Bits Bucket for December 1, 2011
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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The Fed as Savior: How the Latest Program Works
Written By Dunstan Prial
Published November 30, 2011
FOXBusiness
Countries are no different than big companies in many respects. For one thing, they both need to borrow money on a daily basis to cover the costs of the services they provide.
If they can’t borrow that money — either because lenders are too afraid to make loans or because the cost of borrowing becomes too expensive — then companies and countries alike are forced to shut down.
The ability to borrow is referred to as liquidity, and liquidity was drying up in late 2008 when credit markets froze at the outset of the recent financial crisis. Now it’s happening again in Europe.
Think of liquidity as the oil that keeps the engine running. Without liquidity, the engine seizes.
In a broad and concerted effort to inject liquidity back into European financial markets, the U.S. Federal Reserve on Wednesday joined with other major central banks to make it cheaper and easier for European countries to borrow U.S. dollars. A similar effort, virtually unprecedented at the time, helped ward off a collapse of global financial markets in 2008.
Stock markets cheered the announcement. The Dow Jones Industrial average soared 420 points on optimism that the global lending program will help relieve the long-running European debt crisis and perhaps ward off another European recession.
“It’s having access to credit, that’s the key,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “This coordinated move, it signals that central banks are getting pretty worried” about liquidity drying up in Europe.
“The key factor is that with massive liquidity hitting the financial system in Europe, the fears of a severe recession in Europe lessen and the fears of global recession dissipate,” Cardillo explained.
…
I found this e-mail that was sent to the Fed and other major central banks last weekend about the precarious state of the European Union.
Oh yeah, I´ll tell you something
I think you’ll understand
When I say that something
I need a work out plan
I need a work out plan
I need a work out plan
Oh, please, say to me
You’ll lend a helping hand
and please, say to me
I’ll let get a work out plan
I need a work out pla-a-a-an
I wanna work out plan
And when I borrow i feel happy, inside
It’s such a feeling
That my debt
I can hide
I can hide
I can hide
Yeah you, got that something
I think you’ll understand
When I say that something
I wanna work out plan
I wanna work out plan
I wanna work out plan
And if you loan me I`ll feel happy, inside
It’s such a feeling
That my debt
I can hide
I can hide
I can hide
Yeah my, engine`s seizing
I think you’ll understand
When I say that something
I need a work out plan
I need a work out plan
I need a work out plan
I need a work out pla-a-a-a-a-a-an
The pigmen get to borrow at 0.0%, pay 0.1% on savings, and the serfs will get to pay $5/gallon for volatile energy, what’s not to love?
pigmen get to borrow at 0.0%, pay 0.1% on savings, and the serfs will get to pay $5/gallon
a.m. Clarity w/o coffee is like…
Interesting article on how it’s actually done:
It’s worth taking a moment to see what actually happens with these swap facilities because they can create the illusion we’re sending boatloads of dollars overseas and the ECB is sending us boatloads full of euros.
Would-be pirates will be disappointed that no currency flotillas cross back and forth on the Atlantic.
What really takes place, for the most part, is down on Maiden Lane in Manhattan’s financial district. That’s where the headquarters of the Federal Reserve Bank of New York is located.
More
http://www.cnbc.com/id/45492655
The Fed’s PR machine is in full motion. Pardon me if I seem uninterested.
End the Fed.
So did they let Corzine hang out to dry, or was this like Lehman.. let em go broke and see what happens, and they didn’t like the results?
I think MF Global stole their clients money.
Even Wall Street seems hesitant to do that.
Never mind all the liquidity BS. THIS is what needs to be fixed:
For one thing, they both need to borrow money on a daily basis to cover the costs of the services they provide.
Since when does a company “need” to borrow money on a daily basis? Aren’t they making billions in profit? They can’t have a 30-60 day slush fund of expenses?
Where do they get off telling ME that I need to have 3-6 months of expenses in the bank as cash (which banks earn more interest on than I do), while they go to the check-cash window at the FED every dang night?
That’s because you and I are “little people”.
There was a commercial for a new sci fi movie where the rich can afford to be immortal and J6P obviously cannot.
This has to be the 1%ers ultimate wet dream.
You know it.
Oh, and it’s not sci fi for much longer.
Now do you get it? (figure of speech “you”)
Because a corporation is a logical construct and you are an actual physical thing. An individual.
I’ve known people who try to run their personal finances like a corporation runs its finances. What they forget is that if a corporation goes bankrupt, the individuals behind it can walk away with their fortunes unscathed. If the individual goes bankrupt, it is an actual person losing money.
Not unless you have incorporated yourself.
That’s how the rich do it.
+1, oxide. That’s what sticks out about stories like this for me too. I remember years ago when I first heard some commentator on the telly suggesting (and I paraphrase) that lack of lending was bad because many businesses would not be able to make payroll. I think I about spit my IPA across the room. What business do they have hiring people if there isn’t sufficient demand for their products to provide INCOME and, hence, payroll?
I think I about spit my IPA across the room. What business do they have hiring people if there isn’t sufficient demand for their products to provide INCOME and, hence, payroll?
Whoa, there, sleepless. Gotta hold on to those IPAs.
But I do agree with you on having the income to pay people. I mean, come on. If you’re self-employed, you need to have enough income in order to pay yourself. You can’t borrow money to do it — you’d be laughed right out of the bank.
Tell me about it! I fancy myself something of an IPA-bug. It’s akin to…aladinsane spitting gold coins into a mob of peasants.
Maybe I’m old-fashioned. I always thought you built up reputation, clients, assets…THEN hired more people. Just more, gotta-have-it now, I guess. In fact, I know a few “self-employed” folks who probably NEED to hire but refuse to do it.
I always thought you built up reputation, clients, assets…THEN hired more people.
Hmmm, that sounds a lot like what I was taught.
“Countries are no different than big companies in many respects. For one thing, they both need to borrow money on a daily basis to cover the costs of the services they provide.”
which is fine…but in the olden days…the company would pay it back.
Repurposing the word “liquidity”. It used to mean having saved assets that can be converted to cash quickly. Functioning completely on credit is more like insolvency.
I think you have best summarized the Crux of the situation. Failing to be able to get a loan when you have a hugely negative balance sheet is normal business. Bernanke the Buffoon thinks when banks refuse to loan money to insolvent businesses that this is a “liquidity problem” and so his answer to every contraction is massive printing.
He is an imbecile and should be stopped. What he has been doing is not part and parcel of the FED Charter and he is making up his own rules. The FED is “independent” only in so far as it follows the intent of its original mandate which is to BUY Treasury bonds and government debt. (US govt. debt). It does not have the authority to buy any bad assets it wants and hold them off the balance sheets of member banks and buy foreign bank debt. The CONGRESS should call him to account and intervene.
The markets love cheap money. It means prices will rise. So , buy, buy, buy.
Capitalism is about PROFIT and LOSS. When businesses fail, it is not the job of the FED to pick winners and losers and “save” bad companies and banks. This continual “kicking the can down the road” will end badly. All loans, are, after all, loans. People expect them to be paid back. When you give more credit to unworthy borrowers, you usually make the debts even more onerous. The end result is DEFAULT. The default is now even larger and the percentage of loss even higher from throwing good money after bad (if we can even trust that any of it is good).
Bernanke seems to believe he can pump enough money into the markets to get a good inflation going. The rise in prices will allow him to off-load the bad loans they currently hold without huge losses. He is wrong. The money will not flow back into real estate, but into commodities, creating another bubble and another crash and the bad debts will still be defaulted.
He is a fool, with no business sense and a book-learned, ivory-tower, myopic view of the world. He needs to be stopped now.
Depressions clear the markets of bad business decisions. More lending keeps bad businesses in business to make further bad business investments.
Remember, there was no “housing bubble”, so they continued to lend and builders continued to build. Where did that get us??
It’s almost like something out of Atlas Shrugged - the healthy companies are getting penalized and the unhealthy companies are getting propped up. The good players are getting crowded out of the market…
That’s how psychopathic liars and cheaters work.
They expend every effort to destroy those who are better than they instead of trying do better themselves.
Bernanke’s strategy does nothing to address the underlying solvency problem while at the same time punishing savers and creating a higher cost of living. Of course, that nose-on-your-face conclusion gets minimal news coverage.
I didn’t post here over the Thanksgiving holiday, but see that one of the topics was what, if anything, to say over the dinner table. I visited some relatives who live in a deep South city in a distant exurb cut off from thought. I was described as being “a little strange sometimes.” Needless to say, housing was not discussed.
“…in a distant exurb cut off from thought…..”
That’s plain lovely.
my favorite repurposing is “hedge fund”.
Think of liquidity as the oil that keeps the engine running. Without liquidity, the engine seizes.
But if the real problem is insolvency, additional injections of liquidity won’t help.
Prof:
And where does that oily liquidity come from? Is it created out of nothingness without form or void? Is it predicated on the productivity of those who labor in the oil fields in its name?
Or is it merely a construct willed into reality by a group of clever men with numbers where their hearts might once have been?
Little old ladies on fixed incomes want to know….
I’ll go for both A and C.
Central banks spur Asian shares to two-week high
Thu Dec 1, 2011 2:07am EST
By Chikako Mogi
TOKYO (Reuters) - Asian shares rallied to two-week highs on Thursday, building on strong global gains after the world’s six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding.
Financial spreadbetters expect the leading European benchmark indexes to rise on Thursday, extending a sharp four-session rally on increased risk appetite following the central bank joint action.
The U.S. Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said on Wednesday they would lower the cost of existing dollar swap lines by 50 basis points from December 5, and arrange bilateral swaps to provide liquidity for other currencies.
MSCI’s broadest index of Asia Pacific shares outside Japan jumped 4.4 percent to its highest since mid-November, rising above a 25-day moving average, after U.S. stocks soared 4 percent on Wednesday.
Japan’s Nikkei also surged well above its 25-day moving average, closing up 1.9 percent.
Chinese shares outperformed, with the Hang Seng Index surging close to 6 percent after Beijing cut the reserve requirement ratio for commercial lenders on Wednesday for the first time in three years, signaling a policy shift as global weakness weighs on China’s economy.
“It’s clearly a risk-on day given everything that happened overnight,” said Su-Lin Ong, senior economist at RBC Capital Markets.
…
The Fed saved Wall Street’s Bacon today.
ECONOMY
DECEMBER 1, 2011
Wall Street Pushed Federal Reserve for Europe Action
By SUSAN PULLIAM
Wall Street executives, in a private meeting with a top Federal Reserve official in late September, recommended a coordinated effort by central banks to remedy the European financial crisis, according to Fed documents received in an open-records request.
The meeting, led by Louis Bacon, founder of hedge fund Moore Capital Management, preceded a joint action Wednesday by the world’s major central banks, which banded together to provide liquidity to the markets through cheap U.S. dollar loans.
Wednesday’s moves involved central-bank coordination to lend to European banks, and it couldn’t be determined what precisely prompted the Fed and the other central bankers to act. In the September meeting, the Wall Street executives suggested a different kind of coordination by central banks—boosting the global economy by buying securities or through other methods of injecting liquidity. Coordinated lending to European banks wasn’t among their suggestions.
But analysts say Wednesday’s broad stock-market rally was partly fueled by investors’ expectations that central banks will do more to ease the crisis, such as the kind of central-bank coordination recommended by the members at the September meeting.
Mr. Bacon is one of 12 Wall Street members of a 14-member Fed panel, the Investor Advisory Committee on Financial Markets, set up in the wake of the financial crisis to give New York Federal Reserve Bank President William Dudley a pipeline into investors’ thinking.
The Sept. 27 meeting with Mr. Dudley exemplifies the private meetings some Wall Street investors have with top Fed officials, in which they can gain access to potential early clues about Fed actions. Hedge funds have been pushing to get more information about the inner workings of the Fed, according to people familiar with the situation, as detailed in a Wall Street Journal page-one article Nov. 23.
The Fed’s meetings with investors present a delicate situation for U.S. officials. They must balance the need for information from investors about the markets against the Fed’s internal policy discouraging employees from arranging meetings with investors that would confer a commercial advantage.
The Fed’s Mr. Dudley declined to comment. In a statement, Mr. Bacon defended the meetings, saying, “The Fed and Treasury canvass market opinions extensively through a variety of private-sector committees, contacts and trading desks in their task to fund the nation’s exploding debt load, stabilize markets and optimize economic outcomes.”
…
Damn unions!
Oh wait…
Insider Trading. Gee, that’s illegal. But, if your one of the special hedge fund friends of the FED, you get to meet with the Treasury Secretary and Fed officials for an advance notice of the next moves.
People at Joe’s Bake Shop and Mortgage Loans, Inc. don’t get to find out until after all the trades have been made and the news makes the papers.
