September 25, 2008

HousingPANIC Spooky But Kinda Realistic Quote of the Day

"The whole future of the American economy is in danger"

- John McCain, going all housing panic on us, September 25, 2008

53 comments:

Anonymous said...

I say let the Muther Burn......burn baby burn......

keith said...

At least this is all happening before the election.

I think the plan was to have it happen right after. Like the Iraq debacle, which didn't hit in its full fury until 2005.

History has a way though of dictating its own timeframe.

Anonymous said...

Senator Shelby "Can Not" Support Current Financial Rescue Plan
9/25/2008 4:57 PM ET
TOP MARKET NEWS

Senator Shelby "Can Not" Support Current Financial Rescue Plan

Highlighting some of the fissures in a proposed agreement to buy up troubled assets from Wall Street, the leading Republican on the Senate banking committee said Thursday he plans to oppose the deal.

In a statement released while Sen. Richard Shelby, R-Ala., was scheduled to be meeting at the White House to discuss federal intervention to shore up financial markets and credit liquidity, Shelby said the proposed solution is moving too quickly.

"We did not get into this situation in a matter of days, and we are not going to fix it in a matter of days," Shelby said.

He went on to oppose Treasury Secretary Henry Paulson's proposal to buy up to $700 billion of mortgage-backed securities and other "illiquid" assets - even after Congressional leaders from both parties had largely agreed on a framework of oversight and restrictions to approve the plan.

"Proponents of the Paulson plan are telling the American people we can solve this problem with a single bill," he said. "I don't believe that is credible."

Shelby went onto discuss a number of "interrelated problems" that he said required significant work.

Anonymous said...

News Alert : The public wants the same deal that Warren Buffet got with Golden Sachs . The cheerleaders
at Wall Street are objecting and now are saying that maybe this bill should be worked out over a longer period of time .

Anonymous said...

This is still a democracy isn't it? and Shelby is but one Senior Senator?

Who gives a crap?

He is up for election soon right?

Anonymous said...

Shelby ,a man of reason . Just objected on the news stating that 5 leading economist are saying the Paulson Plan will not work . The Bill passage Cheerleaders are going nuts .Shelby must carry a little weight .

Finally said...

KEITH,

Looks like people are setting up REAL protests to the bail out. Please read and post this.

Thanks


http://blog.wired.com/27bstroke6/2008/09/outrage-online.html

http://tinyurl.com/3vzuz5

http://preview.tinyurl.com/3vzuz5

Anonymous said...

http://www.marketwatch.com/news/story/letters-editor-bailout-un-american/story.aspx?guid=%7B7CEB61F6%2DE939%2D4D46%2D961C%2D4EBC2AB5965A%7D&dist=msr_9#comments

Please see this open letter. Draw traffic to it. Post it to your blog. If you dont want this bailout.

Thanks

Afterthought said...

Senator Shelby for President.

Anonymous said...

you know, I think we need to go through some pain on main street as well as wall street. Kind of like sometimes punishing the child hurts the parent too and teaches the parent to do things differently in the future.

Miss Goldbug said...

Afterthought said:"Senator Shelby for President."


Yes, I would vote for him in a second. Finally someone with their heard screwed on straight.

Miss Goldbug said...

Anon said:"News Alert : The public wants the same deal that Warren Buffet got with Golden Sachs . The cheerleaders
at Wall Street are objecting and now are saying that maybe this bill should be worked out over a longer period of time."



OMG, The greedy are turning on each other.

Miss Goldbug said...

Newt Gingrich doesnt is against it also.

He was on FOX last night - H&C.

Miss Goldbug said...

On mad money last night Cramer was demanding this bill be passed. Screaming like a child. Begging for the bailout.

I hope the networks yank his show off the air real soon, and throw him on the street.

It's all about greed.

Anonymous said...

Of course it is if people elect MCSAME!

Anonymous said...

Keefer agree they screwed up the timing.

tater said...

