"The United States is in a recession and facing the worst financial crisis in almost 80 years because the folks currently in charge were out to lunch"
- Dean Baker, September 2008
September 30, 2008
HousingPANIC Quote of the Day
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TO THE AMERICAN PEOPLE....
THANK YOU FOR FIGHTING BACK AND WINNING!!!
YOU MADE ME PROUD TO BE AN AMERICAN AGAIN!!
Hero of 9/29/2008 Bailout Deafeat:
REP.MARCY KAPTUR,D-9TH CONGRESSIONAL DISTRICT,TOLEDO,OHIO.
"They want MaMa to fix it."
(America's Mother Guardian Angel)
Villains of 9/29/2008 Bailout
NANCY PELOSI
BARNEY FRANK
Sen. Barack Obama of Illinois, the Democratic nominee for president, said the “inaction in Congress” illustrated why “the American people are disgusted with Washington.”
"inaction in Congress" Pleases the Libertarian. I would like to point out that not a single yea was cast from Arizona.
You know large banks are manipulating LIBOR, the TED spread, and the stock market in order to make government panic and pass the Bill so the banks can get their free government check.
So now the Bill will pass because Congress saw the stock market drop for one day and are now paniced.
C'mon; give it a week at least and see how this plays out before caving.
From James Kunstler's blog and a reason people were falling over themselves yesterday to pass anything:
"The big effort of Mr. Paulson and his working group has been to ram through legislation that at all costs avoids any attempt to place a reality-based value on this bad debt. He managed it by holding a gun to Congress's collective head, telling them in plain English that a genuine "work-out" of these "toxic" investments would set in motion a fatal cascade of credit default swaps which would leave the entire banking landscape a smoldering wasteland -- with the result that virtually every retirement account and pension fund would go up in a vapor, the Federal Reserve and the FDIC would melt away to twin piles of goo, scores of millions of lives would be ruined, and the USA would be left a basket case among nations, making us envy even the fate of Haiti and Zimbabwe. Talk like that might prompt a congress-person to do any fool thing."
No more bailouts. No more.
Keith
When are you going to point out that McSame is a lame duck ALREADY? He suspended his campaign to rally Repubs around the bailout and failed hard!
GT Charlie
I just heard on BBC that the Case-Shiller is down 16.7% nationwide. Can't wait to see Phoenix, LA, Vegas and Miami.
Which will be the first down-50% market?
We're talking trillions. This report has the losses at $6 trillion and growing. And yet how much has been marked-to-market by the bagholders? Not much.
http://www.financialsense.com/fsu/editorials/amerman/2008/0905.html
The banks will fail. And if the banks don't fail because the printing presses are running, the dollar will fail.
Pick your poison
Jersey Girl:
You're right, Keith; it's the banks or the dollar.
Save the dollar, screw the bankers. They already took their gains.
I faxed Pelosi today and let her have it and asked for her resignation.... I had also faxed Barney but not Betty!!! It looks like 3 Mass reps voted against the bailout Hooray for America!!!
So let me ask all of you:
House is worth 160K in 2001, then was worth 420K in 2006 now it is worth 250K.
Has it lost any value: Not at all!
If you add inflation for 6 years it does not even come close.
When that house goes below 190K, then we will talk !
It is all a scam!!!
Time magazine
Quote:
"Do not be fooled. The $700 billion (ultimately $1 trillion or more) bailout is not predominantly for mortgages and homeowners. Instead, the bailout is for mortgage-backed securities. In fact, some versions of these instruments are imaginary derivatives. These claims overlap on the same types of mortgages. Many financial institutions wrote claims over the same mortgages, and these are the majority of claims that have "gone bad."
Pelosi is a DISGRACE.
I don't agree with it but this was the time to swallow your pride and work for the American people.
But she choice Bush-bashing instead.
If you are ready to retire... go thank her for your misery!
And this is news? I don't care about this BS in the economy anymore. Who really cares anyways? What are you trying to prove? I don't think its falling fast enough. Most of the crap in America isn't worth pennies on the dollar. I thought it was funny when they were bidding houses in Compton of all places to $400K and more. I wouldn't give you $400.00 for most of those houses. Same thing with the stock market. Does anyone here really think the Dow Jones should be at 10500 or whatever? I think realistically it's maybe worth 6500 tops in the best of times. You have an economic accident, it's worth maybe 1000 or so.
This is playing out well so far.
I don't think many of us here want to see the market tank just for the sake of seeing the economy suffer. Most of us aren't financially independant.
