I should stop coming back to check for updates compulsively since I really don't want any more details anymore. Just nice to hang with the Future Farmers of America.
I for one am glad that the government has taken this important step, it would irresponsible to let BofA have any trouble whatsoever. In a completely unrelated FWIW, our business checking account is with BofA.
OK, was just getting ready for bed and happened to catch Cramer...His big stock pick tonight? Del Monte...My husband and I looked at each other and realized we are all doomed....When Cramer is Booyaaaing over canned goods, the end has got to be near...
I mentioned this last night on a thread, but with some of the discussion tonight I think a reiteration isn't out of bounds.
Last night I watched the movie Children of Men. The central theme of the movie is a world that has lost hope and mankind faces extinction. Everything is just FUBAR. Lawlessness with a police state, immigrant xenophobia with massive state enforcement, marauding gangs, hunger, prison camps, all while there are big screen TVs in the street still advertising and semi-functioning economy.
It was just a shock to see it. To me its about the most realistic presentation of a possible horrible future in a 'hope is lost' scenario. The fact that it was such a quality rendition didn't hurt either, great screenplay/production/cinematography all that jazz. Plus it was good to see Michael Caine (I referred to him as that old english bastard last night) playing a cannabis raising hippie.
The Unknown
As we know, There are known knowns. There are things we know we know. We also know There are known unknowns. That is to say We know there are some things We do not know. But there are also unknown unknowns, The ones we don't know We don't know. Department of Defense news briefing Feb. 12, 2002
Ass raped by the government again . You would think by now it wouldn't hurt so much.I wish they used lube and at least force BOA to wipe out the dividends
More details from FT FT.com / World - Bank of America gets $138bn lifeline
"US authorities on Thursday night were moving to finalise a new rescue package for BofA, which would involve the federal government injecting about $15bn in equity and guaranteeing toxic assets of more than $100bn. One person familiar with the negotiations said the pool of assets would be between $100bn and $150bn, while another suggested the total could be higher.
Under the proposed deal, BofA would absorb the first losses on the toxic assets, with subsequent losses being borne first by the Treasury, then by the FDIC and then by the Federal Reserve."
This BofA bailout is already purely Obama's decision. How it is structured will illustrate the system of values of the new Administration and will show what kind of change is coming to America (change of priorities or "spare change?").
When did US Air go down? I scare myself sometimes!
Guiseppe de Egypto writes:
I've watched them pull little furry bunny rabbit stick saves outta their hats so many times when I thought their trick was up. This is a big furry one pulled outta somewhere else. Still, seems another pathetic ratcheting attempt doomed to fail.
Too much debt must be destroyed. No money on the sidelines. Too much debt to be shifted from private to public balance sheet via sovereign bonds. Not enough to borrow and spend without much more dire consequences.
The passengers on this airline are losing all confidence in captain's ability to make any landing at all.
Guiseppe de Egypto | 01.15.09 - 2:48 pm |
In today's America, even with the Terminator serving as Governor of California, a conspiratorial wrestler as the former Governor of Minnesota, a variety show comedian likely to take a seat in the US Senate, and the President-elect actually offering the job of Surgeon General to a television doctor, this one seems just too far out-of-bounds.
Despite the context, Nugent's latest appeal appears hopefully rhetorical.
"Call me, President Obama," writes Nugent. "Hippies, dope heads, corrupt politicos and various other human debris hate me, which makes me the perfect man for the job."
And who said late stage capitalism would not be humorous and absurd?
Some store closings are result of competition (duh) and Walmart. They can't compete with the giant. OTOH, reported in English papers couple of weeks ago that major UK groceries were gearing up to find additional suppliers when their standard suppliers went TU. It's apparently a very thin profit margin business and they're worried in UK (no link remembered).
In my area (Central PA), not seeing any empty shelves. However, have been to an Amish/Mennonite "Bent/dent" store and the place was packed and shelves there were sparse in certain areas (think canned goods/soups). Heading back this coming week.
Have stepped up the food purchases and will continue to rev up the dehydrator, just in case.
Am getting back to the garden that was on way with last Spring before I went TU in hospital. Will try some square foot gardening...had previously removed trees and fencing to make room.
Have been telling people for months that they need to stock up and some are now starting to do that.
But on balance, we've usually been the types to support. Rarely been given the shaft on a personal level - business another story - and we'll take our shots there.
So what's your website again? Better half is from Portsmouth and we're down regularly.
BAC makes $15bn a year off working the float, so the government is backing them if things go FUBAR, which is currently the case in the greater economy.
OT- I hope somebody is taping the garret Jackson auction, it's not quite a bloodbath, but close.