These squeamish Democrats and Republicans that are supporting this bailout bill, have a problem, Keith. They think that the best way out of this is to put us taxpayer's money on an experiment that NOONE knows will work or not. I don't want to put all that money at risk, just to get a bounce on Wall Street tickers.

Plus, I don't want to bail out bankers. It's simple as that. This Bailout Bill sucks, and offers no certain outcome. Does anyone reading this, know if this bill will work for certain? The answer is NO. IT'S AN EXPERIMENT!!

Ron Paul says it's a joke, and we are spending our grandkids money. I agree with Ron Paul
-LET IT BURN.

patrat said...

When the credit companies call for their money, and want it al now, just say sooorrrry - my money has to go to the 700B bailout first - get in line.

patrat said...

Is this the presidents's secret war on obesity? Most of us can probably make April! Does anyone want to buy my abroller?

JAWS said...

Hey, thanks for the links to Congress and the Senate on your 9/20 weblog. I've been so busy slamming emails down their throats, I have to get caught up with your other articles/comments.

I actually am seeing on TV that these representatives are using email hardcopies to quote their questions from. How comical.

Send them questions to ask Paulson. It seems they need the guidance.

The Option Arm explosion will be as expensive as the sub-prime, probably more, as we won't miss the sub-prime buyer but surely will miss the prime Alt-A's and Option Arm's, who won't be able to buy for years. Ouch!

This is actually a gas...emailing Congress and the Senate.

I think they actually need our help.

Frank@Scottsdale-Sucks.com said...

Here's the real reason we're in this mess - American voters ignore policy and vote based on appearance:

http://is.gd/38SK

Frank@Scottsdale-Sucks.com said...

Interesting words from Ron Paul today: It doesn't matter who wins the election because McCain and Obama both work for the same masters.

satan said...

The U.S. government has brokered a deal for J.P. Morgan to acquire the deposits and some branches of Washington Mutual, according to people familiar with the matter. The deal won't impact the FDIC insurance fund.

Anonymous said...

The people who brought this country to it's knees committed treason. Heads should roll.

Anonymous said...

We will cover the toxic crap, like insurance paying off, then buy it back at a higher rate, and be told what a good deal we got. Because now, we can borrow again - for those car loans, house loans and all the other crap they are talking about. A chicken in every pot again!

Anonymous said...

well mccain won't debate obama (not prepared i think), anyway didn't bush sound the same way when he said iraq had weapons of mass destruction. perhaps he's lying again and then again maybe he is not...
only another republican can tell i am democrat and i think all republicans lie. at least if a democrat lies it doesn't cost 700 billion dollars.

Anonymous said...

Washington Mutual trading at 0.86 after hours. Down 50%.

Man, that pig is just about done. It'll take FDIC with it and then we'll see real pandamonium.

This is financial terrorism.

Anonymous said...

"The whole future of the American economy is in danger"




and john mccain/congress/obama will save us.

God help us.

Agent 99 said...

Well, they better get this mess cleaned up before all those third quarter statements are opened. Heads will be exploding all over the place.

Anonymous said...

Ben Stein uses a good analogy for the Credit Default Swaps to explain the Financial Crisis that he now admits he misunderstood.

The amount of subprime that defaulted was at most - after recovery in liquidation - about $250 billion. A huge sum but not enough to torpedo the US economy.

The crisis occurred (to greatly oversimplify) because the financial system allowed entities to place bets on whether or not those mortgages would ever be paid.

You didn't have to own a mortgage to make the bets. These bets, called Credit Default Swaps, are complex. But in a nutshell, they allow someone to profit immensely - staggeringly - if large numbers of subprime mortgages are not paid off and go into default.

The profit can be wildly out of proportion to the real amount of defaults, because speculators can push down the price of instruments tied to the subprime mortgages far beyond what the real rates of loss have been.

As I said, the profits here can be beyond imagining. (In fact, they can be so large that one might well wonder if the whole subprime fiasco was not set up just to allow speculators to profit wildly on its collapse...)