America: Land of the Fee, Home of the Knave.
…and the sheeple are nervous.
REVIEW & OUTLOOK
DECEMBER 1, 2011
Betting on Central Banks
A short-term liquidity reprieve is not the end of Europe’s mess.
Investors threw a party yesterday, lifting U.S. stocks nearly 500 points on the Dow after the world’s main central banks joined to provide dollar liquidity to struggling banks. This makes sense to prevent intrabank markets from seizing up, but no one should think it solves Europe’s larger problems of fiscal solvency.
…
Yeah, so? That just means that there will be a 500 point drop in the next six months. Golden Sacks has the HFT short programs already written and ready and compile.
It could happen before the end of the month. The next shoe to drop is Spain.
Also, the strikes are starting in the UK.
EU bails out its nation states, US bails out its investment banks. What does this tell us about the structure of American democracy? Anyone?
I thought Europe (and us) were bailing out their investment banks right now?
Was referring more to the way it’s being reported in the American press. It’s all the same people, actually….
If I’m remembering right, in ‘08 when they were reporting our initial bailouts to us, they were trying to make it appear that we were bailing out someone other than the investment banks.
This is not my original idea, but the overall message is that money is a political instrument. It is created and given to some actors but not others, and it is devalued to serve some actors but not others. And the message about democracy is that it has passed its time. I don’t believe that, but the people who matter do.
Genius is a rising market.
Economic reports, central banks’ actions fuel huge stock rally
The Dow rises 490 points after strong economic snapshots point to healthy job creation and more robust business activity in the U.S. Actions taken by the Federal Reserve and other central banks to address the Eurozone crisis lessen concerns about a financial system meltdown.
…
Actually, the value of stocks didn’t go up. The value of dollars they are priced in went down.
Unless there were announcements of increasing dividends funded by free cash flow in excess of all required reinvestment in firms that I didn’t hear about.
Certainly CPI-U seems to be a bad measure of inflation to use when pricing financial assets. ISTM that over the last 30 years an ever larger percentage of the money supply has been bidding up the prices for financial assets rather than consumer consumption. So what would be a good measure of financial asset inflation, so we don’t confuse price rises with improving economic outlook? After all, when the price of a stock goes up, you’re just paying more for future dividends.
Bingo. And that just makes stocks a worse deal.
Which is why all the hooey about putting the majority of your 401k eggs into stocks is just that, hooey.
Which is why all the hooey about putting the majority of your 401k eggs into stocks is just that, hooey.”
maybe not read this
http://seekingalpha.com/article/310920-today-s-economy-is-the-antithesis-of-the-great-depression-invest-accordingly?source=yahoo
As financial markets continue to experience extreme volatility, many commentators are making new comparisons between the equity markets of today and those of the Great Depression. With those comparisons come predictions that equity markets will experience a crash in which they will lose as much as 90% of their current value. Based upon these predictions, readers are encouraged to exit equity markets and, instead, hold their capital in cash or sovereign debt instruments, which were safe havens during the Depression. While anything is possible, such comparisons and predictions don’t comport with differences between today’s economy and the economy of the Depression era.
At the time of the Great Depression, governments of the world weren’t burdened with the vast debt that burdens them today. Therefore, during the Depression, cash and sovereign debt were true safe havens. Cash and bonds were made even more attractive by the Federal Reserve, which reduced the supply of money in the economy by 25%. This resulted in a deflationary environment and lower interest rates. At that time, cash and bonds were great investments. You could put your cash under the mattress and, with each passing day, it became more valuable. Bonds were even better. You could buy a bond, collect interest until maturity and then be repaid in dollars worth more than the ones used to purchase the bonds in the first place.
Of course, such deflationary pressures have significant economic ramifications, not the least of which is the hoarding of cash. Capital, that should be invested in businesses and other productive economic activities, is instead held in cash or bonds. Therefore, in addition to the reduction in the money supply, there was an equally devastating reduction in the velocity of money in the economy during the Depression. And that is precisely what caused the Great Depression. Certainly, Milton Friedman explains it far better than I can ever do, but my crude illustration provides the more important points of his monetarist ideas.
Today, we live in an economy that represents the polar opposite of the Great Depression. When the Panic of 2008 occurred, our government was already saddled with unprecedented levels of debt. Yet, the government was forced to assume the debts of the largest financial institutions in order to avoid a complete collapse of our financial system. While politicians pass the blame for the crisis to Wall Street and Greedy Bankers, nothing could be further from the truth.
In reality, the problem was created by the monetary policy of the Federal Reserve and the fiscal and political policies of the Federal Government. By maintaining artificially low interest rates for decades, the Federal Reserve believed the business cycle had been eradicated and an environment, where everyone could buy anything they wanted on credit, had replaced it. Meanwhile, the Federal Government was busy adopting policies that only Karl Marx could endorse. They created agencies, like Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), to assure everyone could own a home they couldn’t afford and every student could study any subject they chose regardless of whether the investment, in their chosen field, could ever be justified by the market after they graduated.
Accordingly, since 2008, the debt the government incurred during the Panic has increased exponentially as the government is forced to make good on mortgages and student loans, which it guaranteed during the boom years. As a result, much of the private debt that existed in 2008 has been converted to public debt. In addition, the Federal Government continues to run a budget deficit of nearly 2 trillion dollars per year as it attempts to maintain the programs and promises it made to its citizens over the past 80 years. These factors have driven the public sector to a point where its debt is no longer sustainable.
The private sector, by comparison, has fared quite well since 2008. It has, of course, benefited from the transformation of private debt into public debt. Even more, most companies have taken additional steps to reduce costs and strengthen their balance sheets. This has lead to an increase in corporate profits despite an economy that refuses to produce new jobs. So, when we compare the relative strengths of the private and public sectors of today to those of the Great Depression, we see that the real risk today exists in the public sector while the risk during the Depression came from the private sector. For these reasons, today’s economy represents the perfect antithesis of the Great Depression.
While everyone is expecting equity markets to crash in a Depression-like manner, simple common sense dictates that based on the amount of debt held in the public sector, it is far more likely that any crash will occur in the currency and bond markets. In addition to the fundamental weakness of the public sector, the bond market is also extremely overbought and is in a bubble, which may prove to be the bubble of all bubbles. Such a combination of fundamental and technical weakness makes it highly likely that the demise of the currency and bond markets could occur just as quickly as the stock market crash of 1929 or the real estate meltdown of 2008. If that happens, all people seeking safety in Great Depression era investments will be devastated.
The probability of a crash, in bond and currency markets, becomes even more pronounced when we analyze how governments are dealing with the debt crisis. Instead of balancing their budgets through reductions in spending, they continue to spend far more than their revenues. In turn, central banks expand their balance sheet and purchase government bonds on the open market to finance the shortfall. Accordingly, the problems underlying the sovereign debt crisis are not getting better but are instead continuing to worsen.
History tells us that when nations are confronted with the amount of debt currently maintained by developed countries, they resolve the problem by monetizing the debt. While quantitative easing represents the first phase of monetization, eventually the Federal Reserve will simply buy bonds that the government will never repay. This is inevitable as there is no other way out of this crisis.
Everyone knows that massive debt monetization results in inflation. And the first sign of additional quantitative easing, or increasing inflation rates, may provide the catalyst for a mass exodus of investors from bond markets. Then again, it could be brought on by the collapse of the Eurozone, a default by any member thereof or some other debt ridden sovereign entity that hasn’t yet come to the attention of investors. While timing is always an issue, there can be no doubt that these markets will eventually come crashing down.
If the current economy represents the antithesis of the Great Depression, our investment strategy should also be 180 degrees different from a prudent Depression era strategy. Rather than investing in the public sector, which provided safety during the Depression, we should invest in the private sector. In short, anything related to the government should be avoided.
As inflation accelerates, everything denominated in dollars will increase in value including equities, real estate and commodities. And that is precisely where we should put our money. As for equities, we need to focus on large cap, blue chip stocks with international exposure, a pristine balance sheet and a business model that has no reliance on government contracts or spending. Adding a healthy dividend makes it all the better.
According to these criteria, I find the following stock appealing: Procter & Gamble (PG) 3.44% yield, Wal-Mart (WMT) 2.57 yield, Arch Coal (ACI) 3.05% yield, Apache (APA) 0.65% yield, Exxon (XOM) 2.47% yield, Caterpillar (CAT) 2.04% yield, John Deere (DE) 2.28% yield, Gold ETF (GLD), 3M (MMM) 2.83% dividend yield, Silver ETF (SLV), Abbott (ABT) 3.64% yield, Lab Corp (LH), Apple (AAPL), Cisco (CSCO) 1.34% yield, International Business Machine (IBM) 1.65% yield, Intel (INTC) 3.61% yield, Hewlett Packard (HPQ) 1.8% yield, Google (GOOG), AT&T (T) 6.13% yield, Verizon (VZ) 5.53% yield.
Disclosure: I am long APA, XOM, CAT, DE, GLD, MMM, ABT, AAPL, CSCO, IBM, INTC, GOOG.
As combotechie likes to say, “Suck ‘em in, shake ‘em out”.
Right on, Palmy.
Churn ‘em and burn ‘em. And the suckers never seem to catch on.
It’s not that the old ones don’t learn, or at least lose enough that they can no longer ante up. The game is to keep new suckers coming in.
More jobs are created, but UE rose.
Business is brisk yet sales are stalling.
Am I missing something here? Besides the smoke being blown up my bum?
I had my first HBB nightmare last night. I was running through a burned out movie theater when Ben stopped me and kindly introduced himself. “I’m glad you made it!” he said. Then he screamed, “$uckin’ zombies!” and shot one in the face.
The zombies had little badges on their shirts. I couldn’t read them, but I was sure they read Time2Buy!
I ran outside and saw CIBT breathing fire like a dragon onto a row of empty shopping carts.
Then I woke up.
I have no idea what has changed in the last week, but I made a mental note that my first armageddon/HBB/zombie nightmare occurred in 2011.
So, making an offer on a debt box soon?
Hell naw, we’re renters for life (but my wife doesn’t now yet)!
Mines was more pastoral:
By P.D. Eastman
Seller dog: “Do you like the price of my $tucco?”
Buyer dog: “No, no eyes do not like the price of your $tucco!”
Seller dog: “Well, goodbye then!”
Buyer dog:“Good-bye!”
From “buy dogs buy” I guess.
Last night, I dreamed that I was explaining the Housing bubble to George Bush senior outside of an “occupy” protest in Baltimore. Of course being a dream, I was intelligent and persuasive.
I’ve had dreams like my family is on the run. We look for help but it’s hard to know who to trust. No one around us seems to see the danger except us. I am looking for other hbbers. As we look behind us there’s this oncoming darkness, like something out of a Cecil B. DeMille movie. It’s gaining on us ready to overtake us despite all our precautions. Then I wake up and realize it’s only allegory and waking up offers no real escape.
If you ever visit sub-Saharan Africa, and anti-malaria pill you take will give you dreams like that.
For me it is this new foam mattress (no, not THAT one. One of the knock-offs of that one). OMFG, I haven’t remembered having a dream in ages. Now, every night I’m having vivid, colorful, completely nonsensical stories played out in front of me. I’m thinking more comfort = more REM sleep?
From the time I moved out until today I have been the proud
owner of a California King waterbed. Ages 18 thru 59.
Lucid dreamer always, with moderate degree of control.
I have been to amazing places I haven’t been to.
Without drugs.
Blame it non the bed or the brain?? -
“But the overhauled program, part of the Obama administration’s “We can’t wait” campaign” Sigh.
Underwater homeowners face refinancing delays
By Kimberly Miller Palm Beach Post Staff Writer
Posted: 9:51 p.m. Wednesday, Nov. 30, 2011
Underwater homeowners hoping for a refinance fix through a new federal program opening today may be disappointed as at least one leading lender said it’s not ready to accept applications and brokers complain of too many unknowns.
Bank of America, which carries up to a 20 percent share of the nation’s home loans, said Wednesday that it will not begin taking applications for the new Home Affordable Refinance Program today as was anticipated when the plan was announced nationally in late October.
Lenders received some direction Nov. 15 on how to implement the plan, which will allow eligible homeowners, regardless of how underwater they are on their loans, to refinance at today’s historically low interest rates.
But the overhauled program, part of the Obama administration’s “We can’t wait” campaign, requires technological changes to automatic underwriting systems and adherence to new guidelines that are different according to whether a loan is backed by Fannie Mae or Freddie Mac, brokers and lenders said Wednesday. Only Fannie and Freddie loans are eligible for the refinance program
“You don’t want to accept applications until you’re ready to do it,” said Bank of America spokesman Terry Francisco. “We’re certainly working quite diligently on putting new procedures in place. It can be a very complex process.”
