Who had WaMu in the "dead pool?" Oh! that's right, I did! [montgomery burns |on] Excelllent.[montgomery burns |off]
Seriously, this a the new far more troubling aspect of moral hazard. WaMu just got caught in material breach of OTS regulations and the "penalty" is to buy out the CEO and promise to stop. Clearly the OTS is in no position to threaten WaMu.
CR and T, 2 things here:
1. Are we tracking Meredith Whitney's call for $2 trillion in deactivated credit lines for US households? Where are we so far? I hate averaging, but thats averages to about $12k per HH. How come we cant factor out HH that carry no credit card balance (I heard its 40 million), and then get the median credit card balance for the remaining HH that carry balances? Is it that hard? This has huge implications for the economy.
2.\tOne bank seizure in 2008 equals x? bank seizure in 1989's S&L crisis.
The ABA reports mergers reduced the ranks of bank by 50%, remaining banks are larger. Then there's adjusting for population growth. Also, there's adjusting for the bubble-growth in deposits. 2008s 11 bank seizures to-date, plus CFCs sale to BofA, doesnt look so small in my book.
Investors may be forced to settle contracts protecting more than $1.4 trillion of Fannie Mae and Freddie Mac bonds against default after the U.S. seized control of the companies in a bid to bolster the housing market.
Thirteen major'' dealers of credit-default swaps agreedunanimously'' that the rescue constitutes a credit event triggering payment or delivery of the companies' bonds, the International Swaps and Derivatives Association said in a memo obtained by Bloomberg News today. Market makers for the privately traded contracts will discuss how to settle them in a conference call at 11 a.m. in New York, the document said.
Malinvesting OPM for millions plus bonuses, with a golden parachute at the end....I guess they have to get a golden parachute because otherwise, they'd have trouble attacting the best looters to the job....
``We believe conservatorship is a credit event,'' Barclays Plc analysts Vince Breitenbach and Jeff Meli said in a note to clients yesterday. Barclays is a member of the ISDA.
Fishman gets a nice buffer, assuming the bounce to financials persists. He gets the benefit of the GSE take-over on his first day. Course, at Ritholtz points out, each rescue has led to a briefer rally in stocks, before the next new low.
So the upshot is, WaMu can keep doing the same business, but not in the same stupidly risky way, and not while lying about it to regulators?
didn't IndyMac enter into a MOU right before the FDIC took them over? If so, is the fact that WaMu has a MOU to be taken as a sign that they will be nationalized shortly?
Business News Send to a Friend Printable View
SKorea regulator urges caution over Lehman stake
By KELLY OLSEN (AP Business Writer)
From Associated Press
September 08, 2008 10:13 AM EDT
SEOUL, South Korea - South Korea's financial regulator urged state-owned Korea Development Bank on Monday to be cautious over any investment in Lehman Brothers.
Korea Development Bank "should be very prudent in its approach to acquiring Lehman given the condition of financial markets at home and abroad and that it has not yet been privatized," Jun Kwang-woo, chairman of the Financial Services Commission, told reporters.
Going forward, who in their right mond would participate in a capital raise by WAMU or Lehman?
One, they're likely insolvent. Two, the majority of their prior business was based upon a now dead industry - lending mortgage money to people that can't pay it back.
And the company conveniently "forgot" to mention the MOU in yesterday's news about the CEO change. It was only disclosed this morning as an "oh by the way" final paragraph in the formal press release about the new CEO.
Clearly they were hoping it would get lost in the noise with FRE and FNM making all the headlines. Sounds like the OTS was in cahouts on the disclosure.
Here's part of my take on the Treasury's bailout of FRE & FNM.
Absent the bailout, the Fed's balance sheet would be in shambles. All those alleged AAA assets they took on under the alphabet soup facilities were likely sinking fast.
We never should have started this mortgage bailout crap.
The notion of "too big to fail" is nonsense. We're witnessing a massive scam perpetrated to keep the iron grip of finance in our society in place.
So Rob Dawg, how many weeks for Wamu and Downey? Got Popcorn? - Neil
I thought Downey would have been in the last two weeks as a "tune-up/pre-season" game before attempting to take on the octopus that is WaMu.
The thing to takeaway at this point is that FDIC is no longer acting proactively because it is no longer able to act proactively. They are in fireman mode where they are so busy they only pay attention to those banks that have already burst into flames and they have the capacity to put out.
It was 5 weeks between resignation of Silver State Bank's CEO and the FDIC take over. Does the FDIC try to give the new mgt team a chance to turn things around before taking action? (I imagine it depends on how bad the situation is -- maybe with a hope and a prayer vs. no way in hell.)
In any event, political concerns be coming into play. Either WaMu is closed down very shortly or (I'm sure the preferred option) it's punted til after the election. You don't want these headlines in mid-Oct. (You don't want actual bank runs either in mid-Oct.)
If I was to put this into a research piece I would be fired...
Here is the key to his arguement..
"The Treasury's takeover of Fannie and Freddie can change that because once mortgage paper packaged by the government enterprises is federal government paper, then ANYTHING can be worked out with the borrowers, and the borrowers represent the lions' share of the troubled homeowners in the country who have not already defaulted. "
cramer is a moron. His logic on the financials long a few weeks ago was botom was in. The guy is a joke. A complete joke. he is the definition of blame when it rains take credit when the sun shines. What happen to his seed trade. Don't hear much about that one these days. Oh and what would it be withough Erinn the PSuedo intellectual fawning over his ag porno mags.
The business plan will not require the company to raise capital, increase liquidity or make changes to the products and services it provides to customers.
The Federal Deposit Insurance Corp. had planned to shut down the Henderson, Nev., bank on Aug. 29. But the FDIC lacked the authority to close Silver State, which is a state-chartered bank and whose primary regulator is the Nevada Financial Institutions Division. Shortly before the FDIC planned to swoop into Silver State's offices at the start of the Labor Day weekend, the Financial Institutions Division decided to let the bank stay in business, according to people familiar with the matter.
FDIC Press Release
The FDIC board of directors voted on staff recommendations today and will purchase a majority stake in Papa John's Pizza which is a national chain of pizza eateries in most states where FDIC projects additional business opportunties and challenges. This decision does not impact the deposit insurance fund which is at a low point in the nation's history. No depositor has ever lost a dime of insured funds since the FDIC was founded in 1933. For additional information including Papa John's projected sales growth go to FDIC: Federal Deposit Insurance Corporation
C'mon, its 40 years since it was privatized and 38 years since Freddie was created. All this deprivatized silliness is just cos his nose is bent out of joint that his pet poodle choked - no doubt many who thought the sun shone out of Freddie's ass and Fannie's you know what think the same. I love it. Now, when I see Syron, Mudd, Raines do the perp walk - Bliss !
The crawl on the money channel sez homebuilders are up. This is nutz, just nutz. Somebody really thinks that this will cause builders to make money? Lennar has ties with some bank and is offering low rates to the qualified, as it has for months. Just how will this conservatorship help more houses to be sold. Joe and Josephine homebuyer are now wary. I think they will stay that way for a good long time.
Gov. Sarah Palin made her first potentially major gaffe during her time on the national scene while discussing the developments of the perilous housing market this past weekend.
Speaking before voters in Colorado Springs, the Republican vice presidential nominee claimed that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers."
And people think that the solution to our problems is to give people like this even more control over the financial markets and the economy.
When people like her and GWB get to run every aspect of our lives then all our problems will go away.
Speaking before voters in Colorado Springs, the Republican vice presidential nominee claimed that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers."
This isn't the most nuanced observation, but isn't it essentially correct? They are too big, and they are too expensive for (insolvent) government and taxpayers to bail out, barring the money-printing/inflation route.
Guess that's why Nasdaq is tanking.
But adrenalin is temporary, my guess is crude will spike up again, when they find out there's only so much demand that can be destroyed.
Most pundits have got it wrong, commodities are still strong on china's demand. Coal isn't getting cheaper.
Precious metals are another area to look into. Germany isn't selling any more of their gold and that is mighty strange. Oh and do look at the COT of commercials, they are going long.
My bag is sinking low and I do believe it's time
To get back to Miss Fannie, you know she's the only one
Who sent me here with her regards for everyone
Take a load off Fannie
Take a load for FREE
Take a load off Fannie
And you can put the load right on ME
My primary position in this market is "preserve cash" and I'm 95% there; 5% short. I'm allowing myself to trade on a short leash. We've witnessed a major pump in the market today. It's my humble opinion that the pump is not done. It's important to understand that TPTB [The Powers That Be] are not simpletons. So, I wouldn't short bucky just yet.
I ignored this F&F news, blocked it out, all weekend. Now my head is reeling. Shock, we all have to be in shock right now. I follow one thread of this story for a second and 8 million other threads run off in every direction. What else?
isn't it essentially correct? They are too big, and they are too expensive for (insolvent) government and taxpayers to bail out, barring the money-printing/inflation route.
Disclaimer: not voting for her or McSame. - HARM
Hey HARM. Color me shocked, shocked I tell you to discover you won't hold your nose and vote Palin and her running mate. That said, consider your alternative. Vote for the guys that would make it bigger and more insolvent. [Is "more insolvent" like being "more pregnant?"]
This isn't the most nuanced observation, but isn't it essentially correct? They are too big, and they are too expensive for (insolvent) government and taxpayers to bail out, barring the money-printing/inflation route.
Well I think Palin's gaff was that she was talking like they'd just been privatized.
I.E. apparently she didn't understand the concept that these agencies had just been socialized and she's defending the move on free market capitalism grounds.
Fed governor Poole just claimed that if there was a financial meltdown, no one would be able to get a mortgage. He's full of shit. Congress could start a new lending agency tomorrow out of the ruins.
Hey HARM. Color me shocked, shocked I tell you to discover you won't hold your nose and vote Palin and her running mate. That said, consider your alternative. Vote for the guys that would make it bigger and more insolvent. [Is "more insolvent" like being "more pregnant?"]
Cthulhu 2008.
Rob Dawg
In the end the people of this country aren't holding the government or private industry accountable for their screw ups.
So there's no reason to think that anyone we put in office or in control of the markets will act to make them any better.