These Credit Default Swaps have been written (as insurance is written) as private contracts. There is nil government regulation of them. Who writes these policies? Banks. Investment banks. Insurance companies.

They now owe the buyers of these Credit Default Swaps on junk mortgage debt trillions of dollars. It is this liability that is the bottomless pit of liability for the financial institutions of America.

Because these giant financial companies never dreamed that the subprime mortgage securities could fall as far as they did, they did not enter a potential liability for these CDS policies anywhere near their true liability - which again, is virtually bottomless. They do not have a countervailing asset to pay off the liability.

This is what your humble servant, moi, missed. This is what all of the big investment banks and banks and insurance companies missed. This is what the federal government totally and utterly missed.

This is what the truly brilliant speculators in these instruments did not miss. They could insure a liability they could also create and control.

It is as if they could insure a Cadillac for its value upon theft - but they could control what the value the insurer had to pay off was. The insurer thought it might be fifty thousand dollars - but it was manipulated into being two million.

http://finance.yahoo.com/
expert/article/yourlife/109609

Anonymous said...

To the occasional hot shot that writes in with the HA HA HA's about how you made out like a bandit and are livin' high on the HELOC, just want to tell you - I am the renter next to you, paying for your fun. You had better buy a gun, guy.

Anonymous said...

as an exercise before the vote is taken, who is up for election next time. Did they vote yea or nea. (would people remember or not within the time frame) The cynical side of me says that those up for re-election vote/act tougher than those not up for re-election.

getyourselfconnected said...

After I had thought about the Michael Douglas funny tidbit at the UN, it got me thinking about a "Wall Street" film sequel idea. Yes, I would love to write a movie script!

Here goes:
After doing jail time for his offences in "Wall Street", Gordon Gekko is released and after some initial resistance to backing him, he finds financial backing at the dawn of the Nasdaq Tech boom. Gekko becomes a master of the classic "pump and dump" tech IPO mania and makes billions. His ego gets him into trouble during the big crash, and at the films end he is broke and dejected.

Last scene: Gekko is working as a bank clerk (circa year 2002) when he is approached by upper management. They ask Gekko "What do you think about the possibility of more aggressive mortgage lending?" Gekko's eyes light up as he sees his way back to success. Film ends with headlines and film form today's debacle.

I think it would be a hit! Plus it would elucidate all the silly excess that was the tech boom/bust and the current real estate meltdown.

What do you think?

Anonymous said...

Suddenly, Wamu fails. nobody saw that one coming...

sandman said...

Keith,

Love the blog. It's great. Your comments are superb

I will say if McCain derails this thing - and gets some real folks to help put America back, he's got my vote - HANDS down.

As far as I can see your Obama mama ain't done sh--.

With all due respect sir.

VP said...

http://money.cnn.com/2008/09/25/news/companies/JPM_WaMu/index.htm

NEWSFLASH! WaMu acquired by Chase! The WaMu death watch is over!

Keith, just after you decided to shutdown the blog, things started to unwind!

Anonymous said...

You guys calm down . This was not a emergency . Paulson and the Feds can inject liquidity at any time into the system to make it function . This was more of a issue of people screaming because their credit card limits are being cut back and people have to qualify for loans now and Wall Street wanted to pass on the losses to taxpayers . Big deal . When you pass a Bill this big you can't rush it .This process of debate is exactly what you want in the Senate and Congress .

If the Politicians really think that it might cost them their job if they pass a Bad Bill ,than they might really give some thought to what they are doing .

I'm not saying that there isn't some really bad problems that aren't facing Americans and the World ,but good decisions at historical points can make it a shorter recession verses a
long drawn out Depression .

One thing that came out of this emergency ploy from the dream team is that the truth that they have been hiding is now out and in the open .This scare in large part was designed to take the heat off the parties of blame in this big Housing Bubble .

I don't know if they will draft a good Bill ,or not ,but it can't hurt that it isn't going to be rushed through without some thought .