Francisco said it could be a few more weeks before Bank of America will accept applications under the new Home Affordable Refinance Program, also referred to as HARP 2.0.
For homeowners who are severely underwater, owing 25 percent or more above their home’s value, applications for the new HARP might not be accepted until February.
That’s because guidelines on selling those loans on the secondary market won’t come out until then.
“There are a lot of changes coming down and lenders are finding it hard to keep up.”
The new refinance program could be a boon for the 44 percent of Floridians with underwater mortgages, especially those who bought at the top of the market when interest rates were between 5 percent and 7 percent.
Nationwide, 8.1 million borrowers who owe more on their loan than their home is worth have interest rates of 5.1 percent or higher, according to data analytics firm CoreLogic.
“It looks like it could be a wonderful program, but until things are concrete, it’s hard to know what’s going to happen.”
PRESIDENT OBAMA’S ‘HARP 2.0’
What is it?
The new Home Affordable Refinance Program, or HARP 2.0, is intended to help owners who owe more on their mortgages than their homes are worth by letting them refinance at the current, historically low interest rates.
When does it start?
It is supposed to kick off Thursday, but some lenders say they’re not ready to take applications.
Who is eligible?
•Owners underwater on their mortgages, no matter how much.
•Owners whose loan payments are current.
•Owners with loans owned by Fannie Mae or Freddie Mac. To check your loan, visit fanniemae.com/loanlookup and freddiemac.com/corporate
What to do now
•Get your credit scores to know what kind of loan offers you can expect.
•Organize your paperwork.
•What to do when lenders take applications
•Ask your lender what it’s offering, but shop around.
•Get offers from at least three mortgage lenders.
•For more on HARP 2.0, go to fhfa.gov
Paperwork needed
•W-2s or 1099 statements for the past two years.
•Federal tax returns for the past two years.
•Bank statements for the past several months.
•Recent paycheck stubs.
•Proof of other income, such as tips and Social Security.
•Proof of investment income, if any.
.
“Who is eligible?”
“Owners whose loan payment are current.”
Think about this for a moment: If a FB is making payment to the bank at a high interest rate what incentive does the bank have for lowering this rate?
Uh, none?
But if offering a program keeps the FB paying money to the bank then the program, from the bank’s point of view, has performed as it should, no?
As the can bounces down the road.
Vulture Investors Buy Discounted FHA Loans
By Clea Benson and Lorraine Woellert
October 24, 2011 7:50 PM EDT
Four years after the housing bubble popped, 11 million homeowners owe more on their mortgages than their houses are worth.
On the theory that easing the debt burden for those underwater borrowers would boost consumer spending and lift the overall economy, the U.S. government is experimenting with a program to sell delinquent loans to investors at a discount that encourages them to lower the mortgage principal.
Some investors said they see things differently. Jon Daurio, founder of Kondaur Capital Corp., a San Diego company that successfully bid on some of the notes, said his firm’s goal was to get properties on the market as quickly as possible because it believed home prices would continue to plummet. In most cases, the company tried to persuade borrowers to give up the home in exchange for cash.
Even at a 65 percent discount, “you’re not buying the loans cheaply enough” to cut the principal, said Daurio, a former executive at now-defunct subprime lender Ameriquest Mortgage Co. Daurio left Kondaur in May and is planning to start another investment company.
Skeptics of principal writedowns include Fannie Mae and Freddie Mac, the government-controlled mortgage companies that together own about 200,000 foreclosed homes. They have resisted pressure from the White House and Congress to allow loan servicers to cut principal on mortgages the companies own and guarantee, citing their fiduciary duty to taxpayers. So far, neither has experimented with selling delinquent notes.
FHA is still collecting and reviewing the data on its first four loan sales. If all goes well, the agency early next year will take a step toward making the program permanent by proposing regulations to implement it on a wider scale.
“We have over 1,600 borrowers whose loans have gone through the program and have received no complaints,” Wooley said.
http://mobile.bloomberg.com/news/2011-10-24/vulture-investors-buy-discounted-fha-loans - 26k
How is this possible. Didn’t Ben Bernanke assure us that there was no housing bubble to pop? Remember the reasoning?
There has never been a Nation-wide collapse in housing prices.
Well, now there is. Us simpletons in the hinterlands could see this coming, but the “best minds” in America couldn’t get the single-est clue.
Well, there are other banks, so that’s why you have to refinance, usually with another bank but sometimes with your current to get a lower rate. The banks want that stream of income, so there is some competition for lower rates if you are current with your mortgage.
Of course in the other case mentioned:
•Owners underwater on their mortgages, no matter how much.
Part of a refi is an appriasal, and they will only lower your mortgage payment if it is 80% or less of the total appraised value, other wise you will get a higher rate and need mortgage insurance. Your options for refi are much more limited if your house is underwater.
The bank doesn’t own the loan. Only loans owned by Fannie and Freddie are eligible.
This is important. If you miss this, you miss the whole point.
“For homeowners who are severely underwater, owing 25 percent or more above their home’s value, applications for the new HARP might not be accepted until February.
That’s because guidelines on selling those loans on the secondary market won’t come out until then.”
The banks won’t participate in the program until they find out how quickly they can get rid of the loan and any risk that might be on their books for originating a new loan under the program. Believe me, if the new guidelines came out and put the originating bank on the hook for any length of time, they won’t participate at all. They are in it to do some paperwork for a risk-free fee. Until they are sure that is what they are getting, they won’t play.
Underwater homeowners hoping for a refinance fix through a new federal program opening today may be disappointed as at least one leading lender said it’s not ready to accept applications and brokers complain of too many unknowns.
ISTR reading that Dean Baker (of Beat the Press fame) saying that a lot of HARP-eligible people would be better off walking away. Which I’m sure won’t endear him to the banksters or the Obama administration.
Realtors Are Liars®
The Untouchables of Zuccotti Park
“For Fox News and the New York Post, the goal was to soften up public opinion for the inevitable police raid. Knowing that New Yorkers would be more supportive of violence against the hard core underclass than they would against young idealists, they lost no time in portraying Zucotti Park’s occupiers as first, dirty hippies, and, when that didn’t work, drug users, thieves, and, finally, rapists. Occupy Wall Street’s defenders, on the other hand, worked just as hard to portray every Occupier as another Scott Olsen, the gainfully employed Iraq War vet who was violently assaulted by the Oakland Police on October 25, or as Chelsea Elliott, the young woman who was randomly maced by the now infamous NYC police officer Anthony Bologna. In other words, were the occupiers at Zucotti Park “homeless” or not? Were they still “Americans” who still had rights and civil liberties or were they members of a sort of American “untouchable” class, people who most Americans regard as disposable?”
http://www.counterpunch DOT org/2011/11/30/the-untouchables-of-zuccotti-park/
—-For Fox News and the New York Post, the goal was to soften up public opinion for the inevitable police raid. Knowing that New Yorkers would be more supportive of violence against the hard core underclass than they would against young idealists, they lost no time in portraying Zucotti Park’s occupiers as first, dirty hippies, and, when that didn’t work, drug users, thieves, and, finally, rapists.—-
Right. Because some website says so.
Snark aside, it is an interesting thesis. I will await a thorough sociological analysis of the situation, done by author(s) with no axe to grind… and I shall read it.
I live here. I don’t see Fox News because I don’t have cable, but I am aware of what the tabloids were saying. And they went out of their way to demonize OWS.
And the reason is that OWS worked against the engineered amnesia about the bailouts, and questioned executive pay.
Of course, if the American people end up spending a lot of time debating whether OWS people were rapists or Iraq veterans is great victory for the one percent. Let J6P spend his time pondering such questions and leave the running of the country to the upper class.
Occupy got a lot of media attention, and suddenly articles started popping up about the 1% and income inequality, and -gasp- that this has been going on for about 30 years. This is huge for the volume voters.
Occupy will not forget. After all, what’s to stop them from simply showing up and Occupying again in the springtime?
I live here. I don’t see Fox News because I don’t have cable, but I am aware of what the tabloids were saying. And they went out of their way to demonize OWS.
I could smell the Fox/tabloid stench 4,816 miles away.
Occupy will not forget. After all, what’s to stop them from simply showing up and Occupying again in the springtime?
They’re still Occupying here in Tucson. And our local camp is pretty tidy. I think there’s a regular gar-bazh pickup detail.
Saw bunch of responses above . Still awaiting a treatise from unbiased source not engaging in jargon of class warfare.
I will keep open mind.
I will keep open mind. evildoc
I know you’ve been gone awhile but we’ve moved the comedy compitetion to Mondays.
compitetion
lol, Did that rewen the joke?
“I know you’ve been gone awhile but we’ve moved the comedy compitetion to Mondays.”
lmao
99% is now part of the vocabulary.
That is the first step.
I see many more responses. Still nothing of substance for the issue raised.
Sigh.
Definitely nothing of substance coming from you, evildoc.
====Definitely nothing of substance coming from you, evildoc.
====
Pot meet kettle.
Snort.
Snort
I think you’ve been injecting it.
—I think you’ve been injecting it.—
straw man
In the comments section of our local paper (which has really had the spotlight on it w/this Bernie Fine tape fiasco) you couldn’t go 3 comments w/o 2-3 different posters going on and on about how OWS were filthy rapists who lived among their own feces. It was a complete joke to the point where you could not find any realistic based discussion on the group. I wonder if they got paid by the post.
Within days of seeing that one of my acquaintences was sending out military against OWS e-mail w/commentary that they should spend their time searching for real work. Why would the military wish to take a stance about whether or not these people were taking up tents in a park? Her son is in the military but I was really surprised at the ferosity of the argument.
CarrieAnn,
Just finished 9 years in good ol’ syracuse.
I am a bit entertained that here we on in blog/forum setting, we watch complain about how people respond in a blog/forum setting.
The we see people imagine that the comments with which they disagree on those other blog/forum locales must be paid by external forces .
C’mon now. Usually you do better, at least when we talk about Upstate housing issues, like those charming tax rates in Dewitt.
I do note with some irony, how folks condemned the Tea Party protests, which were polite and clean and which lead to Tea Party members actually becoming Congresscritters, despite Nancy Pelosi opining about astroturf rather than grass roots. No doubt she feels the same about OWS
On other hand, whatever OWS is and independent of external financing questions, the groups have not been neat, polite and respectful. There has been crime, disease and filth. The tone of hatred and anti-semitism has been… unfortunate.
Whichever group one favors regarding the politics of the day, points go to Tea Party over OWS for class and decency in conducting protests.
Some are paid trolls, and some, sadly, are so drunk on the corporate kool-aid they actually believe what they parrot from the 1%ers’ corporate media mouthpieces
the groups have not been neat, polite and respectful
IMO if the Tea Party had tried to protest under the same conditions they wouldn’t have been any better. I’m going to assume that they chose not to attempt to protest under the same conditions. My question would be whether that was an indicator of a lesser level of commitment, or whether they thought they could be effective doing it for only a few hours at a time?
Sadly but predictably, goon comes through again with the ad hominem (sp?) attack.
“the groups have not been neat, polite and respectful”
That only works when you’re protesting in the 1%’s favor, like the Tea Party was/is.
And it’s an absurd comment about protesters.
—That only works when you’re protesting in the 1%’s favor, l—
Nah.
That’s just class hatred speaking. People of all wealth levels have had (and can have) class. Those who choose to embrace it and those who don’t can be… telling.
“…the Tea Party protests, which were polite and clean….”
This from a person asking for rational, objective discussion.
People of all wealth levels have had (and can have) class.
And who defines “class”? Those trying to make sure everyone knows their place and stays there.
I will await a thorough sociological analysis of the situation, done by author(s) with no axe to grind… and I shall read it.
And you will likely be waiting for a long time. Occupy Wall Street is the only topic in today’s bits bucket so far that you have been motivated to comment on. There must be something about it that makes you uncomfortable.
Still awaiting a treatise from unbiased source not engaging in jargon of class warfare.
It’s jive. Because any “treatise” discussing the media’s maligning of OWS to further the interest of the 1% would be, according to Doctor Frankenstein, “engaging in jargon of class warfare”.
—Because any “treatise” discussing the media’s maligning of OWS to further the interest of the 1% would be, according to Doctor Frankenstein, “engaging in jargon of class warfare”.—
Straw man, ducking issues.
I still see many responses to my observations, but nothing of substance
Straw man, ducking issues. evildoc
Ducking?
Judging by your responses to everyone,
I don’t think you can duck fast enough.
I still see many responses to my observations, but nothing of substance
I thought that the point that the discussion has been framed in a manner to where it is impossible to even discuss the issue without “engaging in the jargon of class warfare” was valid and “of substance”.