They certainly haven't up to this point and it's a delusional fantasy to think because the ruling party has one label vs. another that they're really going to run things differently.
Fed governor Poole just claimed that if there was a financial meltdown, no one would be able to get a mortgage. He's full of shit. Congress could start a new lending agency tomorrow out of the ruins.
If there's a genuine financial meltdown the dollar and the congress will lose all credibility and power.
They could create all the lending agencies they wanted and nobody would care.
yogi writes:
Fed governor Poole just claimed that if there was a financial meltdown, no one would be able to get a mortgage. He's full of shit. Congress could start a new lending agency tomorrow out of the ruins.
yogi | 09.08.08 - 2:26 pm | #
why does "man grasping at few straws" jump to my mind?
anyone else want to challenge the statement that "stocks are juiced" today?...seriously, not even 300pts up after going down 340pts and their "soaring"...come on.
Fanny and Freddy shares now both selling for about seventy cents. Down from yearly high of upper 60s (dollars). Sorta like Bear Stearns, or worse. And I do wonder and would like to know how this has affected Dodge and Cox and Dreman, and some other idiots who bet big on the common "in their deep wisdom." LOL
blackhat writes:
anyone else want to challenge the statement that "stocks are juiced" today?...seriously, not even 300pts up after going down 340pts and their "soaring"...come on.
blackhat | 09.08.08 - 2:36 pm |
Popeye repeats: He who "invests" in the midst of chaos should only expect to reap the winds.
Once consumers figure out their 'excellent' credit scores are shot from high revolving debt and now just 'average' or 'below average' even though there has not been one late payment...well they may just walkaway from CC debt too.
Point taken. Perhaps that quote was taken out of context, or perhaps Palin needs some 1-on-1 schooling on securitization from Tanta and the Mortgage Pig. Either way, Hank Paulson just placed a jumbo order on behalf of the U.S. taxpayer, for a deluxe shitburger with all the trimmings. Bon Appetit!
"The crawl on the money channel is......." Saints preserve us - if that is not the language of pennystock hype... then, I'll fall down and confess that I'm stupid.
Perhaps this election comes down to little more than Giant Douche vs. Turd Sandwich. Even so, if all we're going to get is more corporate socialism --regardless of which corrupt, inept party wins--, I wouldn't mind also getting a little socialism for the common citizen for good measure.
I'll take my shitburger with a little A-1, thank you!
This morning, Conjure and I were discussing the differences between the markets forty years ago and today.
We agreed the major difference is that, forty years ago, we took the money of "investors" with high school educations. Today, we take the money of "investors" with college educations.
The new Wammer Dude said changes in the mortgage business are not reason for WaMu to slow its growth. Maybe reduced access to lines of credit will be a reason to slow growth? Anyhow, WaMu credit protection costs are at a record today.
When I say buy a car I mean finance a car. Millionaires or even billionaires on paper with high revolving debt and resulting reduced credit scores and who have never missed a payment cannot finance a car or truck. I heard these stories directly. The credit markets for most are kaput thus the economy is done.
National Post Canada
FDIC fear
Gerard Cassidy at the Royal Bank Capital markets calls the next bigger financial crisis the Texas Ratio and analysed banking crises in the 1980s and 1990s. His Ratio is the point at which a banks underlying value and bad debts intersect. Then theyre headed for a bust, particularly since raising equity for banks in the U.S. is nearly impossible.
If all 150 banks fail, the FDIC will be insolvent, he wrote.
As the FDICs liabilities grow to 150 or more banks the insurer of last resort wont be able to cover its obligations to deposits of up to US$100,000 in a deposit account of up to US$250,000 in a retirement account.
When that happens, Congress will have to step in to avoid massive runs on the banks.
Next on the Republican list, for a new, bigger role for government, will be Detroit, suffering from the double whammy of high oil prices and low consumer spending due to the bursting of the real estate bubble. It will need the Mother of Earmarks to chug along as it figures out what to do in future. What a mess. (Indeed) http://network.nationalpost.com:80/np/blogs/francis/archive/2008/09/07/like-republican-trickle-down-yet.aspx
I'll take my shitburger with a little A-1, thank you! - HARM
No Sh¡tburger for you. You go hungry. Bow bow bow. Get back to me when "stickiness" returns to the housing market. Simpsons had it right; Vote Korg or Kang. It does not matter.
Ya know...if we just wrote a million dollar check to each and every US citizen, the home price floor would be in instantly,
and no one would default on any debt currently held.
And yet, a million dollar per citizen stimulus check is not being written....why is that?
My suspicion is that the FDIC won't move in until they run out of liquidity. This will fully deplete FDIC's reserves. Two bailouts in one month are too much. Maybe November.
I heard a story of a 'wealthy' individual who 'owns' a private jet who couldn't get a car loan. Of course he's in mortgage financing so that may explain that.
The debt-free can get loans maybe depending on their income. Some debt-free don't use credit thus don't even have a credit score. The people who can get financing who have little or no debt probably don't want to get into debt.
This shit, is all about confidence in The Bush Coup and the confidence in the synthetic derivatives spun out under this coups era. The people have already voted and the gig is up!
A thread on the ISDA meeting and derivatives activity today would be great, but I suspect that there is precious little in the way of information available...
Blog note. I know very few care and it won't make any difference to the intended audience but I automatically tune out any post after the word Bush. Lately the political rhetoric has been bumped up a notch. I see nothing but dimunition of CR from that. Sorry to interrupt.
Sounds like it's time to get your cash out of the bank...any bank...if FDIC can't cover a substantial numbers of banks going under. If this thing accelerates, could be long lines with the doors shut.
Imagine how fun it would be to get your money from online banking. Then you'll be 'waiting in line' on the computer. Know a guy who has $200K in Downey and he said he hadn't heard of any problems with his bank.
I found this old story to be almost as entertaining as Tanta this morning: The Securities and Exchange Commission and the securities industry's leading lobbying group are engaged in a heated battle over the extent to which the SEC has enforcement authority over interest rate swap transactions in a court case involving Jefferson County, Ala., muni bond and swap deals.
In the latest salvo, the SEC yesterday urged a federal court in Alabama to disregard a friend-of-the-court-brief filed by the Securities Industry and Financial Market Association, claiming it is a "flawed piece of advocacy" for SIFMA's member-firms and those connected with the Jefferson County deals that seeks to negate the authority that Congress has given the commission.
The SEC made its plea in a 30-page document filed with the U.S. District Court for the Northern District of Alabama in Birmingham after SIFMA claimed the SEC does not have jurisdiction over interest rate swaps based on its municipal swap index because it is an index of interest rates, not securities. SEC, SIFMA in Slugfest Over Municipal Swaps
Rob Dawg is an example of what I've been talking about concerning blog content editing or troll hunting in which the unwelcome blogger who is 'politically incorrect' or charged with being 'off-topic' will be ignored and if that doesn't work confronted. But every blog has the volunteer blog police and it does serve an important function of gatekeeping and while I see it as sometimes necessary, it can also serve a 'political/economic' censorship strategy itself.
"How far we have descended in eight years. How much further it seems we have to go."
The crack in the spacetime continuum happened on the evening of Nov. 7, 2000 and has been spreading ever since. This is probably a reverse-temporal effect of the LHC. No problem, once we turn into a gamma ray burst on Wednesday all will be well.
U.S. consumer debt grew at an annual rate of 2.1% in July, the slowest growth since December, the Federal Reserve reported Monday.
Consumer debt -- including credit cards and auto loans but not including mortgages - increased $4.6 billion to $2.59 trillion, the Fed said. It was the slowest growth in credit since the 1.9% growth rate in December.
June's growth was revised down from 6.7%, or $14.3 billion, to 5.1%, or $11 billion.
Growth of credit card debt accelerated to 4.8%, or $3.9 billion, in July from 3.5% in June. Growth of nonrevolving debt - largely auto loans - slowed to 0.5%, or $678.1 million, the slowest since December.
The average interest rate for a new-car loan plunged to 3.31% from 5.49%; it's the lowest rate since September 2006. The maturity of the average loan widened to a record 67.2 months from 63.5 months in June.
Despite the low interest rate for auto loans, auto sales dropped in July to the lowest pace in 16 years.
I sure back of Rob Dawg on minimizing the "noise to signal ratio" here at CR...if that doesn't appeal to anyone here, be our guest and tell it to someone who cares.
Anyone else notice that this is the first time no one is getting defensive on the use of "bailout"? At least since Chrysler. They use to all scream "No, it will all be paid back!"
Republican presidential candidate John McCain and running mate Sarah Palin, looking to extend their post-convention boost in the polls, are claiming Democrat Barack Obama sought $1 billion in special U.S. funding for his home state, ignoring Palin's record of seeking hefty allocations as governor of Alaska.
This year, Palin's state government has sought 31 so-called earmarks totaling $198 million, about $295 for every person in her sparsely populated state.
Obama, who represents Illinois in the Senate, has sought none in the current year. In 2007, he supported $311 million in special project spending, about $24 for every Illinoisan.
In Palin's two years as governor, Alaska has requested nearly $750 million in special federal spending, by far the largest per-capita request among the 50 U.S. states.
I think No Sense has a right to his/her opinion regarding the state of the economy even if the 'Bush' word was used in context to the Crash we are now witnessing.
IMO anyway.
revolving debt up a healthy clip 5% ish . Non revolving ie. auto rv etc was flattish and not shocking. That includes education. de....fl...a....t...i.....
Sept. 8 (Bloomberg) -- Consumer borrowing in the U.S. increased about half as much as forecast in July as banks restricted lending and Americans cut back on spending.
Consumer credit rose $4.6 billion for the month to $2.59 trillion, the Federal Reserve said today in Washington. In June, credit climbed by $11 billion, previously reported as an increase of $14.3 billion. The Fed's report doesn't cover borrowing secured by real estate.
Automobiles sales slumped in July to the lowest level in 15 years as employers cut jobs and fuel prices soared. Consumer spending, which accounts for more than two-thirds of the economy, will probably continue to slow as home prices fall and banks restrict lending, hurting growth in the second half of the year.
excuse me, but someday the war will be put into conservatorship.
72 month 0% loans...I cannot wait to see the first auto loan discharged from court because the auto lender did not rely materially on any concept of ability to pay.