Has Bernanke ever articulated why he is not just following the Swedish model to the letter? What is he trying to do that would not have been accomplished by that?
Looks like our "compensation" is that BAC has agreed to cut the dividend to one cent/share. Now they just need to do a 32:1 share split and they'll be right back where they were, minus the $100 billion in pollution of course.
"Anyone Found On This Property Tonight Will Be Here In The Morning"
....have you ever seen anyone "ON TILT" at a Blackjack or Poker table? They start losing money. Their luck turns worse. They start betting bigger amounts to get even. Once the losses become "scary", they bet more. They will do whatever it takes to "get even" - bigger and bigger amounts. They will lose their entire bankroll to "go for it". Stopping does them no good - they stop spending and they are broke - game over.
This is our government. There will be no end to this until the money is gone. Just like a speed freak, no stopping till the crash.
1. Some store closings are result of competition (duh) and Walmart. They can't compete with the giant. OTOH, reported in English papers couple of weeks ago that major UK groceries were gearing up to find additional suppliers when their standard suppliers went TU. It's apparently a very thin profit margin business and they're worried in UK (no link remembered). homedad43 | Homepage | 01.15.09 - 11:48 pm | #
Walmart has well and truly screwed American supply chains. Their model does not scale down, only up. Unfortunately, they've left nothing behind as they scaled up. They forced suppliers into the same business practices and in cases of overlap set them against each other. At least Walmart infected China with the same inbreeding.
Hymns for the Lord writes: Has anyone explained why the current Fed/Treasury steps make more sense than the Swedish model?
Yes, and many times - because bank shareholders are more important than taxpayers.
The best explanation was given by Jon Stewart in his interview with Greenspan, who actually agreed with that.
Well, that is how I am feeling, as in bent over and told to squeal like a pig.
So what are you going to do about it? Seriously. Taxpayer revolt? Go ahead. Your future cellmate Bubba will have you squealing like a pig.
Go "Atlas Shrugged" and stop working / be underemployed / under-consume? Go ahead. There are hundreds of people willing to do your job and buy the things you won't. Your family will thank you for your righteous stand -- as you starve and shiver.
Wanna protest? Go ahead. Get in that cage 1000 yards away from the event. No one cares.
OK, now this is scary, people are actually depending on Social Security
...
...
"Here's how it could be worse
During the Bush administration, proposals to privatize Social Security were in vogue. Here's why today's retirees can be very happy it didn't happen."
....
....
The Florida United Numismatist's show is over and as I noted in a previous post this show is usually a trend setter for the coming year. The first of the final reports I've read is 'The Fun Show 2009' from Legend Numismatics and it is pretty bearish for everything but the very best of the rare coins. Legend is a major player, spending $4 million at the show and they seem to have a good sense for the direction of the market.
Overgraded coins and inferior raw coins are sitting with the dealers. The spec money is leaving and the buy anything, no matter the cost mentality is going with it. Sounds like the housing market. I talked with a local dealer yesterday about the show and he said that they sold a million on the floor the first day but it was nearly all Silver Eagles. He took 60,000 and they were gone in 4 hours to dealers and the public at an avg. $16. An Authorized dealer, he paid spot plus $1.50 so the Eagles made the show. Wholesale was decent but retail was very slow. Lots of lookers. Bullion is strong and coins are slipping, seems to be the current trend. The mint here, with the addition of another furnace and a second shift has upped weekly silver bar output to 150,000 oz. but the waiting time has grown from 3 weeks to 4. The retail price is holding at spot plus $3. Fractional new gold is becoming scarce as there won't be anymore from the US Mint. Retail 1 oz. new gold is back to the $100 premium over spot and Saints are holding in the $1150 area with no quantity in either type. In talking with 2 buyers recently one of them made a comment that pretty well covers today's market. He said that every major dealer in the country is trying to sell the same coins that nobody wants and they are all trying to buy the same coins that nobody wants to sell, hence gridlock and very few of them are making money unless they also have strong bullion sales. (Emphasis mine)
1/15/2009 Silver Basis $10.58 ----------- Wholesale- 90% circ. $1000 bag Bid $9272/Ask $9522 Silver Dollars AG/G $1000 bag Bid $11922/Ask $12922 Cull silver dollars retail @ $14.00 for 1921 Morgans & common Peace Small lot junk silver retails at around $10 per $1 face Scrap silver bars retail- Bid spot/Ask spot plus $3.
These are general prices and will vary among dealers.
Think about this like an outsider. Too much debt was undertaken, all Americans benefited to different extents, few complained, and now money has to be printed to pay for it all. They're just numbers now, we don't know what $1 is actually worth in a few years time. Half the budget is borrowed money, it's not like you can claim your taxes paid for it. You can't even say most Americans were opposed to any of it given elections just 4 years ago that were a ringing endorsement of unsustainable credit growth over a real economy.