—-occupy Wall Street is the only topic in today’s bits bucket so far that you have been motivated to comment on. There must be something about it that makes you uncomfortable.—-
This is called the Telepath. The Teletpath is a tactic used by one who cannot engage in issues-oriented debate, so indulges in non-issues-oriented attempt to devalue the issues oriented points with which he cannot compete.
The Telepath has great power. He knows– dontcha know– the thoughts and feelings of his opposition. And, surprise, what he finds in the thoughts and feelings of his opposition are bad things?
The Telepath goes along with Ad Hominem insult, Straw Man, Last-Word-whine, and Concern Troll in the holster of those who’d rather whine than debate issues.
Charming to see.
The Telepath has great power. The Telepath… evildoc
Telepath?
Why don’t you explain to us the psychopath evildoc?
—-Telepath?
Why don’t you explain to us the psychopath evildoc?—-
Ad Hominem. Follows the Telepath usually. As in this case.
Charming.
Snort
Troll
intellectual coward.
Wow, I’m back on an elementary school playground!
Is calling someone Telepath not ad hominem?
You know the words, evildoc. Now if you could just use them correctly…
And how can anyone debate this issue with you? You’re ‘waiting for a treatise from sociologists’. Let us know when you get one, it’s not our job to find it for you. (And it’s a damn weak excuse in the meantime.)
Likudnik troll
—-Is calling someone Telepath not ad hominem?—-
A. No one was called “Telepath”. Read the post.
B. Is being a Telepath, per se, a negative?
You must pay better attention.
—Likudnik troll—
Would you like us to present our tattoo’d numbers?
Intellectual coward.
victim troII
Raving, illogical lunatic suit you better, Doc (of what?)
1st Straw Man. 2nd- Ad hominem. Thus irrelevant.
Cheers
All you have to do, doc, is go to Drudge’s archive. You don’t even have to read the linked-to articles, just the headlines. “The Week” also gives links to the above-referenced references to “dirty hippies, drugs, rapists” et al.
I’d do it for you, but I won’t.
Nov. 29, 2011, 3:06 p.m. EST
AA retirees face sharp benefit cuts: PBGC
WASHINGTON (MarketWatch) — Retirees of American Airlines parent AMR Corp. (AMR +12.50%) could lose $1 billion in benefits if the bankrupt carrier decides to end its four pension plans, according to a Tuesday statement from the U.S. agency responsible for protecting pension benefits. AMR’s pension plans cover almost 130,000 participants, but collectively had just $8.3 billion in assets to cover about $18.5 billion in benefits, the Pension Benefit Guaranty Corp. said. Congress limited the size of pensions the PBGC can pay for, so AMR retirees should expect their pensions to be dramatically cut, the agency said. “As we did with Visteon, and with some plans at Delta (DAL +4.10%) and Northwest Airlines, we will encourage American to fix its financial problems and still keep its pension plans,” the agency said. The PBGC added it recorded a $26 billion deficit as a result of failed plans the agency has already assumed.
Promises, promises.
What a great way to pay employees: Pay them in promises rather than in hard cash.
Much cheaper that way.
Especially if the federal pension insurance system is set up to backstop them at a much lower rate of retirement pay than they anticipated.
PBGC pays 100% of the pension you were supposed to get from your BK company UP TO A MAXIMUM. This year the max is $4,653 per month. That’s about $57,000 per year. So it’s only those who were expecting to get really cushy pensions who will see their payment cut.
http://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee.html
For years, per the FAA regs, airline pilots were forced into retirement at age 60. I think it’s 62 now. Very few of them are able to find a job flying for anyone at that age. In fact, it’s getting real tough if you are over 50. Foreign airlines don’t have to pay any attention to US age/gender discrimination laws.
Ask Sullenburger about how all the old guys like him have been screwed over.
i’ve always wondered how that worked. what if the pension offered 100% salary after 10 years service. then, of course, the company would go bankrupt and all that would be left is people that “got my 10″ and the whole bill then transfers to the taxpayers. Is that how it works.
Or do you need to get in 20?
How about minimum age? Can you retire at 40 and collect $57,000 a year for the rest of your life?
there should be a MINIMUM age, like 65, before people collect “pensions”, which were designed for old age, not a welfare program.
wikipedia
Subject to other statutory limitations, the PBGC insurance program pays pension benefits up to the maximum guaranteed benefit set by law to participants who retire at age 65 ($54,000 a year as of 2011).[2] The benefits payable to insured retirees who start their benefits at ages other than 65, or who elect survivor coverage, are adjusted to be equivalent in value.
The PBGC is not funded by general tax revenues. Its funds come from four sources:
Insurance premiums paid by sponsors of defined benefit pension plans;
Assets held by the pension plans it takes over;
Recoveries of unfunded pension liabilities from plan sponsors’ bankruptcy estates;[4] and
Investment income.
AA allowed employees to retire at age 55(30 years gets you 1/2 your salary). The PBGC will penalize those that took early retirement when it starts paying them at age 65.
A lot of 55-65 year olds will be looking for work now. And healthcare as that is canceled as well.
Pilot retirement is now mandatory at 65. It was 60 up until recently(one pilot is required to be under 60 in the cockpit).
A lot of 55-65 year olds will be looking for work now. And healthcare as that is canceled as well.
I wish them a lot of luck in their quest for health insurance with premiums that don’t resemble a monthly mortgage payment. Or deductibles that rival the national debt.
Those people are dead. But their deaths will be an efficient outcome.
The company I work for now has or will so have more retired employees than they have employees that are working.
Plus the retirement fund is underfunded, which means more money will need to be dumped into it.
Plus the company wants to hold onto the legacy that they are a company that increases it’s dividend every year. But this will be tough to do because the revenues are down.
So, something has to give.
Time to back up a bit: The company has more retired employees than they have employees that are working. Note: retired employees are AKA as UNPRODUCTIVE employees. So, IMO, there is a strong hint as to the identity of “the something” that has to give.
And now the company is getting ready to offer incentives to convince more employees to retire. No thanks, such a growing retirement pool is not a place I want to join.
In these times a job is a terrible thing to waste.
At some level, this is why the industries that have traditionally offered generous pensions, (airlines, auto manufacturing etc.) are those characterized by large barriers to entry. For a long time it was quite difficult to get into those businesses, so that the unions and the companies could give big benefits because outside of the oligarchy there was little competition. Imports (in the case of the auto industry) and deregulation (of the airlines) changed that equation. A new company, without the costs of an underfunded retirement plan can undercut existing ones.
IOW, deregulation and a “free market” were mechanisms used to screw the middle class.
We’ve seen what deregulation has done for the airline industry. Winged equivalents of those Third World flatbeds with 50 people riding on a 3/4 ton truck.
Well yes, but to a great degree that’s what most people WANT when they’re paying their own money for a ticket. A much higher percentage of the US population travels by air than in the days before the CAB was abolished. To a great degree, today’s first class is comparable to a pre-deregulation coach ticket while today’s coach is more like a coach train ticket. Deregulation and the decreased amount of maintenance per hour flown that was enabled by the switch to jet engines have made flying affordable for a majority of Americans.
Deregulation and the decreased amount of maintenance per hour flown that was enabled by the switch to jet engines have made flying affordable for a majority of Americans.
Paging X-GSfixr:
Do modern aircraft engines require less maintenance per hour flown as compared to their older counterparts? And what about the rest of the airplane?
link: http://en.wikipedia.org/wiki/Time_between_overhaul
There are many more moving parts in a high horsepower piston engine than a modern turbojet.
It no longer requires an A/P certified mechanic to replace the bulb in the overhead seat lights on newer planes.
Disclaimer: I’m in the bizjet side of the business, which is a slightly different kettle of fish, vs. the airlines……so some of this info may be dated/superceded.
Radial (piston) engines (R-2800, R-3350, R-4360) as I recall, only went about 1000 hours before being pulled for overhaul.
Some jet engines are the equivalent of “on condition”….
Meaning = As long as they can make rated thrust, and the other performance numbers and damage limitations are within limits, the engine stays on the airplane. 10-20,000 hour engines are not uncommon, from what I’ve read.
All of the airframe manufacturers that build “Transport” category aircraft are implementing “MSG-3″ Inspection programs. This basically extends inspection intervals as they develop a database on component and airframe wear/damage tolerance.
MSG-3 has been incorporated on both of the airplanes I work on (Dassault F900, Cessna 650). Basically, instead of doing a biggish inspection every 3-4 calendar months (whether the airplane flies or not), I do fewer items based more on aircraft flight time.
The end result is a lot fewer maintenance man/hours are required. Ten years ago (before MSG-3 was implemented), it was easy to justify having a full time mechanic on a C-650. Now, it’s a part time job, at best. Unless they have a problem, there are some months where all I have to do on it is check services and preflight it.
Airliners fly differently than bizjets. Airliners will fly 5-6-7 flights (cycles) a day. Bizjets typically fly people somewhere close to where they need to go, then sit until they are ready to go back. So they build flying time and cycles a lot slower than the airline guys. This kind of operation creates different maintenance issues.
And now the company is getting ready to offer incentives to convince more employees to retire. No thanks, such a growing retirement pool is not a place I want to join.”
they don’t give you a lump sum cash I guess ?
I wonder if the CEO’s pensions will be affected?
A Ha ha ha ah , just kidding.
Actually he resigned with no pay off and a lot of not very valuable stock. He said that declaring bankruptcy to get rid of legacy oblications was not the right thing to do, but then his airline was the only one to lose money, and you can’t really run a business that way - the only honest man is never going to make money if everyone else is dishonest.
I think his deferred comp (they all have it) will be OK (will depend on the exact words in the trust), but any other obligations will put him in line with all the other creditors.
I’m sure he made a substantial salary during his time with the airline. See Gail Collins column in NY Times.
CEO Gerard Arpey’s pension will be paid by a separate company set up in 2003 to safe guard senior exec pensions in the event of a bankruptcy by AMR.
His pension is fully funded.
For more on this topic, I recommend the new book, Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers.
Boy, my retirement is what I save in my IRA and bank account…a pension or 401k would be nice…but then again, I guess not being reliant upon a company staying in business after I retire is a good thing.
If we want more people to take responsibility for their own retirement, can we please increase the paltry limits of IRAs now?
Or how about parents dropping 10-15-25K a year into their kids account and avoid all taxes?
If we want more people to take responsibility for their own retirement, can we please increase the paltry limits of IRAs now?
I don’t understand.
If you give $ to your kids, you avoid estate taxes, yes, but you have already paid taxes on the money you are giving them…so that money is simply only taxed once, not twice.
I’m taking advantage of the gift tax rules currently, but only as it relates to funding my kids’ 529 accounts.
Will I continue later to drop money into accounts for them? Maybe, I don’t know…I have a ways to go before I need to make that decision.
Sorry. Not Gail Collins.
Here:
http://www.nytimes.com/2011/12/01/opinion/at-american-airlines-a-departing-ceos-moral-stand.html?src=recg
I still think that quitting and foregoing whatever parachute he would have gotten if he had stayed around to be fired is the right thing to do. The departure was inevitable.
One night stands are great fun until the morning after.
Global market euphoria runs out of steam
By NATALIYA VASILYEVA, AP Business Writer – 1 hour ago
MOSCOW (AP) — A rally on global markets stalled Thursday as euphoria over major central banks’ coordinated cut to borrowing costs wore off and investors sought confirmation that European leaders will next week deliver a long-term solution to the debt crisis.
Markets had jumped on Wednesday when the central banks of Europe, the U.S., Britain, Canada, Japan and Switzerland made it cheaper for banks to borrow dollars, helping them to operate smoothly at a time of tight credit. China’s central bank also acted to release money for lending and shore up growth by lowering bank reserve levels for the first time in three years.
Worries about Europe’s financial system and the European Central Bank’s reluctance to intervene heavily in bond markets have seen borrowing rates rise for European countries in recent weeks. That raised fears of a global credit crunch of the type that plunged the global economy into recession in 2009.
As a result of the central banks’ action, commercial banks in the EU and four other countries will now be able pay less to borrow dollars, the currency of international trade.
But analysts said that the decision might only have a short-term effect and does nothing to solve the underlying problem of an enormous government debt in Europe. Investors say the real boost to the markets might come only if European leaders announce a dramatic action at the summit on debt crisis next week.
“Until we see some definitely agreed on and, when necessary, legislated initiatives from Europe, optimism can be premature,” said Ric Spooner, chief market analyst at CMC Markets in Sydney. “Until we see that sort of thing, there will be a ceiling on the rally.”
…
One night stands are great fun until the morning after.
So, the $olution is to not make it a x1 night of enthusiasm. pas/oui? (say it with a french accent, sounds better.)
China’s manufacturing activity falls to a 32-month low
BBC
China’s manufacturing activity fell to a 32-month low in November, hurt by a slowdown in the global economy.