Can someone please explain how spending hundreds of billions of dollars to get a 50 bps move down in the mrotgage rate is a good trade? Talk about tail risk and negative convexity.
No doubtr Frannie is now RTC II. This will become the dumping gound for all the banks. Also note that the FHLB facility was put in place. This was all part of the BAC deal> The $60B borrowed by CFC is to be washed away as that system goes into distress (already is apparently). Pathetic.
Shnaps,
It's appropriate in this time of Crash to look into the politics of economics. We have to be fearless and searching and honest in finding out why this mess is happening. Content control will just compromise the attempt to make sense of this government intervention into the economy.
There needs to be accountability for this disaster and it involves to a very large degree the Bush administration and its intentional dismantling of regulation.
Trying to ignore that is trying to paint over proper analysis or otherwise just trying to prevent the facts from coming out because their loyalty is with the incumbents!
I know there is a risk to the content of the blog but it that is a risk that needs to be balanced against not covering relevant issues.
It is a very fine line.
Popeye writes:
"p.s. - I was caught in that short, and I'm stubborn."
you sure did not want to cover shorts at the open
was interesting to see how UYG bid price was consistently lower than ask price over 24
not tho mention the fact that the open was a jump from minuscule volume from AH-preopen trading followed by massive down volume after ther open
but I agree that we are not quite ready for the downside.... got to exhaust the move
50 year mortgages. 72 month auto loans. WTF? Sheer idiocy with the lure of low monthly payments. Ever thought that the risk of default is drastically increased the longer the terms offered?
The majority of homes built in the last 10 years will be VERY lucky to last 20 years.
How many people drive a car for 6 years. I guarantee the cars with the 0%, 72 months are the low gas mileage models. Look for those babies to be defaulted on in 18 months when gas peaks back to $4 plus. Lunacy and a great example why this crisis will continue for a very, very long time.
"There needs to be accountability for this disaster and it involves to a very large degree the Bush administration and its intentional dismantling of regulation."
Well, RE, there isn't going to be any accountability, so you'll just have to get used to it.
As to fixing responsibility, go look in a mirror. We're all going to pay for it.
Where was BUSH on 911? Sorry I know this is OT.
History will prove depending on who the historians are that the Bush administration and executive branch(and Congress) with the Federal Reserve was involved in pumping up this bubble up through promoting 'The Ownership Society'. Now the administration is involved through the Treasury in trying to save investment banks, the big bond holders, and Wall Streeters while leaving consumers holding the bag.
"I spoke today with Treasury Secretary Henry Paulson on the depth of the housing finance crisis, in which millions of families are losing their homes. I told him it is essential that any steps taken by the Treasury Department must restore investors confidence in the housing market and allow Fannie Mae and Freddie Mac to continue their mission of providing access to affordable mortgages for lower- and middle-income Americans, and in a way that protects the interests of the taxpayers.
"In the coming weeks, I look forward to working in a bipartisan manner with Secretary Paulson and other Administration officials and congressional leaders in reviewing the implications of action taken this weekend to ensure that the interests of taxpayers and the broader economy are protected."
Why the fuck, did she stop talk of impeaching Bush, when The Democrat traitors were elected to make changes??? Now we get Palin as a bobby prize! Screw these frauds!
So if I really want to piss you off, I can just say...
Nah, my hot buttons are moral hazard, transit, urban and cholesterol. My point is that it is a shame that there are no political blogs such that people are forced to go off topic here in order to either vent or explode.
However, at least in the outer corners of cyberspace there should be an area where can openly discuss what the major causes of this disaster are. To paint over it and try to ignore it in face of an election is utter hubris.
Besides, the president doesn't have to consume actual alcohol to act like a bumbling fraternity president. Still, it's worth noting that Bush has been doing a funny/terrifying impersonation of a drunk president for all the press photographers at the Olympics. He's even got the red face thing down! After the jump, enjoy a photo gallery of the president looking his most wasted, from that beach volleyball embarrassment to daughter Barbara looking embarrassed next to Bush at a swimming match, plus some of the other ones Wonkette found on Four Winds 10 last night and some other ones thrown in for fun.
Dumb question from the back of the room: is it possible that FDIC doesn't intervene with technically insolvent banks soon enough to limit losses out of potential litigation from shareholders?
OT to mp-- thanks for "hiemat" on thread from last night. Like so many others here, I enjoy your posts and learning about things like this in addition to the financials.
You know, I was thinking... we could really reinvigorate our economy with some massive spending on some TOD & New Urbanism mega-projects --all with fully explicit taxpayer backstops, of course. And the lion's share of it in the form of no-bid contracts going to outfits that lavishly contribute to our dear leaders. And let's not forget to create a new Food Pyramid that places high cholesteral foods (and excrement sandwiches) firmly at the base --the foundation of any good diet.
So any discussions of a flame grilled sirloin burger topped with a heaping pile of stilton blue cheese are off limits - cause that's what I had for lunch today - go long crestor...
Twern't my head that explodes but my leg and radial arteries currently pressed into service of my black shriveled heart.
Seriously, maybe some people do indeed feel better venting I don't wish to see it when visiting here. HARM, you know full well that when I want a fight, or a whine or even a pity party I know the URL. This is not any of those places.
so tell me--- why is the dollar rallying, gold falling, and RE as represented by SRS rising?? What am I missing???? are we truly in bizarro world--doesn't this event just make us that much further in the hole!!!
Rob dawg,
As hard as you try or wish, you will never be able to separate politics from economics, especially since now we seem to have a socialist-type (for special moneyed interests)government that is merging government into the private sphere and taking over!
"...especially since now we seem to have a socialist-type (for special moneyed interests)government that is merging government into the private sphere and taking over!"
Christ, man, I guess you didn't get the memo. That happened a long time ago.
My sense of it is that the many participants in the market are gaming it.
What is interesting to me is the way Reuters et. al. will always report "market rises on news of X" when in truth "X" is a mere expedient.
From time to time, some real-world event leads to a clutch of margin calls or throws some severe risk into relief. Then, for a moment, you see the exchange functioning as an actual market. Otherwise it's a heady mix of black boxes and testosterone.
I think I'd have to hear the rules of posting from CR or Tanta since it's their blog. Maybe they don't want discussions of how politics affects economics but I don't think I've heard it from them...just from the volunteer blog content editors(nice name for blog police)
So any discussions of a flame grilled sirloin burger topped with a heaping pile of stilton blue cheese are off limits - cause that's what I had for lunch today - go long crestor... - Mike in Long Island
B@st@rd.Mrs.Dawg let me have a"small" burger yesterday with lots of lettuce, onions and tomato and no cheeze. Iz stillz cantz haz cheezeburgerz. Wewere at the UCLA Alumni & Parents bbq meaning that shriveled bit o'cow cost me ~$8500.
After WWII destroyed my father's Heimat through forced relocation, he voluntarily located here.
After that he married a woman who's family had always been moving for generations.
I come from folks who no longer believe in the concept. Heimat is in your heart, not in the graben.
Those folks time has come and gone, and where some of the bones lie, nobody knows. What is Heimat when one grandfather lies in camp somewhere in Siberia, and another in Los Angeles-far from where he was born?
One grandmother got to spend 40 years looking over a wall at where she was from, never allowed to visit-but alwasy longing for that which was dead-the other died burying three husbands after a long life.
The entire philosophy is 18th century/19th century romanticism.
Heimat is for the dead, living is for now and those here.
Charles Lemonides is probably passed-out on the floor of some seedy lower Manhattan bar this afternoon
You would have to have a heart of stone not to think about the guy today... I am sure I make less money trading for myself but my blood presssure does not go over 110
"My sense of it is that the many participants in the market are gaming it."
nah....you think????
what is exhaustting is to explain to people the up/down volume notion and to see how few people grasp the importance...or even the point at all, even people who rely on what they call "TA"
I guess TA means different things to different people
Here, here. Strange how Nationalism has reared its ugly head so powerfully lately and we find ourselves bogged down in Nationalist wars overseas again (Kurdistan, Baluchistan, Georgia soon?). In a few more decades 2/3 of Britain's "English" people will live permanently overseas in either former colonies or enemies (Spain, Greece, etc.). My family moved west each generation from Virginia in 1690 to California now and beyond (my father lives in SE Asia). Chinese people are scattered all over China now that the household registration system is over in many parts and disregarded everywhere else. Nationalism is the biggest and dumbest and most dangerous of our 19th belief system. It's the 21st Century now - can't we move on?
I just do what I gotta do. Dad always was a grass was greener over the horizon.
I have no dreams to leave my kid of living here in peace and tranquility as the centuries go by, I leave him a packed bag and some money.
He will have to go forth and find his own place in the world. The dream of leaving more for the children never works. They have to get what they want, and what you collect or desire may not be theirs.
CR, any idea how to get these twitter twits from polluting your site with their idiot comments? Could you put a rule into effect that would only post comments of minimum 10 or 12 sentences long (would not guarantee great comments but it would frustrate the twitter twits). Tanta, the Great Explainer of Mortgage Stuff in Exceptionally Clear and Concise Writing, whip these twits into shape! Surely, some 20something must have devised a blog editing tool that can rid your site of the drivel.
I like Rob Dawg, but I think that attempting to separate politics from economics at this kind of macro level is an insincere as claims to have separated analysts from traders.
It's a division that only exists in academic institutions, and not a single decision by a state actor is going to be made outside a policy context, and no non-state actors big enough to consider outside the aggregate are going to be tone-deaf to political concerns.
The pine tree wastes which is perched on the hill,
nor bark nor needles shelter it;
such is the man whom none doth love;
for what should he longer live?
Those folks time has come and gone, and where some of the bones lie, nobody knows. What is Heimat when one grandfather lies in camp somewhere in Siberia, and another in Los Angeles-far from where he was born?
You will find it, or your ideals and ways will perish with you for want of continuance. Your life as an individual is an eyeblink, the life of families and nations the true thread of human existence. What life, the life without inheritors or legacy? Without tribe, what justification for the resources you consume or the hardships you endure?
The entire philosophy is 18th century/19th century romanticism.
Heimat is for the dead, living is for now and those here.