Meanwhile the day's big story was completely overlooked on here in Deutschebank. The post office had to bail it out immediately because Angela Merkle still thinks tax cuts are a solution. What's the importance of another $100 billion credit line, tiddly winks is what.
What is he trying to do that would not have been accomplished by that?
Hymns for the Lord | 01.15.09 - 11:56 pm | #
To avoid wiping out shareholders and haircutting bondholders, keep the executives' salaries going for as long as possible? Gotta take care of the people that matter; the rest of us get trickled on.
Seems to me we should at least deplete the FDIC fund BEFORE we use taxpayer TARP & TURD money but bank runs might begin if they did.
FFDIC | 01.16.09 - 12:02 am | #
Isn't the FDIC fund for failed banks? Shouldn't we declare the bank failed and seize it or sell it before we start dropping FDIC money into it?
"That puts the taxpayers on the line for close to $100 billion."
Just a guess, let's say market value is 33 cents on the dollar (figure pulled from my tush, time will tell how close I am), government loss of $53B on this deal. Look at it as a gift, to a company that has a current market cap of $41.75B. Chump change, and as everyone knows deficits no longer matter. It's free magical money.
thanks much yagij, i appreciate it. thinking about getting more into the numismatic end of things. i wish there was more info/research on other aspects of the art/collectible investment family.
i am a public servant. and i can tell you for a fact that the position is not what hundreds of schmoes can do by walking in from the street....and once the position is gone it is gone...which is tough and life ain't easy.
fortunately there a few bodies between me and the door...but what i do in development review and regulation is by no means an average job and no i do not intend to walkway without making a play for other options.
MORE IMPORTANTLY you are missing the point. YOUR taxpayer dollars and mine, are being given away to asshats at BOA, AIG, etc with little or no oversight.
fortunately one of my senators and at least one congressman from Oregon has not been so keen on handing out the mammon. and I can spend my $$$ supporting them and voting into office others like them.
I wonder what those illiquid assets are, Countrywide only cost them a few billion and they claimed to be out from under the bond holders. I don't think Atlanta FHLB needs the 52 billion back from Countrywide, do they?
This is the flaw in fractional reserve lending... 1 : 10 ratios mean there isn't $9 out there to cover that debt.
We are witnessing fractional reserve lending in reverse... and they can't print fast enough.
The taxpayers got into private debt to purchase their hummers, McMansions and trinkets... and now (on their behalf) the government is getting them into deeper (longer term) debt.
fed vice chair kohln stated the fed had lent 2 trillion dollars to various institutions
im wondering if this was a lie or a mistake, or am i just missing something
has not the fed "loaned" more than 5 trillion by way of the various "windows" where toxic waste is exchanged for us securities (taf, tslf, pdcf, abc-xyz etc)
and the collateral for those loans or exchanges would they not appear on the fed balance sheet???
Has anyone explained why the current Fed/Treasury steps make more sense than the Swedish model?
Sweden's bank nationalization, which is similar to the AIG resolution, occurred when there was a functional global credit market, so that the banks could sell the toxic assets to pay off the warrants it owed the government. I think that the guys in charge feel that complete nationalization, while saving the taxpayer a few shekels, would eviscerate what's left of the credit markets, since the Fed's primary channel for liquidity has been through the banks, and push the world even faster into a global depression.
Additionally, at the time of the Swedish bank crisis, the primary source for bank lending was the deposits, so that the act of saving the bank and saving the depositors was congruent. Now, with securitization, this is definitely not the case, which explains why so many of the guarantees are outside of the FDIC (which is only deposit insurance) jurisdiction.
Of course, there's always the fact that nationalization of a bank would be a credit event that causes of all of those CDS to trigger. Whether that danger is overblown, who knows.
"So what are you going to do about it? ...Go "Atlas Shrugged" and...under-consume?"
Been doing that for years...and now I'm convincing other people to do the same. The funny thing is that it's working. Some people are actually taking the Red Pill...and it's getting easier and easier to do...
Changing American Consumers into American Citizens one step at a time...
sdtfs writes:
I wonder what those illiquid assets are, Countrywide only cost them a few billion and they claimed to be out from under the bond holders.
That "claim" was just to give themselves a bit of maneuvering room when it came time to bargain with the bondholders. There's no way they walk from that debt completely, though they may be able to pass a big chunk of it along to the various federal entities.
ah, keep wondering about the good ol' days where my pappy went out hunting or fishing and if he did not bring something home we all ate a bit less...this new found form of individualism means if my pappy didnt get something we can raid the jones pantry next door and feast all night long...God Bless Amerika
There's no way they walk from that debt completely
Always read the fine print in a bond covenant! Lots of bondholders get screwed when a company sells its assets leaving the debt to the shell of the former company. Lawsuits are very interesting to read.