What we would like to see is THE PRICE OF HOMES COMING BACK IN LINE WITH INCOME AND RENTS. FOR HOUSING TO BECOME AFFORDABLE, without crashing the rest of the economy.
So we should cheer the good news today. Home prices down nicely yoy and the stock market showing some resilience in spite the bailout failure.
Driving around in a Honda full of silver defending it at the point of a gun could get old really fast.
"JL in Miami said...
Pelosi is a DISGRACE.
I don't agree with it but this was the time to swallow your pride and work for the American people.
But she choice Bush-bashing instead."
Bella Lugosi Pelosi is from my area and is usually an amiable dunce in most matters, but yesterday I saluted her for her actions.
and BTW, Screw the American People, all of us greedy, corrupt fat lazy turds that have Wrecked the Country, but above all GEORGE BUSH needed to be shamed as he was and is now all the way back to that slum where he was hatched by those creeps he mommy and daddy. Remember them? Bushco, the laughing stock of the world.
We deserve to be poor and destitte.
America Sucks.
Censure Bushco and Cheneyburton
Do it NOW
DEFLATION!!!
My savings is worth MORE every day.
F*ck the homedebtors.
The market is 10500 because the dollar is 1/3 of what it should be.
Credit is simply increasing in price as it should.
.
yeah, I make 38k, so I get a 750k loan, also a new Hummer, a BMW for the wife, a pool, a new Rolex, a second home...
and I'm not somewhat responsible how?
.
The banks won't lend to each other because they don't know what is on each other's books. Why don't they just show each other? "Ooo you have no money! Ooo neither do I! Ooo - hate when that happens!"
Overheard on the DC metro: Pelosi lost around $1 million in AIG assets when that tanked. This is about the corrupt people in our Congress who are in it all for the money, too, same as the greedy corporate bank and wall street types.
Ahhhh....republicans are all cry-baby cause a little old grandmother from california stood up and told them the truth rather than the fox news-approved version of the truth? These are the people we're supposed to trust to keep us safe from the terrerrrists?
IDIOTS. WAKE UP REPUBLICANS.
$1.2 trillion in stocks yesterday, and countless more in homes today through the case-shiller...
But, poor little eric cantor got his feelings hurt...boo hoo...
If the Adults had some balls they'd just go pass a thoroughly progressive bill along party lines, and let the children whine for weeks to sean hannity about it...unfortunately, of course, it'd get filibustered in the senate by joe lieberman...
anonymous September 30, 2008 3:09 PM:
I agree with you. At the peak my home could have sold for 2X what I paid in 1999 - today it would still sell for a little less than 50% more.
That's why I wonder, as I see the months pass, if renters have bothered to add it all up yet - years of rent vs. paying principal. The most astute students of the real estate market that avoided buying are coming up fast on 10 wasted years.
Pelosi is a DISGRACE.
I don't agree with it but this was the time to swallow your pride and work for the American people.
But she choice Bush-bashing instead.
If you are ready to retire... go thank her for your misery!
bwahahahaha.
that is the lamest thing i have ever heard. I would be ashamed to claim such a thing. "its a hard vote but i decided to man up but all of a sudden nancy pelosi came out and hurt my wittle feelings so i decide to take my ball and run home.
Bwwhahahaha! No, these sure aren't our fathers Republicans.
US Must Meet Finance Crisis Responsibility
By Reuters | 30 Sep 2008 | 06:40 AM ET
The European Commission said on Tuesday the United States must live up to its special responsibility to solve the global financial crisis and called for swift enactment of a bailout plan for the financial sector.
A Commission spokesman said the 27-nation European Union was disappointed at the U.S. House of Representatives vote rejecting a $700 billion rescue package for distressed banks and financial institutions.
"The U.S. must take its responsibility in this situation," spokesman Johannes Laitenberger told a news conference. He said rescue measures agreed by European governments for three troubled banks showed that public authorities in Europe can "live up to the task of providing financial stability."
---
Well, if that's the position of the EU, then I guess it must be done.
Yayy, Nancy Pelosi!
She has more cajones than all the 'men' on Capitol Hill put together.
Anonymous wrote:
Villains of 9/29/2008 Bailout
NANCY PELOSI
BARNEY FRANK
...add to the list my own Congressman, who I foolishly voted for...
JOHN CAMPBELL
...Hopefully his career will end in a month or so. I've been calling his office every day to berate him on his foolish choice. Hopefully others will do this to their own traitorous congressional representatives...