Not to wax obtuse, but all human concepts are constructed fictions. The challenge is to construct a fiction that meets the needs of the human animal and a functioning society.
Look around you, do you see that your culture has produced such fictions? Has your concept of life and community -- one which I would say is well within the mainstream of modern Western self-concept -- strengthened your tribe? Is this Republic, built on the foundation of the worldview you espouse, a stronger nation for it?
And the wind shall say: "Here were decent godless people:
Their only monument the asphalt road
And a thousand lost golf balls."
When the Stranger says: "What is the meaning of this city ?
Do you huddle close together because you love each other?"
What will you answer? "We all dwell together
To make money from each other"? or "This is a community"?
Oh my soul, be prepared for the coming of the Stranger...
Be prepared for him who knows how to ask questions.
CEO is gone.
Golden parachute has deployed.
Let the carnage begin.
On this Great Day of Celebration for the banking world, WaMu and Downey stocks still tanking.
Just had the causality backwards.
The Business Plan may not require capital but the business will...
what does this mean? be profitable, but don't raise capital? wtf?
I wonder if the F&F debacle had anything to do with this....
It seems like things are accelerating.
.......
Who had WaMu in the "dead pool?" Oh! that's right, I did! [montgomery burns |on] Excelllent.[montgomery burns |off]
Seriously, this a the new far more troubling aspect of moral hazard. WaMu just got caught in material breach of OTS regulations and the "penalty" is to buy out the CEO and promise to stop. Clearly the OTS is in no position to threaten WaMu.
CR and T, 2 things here:
1. Are we tracking Meredith Whitney's call for $2 trillion in deactivated credit lines for US households? Where are we so far? I hate averaging, but thats averages to about $12k per HH. How come we cant factor out HH that carry no credit card balance (I heard its 40 million), and then get the median credit card balance for the remaining HH that carry balances? Is it that hard? This has huge implications for the economy.
2.\tOne bank seizure in 2008 equals x? bank seizure in 1989's S&L crisis.
The ABA reports mergers reduced the ranks of bank by 50%, remaining banks are larger. Then there's adjusting for population growth. Also, there's adjusting for the bubble-growth in deposits. 2008s 11 bank seizures to-date, plus CFCs sale to BofA, doesnt look so small in my book.
What did LEH do?
WM is next up on the dollar menu it appears....
............
BFF seems so far away.
Investors may be forced to settle contracts protecting more than $1.4 trillion of Fannie Mae and Freddie Mac bonds against default after the U.S. seized control of the companies in a bid to bolster the housing market.
Thirteen major'' dealers of credit-default swaps agreedunanimously'' that the rescue constitutes a credit event triggering payment or delivery of the companies' bonds, the International Swaps and Derivatives Association said in a memo obtained by Bloomberg News today. Market makers for the privately traded contracts will discuss how to settle them in a conference call at 11 a.m. in New York, the document said.
Fannie, Freddie Credit-Default Swaps May Be Settled (Update3) - Bloomberg.com
..................
Malinvesting OPM for millions plus bonuses, with a golden parachute at the end....I guess they have to get a golden parachute because otherwise, they'd have trouble attacting the best looters to the job....
YouTube -
``We believe conservatorship is a credit event,'' Barclays Plc analysts Vince Breitenbach and Jeff Meli said in a note to clients yesterday. Barclays is a member of the ISDA.
LOL!!!
....
LEH looks to be selling it Neuberger unit today -- like many other days.
Fishman gets a nice buffer, assuming the bounce to financials persists. He gets the benefit of the GSE take-over on his first day. Course, at Ritholtz points out, each rescue has led to a briefer rally in stocks, before the next new low.
So the upshot is, WaMu can keep doing the same business, but not in the same stupidly risky way, and not while lying about it to regulators?
Help me remember correctly ...
didn't IndyMac enter into a MOU right before the FDIC took them over? If so, is the fact that WaMu has a MOU to be taken as a sign that they will be nationalized shortly?
Nice to see someone out there has a brain...
\t\t
\t
Business News Send to a Friend Printable View
SKorea regulator urges caution over Lehman stake
By KELLY OLSEN (AP Business Writer)
From Associated Press
September 08, 2008 10:13 AM EDT
SEOUL, South Korea - South Korea's financial regulator urged state-owned Korea Development Bank on Monday to be cautious over any investment in Lehman Brothers.
Korea Development Bank "should be very prudent in its approach to acquiring Lehman given the condition of financial markets at home and abroad and that it has not yet been privatized," Jun Kwang-woo, chairman of the Financial Services Commission, told reporters.
The Dollar Store has FRE marked to $0.94, and FNM at $0.98. Get them while they are hot.
This would be a good time for smaller banks to come clean - I wonder who will visit the confession box this week.
Rally - ORLY?
I'm truely thankful no one has had to go to Jail for their crimes.
Getting fired now is actually a blessing. The CEO can immediately sell all WAMU securities and get out of dodge before the stock goes to ZERO!
So how are the Treasury/Agency spreads looking, anyone?
The Dollar Store has FRE marked to $0.94, and FNM at $0.98. Get them while they are hot.
Well it's about dadgum time.
All your Agencies are belong to us!
Gold dips into $700 territory
Not entirely on-topic, but satellite imagery shows Ike has left land south of Cuba and the eye is currently over water.
On this Great Day of Celebration for the banking world, WaMu and Downey stocks still tanking.
Apparently Wamu signing a MOU (pronounced moo) isn't a positive.
So Rob Dawg, how many weeks for Wamu and Downey?
I'm waiting for a bank failure that is a 'surprise.'
Got Popcorn?
Neil
Speed: There is no way printing can catch up to the collapse of credit and loss of value in equities.
This is still a very deflationary environment.
The unwind continues. Hedges are liquidating faster than the internet can keep up.
Going forward, who in their right mond would participate in a capital raise by WAMU or Lehman?
One, they're likely insolvent. Two, the majority of their prior business was based upon a now dead industry - lending mortgage money to people that can't pay it back.
Stick a fork in em!
Hedges are liquidating faster than the internet can keep up.
Go to ludicrous speed!
They've gone plaid!
Got Popcorn?
Neil
The OTS Enforcement search tool was last updated Sept. 5, 2008 without current WAMU info:
Office of Thrift Supervision - Enforcement Search
FFDIC,
And the company conveniently "forgot" to mention the MOU in yesterday's news about the CEO change. It was only disclosed this morning as an "oh by the way" final paragraph in the formal press release about the new CEO.
Clearly they were hoping it would get lost in the noise with FRE and FNM making all the headlines. Sounds like the OTS was in cahouts on the disclosure.
Here's part of my take on the Treasury's bailout of FRE & FNM.
Absent the bailout, the Fed's balance sheet would be in shambles. All those alleged AAA assets they took on under the alphabet soup facilities were likely sinking fast.
We never should have started this mortgage bailout crap.
The notion of "too big to fail" is nonsense. We're witnessing a massive scam perpetrated to keep the iron grip of finance in our society in place.
Apparently Wamu signing a MOU (pronounced moo) isn't a positive.
(grin) Not moo. M.O.U. Em oh you. Widely used in govt, often for labor contracts.
Neil,
I do have popcorn. Several years ago I purchase three cases to support a local charity.
That popcorn is holding its value far better than my dollars. And it is also beyond the reach of the tax man, the fed and the treasury.
I wouldn't be surprised to see China and others increase hoarding in lieu of financing America's foolishness.
So Rob Dawg, how many weeks for Wamu and Downey? Got Popcorn? - Neil
I thought Downey would have been in the last two weeks as a "tune-up/pre-season" game before attempting to take on the octopus that is WaMu.
The thing to takeaway at this point is that FDIC is no longer acting proactively because it is no longer able to act proactively. They are in fireman mode where they are so busy they only pay attention to those banks that have already burst into flames and they have the capacity to put out.
This was on on the front page of Bloomberg for a short time.
Fannie, Freddie Seizure Triggers Credit-Default Swaps (Update1) - Bloomberg.com
Wonder why?
Do you know how I am going to pay my taxes?
I am going to remove guard rails and cut up some bridges to sell for scrap.
K.Ackerman,
I suppose tht beats burning bridges.
It was 5 weeks between resignation of Silver State Bank's CEO and the FDIC take over. Does the FDIC try to give the new mgt team a chance to turn things around before taking action? (I imagine it depends on how bad the situation is -- maybe with a hope and a prayer vs. no way in hell.)
In any event, political concerns be coming into play. Either WaMu is closed down very shortly or (I'm sure the preferred option) it's punted til after the election. You don't want these headlines in mid-Oct. (You don't want actual bank runs either in mid-Oct.)
Why are FRE/FNM still worth a buck per share? Shouldn't that be more like a penny (being generous)?
Crammer explains why FNM/FRE bailout is the best thing since sliced bread..
Lots of chest thumping but the piece is totally illogical
Cramer: Fannie, Freddie Takeover Changes the Game | Financial Advisor Update | Financial Articles & Investing News | TheStreet.com
If I was to put this into a research piece I would be fired...
Here is the key to his arguement..
"The Treasury's takeover of Fannie and Freddie can change that because once mortgage paper packaged by the government enterprises is federal government paper, then ANYTHING can be worked out with the borrowers, and the borrowers represent the lions' share of the troubled homeowners in the country who have not already defaulted. "
Why does ANYONE watch or listen to Cramer anymore?
Seriously?
Why does ANYONE watch or listen to Cramer anymore?
Jim, you ignorant mutt!
FNM.PK ?
cramer is a moron. His logic on the financials long a few weeks ago was botom was in. The guy is a joke. A complete joke. he is the definition of blame when it rains take credit when the sun shines. What happen to his seed trade. Don't hear much about that one these days. Oh and what would it be withough Erinn the PSuedo intellectual fawning over his ag porno mags.
Doing the same thing as FNM and FRE about two weeks ago......pushing out the people who caused it so they can collect the payoff.
Nothing more or less.
Ciao
MS
The business plan will not require the company to raise capital, increase liquidity or make changes to the products and services it provides to customers.
Mmmmm... kay...
So what will it require, exactly?
So what will it require, exactly?