I enjoyed the technological aspects of Children of Men, one of the few movies where the technological evolution seemed realistic instead of all powerful magic that other movies try to make it into. The HUD on the car right before the ambush scene was particularly well done I thought.
Credit enima is coming..... writes: \tIs anyone looking at putting money in Rhodium metal ? Credit enima is coming..... | 01.16.09 - 12:13 am | # ----- I'm not but for the simple reason that the average J6P wouldn't even know what it is. Also, if you are trying to capture its metal movement, I don't foresee it going anywhere near the sky from which it fell last summer. Not in the current world in which we live, but JMHO.
p.s. I updated the December 2008 numbers for Ventura County and the San Fernando Valley. No major change but distressed sales hovering at around 70% of closed sales is still very impressive:
Bernie Madoff's investment fund may never have executed a single trade, industry officials say, suggesting detailed statements mailed to investors each month may have been an elaborate mirage in a $50 billion fraud.
An industry-run regulator for brokerage firms said on Thursday there was no record of Madoff's investment fund placing trades through his brokerage operation.
That means Madoff either placed trades through other brokerage firms, a move industry officials consider unlikely, or he was not executing trades at all.
three of the top ten original flicks of the decade were made by mexican directors - children of men is just one of them, amores perros and pan's labyrinth are the other two.
From Kitco: Description and Uses:Rhodium is a silver-white metallic element, is highly resistant to corrosion, and is extremely reflective. It is used as a finish for jewelry, mirrors, and search lights. It is also used in electric connections and is alloyed with platinum for aircraft turbine engines. Another use is manufacturing of nitric acid and used in hydrogenation of organic compounds. Rhodium usage is dominated by autocatalyst applications where it is used together with platinum and palladium to control exhaust emissions
I'm having a hard time locating physical bars . I paid $250 a gram 6 months ago . This is the closest to finding bars or coins so far ..Dear Chris,
Thank you for your recent inquiry. Unfortunately we currently do not have Rhodium metal bars or coins, as you have requested, in stock at this time. We do, however, have high purity Rhodium metal shot available. If you are purchasing the metal as an investment, we will provide a certified assay and weight with your purchase. If this form works for you, please let me know and I will get back to you immediately with our corresponding costs.
Rescue of Banks Hints at Nationalization
We are down a path that this country has not seen since Andrew Jackson shut down the Second National Bank of the United States, said Gerard Cassidy, a banking analyst at RBC Capital Markets. We are going to go back to a time when the government controlled the banking system. Nationalization Hinted in Rescues - NY Times
Sorry if this has been posted. Sea change. The tide is going out. There goes our boats. Wave bye to the bankers as they head for warmer climates.
Well I am inspired to pull out a 2001 Oregon Pinot Noir and look to my options, which are many as I am very fortunate, and watch Children of Men.
You youngins need to get yerself an education. Too bad political economy is not taught anymore.
And BB I am sure as hell in the event. Live it everyday and have architects and developers calling me after hours for word on the street leads and am working to get a bunch of us to voluntarily reduce our hours so we can save some jobs. It is called be a mensch. Go rent The Apartment, read some Adams, Marx, Gramsci, and Harvey. Get a clue my boy.
American Elements Credit enima is coming..... | 01.16.09 - 12:33 am | # ----- AE is the only place that I know which was providing Rh in an investment form. If you wanted it in a wire or chemical solution (aka industrial form), then you would have options...
Hold the match closer under the thermostat, paulson! The house isn't getting any warmer for some reason!
I should stop coming back to check for updates compulsively since I really don't want any more details anymore. Just nice to hang with the Future Farmers of America.
Damn. I will have to get myself another bank now.
OT: If TG is not confirmed for Secretary of Treasury by the 20th, who will the banks negotiate with for their bailouts?
I am getting very very angry. This is such BS. Shareholders and management should be wiped out.
I for one am glad that the government has taken this important step, it would irresponsible to let BofA have any trouble whatsoever. In a completely unrelated FWIW, our business checking account is with BofA.
Steel cooped investment bankers when they dream...
YouTube - A Cowboy Needs a Horse
Bwahahahaha
OK, was just getting ready for bed and happened to catch Cramer...His big stock pick tonight? Del Monte...My husband and I looked at each other and realized we are all doomed....When Cramer is Booyaaaing over canned goods, the end has got to be near...
Never a better time to just post my handle.Until tomorrow that is.