China’s official Purchasing Managers Index (PMI) fell to 49.0 in November, the lowest level since March 2009.
The industry survey data comes amid concerns that a slowdown in the global economy may dent demand for Chinese goods and hurt its economy.
PMI is a key indicator of manufacturing activity and a reading below 50 shows contraction.
This is the first time in almost three years that the figure has fallen below the crucial 50 mark.
“The November PMI dropped further to below the boom-bust line of 50… indicates that the economic growth pace would continue to moderate in the future,” said Zhang Liqun, a researcher with the Development Research Centre of the State Council.
Freddie Mac, Fannie Mae suspend foreclosure evictions for the holidays
by Kim Miller
National mortgage backers Freddie Mac and Fannie Mae announced this morning that they are suspending foreclosure evictions and lockouts from Dec. 19 through Jan. 2, 2012.
The order involves foreclosed occupied single family homes and two to four unit properties that had Freddie Mac or Fannie Mae mortgages.
The government-sponsered enterprises also suspended evictions last year during the holiday season, but part of that included the foreclosure moratorium that most major lenders put in place after the robo-signing scandal left some foreclosures in doubt.
“If the property is occupied, our foreclosure attorneys will suspend the eviction to provide families a greater measure of certainty during the holidays,” said Tracy Mooney, Senior Vice President of Servicing and REO at Freddie Mac.
“The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure,” said Terry Edwards, Fannie Mae’s executive vice president of credit portfolio management. “No family should have to give up their home during this holiday season. Fannie Mae is committed to helping borrowers avoid foreclosure whenever possible and we encourage any homeowner who is having difficulty making their payment to reach out for help.”
Homeowners with Fannie Mae-backed loans can call 1-800-7FANNIE or visit http://www.knowyouroptions.com for information and resources on foreclosure prevention options, including contact information for the Fannie Mae Mortgage Help Center or a HUD-approved counseling agency in their area.
LONDON/SINGAPORE (Reuters) - Manufacturing activity is contracting across Europe and most of Asia, data showed on Thursday, and a Chinese official declared that the world economy faces a worse situation than in 2008 when Lehman Brothers collapsed.
Factory activity shrank even further in the euro zone, reinforcing the view that the debt-strapped region is in recession
Gee who would have thought that destroying the middle class and the safety nets and concentrating wealth would destroy demand. So lowering intrerest rates and austerity isn’t working? I’m shocked I tell you shocked. I wonder what this will do to unemployment and revenue???
Say what? Didn’t you just read the reports of this being a record breaking Christmas retail year?
LOL! The US based MSM might lie, but factory orders don’t.
The big box stores and the mall will be relatively unbusy now that Black Friday is over.
Toys R Us is advertising limited time sales for late Friday and early Saturday. They are going to do what it takes to get people through the door. Whether they buy stuff that will result in a profit remains to be seen. Some of the items must be loss leaders.
I think it is a dangerous strategy. If you run black Friday-like sales every weekend, you lose out on the people who would pay closer to full price just to get the shopping over with. Maybe those folks have long abandoned stores like Toys R Us or they have to do it to get anyone in the door instead of driving by on the way to Walmart.
Maybe just maybe Americans will see the folly of this stupid idea of a holiday buying season, and buy presents throughout the year….and companies would have no choice but to hire more full time staff… I have a dream!
The other thing that confuses me is that with all this good inflation in food and fuel via FED easy lending and Hedge Funds, and the artificial propping up of rental and home prices, while incomes and job security fall and services are cut, why isn’t everyone out buying manufactured goods like TV’s and nintendo’s and upgrading everything they have yearly?? Economics is hard.
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Many homeowners have fallen behind on their mortgage, and could soon be on the path to foreclosure without permanent help. If this sounds like your situation, you may be eligible to modify your mortgage. You may also qualify for the government’s Home Affordable Modification Program, which was designed to help borrowers make their payments more affordable.
OverviewBenefitsHow Does it Work?Take ActionVideos.What is a Modification?
Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount.
A modification may be an option if:
■You are ineligible to refinance
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■You are several months behind on your mortgage payments or
likely to fall behind soon
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Bulk REO sales bypass Realtors
Fannie, Freddie, FHA face tsunami-sized shadow inventory
http://lowes.inman.com/newsletter/2011/11/30/news/164224
From the story:
And what about the community impacts on local governments and nonprofits who want to stabilize neighborhoods by putting new owners into vacant foreclosures, rather than filling them with renters brought in by distant bulk buyers?
To which I say:
If you’re at all interested in what happens in your neighborhood, watch this trend very closely.
This will effect apt rents/vacancies in my area. Why rent a 2+2 apt, when you can rent a bigger place for just a tad more (if you can swing it).
Slim- Good advice. Not all renters are undesirables and slobs, but it does change the “soul” of the neighborhood. I lived in a neighborhood in “transition” (our first home/ PUD), and it had a negative impact on the quality of life.
This article is a wake up call, we might have to relocate and not putz around.
I was just thinking if the hedge funds, etc… buy the REO’s in bulk as inexpensive rentals, and then apply as section 8 properties, doesn’t that mean privatize the profit and socialize the cost?
And we go round and round in the circle game. (Joni Mitchell)
“we might have to relocate and not putz around”
What do you mean by that?
oxide
We’re living in maybe the pickins will improve land. Few overpriced listings to chose from, and we’re addicted to hopium. Since there will not be the shadow inventory trickling out per se, we might have to make the decision to relocate. Time to make some firm plans and start implementing them.
If nothing shows up by Jan, we’re out of here. Multiple rents are killing us and draining our capital resources. We’re dealing with a rare eye virus and glaucoma, so we need to preserve capital. Paying cash for a home will help some of our stress and stabilize our financial position.
OK, I was just wondering if you were going to just move to a different apartment, or relocate out of the area.
oxide
Another apt. will gain us nothing. If we had money, I would move to So Pasadena into an historic property. I love the vibe of that area. Mostly Asian, a very cultured demographics, and the library is fantastic.
We had a ferocious windstorm last night, and I need to report Old Town Pasadena and the Rose Parade area got some heavy large trees down damage. I hope they can clean it up and contractors get on it ASAP. That’s a heavy revenue loss if they don’t hussle. Other areas got hit hard by the ferocious winds, too. Our area wasn’t one of them. Power outages all over the place. Mother Nature wins every time!
80-90 mph winds
An amendment to strike this provision from the Bill was defeated in the Senate 38-60. Of the 38 Senators who voted to strike this unconstitutional provision, 2 were Republican (Paul and Kirk) and 36 were Democrat.
Proposed law would allow US military to indefinitely detain citizens on home soil
http://theopenglobe.org/wiki/Proposed_law_would_allow_US_military_to_indefinitely_detain_citizens_on_home_soil
Senator Rand Paul from Kentucky, son of presidential candidate Ron Paul, spoke out against the bill on the Senate floor. “Under the provisions, wouldn’t it be possible, then, that an American citizen could be declared an enemy combatant and sent to Guantanamo Bay and detained indefinitely?”
Senator John McCain, who helped write out the relevant provision in the bill, responded: “I think that as long as that individual, no matter who they are, if they pose a threat to the security of the United States of America, should not be allowed to continue that threat.”
Senator Lindsay Graham, also a supporter of the bill, explained that the NDAA “basically say[s] in law for the first time that the homeland is part of the battlefield” and anyone can be detained, “American citizen or not”.
Later, in an interview on Fox Business with Judge Andrew Napolitano, Paul said he didn’t know “how anyone could vote to send an American citizen who’s been accused of a crime to a detention center in a foreign land without due process”.
I think that as long as that individual, no matter who they are, if they pose a threat to the security of the United States of America, should not be allowed to continue that threat.”
Well I guess we know where the next OWS camp site will be.
Start shipping tents to Guantanamo
Well, I guess it’s official. We’re a Fascist state. All the government has to do to send you to a gulag without due process is declare you to be a “threat to security”.
All the government has to do to send you to a gulag without due process is declare you to be a “threat to security”.
Yeppers, that’s what happen to ol’ Hwy50 when eyes tossed mys “evil eye”…look!
(Since it’s illegal to profile, the military-weaponized police tools instinctively abide with absolute restraint)
Ask me how eyes know this to be true!
In case you missed the last time I posted this:
http://en.wikipedia.org/wiki/Rex_84
You can bet there is an HBB list out there.
You can bet there is an HBB list out there.
Good thing I was only joking about everything this whole time. Really. It was all just a joke…….OK?
‘The very word “secrecy” is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings. We decided long ago that the dangers of excessive and unwarranted concealment of pertinent facts far outweighed the dangers which are cited to justify it. Even today, there is little value in opposing the threat of a closed society by imitating its arbitrary restrictions. Even today, there is little value in insuring the survival of our nation if our traditions do not survive with it. And there is very grave danger that an announced need for increased security will be seized upon by those anxious to expand its meaning to the very limits of official censorship and concealment. That I do not intend to permit to the extent that it is in my control.’
http://www.jfklibrary.org/Research/Ready-Reference/JFK-Speeches/The-President-and-the-Press-Address-before-the-American-Newspaper-Publishers-Association.aspx
‘there is little value in insuring the survival of our nation if our traditions do not survive with it’
Bah, just another suit reading off a teleprompter.
(yes I’m being snarky)
It is, indeed, a bizarre time to be alive. Every concept we have held dear is being put to the test by changes in language and meaning. How did we ever get a “global” war on “terror”.
I guess that follows from the War on Poverty and the war on drugs.
But, in a traditional sense, WARS are fought by the military on a declared enemy, i.e. NATION-State.
Since we are now declaring wars on “concepts” rather than a defined region and specific people of that region, we have extended to borders of the war to anywhere we want it to be, including the soil of the US of A.
I never liked the concept of a “war on terror”. I also never liked saying that because some radicals crossed, with permission, into my country and did vile deeds, that this would constitute a war instituted by Nation from which they had originated. We could have kept them off the airlines the entered into the US by.
We didn’t. At least, our “official policies” were not in my interest.
But, so long as we can claim that someone is an “enemy combatant” and we can’t and won’t control our borders, I guess we can have enemy combatants living in the US of A, including those claiming “citizenship”. During times of war, we typically called them traitors and shot or hung them. A quick, swift, military court.
What to do now? Are we at war? It doesn’t seem that way. I can’t even identify the “enemy”……but if they are embedded here, i guess we need to bring the war to them.
It’s all very confusing to me. I would never have allowed Muslims to immigrate into the US except by very careful screening and in very limited numbers. It is not a benefit to this country and ITS people to be overrun with people who have contrarian religions and ideologies. Making those here a minority in their own nation. But that’s another argument.
About that global war on terror - how does one declare war on a noun?
“You know your last name is an adverb?” - Marilu Henner, “Johnny Dangerously”
“……how does one declare war on a noun?”
And who gets to define “Terror”? And who a “combatant” is?
The 99% are “terrorized” by the banksters. the obvious solution is to send the banksters to Guantanamo.
“because some radicals crossed, with permission, into my country and did vile deeds, that this would constitute a war instituted by Nation from which they had originated.”
We’re attacking Egypt and Saudi Arabia? Holy cow!
“shot or hung them”
‘They said you was hung!?’
‘And they was right!’
“Making those here a minority in their own nation. But that’s another argument.”
And not a very good one.
The word “homeland” always conjures images of Der Fuhrer in my mind.
One of my former accountants (she’s now retired) was born and spent her early years in Nazi Germany. She’s creeped out by the Homeland Security thing for the same reason.
Me too. The word connotes black boot authoritarianism, fair or not.
The word “homeland” always conjures images of Der Fuhrer in my mind.
To the patriotard sheeple who let the TeeVee do their thinking for them, that is not a bad thing at all. USA! USA! USA!
I thought the goose-steppers used the term “Vaterland”
It’s a good time to be a prison guard. It’s going to be a growth market.
Since CorpInc.’$ are “special $COTUS “people”, it stands to reason that America (land/building$) should take precedence over non-corpinc.-citizens.
A. Lincoln is laughing somewhere certainly.
Justice Roberts = Chief Justice
Roger B. Taney
(only Roberts is better looking in a wholesome-deceptive sort of way. ihho)
To quote Justice Clarice Thomas: “Why shuts my mouth!”
Sen. Graham himself said that leaving Iraq would result in terrorists “following us home,” but the only thing that really is following us home is third-world justice.
Read Mr. Kristof’s editorial in the NY times opinion section. It seems Bankers were encouraged to write sub-prime loans for their own benefit, not because they were forced to by the CRA. This admission came from a high level bankster.
Good find.
No surprsie to me.
but but but we keep hearing that this entire mess is due to the CRA loans.
Despite the fact that there are many 500k and up homes in this mess.
Despite the fact that CRA was only a small slice of all mortgages.