Eliminate the need for exponential growth and eliminate money parasites and the world would be a happier place.
No Doomsday afterall.
Markets up over 370 points.
Congress will pass the Bill.
Jim Cramer admits making major screw-up.
The European Commission said on Tuesday the United States must live up to its special responsibility to solve the global financial crisis and called for swift enactment of a bailout plan for the financial sector.
-------------------------------
idiot europeans. Oh Oh, we want to be the currency reserve of the world, look at us, our union is over taking the mighty USA.
Uh oh, something needs fixing? Hey USA, fix the world economic problem, Please save our Euro!
why don't they act like the economic power house they claim to be?
BTW I am short the Euro
Corzine is on saying main street doesn't understand - they think they are only bailing out Wall Street. If they knew they were helping the little guy they would be in favor. I think he is partly wrong. Main street doesn't want to bail out anybody, including the flippers and people who can not afford houses.
"...legislation that at all costs avoids any attempt to place a reality-based value on this bad debt..."
That is exactly what this whole charade hinges on.
We cannot allow the collateral to be examined because there is MASSIVE FRAUD contained in these pools.
Like all large Federal endeavors, this one seeks to obfuscate the truth, protect the guilty, and hand the bill to us.
"...some versions of these instruments are imaginary derivatives. These claims overlap on the same types of mortgages. Many financial institutions wrote claims over the same mortgages..."
Its real simple . Wall Street and the stupid lenders have at least 5 trillion in risky paper depending on how much leverage on the same paper or loans. Wall Street made side bets on these loans with credit default swaps and what have you .The big Casino wants the Taxpayers to step in and take some loss off their hands ,so they can keep it going ,for most part to change their position knowing what the game is .
Paulson is the man that is trying to protect these creeps and take loss off their hands,and he is trying any scheme to make it so there is no discovery of their true loss and their leverage scheme This is the emergency .
All financial systems were tied up in this leverage scheme ,especially the Wall Street unregulated 30 to one group ,that don't even deserve to be called lenders or provider of loan bundles .
I dont know if the total loss is 2 trillion so far or 5 trillion ,but this is the sticky problem with
banks and their strange asset holdings that are not only toxic but are over leveraged .
I say with the exception of the stronger banks or the ones that have already been bailed out or the ones that are fully operative ,why not just let the junk bank world crash and burn .
These jerks know that these assets are non-performing the second they foreclose.You got a vacant house that is it ,so it has to be sold at get rid of prices .
I think its important to note that is why mark to market is the name of the game .
I THOUGHT THAT THE WORLD WOULD COME TO AN END BY NOW THE WAY THE CROOKS WERE SELLING THE BAILOUT.
WHERE'S THE ARMAGEDDON, PAULSON, BERNANKE, CRAMER, CNBC, THE CORRUPT MEDIA, AND ALL THE CROOKED POLITICIANS WHO VOTED YEA???
VOTE EVERYONE WHO VOTED YEA OUT, BOYCOTT CRAMER AND THE CORRUPT MEDIA.
Folks, the world wide debt default "avalanche" has started and it's rolling down the hill now. All this talk of rescues and bailouts is just so much B.S. from politicians. The problem is so large now there isn't a government on the planet that can alter the outcome. Their efforts are like holding up a piece of plywood as a shield and pretending it's going to stop that thundering wall of snow.
Our lifestyles are going to change, people will lose their jobs, personal wealth will be destroyed. We will now have to actually work to earn money and pull ourselves out of this mess. It doesn't matter if Obama wins or if McCain is President, governments at all levels are going to be viewed soon as the parasites they are.
Just want to make a important point about mark to market .
Mark to market is the exact right accounting principal for these toxic loan non-performing assets .
If you have a house that is going into foreclosure or has gone into foreclosure ,all you have is a liability . You have a vacant house,adding up tax and insurance costs ,going downhill . The current market value of this
foreclosure is the low value ,because lenders are not the business of
renting out property .
If you have a bundles of loans that are performing (people who are paying the payments or loans with low loan to value ) these loans have more value ( as long as they are performing )
Banks of course would want to keep the performing loans(which have higher value ) and get rid of the non-performing loans that are actually a liability .
The only way they could change the mark to market is if they allowed lenders to become landlords that got rent on the foreclosures .
You can't just let a vacant property set for years like a stock waiting for future value while it is left with no income flow by renting it . So this is all a bunch of fraud speak and the banks know that they had to take a loss ,but want the taxpayers to take it . Believe me they will hold on to anything that they think might perform or has low loan to value ratios .