You get a toaster of course!
"Bank of America"--the irony and sh..are so thick it really is too much to stomach.
Back atcha, Uncle B!
What do we get for taking on this risk?
...and by "details" CR, I pressume you mean the known-knowns. Because the unknown-knowns, well, we know how that goes.
UB,
I just tried to boost ratings on your video...
I mentioned this last night on a thread, but with some of the discussion tonight I think a reiteration isn't out of bounds.
Last night I watched the movie Children of Men. The central theme of the movie is a world that has lost hope and mankind faces extinction. Everything is just FUBAR. Lawlessness with a police state, immigrant xenophobia with massive state enforcement, marauding gangs, hunger, prison camps, all while there are big screen TVs in the street still advertising and semi-functioning economy.
It was just a shock to see it. To me its about the most realistic presentation of a possible horrible future in a 'hope is lost' scenario. The fact that it was such a quality rendition didn't hurt either, great screenplay/production/cinematography all that jazz. Plus it was good to see Michael Caine (I referred to him as that old english bastard last night) playing a cannabis raising hippie.
Mad Max is a different kind of scenario, IMO.
Anyhow.
The Unknown
As we know, There are known knowns. There are things we know we know. We also know There are known unknowns. That is to say We know there are some things We do not know. But there are also unknown unknowns, The ones we don't know We don't know. Department of Defense news briefing Feb. 12, 2002
I ♥ Countrywide (fraud)
Looks like a good time to buy machine tools and other tools off of out of work contractors. I wonder what I should buy.
My business and personal checking are with BofA. Starting Feb 1, this won't be the case. This is just getting more sickening by the day.
Ass raped by the government again . You would think by now it wouldn't hurt so much.I wish they used lube and at least force BOA to wipe out the dividends
What do we get for taking on this risk?
Ask not what you get for taking on this risk, but ask what can you risk after you get taken.
So where did the first $25 billion of TARP funds go to BOA?
Why not just call TARP...FUCKED...
This is extortion pure and simple by BOA, et al.
Totally, completely FUCKED.
Well, that is how I am feeling, as in bent over and told to squeal like a pig.
YouTube - Squeal Like a Pig
His big stock pick tonight? Del Monte
Comrade Kristina | Homepage | 01.15.09 - 11:35 pm | #
Oh goodie. Time for a walk down Cannery Row.
At least we should get some good depression literature in the next few years.
More details from FT
FT.com / World - Bank of America gets $138bn lifeline
"US authorities on Thursday night were moving to finalise a new rescue package for BofA, which would involve the federal government injecting about $15bn in equity and guaranteeing toxic assets of more than $100bn. One person familiar with the negotiations said the pool of assets would be between $100bn and $150bn, while another suggested the total could be higher.
Under the proposed deal, BofA would absorb the first losses on the toxic assets, with subsequent losses being borne first by the Treasury, then by the FDIC and then by the Federal Reserve."
This BofA bailout is already purely Obama's decision. How it is structured will illustrate the system of values of the new Administration and will show what kind of change is coming to America (change of priorities or "spare change?").
When did US Air go down? I scare myself sometimes!
Guiseppe de Egypto writes:
I've watched them pull little furry bunny rabbit stick saves outta their hats so many times when I thought their trick was up. This is a big furry one pulled outta somewhere else. Still, seems another pathetic ratcheting attempt doomed to fail.
Too much debt must be destroyed. No money on the sidelines. Too much debt to be shifted from private to public balance sheet via sovereign bonds. Not enough to borrow and spend without much more dire consequences.
The passengers on this airline are losing all confidence in captain's ability to make any landing at all.
Guiseppe de Egypto | 01.15.09 - 2:48 pm |
In today's America, even with the Terminator serving as Governor of California, a conspiratorial wrestler as the former Governor of Minnesota, a variety show comedian likely to take a seat in the US Senate, and the President-elect actually offering the job of Surgeon General to a television doctor, this one seems just too far out-of-bounds.
Despite the context, Nugent's latest appeal appears hopefully rhetorical.
"Call me, President Obama," writes Nugent. "Hippies, dope heads, corrupt politicos and various other human debris hate me, which makes me the perfect man for the job."
And who said late stage capitalism would not be humorous and absurd?
Hard to keep up with the boards.
Comments re food scarcity.
3:26 pm
The problem with warning people they never listen and now they know you have food .
MrM,
BHO cannot make this decision. Although he was probably told he had to go along and squeal like a pig.
Again, this is extortion and raping of the taxpayers.
I honestly think BHO is a man of integrity but CRONY CAPITALISM rules all.
Nothing BHO can do until he can speak softly and carry a big stick.