Anonymous said...

WaMu has failed!
http://biz.yahoo.com/ap/080925/washington_mutual_future.html
NEW YORK (AP) -- JPMorgan Chase & Co. Inc. came to the rescue of Washington Mutual Inc. Thursday, buying the thrift's banking assets after WaMu was seized by the Federal Deposit Insurance Corp. in the largest failure ever of a U.S. bank. This is the second time in six months that JPMorgan Chase has taken over a major financial institution crippled by bad bets in the mortgage market.

Anonymous said...

=
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=WaMu HAS FAILED!!!
NEW YORK (AP) -- JPMorgan Chase & Co. Inc. came to the rescue of Washington Mutual Inc. Thursday, buying the thrift's banking assets after WaMu was seized by the Federal Deposit Insurance Corp. in the largest failure ever of a U.S. bank. This is the second time in six months that JPMorgan Chase has taken over a major financial institution crippled by bad bets in the mortgage market.
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http://biz.yahoo.com/ap/080925/washington_mutual_future.html

patrat said...

Keith,
I never dared blog until I discovered this one. This is intelligent! Your posts lead into all kinds of discussion and it is not junk. This is actually a record of this whole debacle. I hope that you publish it one of these days. Thanks for giving us all the opportunity to be a part of it.

Anonymous said...

Ron Paul says

"The two major party candidates for president themselves initially indicated their strong support for bailouts of this kind – another example of the big choice we’re supposedly presented with this November: yes or yes. Now, with a backlash brewing, they’re not quite sure what their views are. A sad display, really."

http://tinyurl.com/4tvqey

hp fan said...

"The whole future of the American economy is in danger"

Yeah... It's danger if that senile old geezer gets elected like the economy was in danger when Hoover got elected.

Obama is clearly the best Hope at rebuilding this nation after the carnage and destruction brought upon it by Bush and the Neocons.

Anonymous said...

Rich own the financial system. Make them pay for bailout with surtax on wealthy. If they won't go along, it proves the crisis is just an attempted heist of Joe Sixpack.

k.w. - Southern Ca. said...

Pain to some degree is inevitable.

The house party raged on for several years, and now we're left to deal with a really long hang over.


Anonymous said...
you know, I think we need to go through some pain on main street as well as wall street. Kind of like sometimes punishing the child hurts the parent too and teaches the parent to do things differently in the future.

Anonymous said...

Hey here's a thought - no more Texans!

Anonymous said...

Oops,I mean no more Good Ole Texans.

Anonymous said...

URGENT MESSAGE....

ON OCT.7, PRESIDENT BUSH TO DECLARE "A STATE OF NATIONAL ECONOMIC EMERGENCY."

WILL DECLARE "NATIONAL BANK HOLIDAY AND SUSPEND TRADING ON ALL US STOCK,COMMODITY,BOND,AND CURRENCY MARKETS."

WILL SUSPEND CONSTITUTION,DECLARE MARTIAL LAW,AND SUSPEND NOVEMBER PRESIDENTIAL ELECTION INDEFINITELY.

BUSH'S MEETING WITH OBAMA AND MCCAIN LAST TUESDAY WAS TO INFORM THEM OF THE ABOVE.(Why do you think McCain suspended his campaign the following day?)

WILL ENACT "REX-84"(Google it!)

US TREASURY TO DECLARE 'FORCE MAJEURE'ON FEDERAL DEBT AND ENACT '6900 SERIES' (Google Al Martin Raw US Treasury 6900 Series

US ARMED FORCES TO BE PLACED ON 'DEFCON LEVEL 3 ALERT'

{I have relatives in the Reserves who have been told to report to duty on Oct. 4 and a friend who has a cousin who works for Blackwater who was told to be prepared for deployment on Oct.3)

MAY GOLD BLESS AND PROTECT ALL OF
YOU.

REMEMBER REMEMBER OCTOBER THE 7TH!!