Sheila Bair
Can we expect a new CEO of WAMU to act like Vikram Pandit and do some spring ... err fall cleaning?
who own da chiefs???
YouTube - Cult Films - Slapshot #14
Ciao
MS
what's the option value of fnm/fre paying out one day/? 35c?
I had a classmate who entered WM right after she graduated last year. She is the smartest and most diligent person in my class. I hope she well.
The Federal Deposit Insurance Corp. had planned to shut down the Henderson, Nev., bank on Aug. 29. But the FDIC lacked the authority to close Silver State, which is a state-chartered bank and whose primary regulator is the Nevada Financial Institutions Division. Shortly before the FDIC planned to swoop into Silver State's offices at the start of the Labor Day weekend, the Financial Institutions Division decided to let the bank stay in business, according to people familiar with the matter.
Nevada Bank Failure Highlights Federal-State Regulatory Tension - WSJ.com
Woo hoo! WAMU board's giving Fishman the usual $1 million salary, plus a bonus of $10 million and a $2.5 million "performance-based" stock award.
Is a MOU kind of like when the customers on Six Feet Under would sit down with David and Nate to pick the coffin type and flower arrangements?
I hope that bonus is prorated for time served as CEO.
I see that Hank had two TIO auctions today, a 1 day for $9.3 billion, and a 2 day for $3 billion...
Actual cover ratios:
1 day auction cover ratio = 3.15 (not the published 2.44)
2 day auction cover ratio = 4.76
Thirsty bunch!
FDIC Press Release
The FDIC board of directors voted on staff recommendations today and will purchase a majority stake in Papa John's Pizza which is a national chain of pizza eateries in most states where FDIC projects additional business opportunties and challenges. This decision does not impact the deposit insurance fund which is at a low point in the nation's history. No depositor has ever lost a dime of insured funds since the FDIC was founded in 1933. For additional information including Papa John's projected sales growth go to FDIC: Federal Deposit Insurance Corporation
juvenile, i know. but somehow appropriate.
YouTube - My name is Plissken
C'mon, its 40 years since it was privatized and 38 years since Freddie was created. All this deprivatized silliness is just cos his nose is bent out of joint that his pet poodle choked - no doubt many who thought the sun shone out of Freddie's ass and Fannie's you know what think the same. I love it. Now, when I see Syron, Mudd, Raines do the perp walk - Bliss !
-K
Now that Hanky Panky has blown his bazzoka wad how long before Benny come's in and gives this dead cat another kick. Here kitty,kitty,kitty.
The crawl on the money channel sez homebuilders are up. This is nutz, just nutz. Somebody really thinks that this will cause builders to make money? Lennar has ties with some bank and is offering low rates to the qualified, as it has for months. Just how will this conservatorship help more houses to be sold. Joe and Josephine homebuyer are now wary. I think they will stay that way for a good long time.
Haha... don't know if this has been posted:
Gov. Sarah Palin made her first potentially major gaffe during her time on the national scene while discussing the developments of the perilous housing market this past weekend.
Speaking before voters in Colorado Springs, the Republican vice presidential nominee claimed that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers."
And people think that the solution to our problems is to give people like this even more control over the financial markets and the economy.
When people like her and GWB get to run every aspect of our lives then all our problems will go away.
1 share of FNM = $0.86
1 share of FRE = $0.84
2 CEO's doing the perp walk...priceless!
(prolly been done but hadda do it again!)
OT:
Any thoughts on the Dollar's strength today?
.
Just got a downgrade note of FRE and FNM from Citi.
Downgrading from buy to sell.
new px tgts:
FNM $0.32
FRE $0.31
link
https://www.citigroupgeo.com/pdf/SNA24302.pdf
"Just got a downgrade note of FRE and FNM from Citi."
LMFAO
Dollar on adrenalin.
Tripleplay,
A nice big juicy bounce and a continued commodity crash.
For now.
Going to be waiting a bit before buying some more glod and sliver, since, after all, we are soon going to have to suffer capital controls.
Rats will be jumping ship soon, so watch what happens when the doors start closing.
As for housing. Everyday is a good day to buy a house Lawyerliz, I own two of them and all they do is cost me money!!
Yeah america.
How far we have decended in eight years. How much further it seems we have to go.
Someday this war's gonna end...
Today I backed up the truck and loaded up on FED puts. Firstfed can't last much longer than WM or Downey.
Great time to short WB IMO too.
Dollar on adrenalin.
So much for them strong exports. =(
ac,
yep. exports have a hard time when the dollar is strong and/or when global demand is slack...
...in fact demand the last time I looked was the key factor.
Time to short bucky?
Every time WaMu goes down in value, the market drops, why is that?
ac,
yep. exports have a hard time when the dollar is strong and/or when global demand is slack...
...in fact demand the last time I looked was the key factor.
Honestly this was the only bright spot for the real economy.
A strong dollar rally is going to bring the protectionist and trade war folks out.
Smoot-Hawley II here we come.
Speaking before voters in Colorado Springs, the Republican vice presidential nominee claimed that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers."
This isn't the most nuanced observation, but isn't it essentially correct? They are too big, and they are too expensive for (insolvent) government and taxpayers to bail out, barring the money-printing/inflation route.
Disclaimer: not voting for her or McSame.
DX on a 1 yr or Max time looks eerily familiar...like every other parabolic ascent...
ac writes:
So much for them strong exports. =(
Guess that's why Nasdaq is tanking.
But adrenalin is temporary, my guess is crude will spike up again, when they find out there's only so much demand that can be destroyed.
Most pundits have got it wrong, commodities are still strong on china's demand. Coal isn't getting cheaper.
Precious metals are another area to look into. Germany isn't selling any more of their gold and that is mighty strange. Oh and do look at the COT of commercials, they are going long.
My bag is sinking low and I do believe it's time
To get back to Miss Fannie, you know she's the only one
Who sent me here with her regards for everyone
Take a load off Fannie
Take a load for FREE
Take a load off Fannie
And you can put the load right on ME
Ever get the feeling that God® is about to hit the rewind button on the evolutionary Tivo remote?
My primary position in this market is "preserve cash" and I'm 95% there; 5% short. I'm allowing myself to trade on a short leash. We've witnessed a major pump in the market today. It's my humble opinion that the pump is not done. It's important to understand that TPTB [The Powers That Be] are not simpletons. So, I wouldn't short bucky just yet.
p.s. - I was caught in that short, and I'm stubborn.
I ignored this F&F news, blocked it out, all weekend. Now my head is reeling. Shock, we all have to be in shock right now. I follow one thread of this story for a second and 8 million other threads run off in every direction. What else?
Here's a business that is ahead of its time:
-
,
-
cheer up, the world ends on Wednesday thanks to the Hadron Collider starting up.
yay.
isn't it essentially correct? They are too big, and they are too expensive for (insolvent) government and taxpayers to bail out, barring the money-printing/inflation route.
Disclaimer: not voting for her or McSame. - HARM
Hey HARM. Color me shocked, shocked I tell you to discover you won't hold your nose and vote Palin and her running mate. That said, consider your alternative. Vote for the guys that would make it bigger and more insolvent. [Is "more insolvent" like being "more pregnant?"]
Cthulhu 2008.
JMS - I'm not in shock - if an off hand opinion can help
BB-
the last bullet from the Fed has to do with it's gold reserves marked at something like $45 an ounce.
The difference will be shoved at the market and we will see equities rally and gold fall off a cliff.
Gold will have it's time...but only after the ECB's and the Fed stop playing games with it.
Ciao
MS
This isn't the most nuanced observation, but isn't it essentially correct? They are too big, and they are too expensive for (insolvent) government and taxpayers to bail out, barring the money-printing/inflation route.
Well I think Palin's gaff was that she was talking like they'd just been privatized.
I.E. apparently she didn't understand the concept that these agencies had just been socialized and she's defending the move on free market capitalism grounds.
That was my understanding of it.
I highly doubt Paulson's bazooka would fit thru a microscopic black hole.
We're good.
Fed governor Poole just claimed that if there was a financial meltdown, no one would be able to get a mortgage. He's full of shit. Congress could start a new lending agency tomorrow out of the ruins.
Hey HARM. Color me shocked, shocked I tell you to discover you won't hold your nose and vote Palin and her running mate. That said, consider your alternative. Vote for the guys that would make it bigger and more insolvent. [Is "more insolvent" like being "more pregnant?"]
Cthulhu 2008.
Rob Dawg
In the end the people of this country aren't holding the government or private industry accountable for their screw ups.
So there's no reason to think that anyone we put in office or in control of the markets will act to make them any better.
They certainly haven't up to this point and it's a delusional fantasy to think because the ruling party has one label vs. another that they're really going to run things differently.
MS-
Gold will have it's time...but only after the ECB's and the Fed stop playing games with it.
May happen sooner than we think.
Though it doesn't bother me read that those "scientists" are pretty sure that they will not destroy the planet with LHC.
Pretty sure is good enough for me.
Fed governor Poole just claimed that if there was a financial meltdown, no one would be able to get a mortgage. He's full of shit. Congress could start a new lending agency tomorrow out of the ruins.
If there's a genuine financial meltdown the dollar and the congress will lose all credibility and power.
They could create all the lending agencies they wanted and nobody would care.
Anyone who says that no mortgages can exist without GSE or government backing...
Well they are morons. Can't really spin that one.
It's called "pushing on a...corpse"
yogi writes:
Fed governor Poole just claimed that if there was a financial meltdown, no one would be able to get a mortgage. He's full of shit. Congress could start a new lending agency tomorrow out of the ruins.
yogi | 09.08.08 - 2:26 pm | #
why does "man grasping at few straws" jump to my mind?
I read somewhere the Obama is in favor of reparations for the GSEs.
People can get mortgages now?
News to me.
Cheers,
WTF is a "Bank Secrecy Act compliance program"?
anyone else want to challenge the statement that "stocks are juiced" today?...seriously, not even 300pts up after going down 340pts and their "soaring"...come on.
Nemo
Mostly aimed at catching money laundering.