If he is a man of integrity, then he may become next FDR and our next FDR.
We should just nationalise that GD banks as this is what we are doing anyway...but without any real oversight. WTF!
"What do we get for taking on this risk?"
Well, I'm doubtful on the KY but hopeful for a reach around.
Nostrovia,
meant to say next Teddy and next FDR...apologies...long day with pending layoff...and up late with new baby...
Credit enima...
Yeah, that's crossed my mind.
But on balance, we've usually been the types to support. Rarely been given the shaft on a personal level - business another story - and we'll take our shots there.
So what's your website again? Better half is from Portsmouth and we're down regularly.
BAC makes $15bn a year off working the float, so the government is backing them if things go FUBAR, which is currently the case in the greater economy.
OT- I hope somebody is taping the garret Jackson auction, it's not quite a bloodbath, but close.
CR,
Has anyone explained why the current Fed/Treasury steps make more sense than the Swedish model?
fallonPDX - have fun with the baby.
Think of the future stories that she'll be able to roll her eyes at.
Has Bernanke ever articulated why he is not just following the Swedish model to the letter? What is he trying to do that would not have been accomplished by that?
Looks like our "compensation" is that BAC has agreed to cut the dividend to one cent/share. Now they just need to do a 32:1 share split and they'll be right back where they were, minus the $100 billion in pollution of course.
Hymns,
It doesn't.
"What do we get for taking on this risk?"
BUMPKIS
Crony Capitalism decides whom survives and only corporeal paper persons too big to fail get to survive...GMAC, BOA, CITI, AIG, etc
Sure we can talk about finance market stability and a managed unwind....well it is actually not happening...
Just looks like it is but it is not.
What is worse is the gamblers at CASINO DJIA will just make BOA and probably Citi pop for no GD reason.
Ugh!
This is bad. This is very bad.
"Anyone Found On This Property Tonight Will Be Here In The Morning"
....have you ever seen anyone "ON TILT" at a Blackjack or Poker table? They start losing money. Their luck turns worse. They start betting bigger amounts to get even. Once the losses become "scary", they bet more. They will do whatever it takes to "get even" - bigger and bigger amounts. They will lose their entire bankroll to "go for it". Stopping does them no good - they stop spending and they are broke - game over.
This is our government. There will be no end to this until the money is gone. Just like a speed freak, no stopping till the crash.
1. Some store closings are result of competition (duh) and Walmart. They can't compete with the giant. OTOH, reported in English papers couple of weeks ago that major UK groceries were gearing up to find additional suppliers when their standard suppliers went TU. It's apparently a very thin profit margin business and they're worried in UK (no link remembered).
homedad43 | Homepage | 01.15.09 - 11:48 pm | #
Walmart has well and truly screwed American supply chains. Their model does not scale down, only up. Unfortunately, they've left nothing behind as they scaled up. They forced suppliers into the same business practices and in cases of overlap set them against each other. At least Walmart infected China with the same inbreeding.
Hymns for the Lord writes: Has anyone explained why the current Fed/Treasury steps make more sense than the Swedish model?
Yes, and many times - because bank shareholders are more important than taxpayers.
The best explanation was given by Jon Stewart in his interview with Greenspan, who actually agreed with that.
Good night.
What percent of this bailout will go to insider compensation???
Well, that is how I am feeling, as in bent over and told to squeal like a pig.
So what are you going to do about it? Seriously. Taxpayer revolt? Go ahead. Your future cellmate Bubba will have you squealing like a pig.
Go "Atlas Shrugged" and stop working / be underemployed / under-consume? Go ahead. There are hundreds of people willing to do your job and buy the things you won't. Your family will thank you for your righteous stand -- as you starve and shiver.
Wanna protest? Go ahead. Get in that cage 1000 yards away from the event. No one cares.
OK, now this is scary, people are actually depending on Social Security
...
...
"Here's how it could be worse
During the Bush administration, proposals to privatize Social Security were in vogue. Here's why today's retirees can be very happy it didn't happen."
....
....
2008 shows the risks of privatizing social security - Jan. 13, 2009
homedad43,
thanks. this is number 2. nearly 8 years apart. both girls. great kids.
and at 43 I may just end up as a homedad myself...assumes my spouse's public university professorship does not get cut...
interesting times. faith, family, and friends...all the rest is just an illusion...
This is a crime against the citizens of the United States of America.
OT (regarding PM coins):
The Florida United Numismatist's show is over and as I noted in a previous post this show is usually a trend setter for the coming year. The first of the final reports I've read is 'The Fun Show 2009' from Legend Numismatics and it is pretty bearish for everything but the very best of the rare coins. Legend is a major player, spending $4 million at the show and they seem to have a good sense for the direction of the market.