Despite the fact that so called subrpime CRA loans have actually performed much better than non CRA subprime loans, even though they were given to demographics that have probably faced a bigger share of the collapse in terms of unemployment and decreased disposable income.
It’s all scapegoating.
“60 percent of his evaluation depended on him increasing high-risk loans.”
“He says that some account executives earned a commission seven times higher from subprime loans, rather than prime mortgages.”
And he’s from Chase no less. He’s laid off. After going public, I wonder if he’ll ever get another job in banking. Does anyone know what the commission is on a mortage?
After going public, I wonder if he’ll ever get another job in banking.
His story reminds me of the one told by Julia Phillips in her book, You’ll Never Eat Lunch in this Town Again. It was a Hollywood tell-all that she wrote after she produced a very well received movie called “The Sting.” You might have seen that one ;).
Any-hoo, long story short, Julia went on to eat many lunches in Tinseltown. Which just goes to show you that one may be down in the short run, but not out in the long run.
Maybe, but somehow I think banking might be different from Hollywood.
And he’s from Cha$e no less. He’s laid off. After going public, I wonder if he’ll ever get another job in banking
Hey, that reminds myself,…what ever happen to that fella that revealed the inGREEDient$ contain in $outhern cigarette tobacco?
“He says that some account executives earned a commission seven times higher from subprime loans, rather than prime mortgages.”
The true criminals didn’t commit the crime, they just set up the system so that crime and the collapse would be the ultimate outcome.
A woman I used to know used to work for National City as a mortgage originator. They got a bigger commission off an origination, vs. a refi of an existing National City loan.
Paging combotechie…
This was posted yesterday…
http://seekingalpha.com/article/310920-today-s-economy-is-the-antithesis-of-the-great-depression-invest-accordingly?source=yahoo
…and for some reason made more sense to me than most others regarding why maybe cash isn’t king. But then I was thinking about it later and it seemed like the thing he missed was that both the GD and now were both credit bubbles, so they can’t be opposites. Although I can see how China might play our old role and we might play England’s old role. So now I’m just back to being as confused as always. Any thoughts?
I saw that one too and spent some time last night thinking about it. The great disconnect I see in the argument that housing will appreciate is the great numbers of vacation, second homes. This demand is driven solely by access to credit and no other reason. If no one has jobs and the USD is worthless, how would people be able to sell their real estate to get wealth?
I don’t remember anything about housing in particular appreciating. I thought it was just about how stocks were horrible and cash/bonds were great in the GD, but this time he expects it to work in the opposite way.
I can speak from family experience about cash/bonds during the GD. My father’s father was a Wall Street bond trader, and according to my aunt, he did well. Very well indeed.
But, before you come to Slim looking for a loan, angel funding for your startup, or a sizable donation to your non-profit, here’s an old adage:
The first generation makes the money.
The second generation spends it.
Third generation? Sorry, folks, money’s all gone. Time for you to get to work and earn some of your own.
Yours Truly is part of the third generation. Gotta get back to the phones to hustle up some business.
My husband’s family wealth goes back to the 1880s Hudson Bay textiles. They blame the multiple death tax rollovers which one might remember were quite high through the mid 1900s for it’s relatively smaller size. That and splitting what was once an impressive fortune between multiple family branches. There are stories of the “aunts” owning whole floors in NYC and when you went to visit them you didn’t spend the weekend. You made an apt and you were “received”. Ha ha. That was the 60s.
During the GD, at the age of 12, my fil found his father’s body in the garage after he took his life. The Dad had had problems w/alcoholism but I think he was always employed through the GD. The aunts took care of my fil financially after that putting him through all the right private schools and expensive summer camps. I wish I knew how they held onto their wealth during the GD. They were the last generation that I’m aware of to live lavishly off the original 1880s peak wealth but that’s a pretty good run. I have no idea what the value of it is now. I only know a figure quoted in the 80s. It could be larger. It could be gone. We live our life like it could be gone….just in case.
It’s not so simple, moman. Housing near jobs will appreciate. Vacation housing not near jobs will depreciate and deteriorate. Averages are useless.
This guy is lost or FOS
1. At the time of the Great Depression, governments of the world weren’t burdened with the vast debt that burdens them today. Therefore, during the Depression, cash and sovereign debt were true safe havens.
a. They also didn’t have the printing press available to them. Bonds are safe because gov can print money to pay them back. Bonds in the Euro are not safe because they can’t back them up. You risk losing in bonds only when you see inflation and so far rapid inflation does not seem to worry bond investors. Rates remain low. What people are worrying about is a return of investment not on investment.
2. When the Panic of 2008 occurred, our government was already saddled with unprecedented levels of debt. Yet, the government was forced to assume the debts of the largest financial institutions in order to avoid a complete collapse of our financial system.
a. This suggests the gov has purchased all the bad debt and we know that just ain’t true. Banks are still sitting on HUGE Piles of worthless paper.
3. While politicians pass the blame for the crisis to Wall Street and Greedy Bankers, nothing could be further from the truth. In reality, the problem was created by the monetary policy of the Federal Reserve and the fiscal and political policies of the Federal Government. By maintaining artificially low interest rates for decades,
a. This is where he proves he is an idiot. If the problem that caused real estate prices to fall was low interest rates, then the simple fix is to lower interest rates further. Well how has that worked out??? No the problem is that WS and bankers were able to off load risk onto conservative investors, and the tax payer, and Hedge Funds even bought into it as a safe investment and Hedged to the moon. The reason of course is that Hedge fund advisors make a lot when they win but they don’t lose a lot when the chips come crashing down. Unless they are invested but as with MF global and the Koch brothers, the elite just move their money before the crash.
4. As a result, much of the private debt that existed in 2008 has been converted to public debt.
a. Again banks are still sitting on mountains of bad debt, and as unemployment and median wages continue to fall, as pension payouts, SS and Medicare are cut, as the stock market cleans out retirement funds you can bet there is a lot more bad debt that will be created.
5. The private sector, by comparison, has fared quite well since 2008. It has, of course, benefited from the transformation of private debt into public debt. Even more, most companies have taken additional steps to reduce costs and strengthen their balance sheets.
a. And why pray tell is corporate America sitting on piles of cash. Is it because they see light at the end of the tunnel. No if they thought things were about to turn they would be building factories and expanding. Nope they are sitting on cash to survive a crash, to keep the CEO’s paycheck flowing for as long as possible.
In regard to point #1 from Krugmans post
Denmark is an even more remarkable case. It still has its own currency — but that currency is pegged to the euro. Even so, Denmark is being treated as a “haven” country, while Finland — which is very close in terms of both its deficit and its debt performance — is being priced as a risky debtor.
Sweden also has a lower rate than Finland.
Why Denmark adn Finland can print money to cover their bonds, Findland is at the mercy of the EU. People are afraid of a return of investment.
In #1 where I say “they didn’t have the printing press” what I mean is that the US was on the gold standard.
See posts above this one
Banking executive “says that some account executives earned a commission seven times higher from subprime loans, rather than prime mortgages.”
Now why did they get these high commissions for garbage loans, because they could be bundled and sold to suckers for a much more than they were worth. Why did we have no doc loans, zero interest loans, large balloon payment loans, ARMS? Because they could bundle them together with a few so so loans, bribe a rating agency, buy some worthless insurance for pennies, and sell it to a retirement account.
Because they borrowed all then can get at super low interest rates, and if things dont improve they will return it…..and yes in case of a crash too.
And why pray tell is corporate America sitting on piles of cash
Measton / Cactus
I have enjoyed reading both of your articles yesterday and today = point counterpoint and I think you both might be unto a third disastrous leg dealing with our economy.
Euro liquidity I do not think can be resolved by floating USD into the equation because of foreign exchange variations, even though most of the G8 are willing to help.
If the libor rate cannot be held it will contribute to bond rate increases - and as we have seen, bond prices can go ballistic overnight.
I think most Euro nations are now at risk of failure not only to not being able to fund their daily cashflow, but very rapid increases of inflation caused by lack of willing bond buyers.
Heli Ben cannot hold inflation down once the world refuses to buy artificially priced bonds and when desperate countries are willing to pay exorbitant bond rates just to survive. It has started.
Yes Cactus I can see your cash point. And I think it scares me more than any of our other problems.
The utility value of money is different to an older person who has few remaining years - but that value can be heavily erased in an extremely short period under conditions requiring the bond market to replace the libor one.
No wonder the G8 have acted in unison.
OK now picture what happens to all of these banks and all of these homeowners dependent on interest rates being low. They all collapse. If that happens everything collapses but treasuries in countries that can print money will hold up the best. This is what the Krugman article is all about. Seriously Italy and Spain are on the brink with interest rates under 6-7%. What would happen if interest rates rose to 10%. I wouldn’t want to be in stocks, or commodities.
Gives a whole new meaning to $hrubs “I’m the Decider!” theme/policy
Embattled Cain says campaign plans rest with wife:
By Jason McLure | Reuters – 1 hr 53 mins ago
While vowing not to end his candidacy over accusations he had a long-term affair, the former pizza company executive said a frank talk on Friday with Gloria, his wife of 43 years, would be a big part of a “reassessment” of his White House bid.
“I have talked to my wife many times since Monday about this situation. I have not talked to her about this face to face,”
Cain, 65, denies having an affair with Ginger White, who says their 13-year, on-and-off relationship began in the mid-1990s. He said he thought she was a friend and he was simply giving her financial assistance.
Didn’t one of the other women already give a pretty good explanation of his idea of “assistance” finding a “job”? This is seeming like another one of those Clintonian good old boy situations where his working definitions of various terms are different than the average person’s.
She sez: “We had an affair”
He sez: ‘I was giving her financial assistance.”
Maybe they were both right, but isn’t that legal only in Nevada?
+1 My thoughts exactly. LOL!
Oil, yous just can’t $torage enough of it eyes tell ya!
Factories stall worldwide, U.S. jobless claims rise:
Reuters – 1 hour 4 minutes ago
China’s official purchasing managers’ index (PMI) showed factory activity shrank in November for the first time in nearly three years, while a similar PMI showed Indian factory growth slowed close to stall speed.
Both China and Brazil eased monetary policy on Wednesday. It came alongside coordinated action from the world’s biggest central banks to try to prevent another credit crunch by lowering the cost of dollar swaplines.
“The big picture here is this is an unwinding of a 20-year debt bubble,” said Peter Dixon, global financial economist at Commerzbank. “It’s going to be painful, and it’s going to be nasty. What policymakers are aiming for is a smoothing of the path.”
(Additional reporting by Jane Lanhee Lee in Yiwu, Yoo Choonsik in Seoul, Aileen Wang and Kevin Yao in Beijing, Yati Himatsingka in Bangalore, Jonathan Cable and Susan Fenton in London; Editing by Jeremy Gaunt)
“The big picture here is this is an unwinding of a 20-year debt bubble,” said Peter Dixon, global financial economist at Commerzbank. “It’s going to be painful, and it’s going to be nasty. What policymakers are aiming for is a smoothing of the path.”
Peter Dixon, you truth teller you!
Noticed that too, did ya?
But the last sentence is not complete. The final words should be, “…for the rich and austerity for everyone else.”
Both China and Brazil eased monetary policy on Wednesday
It’s getting to the point where everyone is starting to panic. Not so long ago Brazil and China were lecturing the US about running the printing press.
and as long as that money is parked in the bank accounts of the elite and isn’t used to create jobs and spread the wealth to pay off the debts it is as good as useless. Worse really because the banks will then use the money to buy off politicians.
ORLANDO, Fla. — The Republican Governors Association met this week in Florida to give GOP state executives a chance to rejuvenate, strategize and team-build. But during a plenary session on Wednesday, one question kept coming up: How can Republicans do a better job of talking about Occupy Wall Street?
“I’m so scared of this anti-Wall Street effort. I’m frightened to death,” said Frank Luntz, a Republican strategist and one of the nation’s foremost experts on crafting the perfect political message. “They’re having an impact on what the American people think of capitalism.”
No FRANK they are having an impact on what people think of crony capitalism where the elite control our politicians and our markets and our tax dollars for their own benefit at the expense of everyone else. Where one group of people play with a completely different set of rules (ie we make the rules see article on Koch brothers getting tipped off and moving money out of MF global and Hank Paulsons discussing what the gov was going to do with Hedge Fund managers so they could front run the market.
Ooohh do you have a link. I want to read more about Frank Luntz being scared. Or then again, he might just be trying to scare up business for his little focus-group propaganda outfit.
I bet he wishes that he came up with “We are the 99%” by himself.
My consolation is that the Koch Brothers are old.
Ooohh do you have a link. I want to read more about Frank Luntz being scared. Or then again, he might just be trying to scare up business for his little focus-group propaganda outfit.