Also the banks don't want mark to market because it raising their reverse requirements, forcing them to come up with more cash . In other words if their non-performing assets are judged at true market ,than they have higher requirements to prove they can back non=performing assets with reserve funds .
Why should a Company with a lot of non-performing assets be allowed to lend out more money when they can't cover the losses they currently have . That would be faulty or over leverage lending that would lead to bank failure . So, say no to taking away mark to market and write you Politician
to educate them to the dangers and the fraud speak .
Wall Street and the Lenders are really trying to spin a con on the public .
Commercial property is more easy to suspend mark to market because it have income . To not apply mark to market with residential property is allowing the bad banks to have dangerous leverage ,the very thing that got us into this mess .
I'm convinced that these con jobs were designed to convince the public that the Paulson Plan was good and it was just a little mark to market problem .
I disagree Steely. In times of crisis the people look to leadership in government to help them. Unless, of course, we start living a Mad Max anarchy.
No, when enough people are feeling the pain, they'll elect populists who will punish the holy shit out of the rich and corporate.
Anonymous said...
"...legislation that at all costs avoids any attempt to place a reality-based value on this bad debt..."
That is exactly what this whole charade hinges on.
We cannot allow the collateral to be examined because there is MASSIVE FRAUD contained in these pools.
Like all large Federal endeavors, this one seeks to obfuscate the truth, protect the guilty, and hand the bill to us.
"...some versions of these instruments are imaginary derivatives. These claims overlap on the same types of mortgages. Many financial institutions wrote claims over the same mortgages..."
September 30, 2008 7:43 PM
Yes, this is probably the real story. Electronic keystrokes. Negative money.
"Massive deleveraging."
They weren't "out to lunch" they were EATING OUR LUNCH!!!
I am so sick of the cliched photo of some pit trader, clutching his head like he's got a headache due to the meltdown. It's so easy for a lazy editor to place one of these alongside a story.
I've got news for you: traders get headaches in BULL markets, too. It's a noisy, crowded place, which will give you a headache even if you're making $$$
Keith said: "I just heard on BBC that the Case-Shiller is down 16.7% nationwide. Can't wait to see Phoenix, LA, Vegas and Miami."
..."Can't wait to see LA"...hmmm
Just google Tijuana and upload some pictures of that sh*thole...there you go, that's LA
WHERE'S DOOMSDAY PELOSI AND REID AND BARNEY FRANK?
DOW = 500 POINTS
CROOKS!
Jewish Holiday in Washington. Time to fleece the sheeple on Wall Street and pick taxpayer's pocket!
Shalom, puppets!
I have not heard one mention of the Amero..
Keith you have to look into this. I have a friend in Manhattan who worked for Merril Lynch...
He says this is a scheme to bring in the
Amero...They said when they are done Americans will be demanding it.
Please someone agree or disagree can we have a discussion regardint this?
cant even circle the wagons as the coppers made it illegal and finable..............
"DOW = 500 POINTS"?
Funny. By WSJ accounting, that's only "about half" of yesterday's losses.
-----
Dow Surges 485 On Rescue Hopes
Stocks recovered about half of Tuesday's massive losses as investors held out hope that a Wall Street bailout will be revived.
To the person that asked about the Amero - http://www.snopes.com/politics/business/amero.asp
I'd like to think Americans are not THAT stupid. Canadians have nothing to gain and Mexicans would have to look towards the poorer countries using the Euro to see how screwed they'd be.
This is only round-1, we have more fighting to do, but it definitely sends a message to our employees up on capital hill.
Anonymous said...
TO THE AMERICAN PEOPLE....
THANK YOU FOR FIGHTING BACK AND WINNING!!!
YOU MADE ME PROUD TO BE AN AMERICAN AGAIN!!
What we are seeing with the markets extreme highs and lows is a market ready to crash.
Back in Sept 1929 bankers rallied together buying stocks to show the public that the stock market was stable.
It worked for a short time, but when it didnt work anymore, that's when the market crashed in October.
Where do you think we are headed?
TO THE AMERICAN PEOPLE....
THANK YOU FOR FIGHTING BACK AND WINNING!!!
YOU MADE ME PROUD TO BE AN AMERICAN AGAIN!!
ME too lets keep it up!!!!!!!!!
"The United States is in a recession and facing the worst financial crisis in almost 80 years because the folks currently in charge were out to lunch"
Say "hello" to the Libertarian New World Order.
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