Overgraded coins and inferior raw coins are sitting with the dealers. The spec money is leaving and the buy anything, no matter the cost mentality is going with it. Sounds like the housing market. I talked with a local dealer yesterday about the show and he said that they sold a million on the floor the first day but it was nearly all Silver Eagles. He took 60,000 and they were gone in 4 hours to dealers and the public at an avg. $16. An Authorized dealer, he paid spot plus $1.50 so the Eagles made the show. Wholesale was decent but retail was very slow. Lots of lookers. Bullion is strong and coins are slipping, seems to be the current trend. The mint here, with the addition of another furnace and a second shift has upped weekly silver bar output to 150,000 oz. but the waiting time has grown from 3 weeks to 4. The retail price is holding at spot plus $3. Fractional new gold is becoming scarce as there won't be anymore from the US Mint. Retail 1 oz. new gold is back to the $100 premium over spot and Saints are holding in the $1150 area with no quantity in either type. In talking with 2 buyers recently one of them made a comment that pretty well covers today's market. He said that every major dealer in the country is trying to sell the same coins that nobody wants and they are all trying to buy the same coins that nobody wants to sell, hence gridlock and very few of them are making money unless they also have strong bullion sales. (Emphasis mine)
1/15/2009 Silver Basis $10.58
-----------
Wholesale- 90% circ. $1000 bag Bid $9272/Ask $9522
Silver Dollars AG/G $1000 bag Bid $11922/Ask $12922
Cull silver dollars retail @ $14.00 for 1921 Morgans & common Peace
Small lot junk silver retails at around $10 per $1 face
Scrap silver bars retail- Bid spot/Ask spot plus $3.
These are general prices and will vary among dealers.
Think about this like an outsider. Too much debt was undertaken, all Americans benefited to different extents, few complained, and now money has to be printed to pay for it all. They're just numbers now, we don't know what $1 is actually worth in a few years time. Half the budget is borrowed money, it's not like you can claim your taxes paid for it. You can't even say most Americans were opposed to any of it given elections just 4 years ago that were a ringing endorsement of unsustainable credit growth over a real economy.
Meanwhile the day's big story was completely overlooked on here in Deutschebank. The post office had to bail it out immediately because Angela Merkle still thinks tax cuts are a solution. What's the importance of another $100 billion credit line, tiddly winks is what.
What is he trying to do that would not have been accomplished by that?
Hymns for the Lord | 01.15.09 - 11:56 pm | #
To avoid wiping out shareholders and haircutting bondholders, keep the executives' salaries going for as long as possible? Gotta take care of the people that matter; the rest of us get trickled on.
CR wrote
That puts the taxpayers on the line for close to $100 billion. What do we get for taking on this risk?
common CR... like you said... we're gettin the risk..what more do you want
Seems to me we should at least deplete the FDIC fund BEFORE we use taxpayer TARP & TURD money but bank runs might begin if they did.
How do you say we are fucked in Chinese?
Is this what torture is like?
FFDIC writes:
Is this what torture is like?
yes, the chinease water variety
Seems to me we should at least deplete the FDIC fund BEFORE we use taxpayer TARP & TURD money but bank runs might begin if they did.
FFDIC | 01.16.09 - 12:02 am | #
Isn't the FDIC fund for failed banks? Shouldn't we declare the bank failed and seize it or sell it before we start dropping FDIC money into it?
Just another Apollo program flushed down the toilet.
Save America - Kill a Banker
"That puts the taxpayers on the line for close to $100 billion."
Just a guess, let's say market value is 33 cents on the dollar (figure pulled from my tush, time will tell how close I am), government loss of $53B on this deal. Look at it as a gift, to a company that has a current market cap of $41.75B. Chump change, and as everyone knows deficits no longer matter. It's free magical money.
[What do we get for taking on this risk?]
Uhhh, perhaps a serious haircut to the USD ?
hey Misean
our pm investments (physical) are looking like a good hedge right about now
were we lucky.... or smart,,,(or a little of each)
thanks much yagij, i appreciate it. thinking about getting more into the numismatic end of things. i wish there was more info/research on other aspects of the art/collectible investment family.
were we lucky.... or smart,,,(or a little of each)
mock turtle | 01.16.09 - 12:10 am | #
I vote smart (but I'm biased).
badger boy,
i am a public servant. and i can tell you for a fact that the position is not what hundreds of schmoes can do by walking in from the street....and once the position is gone it is gone...which is tough and life ain't easy.
fortunately there a few bodies between me and the door...but what i do in development review and regulation is by no means an average job and no i do not intend to walkway without making a play for other options.