Perhaps this link might be helpful.
THANK YOU!!!
I’m going to post what else Luntz said:
———-
“Here’s a few snippets of what he said, according to Moody:
– Don’t Mention Capitalism: Luntz said that his polling research found that “The public…still prefers capitalism to socialism, but they think capitalism is immoral. And if we’re seen as defenders of quote, Wall Street, end quote, we’ve got a problem.”
– Empathize With The 99 Percent Protesters: Luntz instructed attendees to tell protesters that they “get it”: “First off, here are three words for you all: ‘I get it.’ … ‘I get that you’re. I get that you’ve seen inequality. I get that you want to fix the system.”
– Don’t Say Bonus: Luntz told Republicans to re-frame the concept of the bonus payment — which bailed-out Wall Street doles out to its employees during holidays — as “pay for performance” instead.
– Don’t Mention The Middle Class Because Americans Don’t Trust Republicans To Defend It: “They cannot win if the fight is on hardworking taxpayers,” Luntz instructed the audience. “We can say we defend the ‘middle class’ and the public will say, I’m not sure about that. But defending ‘hardworking taxpayers’ and Republicans have the advantage.”
– Don’t Talk About Taxing The Rich: Luntz reminded Republicans that Americans actually do want to tax the rich, so he reccommended they instead say that the government “takes from the rich.”
————-
I think what frightens Luntz most is that Occupy is too smart to fall for ANY of this crap.
Yep youth is one thing all the money in the world won’t buy.
My consolation is that the Koch Brothers are old.
They probably have offspring who are just as greedy and unethical as they are and who will take over the reins of their crony capitalist empire once they are gone.
“Scared”? “Frightened to death”? Really? REALLY?
Frank Lunz? The residue that is left on your shoe after dumping the garbage into the dumpster at a seafood restaurant is still many rungs up the evolutionary ladder from him.
Absolute scum of the Earth dissembler, Eighth Circle Sixth Bolgia dweller.
If you want to understand the big political undercurrents the country is experiencing, listen to Newt Gingrich. He is a master of identifying the undercurrents and reflecting them back to people.
Of course, he has a well know track record of reneging on them when it suits his purposes. He reneged on term limits, part of the Contract With America. And when asked about the Congress’ out of control spending, he replied, “To the victor go the spoils.” But he’s very interesting to listen to.
Side note - I was just trying to find the Gingrich “to the victor go the spoils” quote. And it is utterly unfindable on Google. Search criteria: “newt gingrich to the victor go the spoils”. It used to come right up. That’s amazing. I have to wonder if these professional reputation defender companies have anything to do with that. They must have learned how to game the Google search results. Fascinating. Information is power and if they control the Google… that’s… not good.
They don’t game the results, they flat out scrub the information at the source.
They threaten lawsuits or offer payoffs to whoever is hosting the offending information.
I’ve taken to downloading and saving on my HDD the whole page when I find something that I’m pretty sure the overlords will find objectionable and have scrubbed.
They still don’t get it.
lurkey: I am very surprised at my inability to find the ‘to the victors go the spoils’ quote. It’s an absolutely damning moment of candor from a politician. I just looked for it again. Nada. I posted the link here some months ago. It used to be easy to find. Now… nothing. Fascinating.
inability to find the ‘to the victors go the spoils’
The closest I can find it here in Brazil is here, but I can’t find it there but see the description of the google link below.
http://www.cbsnews.com/8300-503544_162-503544.html?contributor=46694
CBS News.com; Browse News … Republican presidential candidate Newt Gingrich said Thursday that he’s trying to … “To the victor go the spoils,” he declared. …
It wasn’t that. That’s a quote from Donald Trump on the Iraqi War. That’s what I keep hitting. Years ago, Gingrich was asked why the Republican Congress was outspending the Democrat ones, he said, “To the victor go the spoils.”
It’s not shocking or surprising to anyone who follows these things, but the moment of candor from a top pol was surprising.
Maybe Your looking for Donald Trump,
DONALD TRUMP: I’ve never said this before. This is the first on your show. Good luck with it. Run with it. In the old days when you had wars, you win, right? You win. To the victor belonged the spoils. So when we go to Iraq, we spend $1.4 trillion so far and thousands of lives are lost, right? And not to mention all the poor guys and gals with one arm and no arm and all the facts, right?
BILL O’REILLY: Absolutely. Right.
Fox Link
Rio and I were thinking alike, but I love a challenge,
Found your original post
HHB Oct 19,2011
and the article referenced
Real Clear Politics
Wow, well done
How can Republicans do a better job of talking about Occupy Wall Street?
They could step in front of a bus for starters, because they sure don’t seem very shy about throwing the rest of us under one.
Occupy LA
The cost to throw out these interlopers is at least 1.5 million dollars. The 1400 police last night probably charged 14,000 hours of overtime, and at the rate of at least $80 for overtime that works out to be $1,120,000. Add to that the city probably spent at least $200,000 in overtime cost for police, fire, DOT and Sanitation prior to last night, and the lawn will probably cost $600,000 to repair you have a GRAND TOTAL OF $1,920,000. It is probably more, but Reyes, and Villaraigosa do not care its not their money. I wonder how many librarians you could of paid with this money. The occupy la movement was mostly anti american,anti capitalist and homeless people. The message was lost months ago and these fringe groups dominated the landscape. This is why most of us lost interest in this movement, it didnt represent us,or our feelings…yes we are pissed off and hate banks,wall street and politicians,but i LOVE the USA !!!!
Meanwhile, a few blocks away, there’s quite the homeless camp. And, from what I’ve heard, the LA government couldn’t care less about the sanitation conditions there. Or about getting the residents off the streets and back into society. (Yes, it can be done.)
But when an Occupation sets up camp outside the offices of the PTB? Oh, no! Can’t have that! Gotta throw them out before they speak truth to power!
but i LOVE the USA !!!!
USA! USA! USA!
Buh… buh… buh… the Tea Party “astroturf” protests also left a huge mess… right?
Oh… wait… never mind
It’s easy to keep a clean camp if you just show up for a couple of hours to let the world know you’re not going to take it any more, and then go home to take it some more.
+1
Show me a Tea Party really where they stayed over for even one night, or even one mealtime.
+1000
yeperooty. Not overstaying welcome often is part of being taken seriously
If you’re welcome, you’re not really trying to change anything. I think we have a different definition of “being taken seriously”.
Not overstaying welcome often is part of being taken seriously
We really want to take you seriously evildoc.
—We really want to take you seriously evildoc.—
Your wants are irrelevant
Your wants are irrelevant evildoc
Maybe. But unlike your tired, worn-out, 1%er, parroted and frankly creepy drivel…..my ideas are no longer.
—-1%er, parroted and frankly creepy drivel—
Ad Hominem. Dismissed
—your evildoc name and your creepy writing style—
Ad hominem. Tactic 3. Funny
Ad hominem. Tactic 3. Funny
Charming. Here’s another. You are one creepy dude doc. Creepy. And I’ve never used that word on any blog at any time before today.
Are you going to refer to me as “it” soon? You know who uses such terms.
Verily.
—You are one creepy dude doc. Creepy.—
Ad Hominem, thus rendering irrelevant all its other arguments
Cheers
“The occupy la movement was mostly anti american,anti capitalist and homeless people.”
Sorry to say it, but you sound rather “anti-american” when you question the legitimacy of a group that is trying to exercise its constitutional rights. Let’s not start throwing “anti-american” or “if you don’t like it, leave the US” around. Very slippery slope. And it seems that you have conflated capitalism and democracy. Also very dangerous.
Far too many people think capitalism is the epitome of society.
A society that puts a price on everything values nothing.
The occupy la movement was mostly anti american,anti capitalist and homeless people.
No wall street and sold in 04 are anti american.
No Wall Street is anti capitalism. They are all for wealth stripping market manipulation and tax payer bailouts.
Now let’s compare the 1.9 million vs the trillions that WS has cost us, and you want people to sit around and do nothing but be polite.
Does anyone remember how much the Boston Tea Party cost?? What about the revolution?? I can’t find my history book.
Luv the smell of false analogy in the morning
How is it false analogy.
Boston Tea party and revolution were anger and English elite taxing them without representation right.
Aren’t we all being taxed via money printing by the FED, via nationalizing the bank losses? Do we have any real representation in gov. Look at the % who voted for TARP, what was the average man on the streets view of TARP.
From Wikipedia
The Tea Party was the culmination of a resistance movement throughout British America against the Tea Act, which had been passed by the British Parliament in 1773. Colonists objected to the Tea Act for a variety of reasons, especially because they believed that it violated their right to be taxed only by their own elected representatives.
So they were mad about being raped by the east India Tea Company and taxed without representation by England. We are made about being raped by WS and banking conglomerate and taxed by the FED and inflation. Seems pretty similar to me.
I luv the smell of false indignation and sense of victimhood in the morning.
How is it false analogy? Boston Tea party and revolution were anger and English elite taxing them without representation right…..
Dammit measton! He’s a DOCTOR not a historian!
—Dammit measton! He’s a DOCTOR not a historian!—-
Verily.
But at least I’m a doctor and not engaging in false analogy.
I’m a doctor
Having observed your thinking patterns, your evildoc name and your creepy writing style reminiscent of two of the characters in Silence of the Lambs, I think maybe you should be a historian and not a doctor.
I most remember how you continually referred to one poster as “it”. Now that’s just not regular.
Verily.
lmao…. oh my word…. hannibal lechter. perfect.
–You are one creepy dude doc. Creepy.—
Ad Hominem. Thus irrelevant
“Dammit measton! He’s a DOCTOR not a historian!”
Rio, that was an intentional star trek reference, was it not? Can’t believe no one got that…
Rio, that was an intentional star trek reference, was it not?
Yes it was.
Luv the smell of false analogy in the morning
Really false analogy?
From Wikipedia
The Tea Party was the culmination of a resistance movement throughout British America against the Tea Act, which had been passed by the British Parliament in 1773. Colonists objected to the Tea Act for a variety of reasons, especially because they believed that it violated their right to be taxed only by their own elected representatives.
ie they rioted because they were being raped by the East India Tea Company and taxed without representation by the English gov.
OWS is mad about being raped by the WS Banking Conglomerate and taxed without representation via the FED and bailouts like TARP and the GSE’s. Do we have representation at the FED? How many Congress whrs voted for TARP vs what percentage of the population was against it? As I recall one congressman saying, the calls about TARP ranged from No to Hell no.
I love the smell of false indignation victimhood and sarcasm in the morning.
“false analogy”
Like I said, evildoc knows the words. He just needs to learn how to use them correctly.
false analogy
The occupy la movement was mostly anti american,anti capitalist and homeless people.
No it’s WS and 04 that are anti American
No it’s WS that is anticapitalism, it is pro wealth stripping, market manipulation, bailouts, theft.
Now let’s compare the 1.9 million OWS cost vs the trillions that WS has cost us, and you want us to sit around and protest quietly and politely?????????????????????????
I finally received a copy of the “Substitution of Trustee and Full Reconveyance” notice from our local county auditor’s office issued by ReconTrust of Chandler, AZ. Free and clear!
Taxes, insurance and all utilities cost me $360/month. Now, gotta keep the wife’s car running for a couple more years; fingers crossed.
Woo-hoo! When’s the mortgage burning party?
I was planning on hosting a luncheon for my co-workers and clients, but I’ll have to wait a week or two because the flu bug has hit hard recently. I’ve had a clean bill of health for years now; dunno why.
Privately, I will share a bottle of bubbly with my wife. I know she’s tired of my debt retirement efforts the past few years, but my family has always had the best in clothing, food, dental, medical, etc., notwithstanding the redirection of income.
Welcome to the club. However, don’t forget to add a suitable additional amount per month for maintenance (HVAC, roof replacement, etc.).
Welcome to the club.
Likewise. Congrats!
It’s been suggested that we are in a deflationary environment due to money disappearing because of bad loans not being repaid.
But… aren’t the bad loans being pawned off on the various governments, the self-appointed “bad banks”, and the lenders being made whole? So there is no reduction in the money supply? Isn’t this the point of the whole European debt crisis, figuring out who is going to pay back these loans?
So - what’s going to be the net effect of all the quantitative easing plus the Fed bond purchases?
So - what’s going to be the net effect of all the quantitative easing plus the Fed bond purchases?
$10/gallon for gasoline? $8/lb for ground beef?
40% unemployement/underemployment
an increase in crime
riots.
See post above
Factories stall worldwide, U.S. jobless claims rise:
Reuters – 1 hour 4 minutes ago
So much for that record Black Friday.
Dangit! And me without my sell order. Dow down 300 pts. manana?
yep!
“…what’s going to be the net effect of all the quantitative easing plus the Fed bond purchases?”