Google whatdoesitmean.com

Google urbansurvival.com]

Google and YouTube search 'secret meeting of the Congress'(Remember that secret session of the Congress that took place last March? Take a wild guess as to what the topic was about!!)

Anonymous said...

Credit Default Swaps have been written (as insurance is written) as private contracts.

One thing to remember is that for a while many banks, investment banks, and insurance companies believed that hedge funds and speculators were not so brilliant and in fact foolish to purchase their Credit Default Swaps.

As long as hedge funds and speculators were willing to pay the banks, investment banks, and insurance companies for these credit default swaps which at the time was a sure thing not to fail then the banks, investment banks, and insurance companies were more then willing to write as many of these contracts as the hedge funds and speculators were willing to handle.

After all, weren't some of the hedge funds and speculators money re-invested into the MBS pool to make up for the occasional home foreclosure making these MBS package almost fail proof or AAA.

Now let take a look at the example of the that the Cadillac that was insured for value upon theft - but because the chances of theft was almost impossible because the Cadillac had every security devices on the market the insurance company said they were will to write you a two million dollar contract instead of a fifty thousand dollar contract for an abnormal fee like ten thousand a year.

Let say you paid fifty thousand dollar for about five years and on the fifth year your Cadillac got stolen. Does the insurance company need to honor your two million dollar contract.

Let say that because the insurance company made so much profit from you the first year they decided to write more of these contracts for other.

But suppose on the third years many insurance companies did the same thing and many of these Cadillacs got stolen on the fifth year. Do these insurance companies need to honor all those new two million dollar contracts.

What if Paulson and Bernanke came in with a bailout program and said to you thanks for buying the insurance policy, but if the insurance companies have to honor your two million dollar policies then the insurance will have no money left for a real emergency for the year.

Then Paulson and Bernanke say to you that they will pay off the car loans and provide you with the blue book value of your Cadillac if you accept their offer.

Do you have a legal case against the insurance companies if you did not accept Paulson and Bernanke offer.

If these two million dollar Cadillacs insurance policies represented Credit Default Swaps will these banks, investment banks, and insurance companies have any CREDIT WORTHINESS left after taking the hedge funds and speculators money for all those years and decided that they no longer want to honor their end of the contracts.

As we all know now that the real credit crisis is not the physical subprime loans but the value in the contracts for the Derivative Market behind the subprime loans then how can Paulson and Bernanke be so sure that hedge funds and speculators will take 700 billion dollars bailout instead of the face value to the 600 trillion dollar Derivative Market.

Anonymous said...

.


from Urgent message 5:23am



You Dumb C**KSUCKERS tried that same bulls**T during the last election

Bush to declare Martial law!

You even tried to bring up that if Bush is elected there will be a draft... didn't happen

Nice try

urbansurvival.brainless!


.

Anonymous said...

Dump your gold boys n girls,

will be made almost worthless very soon!

George L said...

Anonymous said...

URGENT MESSAGE....


WILL SUSPEND THE CONSTITUTION,DECLARE MARTIAL LAW,AND SUSPEND NOVEMBER PRESIDENTIAL ELECTION INDEFINITELY.

BUSH'S MEETING WITH OBAMA AND MCCAIN LAST TUESDAY WAS TO INFORM THEM OF THE ABOVE.(Why do you think McCain suspended his campaign the following day?)

WILL ENACT "REX-84"(Google it!)

let me debunk this one please.
meeting was Thursday not Tuesday
McCain "suspended" his campaign a day before the meeting.

why don't you ENACT your brain instead of suspending its use,moron...

Anonymous said...

TO GEORGE FROM URGENT MESSAGE

I hope you are on the FEMA 'Red List'(First to be rounded up and sent to a FEMA concentration camp!)

I hope you are foreclosed upon!

I ENACT that you can KISS MY *&#@!

Whether McCain's meeting was on tuesday or thursday...DOES'NT MATTER!!

Or in the words of my hero VP Cheney,"Deficits don't matter" just like your brain deficit!!

Anonymous said...

ouch!