Bank Secrecy Act - Wikipedia, the free encyclopedia
Nemo,
Check linkage:
http://209.85.141.104/search?q=cache:9fvJ4v-sO1gJ:www.occ.treas.gov/handbook/bsa.pdf+Bank+Secrecy+Act+compliance+program&hl=en&ct=clnk&cd=1&gl=us&client=firefox-a
Cheers,
Fanny and Freddy shares now both selling for about seventy cents. Down from yearly high of upper 60s (dollars). Sorta like Bear Stearns, or worse. And I do wonder and would like to know how this has affected Dodge and Cox and Dreman, and some other idiots who bet big on the common "in their deep wisdom." LOL
Behold my GoogleIQ
Kneel_before_Zod / Misean: Thanks. Not sure why they would make it such a prominent mention in their statement.
Some enterprising reporter should ask Chuck Schumer what he thinks of WaMu.
blackhat writes:
anyone else want to challenge the statement that "stocks are juiced" today?...seriously, not even 300pts up after going down 340pts and their "soaring"...come on.
blackhat | 09.08.08 - 2:36 pm |
Popeye repeats: He who "invests" in the midst of chaos should only expect to reap the winds.
BankUnited is now less than a dollar.
Forbes.com File Not Found
Neat little reminder for those who need it between stocks and bonds. Not the same thing at all. Not at all.
OOOO...more dollar menu items.
Cheers,
Liz- "The crawl on the money channel sez homebuilders are up. "
Pump monkeys at work. There's a lot of that going on today. It will pass.
Palin should go back to dissin' community organizers and talkin up her man. Less VP more Hockey mom stuff okay... America wants a Hockey Mom for VP
WARNING - MARKET CHATTER FOLLOWS
Does it seem like TNX is leaving the party early? And VIX is up ~3%?
Once consumers figure out their 'excellent' credit scores are shot from high revolving debt and now just 'average' or 'below average' even though there has not been one late payment...well they may just walkaway from CC debt too.
BankUnited, WM, LEH and DSl are in a race to the bottom...
ac,
Point taken. Perhaps that quote was taken out of context, or perhaps Palin needs some 1-on-1 schooling on securitization from Tanta and the Mortgage Pig. Either way, Hank Paulson just placed a jumbo order on behalf of the U.S. taxpayer, for a deluxe shitburger with all the trimmings. Bon Appetit!
Still think that band idea "CB and the Pump Monkeys" has some possibilities...
LawyerLiz:
"The crawl on the money channel is......." Saints preserve us - if that is not the language of pennystock hype... then, I'll fall down and confess that I'm stupid.
Are we going to have a thread on the derivative activities today?
Fannie Mae Preferred are getting KILLED:
FNM-PS: Summary for FANNIE MAE PFD S- Yahoo! Finance
If they stay this way on 9/30 then there will be some serious writedowns to market
@Rob Dawg,
Perhaps this election comes down to little more than Giant Douche vs. Turd Sandwich. Even so, if all we're going to get is more corporate socialism --regardless of which corrupt, inept party wins--, I wouldn't mind also getting a little socialism for the common citizen for good measure.
I'll take my shitburger with a little A-1, thank you!
Local bankers are calling FDIC right now...now when do we get our bailout?
All the 'millionaires' on paper who have high debt ratios have lousy credit and couldn't even buy a car now.
Harm - who promised you a sammich ?
"CB and the Pump Monkeys"
This morning, Conjure and I were discussing the differences between the markets forty years ago and today.
We agreed the major difference is that, forty years ago, we took the money of "investors" with high school educations. Today, we take the money of "investors" with college educations.
That's progress.
Fannie and Freddie got my pony and all I got was this lousy T-shirt...
The new Wammer Dude said changes in the mortgage business are not reason for WaMu to slow its growth. Maybe reduced access to lines of credit will be a reason to slow growth? Anyhow, WaMu credit protection costs are at a record today.
mp writes:
"CB and the Pump Monkeys"
This morning, Conjure and I were discussing the differences between the markets forty years ago and today.
We agreed the major difference is that, forty years ago, we took the money of "investors" with high school educations.
Popeye says - I'm glad you used the quote marks.
When I say buy a car I mean finance a car. Millionaires or even billionaires on paper with high revolving debt and resulting reduced credit scores and who have never missed a payment cannot finance a car or truck. I heard these stories directly. The credit markets for most are kaput thus the economy is done.
National Post Canada
FDIC fear
Gerard Cassidy at the Royal Bank Capital markets calls the next bigger financial crisis the Texas Ratio and analysed banking crises in the 1980s and 1990s. His Ratio is the point at which a banks underlying value and bad debts intersect. Then theyre headed for a bust, particularly since raising equity for banks in the U.S. is nearly impossible.
If all 150 banks fail, the FDIC will be insolvent, he wrote.
As the FDICs liabilities grow to 150 or more banks the insurer of last resort wont be able to cover its obligations to deposits of up to US$100,000 in a deposit account of up to US$250,000 in a retirement account.
When that happens, Congress will have to step in to avoid massive runs on the banks.
Next on the Republican list, for a new, bigger role for government, will be Detroit, suffering from the double whammy of high oil prices and low consumer spending due to the bursting of the real estate bubble. It will need the Mother of Earmarks to chug along as it figures out what to do in future. What a mess. (Indeed)
http://network.nationalpost.com:80/np/blogs/francis/archive/2008/09/07/like-republican-trickle-down-yet.aspx
I'll take my shitburger with a little A-1, thank you! - HARM
No Sh¡tburger for you. You go hungry. Bow bow bow. Get back to me when "stickiness" returns to the housing market. Simpsons had it right; Vote Korg or Kang. It does not matter.
Why do I think that A-1 won't help the taste of the shitburger?
Cheers,
Ya know...if we just wrote a million dollar check to each and every US citizen, the home price floor would be in instantly,
and no one would default on any debt currently held.
And yet, a million dollar per citizen stimulus check is not being written....why is that?
(I jest...I don't need an answer, pump monkeys)
My suspicion is that the FDIC won't move in until they run out of liquidity. This will fully deplete FDIC's reserves. Two bailouts in one month are too much. Maybe November.
I heard a story of a 'wealthy' individual who 'owns' a private jet who couldn't get a car loan. Of course he's in mortgage financing so that may explain that.
The debt-free can get loans maybe depending on their income. Some debt-free don't use credit thus don't even have a credit score. The people who can get financing who have little or no debt probably don't want to get into debt.
This shit, is all about confidence in The Bush Coup and the confidence in the synthetic derivatives spun out under this coups era. The people have already voted and the gig is up!
Bursa Malaysia has suspended derivative trading for the rest of the morning session on Monday due to unresolved technical problem, Bursa said.
"The exchange is currently working to resolve the issue and will keep the market updated," Bursa said in a statement.
Relax, The PPT is global now!
KbZ,
A thread on the ISDA meeting and derivatives activity today would be great, but I suspect that there is precious little in the way of information available...
Anyone who owns a jet and is looking for a car loan is flat-assed broke.
Trust me on this one.
Roger that, they most likely 'own' the jet the way most folks 'own' their house...
Blog note. I know very few care and it won't make any difference to the intended audience but I automatically tune out any post after the word Bush. Lately the political rhetoric has been bumped up a notch. I see nothing but dimunition of CR from that. Sorry to interrupt.
ya know we've heard precious little on the ramifications of zero % auto financing and the like.
Glad it's just contained to housing
Quote of the day goes to HARM:
"Hank Paulson just placed a jumbo order on behalf of the U.S. taxpayer, for a deluxe shitburger with all the trimmings. Bon Appetit!"
Ciao
MS
Sounds like it's time to get your cash out of the bank...any bank...if FDIC can't cover a substantial numbers of banks going under. If this thing accelerates, could be long lines with the doors shut.
Imagine how fun it would be to get your money from online banking. Then you'll be 'waiting in line' on the computer. Know a guy who has $200K in Downey and he said he hadn't heard of any problems with his bank.
I found this old story to be almost as entertaining as Tanta this morning: The Securities and Exchange Commission and the securities industry's leading lobbying group are engaged in a heated battle over the extent to which the SEC has enforcement authority over interest rate swap transactions in a court case involving Jefferson County, Ala., muni bond and swap deals.
In the latest salvo, the SEC yesterday urged a federal court in Alabama to disregard a friend-of-the-court-brief filed by the Securities Industry and Financial Market Association, claiming it is a "flawed piece of advocacy" for SIFMA's member-firms and those connected with the Jefferson County deals that seeks to negate the authority that Congress has given the commission.
The SEC made its plea in a 30-page document filed with the U.S. District Court for the Northern District of Alabama in Birmingham after SIFMA claimed the SEC does not have jurisdiction over interest rate swaps based on its municipal swap index because it is an index of interest rates, not securities.
SEC, SIFMA in Slugfest Over Municipal Swaps
Some wannabes own shares in jets, but like to make the rest of us think they own the ride outright.
They don't "own" diddle squat.
energyecon writes:
...I suspect that there is precious little in the way of information available...
Popeye says that when you bet on things you don't actually understand.... that is superstition.
Guest-
Some fha loan programs you will see in October will hurt your head...They have lowered all thresholds...
All re pundits who say thier are lots of people waiting on sidelines and this(FF-Bailout)will get them back into buying mode are well pundits...
Real estate in no longer fashionable..
And debt is losing its appeal as fast as a paris hilton porn video...
Simple living might be the next bubble...
that there is precious little in the way of information available...
y, i'm surprsied they even had a cc today...
but i'll bet the phones lines were scrambled, the voice synthesizers were on, and the lights were off.
Jim Rogers: How the Federal Reserve Will Fail and the One Sector Every Investor Should Be In
anyone taking a flyer on FRE, FNM??
Can't believe I just said that...
Ciao
MS
"anyone taking a flyer on FRE, FNM??"
Are you out of your skull?
MS,
When it gets to the pink sheets I'd consider it as an option purchase without expiry...say $0.25ish a share?
Rob Dawg is an example of what I've been talking about concerning blog content editing or troll hunting in which the unwelcome blogger who is 'politically incorrect' or charged with being 'off-topic' will be ignored and if that doesn't work confronted. But every blog has the volunteer blog police and it does serve an important function of gatekeeping and while I see it as sometimes necessary, it can also serve a 'political/economic' censorship strategy itself.
"How far we have descended in eight years. How much further it seems we have to go."