1. Bad debt paid off by central bank printing presses, and permanently sequestered to central bank balance sheets.
2. Moral hazard incentives for Megabank, Inc to start a new cycle of bad lending, on the theory that they remain too-big-to fail, allowing them to privatize profits and eventually unload more bad debt on central banks.
The Marie Antoinette method, eh?
Oh goody.
Permanent sequestration on a central bank balance sheet… interesting.
What’s the consequence of this? The central bank is a black box. As long as one can maintain the value of the currency while sequestering trillions in bad loans… is there any blowback (beside moral hazard) from this?
How much could a central bank sequester without inflationary consequence I wonder. The borrower is excised from the loop. He signs up for the loan, defaults. Fed buys the loan at face value, lender wins.
Interesting.
I’m probably not understanding this, but it seems like you could end up with a form of stability, but where eventually the Fed owned almost everything. Then what?
“…but where eventually the Fed owned almost everything.”
To put this another way, what stands in the way of the Fed buying whatever it wants to buy, for whatever purpose it chooses? Aren’t they pretty much operating these days as a hedge fund with a printing press technology?
Bad debt being paid off??
For bankers and well connected who have access to that money maybe.
For unemployed people facing 8 dollar a gallon gas and expensive food with 40% under/unemployment, a loss of the social safety net, and pension money and rising medical expenses. I don’t think so.
Unfortunately they are the ones that need to pay a lot of this debt off. Also note that the businesses that rely on these people buying goods in order to pay of business debt may find it hard to pay their debts as well even if they can re finance to a lower rate.
This is why most of us lost interest in this movement, it didnt represent us,or our feelings…yes we are pissed off and hate banks,wall street and politicians,but i LOVE the USA !!!!
If you love the USA and the constitution you would be rioting in the streets. That’s what OWS is doing.
Read some of the posts above to see how the country is being destroyed by our elite. Eternal detentions w/o judicial review, bailouts via the FED, wars w/o consent of congress, waterboarding, strong arm police tactics to protect the elite.
This country is falling apart what you want to protect is a vision of the past, what you are really protecting is the status quo which will be the end of the US.
+1
With all these central banks backstopping the eurozone and issuing statements of grave concern, there should be nothing to worry about going forward, should there?
1 December 2011 Last updated at 14:50 ET
Bank says economic climate ‘extraordinarily serious’
Sir Mervyn King: “We must try to bolster the resilience of our financial system”
Banks should brace themselves to withstand the “extraordinarily serious and threatening” economic situation, the Bank of England governor has said.
The Bank’s Financial Policy Committee (FPC) said the eurozone crisis was the biggest threat to the UK’s banking system.
It said banks should build up their financial buffers to withstand that.
Bank governor Sir Mervyn King said the Bank itself was making “contingency plans” in case of a eurozone break-up.
However, he would not go into any details as to what these were.
Sir Mervyn said it did not make sense to say that there was “a single well-defined event against which we have to make contingencies”.
He said: “There are many ways in which the future could play out. Maybe it [the eurozone] won’t break up, maybe it will continue in various forms, but maybe there will still be questions of default.”
On Wednesday, six central banks, including the Bank of England, took action to encourage lending between banks in order to keep the global economy moving.
But Sir Mervyn said that, “ultimately, governments will have to confront the underlying causes”.
If anyone was in any doubt about the severity of the eurozone crisis and what it might mean for the UK, they shouldn’t be any more.
The governor of the Bank of England delivered his starkest warning yet. It’s quite something for a central banker to describe the financial climate as “extraordinarily serious and threatening”.
Sir Mervyn King made no attempt to play down speculation about the possible break-up of the eurozone. He thinks banks can weather storms ahead if they set aside more capital.
But he acknowledged that the problems were widespread and beyond the control of any UK authority.
To sum up the financial regulators’ message - fasten your seatbelts for what could be a very bumpy ride.
“Resolving these wider problems is beyond the control of any UK authority,” he added.
Earlier, president of the European Central Bank (ECB), Mario Draghi, told the European Parliament that “downside risks” to the eurozone economic outlook had increased.
…
LPS came out with their most recent Mortgage Monitor today.
Scariest number I saw was the % of loans in FL that are either non-current or delinquent…22.8%.
Wow.
On a brighter side, non-judicial states appear to be working through their issues. CA, NV, and AZ all have reduced non-current loans by about 20% over the past year (compared to FL which reduced by only 3%).
CA is now 29th worst, (they were in the top ten in 2010).
CA in February of 2010 peaked at 15.3%. 20 months later, CA is down to 10.5%. “Normal” is about 5%.
I was wondering if all of this is just ending up as REO on bank’s balance sheets, but based on a quick look at OREO on the FDIC website, OREO has been cut in half year on year for CA institutions.
I haven’t looked at REO for Fan/Fred/FHA.
I’ll listen tonight the commentary, but I suspect the takehome will be the same as the last several months:
1. Slow progress overall;
2. Better progress in non-judicial states.
On a brighter side, non-judicial states appear to be working through their issues. CA, NV, and AZ all have reduced non-current loans by about 20% over the past year (compared to FL which reduced by only 3%).
AZ still has quite the shadow inventory. Seems that the banks are still taking their sweet ole time about foreclosing and bringing properties to market.
And, by the time they do, oh, are those properties junky. Not what I would call buyer bait.
AZ Slim,
Per LPS, AZ reduced non-current loans by 23.9% year on year (the greatest reduction of any state in the nation). Meaning they are dealing with delinquencies faster than any state…the next question is how much are banks holding onto?
Per the FDIC, All AZ based institutions dramatically reduced OREO from $45MM to $13MM…however, that’s got to be a drop in the bucket…most lenders to AZ borrowers must be domiciled elsewhere.
Nationally, per FDIC, OREO went from $14.76B (1-4 family residential) in September 2010 to $11.9B in September 2011 (a decent reduction of 19%). How much is attributable to Arizona is anyone’s guess…
Unless we look at Foreclosure Radar…which shows the state of AZ reducing REO levels by 27% year on year.
Feels like banks are moving slowly, but the data show non-judicial states are doing far better than judicial.
Major Banks Face New Foreclosure Lawsuit
By GRETCHEN MORGENSON
Published: December 1, 2011
New York Times
http://www.nytimes.com/2011/12/02/business/major-banks-face-new-foreclosure-suit.html
“Round up the usual suspects…”
…Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and GMAC Mortgage…
Yep. At least none of us here have an account with, or a credit card from, one of those banks.
Right?
There is no mystery here at all; if interest rates are too low to cover the risk of default, private banks won’t lend. And central banks are suppressing yields by using their printing presses to offer loans of last resort to preferred customers at rates which don’t cover the default risk premium. Hence the perception grows that there is a lack of money in the system, no matter how much is added.
The Financial Times of London
December 1, 2011 8:32 pm
Return of the credit crunch: caught in the grip
By Patrick Jenkins and Richard Milne
Banks need to carry on lending but funds are ever harder to raise
Across Wiener Feinbäcker’s 350-strong chain of bakeries, the posters are everywhere. This typical German midsized company is promoting a bond alongside its Brötchen.
The unusual offer, which promises a 7 per cent coupon for five years, is an eloquent sign of the times. When a thriving business with profits growing at 30 per cent a year resorts to this kind of financing, it is a pretty sure sign that banks are not fulfilling their traditional role.
But if times are changing in Germany, the plight of companies in the peripheral nations of Europe is even tougher. “The credit market is not functioning right now,” says Guillermo Amann at Ormazabal, a Spanish maker of electrical components. “There is no money. The situation is becoming worse and worse.”
…
Lookie here: One (with money) who knew his way about financially could probably do quite well in this lean money environment.
Banks won’t loan money because they are run by bankers, and bankers have already demonstrted that they have no sense.
Plus bankers have to account to their higher-ups for any lending errors. The risk/reward ratio for bankers who need to stick their neck out a bit is not at all favorable to the banker.
Which leaves a big gap that connects folks who have money with the folks who need money.
Cash, of course, rules in such an environment.
Watch out for Herman’s cane this holiday season!
ZING!
He’s a hard man to beat! -
50/50 odds my programs will be axed before the holildays. I may get knocked back down to teacher pay and returned to the classroom.
And here it is
BRUSSELS/TOULON, France (Reuters) - The new head of the European Central Bank signaled on Thursday it stood ready to act more aggressively to fight Europe’s debt crisis if political leaders agree next week on much tighter budget controls in the 17-nation euro zone.
In France, President Nicolas Sarkozy called for a new treaty incorporating tougher budget discipline, a European Monetary Fund to support countries in difficulty and decisions in the euro area taken by majority vote instead of unanimity.
zzz
ECB President Mario Draghi painted a dark picture of the state of Europe’s banking system, speaking a day after the world’s major central banks took emergency joint action to provide cheaper dollar funding for starved European banks.
“A new fiscal compact would be the most important signal from euro area governments for embarking on a path of comprehensive deepening of economic integration. It would also present a clear trajectory for the future evolution of the euro area, thus framing expectations,” he told the European Parliament.
zzz
Sarkozy voiced similar sentiments in words designed to reassure voters anxious about handing more power to Brussels. He called for an “intergovernmental” Europe and made no mention of the stronger role for the European Commission or the European Court of Justice sought by Berlin.
“Sovereignty can only be exercised with others. Europe doesn’t mean less sovereignty but more sovereignty because it gives us a greater capacity to act,” Sarkozy declared
I had to laugh at this quote.
xxx
Merkel is due to outline her own vision in an address to parliament in Berlin on Friday. Aides said the leaders conferred by telephone to ensure that their speeches, while different in tone, would not be incompatible.
xxx
EU paymaster Germany is pressing for limited treaty changes to establish coercive powers to veto national budgets in the euro zone that breach agreed rules.
Berlin wants the European Commission to be empowered to reject national budgets before they go to parliament and to refer serial deficit offenders to the European Court of Justice.
Sources close to the negotiations said Germany and France had yet to agree on key issues including the role of the EU executive and court, with Paris preferring an intergovernmental approach leaving the final word with elected leaders.
In another apparent difference, Sarkozy called for a guarantee that savers would face no further losses on European sovereign bonds
So there you have it. EU central bank will come to the rescue directly or by loaning to banks who then loan to the IMF who then buy bonds. This we are told will happen if and only if the peripheral EU countries give up sovereignty to unelected EU central gov.
My guess is much of the hand wringing is done in the same way that Hank Paulson stood on the Senate Floor telling senators that the end of the world was coming. Vote for TARP with no strings attached. My guess is that this is why these countries were allowed to hang themselves with debt, this is why GS was brought in to hide debt to let these countries reach the point of no return. Why large banks continued to buy their debt when all sensible metrics of risk had been blown out the window. Corzine knows that these countries are going to be bailed out, my guess is he just got some bad information on when.
“Fighting debt with more debt,” “Welfare for the banks, austerity for the masses” - these are remarkably apt summaries of the situation.
“Merkel’s refusal to deploy the ECB is a rebuff to President Barack Obama after he exhorted Europe’s leaders to take more action to combat the crisis. The chancellor is loath to agree to follow the Federal Reserve and the Bank of England in policies she views as akin to fighting debt with more debt. ”
http://www.bloomberg.com/news/2011-12-01/franco-german-push-for-budget-rules-snubs-investor-bid-for-ecb-crisis-role.html
She will deploy it when she and the banks get everything they want. Just wait for it, as soon as these peripheral countries hand over their bank accounts and accept that the banking elite will control their allowance, you will see the wall of money form and flood the system.
http://www.youtube.com/watch?v=n5GOjzw1f-c
Member of Free $hit Army with 15 kids (future Democrats) demands that taxpayers cover her free ride.
The best part was where she said, ’somebody needs to pay, for all my children…somebody needs to be held accountable.’
I agree with you in this, Ben.
I suppose though I’m waiting for the rants of the catch-phrase-critters to blame this on– what is the latest term for those who don’t accommodate her– the “1 %”. It must be the 1%.
Or, is she just a bad egg who suffers from her own poor choices. That’s how I see it.
Beyond belief, but perhaps appropriate for the season… “Ho, Ho, Ho…”.
Too funny.
“somebody needs to be held accountable”
Uh, yeah, normally that would be the parents.
There should be no such thing as welfare or unemployment. Only going to work, and her kids should spend as much time in school as possible because spending time in that motel room with that mother is guaranteed to create 15 more people just like their mother.
It’s funny I was thinking of her and picturing Hank Paulson on the Senate Floor and all the too big to fail banks and thinking they all employ the same strategy. Give us free shit or bad things out of our control are going to happen.
Gingrich, Paul and Romney rise to the top of the Iowa Electronic Market futures market for the Iowa Republican Caucus winner:
2012 Iowa Republican Caucus Market