you help?
Robert Oak said, "...if I had a kid these days I wouldn't be caught dead putting them (sic) in public school." Granted, more than a few public schools are horrible, and in a number of ways. But Oak's over-generalization ignores the amazing variety in the quality of public schools, from great to very bad, not only from city to city but also within most large cities. A discussion of the reasons for this variety would be quite long and also off-topic on EP, but let me give one example of excellence in public education in rebuttal to Oak: There is a public school in Pasadena, grades 6-12, to which a number of Ph.D's who work at JPL nearby have chosen to send all of their children. This says a lot.
We all need editors on here and I guess two many numbers, so I transposed them. Must have had jeans on my brain. ;)
But yes, I just freak out when I make mistakes like that, esp. in the title.
They are "Repo 105s" not "501". Just sayin' for accuracy and posterity.
It should be noted that such ETF's as GLD already pay prohibitive tax levels on profits. The reason is because the IRS doesn't consider gold to be an actual "investment" (15% on capital gains). It taxes gold as a "collectible", which is around 30%.
Has some detailed graphs on just Residential (link to post).
But I have hunted high and low for these updated tables CR claims to have found and I sure has hell can't find 'em.
So, I'm leaving the Residential info in this post as is.
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