The crack in the spacetime continuum happened on the evening of Nov. 7, 2000 and has been spreading ever since. This is probably a reverse-temporal effect of the LHC. No problem, once we turn into a gamma ray burst on Wednesday all will be well.
U.S. consumer debt grew at an annual rate of 2.1% in July, the slowest growth since December, the Federal Reserve reported Monday.
Consumer debt -- including credit cards and auto loans but not including mortgages - increased $4.6 billion to $2.59 trillion, the Fed said. It was the slowest growth in credit since the 1.9% growth rate in December.
June's growth was revised down from 6.7%, or $14.3 billion, to 5.1%, or $11 billion.
Growth of credit card debt accelerated to 4.8%, or $3.9 billion, in July from 3.5% in June. Growth of nonrevolving debt - largely auto loans - slowed to 0.5%, or $678.1 million, the slowest since December.
The average interest rate for a new-car loan plunged to 3.31% from 5.49%; it's the lowest rate since September 2006. The maturity of the average loan widened to a record 67.2 months from 63.5 months in June.
Despite the low interest rate for auto loans, auto sales dropped in July to the lowest pace in 16 years.
I WANT TO BELIEVE IN MY COUNTRY - I WANT TO BE ABLE TO BET ON MY COUNTRY... but there are just too many a-holes in the way - -
Call me if you ever wake up to that fact.
I sure back of Rob Dawg on minimizing the "noise to signal ratio" here at CR...if that doesn't appeal to anyone here, be our guest and tell it to someone who cares.
Rob Dawg writes: I automatically tune out any post after the word Bush.
Amen.
ditto for:
"Palin"
"McCain"
"Obama"
"Jain"
Anyone else notice that this is the first time no one is getting defensive on the use of "bailout"? At least since Chrysler. They use to all scream "No, it will all be paid back!"
you guys are'nt beatin up on that 'postive carry' character, are ya?
"I WANT TO BELIEVE IN MY COUNTRY"
You want to believe in something?
How about ice cream?
We need help from people like Palin!!
Republican presidential candidate John McCain and running mate Sarah Palin, looking to extend their post-convention boost in the polls, are claiming Democrat Barack Obama sought $1 billion in special U.S. funding for his home state, ignoring Palin's record of seeking hefty allocations as governor of Alaska.
This year, Palin's state government has sought 31 so-called earmarks totaling $198 million, about $295 for every person in her sparsely populated state.
Obama, who represents Illinois in the Senate, has sought none in the current year. In 2007, he supported $311 million in special project spending, about $24 for every Illinoisan.
In Palin's two years as governor, Alaska has requested nearly $750 million in special federal spending, by far the largest per-capita request among the 50 U.S. states.
auto loans averging 67.2 mos..compared to 63.5 month before..
ugly......
Only way to sell cars is with 0% 72 month loans....
tribute to allen m
someday this war will end...
I think No Sense has a right to his/her opinion regarding the state of the economy even if the 'Bush' word was used in context to the Crash we are now witnessing.
IMO anyway.
revolving debt up a healthy clip 5% ish . Non revolving ie. auto rv etc was flattish and not shocking. That includes education. de....fl...a....t...i.....
Mp-Hagen Daz Coffee or Mango..has to be like heaven for taste buds...
U.S. Consumer Credit Rose Less Than Forecast as Spending Slowed
By Vincent Del Giudice
Sept. 8 (Bloomberg) -- Consumer borrowing in the U.S. increased about half as much as forecast in July as banks restricted lending and Americans cut back on spending.
Consumer credit rose $4.6 billion for the month to $2.59 trillion, the Federal Reserve said today in Washington. In June, credit climbed by $11 billion, previously reported as an increase of $14.3 billion. The Fed's report doesn't cover borrowing secured by real estate.
Automobiles sales slumped in July to the lowest level in 15 years as employers cut jobs and fuel prices soared. Consumer spending, which accounts for more than two-thirds of the economy, will probably continue to slow as home prices fall and banks restrict lending, hurting growth in the second half of the year.
[snip]
maybe time to call the credit union about an auto refi...
I wasn't advocating it for fundamental reasons......it's up almost .25 since I mentioned it.
Now trying to sell it into this is whole different ball-game. Why I won;t touch it...but it's moved nicely since mention.
Ciao
MS
Is it possible Bush is either in rehab or drunk, stoned, drugged? WTF is he doing, letting Paulson run America?
New Auto Loan Rates
\tAPR \tTerms in Months
Up to 100% Financing \t
5.50%-18.00% \t0-48
5.75%-18.00% \t49-60
6.00%-18.00% \t61-72
6.25%-18.00% \t73-84
hmm maybe not
Rob:
So I was out looking at the bird's nest in the BUSH and my wife said, boy, am I BUSHed.
yada
yada
yada
excuse me, but someday the war will be put into conservatorship.
72 month 0% loans...I cannot wait to see the first auto loan discharged from court because the auto lender did not rely materially on any concept of ability to pay.
Can someone please explain how spending hundreds of billions of dollars to get a 50 bps move down in the mrotgage rate is a good trade? Talk about tail risk and negative convexity.
No doubtr Frannie is now RTC II. This will become the dumping gound for all the banks. Also note that the FHLB facility was put in place. This was all part of the BAC deal> The $60B borrowed by CFC is to be washed away as that system goes into distress (already is apparently). Pathetic.
mp writes:
"I WANT TO BELIEVE IN MY COUNTRY"
You want to believe in something?
How about ice cream?
cd writes:
Mp-Hagen Daz Coffee or Mango..has to be like heaven for taste buds...
Popeye says... call me if/when anybody becomes serious.... mean time, I'm tempted to go ex-pat.
Rob:
So if I really want to piss you off, I can just say BUSH BUSH BUSH BUSH BUSH BUSH...?
Here yah go: 110th Congress Second Session
(By Date)
SAP Index (By Date)
Shnaps,
It's appropriate in this time of Crash to look into the politics of economics. We have to be fearless and searching and honest in finding out why this mess is happening. Content control will just compromise the attempt to make sense of this government intervention into the economy.
"call me if/when anybody becomes serious"
What makes you think I'm not?
mp .... point take
There needs to be accountability for this disaster and it involves to a very large degree the Bush administration and its intentional dismantling of regulation.
Trying to ignore that is trying to paint over proper analysis or otherwise just trying to prevent the facts from coming out because their loyalty is with the incumbents!
I know there is a risk to the content of the blog but it that is a risk that needs to be balanced against not covering relevant issues.
It is a very fine line.
Popeye writes:
"p.s. - I was caught in that short, and I'm stubborn."
you sure did not want to cover shorts at the open
was interesting to see how UYG bid price was consistently lower than ask price over 24
not tho mention the fact that the open was a jump from minuscule volume from AH-preopen trading followed by massive down volume after ther open
but I agree that we are not quite ready for the downside.... got to exhaust the move
make that : bid consistently HIGHER than ask
50 year mortgages. 72 month auto loans. WTF? Sheer idiocy with the lure of low monthly payments. Ever thought that the risk of default is drastically increased the longer the terms offered?
The majority of homes built in the last 10 years will be VERY lucky to last 20 years.
How many people drive a car for 6 years. I guarantee the cars with the 0%, 72 months are the low gas mileage models. Look for those babies to be defaulted on in 18 months when gas peaks back to $4 plus. Lunacy and a great example why this crisis will continue for a very, very long time.
"There needs to be accountability for this disaster and it involves to a very large degree the Bush administration and its intentional dismantling of regulation."
Well, RE, there isn't going to be any accountability, so you'll just have to get used to it.
As to fixing responsibility, go look in a mirror. We're all going to pay for it.
Where was BUSH on 911? Sorry I know this is OT.
History will prove depending on who the historians are that the Bush administration and executive branch(and Congress) with the Federal Reserve was involved in pumping up this bubble up through promoting 'The Ownership Society'. Now the administration is involved through the Treasury in trying to save investment banks, the big bond holders, and Wall Streeters while leaving consumers holding the bag.
This is our generations Watergate, and no one cares, no one wants to bust Nixon, I mean Bush and his crooks! Why??
obody seems to notice, nobody seems to care
"This is our generations Watergate, and no one cares, no one wants to bust Nixon, I mean Bush and his crooks! Why??"
Ennui? Exhaustion?
You know who the greatest threat to America is?
"In the coming weeks, I look forward to working in a bipartisan manner with Secretary Paulson and other Administration officials and congressional leaders in reviewing the implications of action taken this weekend to ensure that the interests of taxpayers and the broader economy are protected."
Why the fuck, did she stop talk of impeaching Bush, when The Democrat traitors were elected to make changes??? Now we get Palin as a bobby prize! Screw these frauds!
homedad43 writes:
Rob:
So if I really want to piss you off, I can just say...
Nah, my hot buttons are moral hazard, transit, urban and cholesterol. My point is that it is a shame that there are no political blogs such that people are forced to go off topic here in order to either vent or explode.
With great regret, I agree with you, mp.
However, at least in the outer corners of cyberspace there should be an area where can openly discuss what the major causes of this disaster are. To paint over it and try to ignore it in face of an election is utter hubris.
Worth reposting:
US Is "More Communist than China": Jim Rogers
US Is "More Communist than China": Jim Rogers - CNBC
Gone fishing:
Driving an 8 y/o minivan and wife drives a 6 y/o minivan.
And when it hits 10 years, I'll take the wife's car, give the wreck to the kid and buy her a nice new 3 year old minivan.
Pah! I laugh at new cars!
"...is utter hubris"
Hunh? Please check dictionary.
Bush Looking Drunk At The Olympics
Bush Looking Drunk At The Olympics - Olympics - Gawker
Besides, the president doesn't have to consume actual alcohol to act like a bumbling fraternity president. Still, it's worth noting that Bush has been doing a funny/terrifying impersonation of a drunk president for all the press photographers at the Olympics. He's even got the red face thing down! After the jump, enjoy a photo gallery of the president looking his most wasted, from that beach volleyball embarrassment to daughter Barbara looking embarrassed next to Bush at a swimming match, plus some of the other ones Wonkette found on Four Winds 10 last night and some other ones thrown in for fun.
Popeye-
I care about ice cream and am serious about those 2 flavors..
kick back and enjoy the ride..sometimes that spinach gets the best of you...
OT to Rob:
BUSH!!
OT to Rob:
BUSH!!
COOL!
"Pah! I laugh at new cars!"
The last time I bought a new car was 20 years ago. That was a mistake.
Now I buy beaters.
Anonymous writes:
This is our generations Watergate, and no one cares, no one wants to bust Nixon, I mean Bush and his crooks! Why??
A-mouse. There is a point at which you have to say - the bs is too deep. I'm pretty sure we are there.
OT to homedad43:
welcome to killfile.
Goodbye.
Dumb question from the back of the room: is it possible that FDIC doesn't intervene with technically insolvent banks soon enough to limit losses out of potential litigation from shareholders?
OT to mp-- thanks for "hiemat" on thread from last night. Like so many others here, I enjoy your posts and learning about things like this in addition to the financials.
Homedad43
"So I was out looking at the bird's nest in the BUSH and my wife said, boy, am I BUSHed."
And then I heard a gunshot and felt something hit my chest and realized I'd just been Cheneyed.
I think this thread needs a nap.
Well, with the u.s. goverment throwing a floor under chinas investments to protect them from losses,,,wonder if they would do that for me??
@Rob Dawg,
You know, I was thinking... we could really reinvigorate our economy with some massive spending on some TOD & New Urbanism mega-projects --all with fully explicit taxpayer backstops, of course. And the lion's share of it in the form of no-bid contracts going to outfits that lavishly contribute to our dear leaders. And let's not forget to create a new Food Pyramid that places high cholesteral foods (and excrement sandwiches) firmly at the base --the foundation of any good diet.
(
waits for Dawg's head to explode...)
Outlier, you needn't thank me for anything. If you got something useful out of the talk about Heimat, that's great.
Sadly, most Americans don't understand that idea anymore, but when you've got people buried in your backyard it means something.
dynamitejacket writes:
"nobody seems to notice, nobody seems to care"
not quite true, NPR has been on the FNM etc news all day and they "get it" (= that it solves nothing).
the three words that kept my from taking that little flyer on FRE, FNM??
Retail Market Order.
Ciao
MS
@ Rob Dawg,
So any discussions of a flame grilled sirloin burger topped with a heaping pile of stilton blue cheese are off limits - cause that's what I had for lunch today - go long crestor...
Cassandra's done an E.J. Thribb on F & F. Heh.
Cassandra Does Tokyo
Twern't my head that explodes but my leg and radial arteries currently pressed into service of my black shriveled heart.
Seriously, maybe some people do indeed feel better venting I don't wish to see it when visiting here. HARM, you know full well that when I want a fight, or a whine or even a pity party I know the URL. This is not any of those places.
so tell me--- why is the dollar rallying, gold falling, and RE as represented by SRS rising?? What am I missing???? are we truly in bizarro world--doesn't this event just make us that much further in the hole!!!
Anonymous writes:
so tell me--- why is the dollar rallying, gold falling, and RE as represented by SRS rising?? What am I missing????
A-mouse: you are smarter than that. You know why it is happening - the question is whether you can admit it. {sorry, I kinda lost faith}
"So any discussions of a flame grilled sirloin burger topped with a heaping pile of stilton blue cheese are off limits..."
Was the bun grilled? I sincerely hope so and need to know.
Rob dawg,
As hard as you try or wish, you will never be able to separate politics from economics, especially since now we seem to have a socialist-type (for special moneyed interests)government that is merging government into the private sphere and taking over!
"...especially since now we seem to have a socialist-type (for special moneyed interests)government that is merging government into the private sphere and taking over!"
Christ, man, I guess you didn't get the memo. That happened a long time ago.
Where have you been?
Anon,
My sense of it is that the many participants in the market are gaming it.
What is interesting to me is the way Reuters et. al. will always report "market rises on news of X" when in truth "X" is a mere expedient.
From time to time, some real-world event leads to a clutch of margin calls or throws some severe risk into relief. Then, for a moment, you see the exchange functioning as an actual market. Otherwise it's a heady mix of black boxes and testosterone.
I think I'd have to hear the rules of posting from CR or Tanta since it's their blog. Maybe they don't want discussions of how politics affects economics but I don't think I've heard it from them...just from the volunteer blog content editors(nice name for blog police)
@mp
I've been watching Bloomberg too much...missed the major switch to socialism starting with Bear Stearns and maybe even before that I guess.
So any discussions of a flame grilled sirloin burger topped with a heaping pile of stilton blue cheese are off limits - cause that's what I had for lunch today - go long crestor... - Mike in Long Island
B@st@rd.Mrs.Dawg let me have a"small" burger yesterday with lots of lettuce, onions and tomato and no cheeze. Iz stillz cantz haz cheezeburgerz. Wewere at the UCLA Alumni & Parents bbq meaning that shriveled bit o'cow cost me ~$8500.
Lehman continues to bleed out. You'd think they'd have some dignity and just end it.
Freddie Mac is finally trading higher than his big sister. I'm so happy for the l'il guy.
"Freddie Mac is finally trading higher than his big sister. I'm so happy for the l'il guy."
Charles Lemonides is probably passed-out on the floor of some seedy lower Manhattan bar this afternoon.
mp,
What Heimat?
After WWII destroyed my father's Heimat through forced relocation, he voluntarily located here.
After that he married a woman who's family had always been moving for generations.
I come from folks who no longer believe in the concept. Heimat is in your heart, not in the graben.
Those folks time has come and gone, and where some of the bones lie, nobody knows. What is Heimat when one grandfather lies in camp somewhere in Siberia, and another in Los Angeles-far from where he was born?
One grandmother got to spend 40 years looking over a wall at where she was from, never allowed to visit-but alwasy longing for that which was dead-the other died burying three husbands after a long life.
The entire philosophy is 18th century/19th century romanticism.
Heimat is for the dead, living is for now and those here.
Someday this war's gonna end...
Gretchen Morgenson, on NPR (Day to Day) - not a big deal but just in case, for Tanta :-
Government Taking Over Fannie, Freddie : NPR
the positive:
- avoids a freeze in lending
- a first step in acknowledging "we have a problem"
but:
will have very little impact on house prices or delinquencies, wont provide a floor for price drops
Charles Lemonides is probably passed-out on the floor of some seedy lower Manhattan bar this afternoon
You would have to have a heart of stone not to think about the guy today... I am sure I make less money trading for myself but my blood presssure does not go over 110
AllenM, powerful argument but, at this point in my life, there's more to look back upon than to look forward to and I am reconciled with it.
burnside writes:
Anon,
"My sense of it is that the many participants in the market are gaming it."
nah....you think????
what is exhaustting is to explain to people the up/down volume notion and to see how few people grasp the importance...or even the point at all, even people who rely on what they call "TA"
I guess TA means different things to different people
AllenM aka Joliet Jake --
Here, here. Strange how Nationalism has reared its ugly head so powerfully lately and we find ourselves bogged down in Nationalist wars overseas again (Kurdistan, Baluchistan, Georgia soon?). In a few more decades 2/3 of Britain's "English" people will live permanently overseas in either former colonies or enemies (Spain, Greece, etc.). My family moved west each generation from Virginia in 1690 to California now and beyond (my father lives in SE Asia). Chinese people are scattered all over China now that the household registration system is over in many parts and disregarded everywhere else. Nationalism is the biggest and dumbest and most dangerous of our 19th belief system. It's the 21st Century now - can't we move on?
Sinomania,
I just do what I gotta do. Dad always was a grass was greener over the horizon.
I have no dreams to leave my kid of living here in peace and tranquility as the centuries go by, I leave him a packed bag and some money.
He will have to go forth and find his own place in the world. The dream of leaving more for the children never works. They have to get what they want, and what you collect or desire may not be theirs.
That I think is the zen lesson of parenthood.
Someday this war's gonna end...
mp writes:
"This is our generations Watergate, and no one cares, no one wants to bust Nixon, I mean Bush and his crooks! Why??"
Ennui? Exhaustion?
how about plain old ignorance....
CR, any idea how to get these twitter twits from polluting your site with their idiot comments? Could you put a rule into effect that would only post comments of minimum 10 or 12 sentences long (would not guarantee great comments but it would frustrate the twitter twits). Tanta, the Great Explainer of Mortgage Stuff in Exceptionally Clear and Concise Writing, whip these twits into shape! Surely, some 20something must have devised a blog editing tool that can rid your site of the drivel.
I like Rob Dawg, but I think that attempting to separate politics from economics at this kind of macro level is an insincere as claims to have separated analysts from traders.
It's a division that only exists in academic institutions, and not a single decision by a state actor is going to be made outside a policy context, and no non-state actors big enough to consider outside the aggregate are going to be tone-deaf to political concerns.
Sorry, that's just the way it is.
AlanM:
What Heimat?
nor bark nor needles shelter it;
such is the man whom none doth love;
for what should he longer live?
Those folks time has come and gone, and where some of the bones lie, nobody knows. What is Heimat when one grandfather lies in camp somewhere in Siberia, and another in Los Angeles-far from where he was born?
You will find it, or your ideals and ways will perish with you for want of continuance. Your life as an individual is an eyeblink, the life of families and nations the true thread of human existence. What life, the life without inheritors or legacy? Without tribe, what justification for the resources you consume or the hardships you endure?
The entire philosophy is 18th century/19th century romanticism.
Heimat is for the dead, living is for now and those here.
Not to wax obtuse, but all human concepts are constructed fictions. The challenge is to construct a fiction that meets the needs of the human animal and a functioning society.
Look around you, do you see that your culture has produced such fictions? Has your concept of life and community -- one which I would say is well within the mainstream of modern Western self-concept -- strengthened your tribe? Is this Republic, built on the foundation of the worldview you espouse, a stronger nation for it?
And the wind shall say: "Here were decent godless people:
Their only monument the asphalt road
And a thousand lost golf balls."
When the Stranger says: "What is the meaning of this city ?
Do you huddle close together because you love each other?"
What will you answer? "We all dwell together
To make money from each other"? or "This is a community"?
Oh my soul, be prepared for the coming of the Stranger...
Be prepared for him who knows how to ask questions.