MORE IMPORTANTLY you are missing the point. YOUR taxpayer dollars and mine, are being given away to asshats at BOA, AIG, etc with little or no oversight.
get a f*cking clue.
AIG Discloses $150 Million More in Retention Pay (Update3) - Bloomberg.com
fortunately one of my senators and at least one congressman from Oregon has not been so keen on handing out the mammon. and I can spend my $$$ supporting them and voting into office others like them.
Is anyone looking at putting money in Rhodium metal ? Rhodium Chart - Last 6 Months
I wonder what those illiquid assets are, Countrywide only cost them a few billion and they claimed to be out from under the bond holders. I don't think Atlanta FHLB needs the 52 billion back from Countrywide, do they?
This is good news. Share holders saved. Bond holders saved. Management gets paid. Bonuses get paid.
Sounds like a win/win strategy.
Never been a better time to be bought or sold out -
Anonymous | \t \t \t \t01.16.09 - 12:01 am |
This is the flaw in fractional reserve lending... 1 : 10 ratios mean there isn't $9 out there to cover that debt.
We are witnessing fractional reserve lending in reverse... and they can't print fast enough.
The taxpayers got into private debt to purchase their hummers, McMansions and trinkets... and now (on their behalf) the government is getting them into deeper (longer term) debt.
Digging faster... and faster...
I'm glad there are no consequences for these bailouts.
mock turtle writes:
in his testimony before the house finance committee a couple days ago
Nothing found for Blog 200 -fund #comments
fed vice chair kohln stated the fed had lent 2 trillion dollars to various institutions
im wondering if this was a lie or a mistake, or am i just missing something
has not the fed "loaned" more than 5 trillion by way of the various "windows" where toxic waste is exchanged for us securities (taf, tslf, pdcf, abc-xyz etc)
and the collateral for those loans or exchanges would they not appear on the fed balance sheet???
Nothing found for Blog 200 -bailout-costs
Has anyone explained why the current Fed/Treasury steps make more sense than the Swedish model?
Sweden's bank nationalization, which is similar to the AIG resolution, occurred when there was a functional global credit market, so that the banks could sell the toxic assets to pay off the warrants it owed the government. I think that the guys in charge feel that complete nationalization, while saving the taxpayer a few shekels, would eviscerate what's left of the credit markets, since the Fed's primary channel for liquidity has been through the banks, and push the world even faster into a global depression.
Additionally, at the time of the Swedish bank crisis, the primary source for bank lending was the deposits, so that the act of saving the bank and saving the depositors was congruent. Now, with securitization, this is definitely not the case, which explains why so many of the guarantees are outside of the FDIC (which is only deposit insurance) jurisdiction.
Of course, there's always the fact that nationalization of a bank would be a credit event that causes of all of those CDS to trigger. Whether that danger is overblown, who knows.
"So what are you going to do about it? ...Go "Atlas Shrugged" and...under-consume?"
Been doing that for years...and now I'm convincing other people to do the same. The funny thing is that it's working. Some people are actually taking the Red Pill...and it's getting easier and easier to do...
Changing American Consumers into American Citizens one step at a time...
sdtfs writes:
I wonder what those illiquid assets are, Countrywide only cost them a few billion and they claimed to be out from under the bond holders.
That "claim" was just to give themselves a bit of maneuvering room when it came time to bargain with the bondholders. There's no way they walk from that debt completely, though they may be able to pass a big chunk of it along to the various federal entities.
Last night I watched the movie Children of Men.
Comrade Tech Sargent Chen | 01.15.09 - 11:41 pm | #
Have you seen "V for Vendetta"?
FFDIC writes:
How do you say we are fucked in Chinese?
我们性交!
ah, keep wondering about the good ol' days where my pappy went out hunting or fishing and if he did not bring something home we all ate a bit less...this new found form of individualism means if my pappy didnt get something we can raid the jones pantry next door and feast all night long...God Bless Amerika
We are right and truly screwed.
The ride at CR has been a rollercoaster. The gorge is rising from my gut and the biggest drop off yet is slowly being climbed to.
No getting off the ride until it's done.
I am past ready for it to be done.
Barley writes:
This is good news. Share holders saved. Bond holders saved. Management gets paid. Bonuses get paid.
2010 and 2012 campaign contributions get made.
There's no way they walk from that debt completely
Always read the fine print in a bond covenant! Lots of bondholders get screwed when a company sells its assets leaving the debt to the shell of the former company. Lawsuits are very interesting to read.
Comrade Bear (tj & the bear),
Children of Men is amazing. The camera work is often astounding. Especially the long takes.
YouTube - Children of Men - long takes
These mustard seeds are getting expensive. Good night all.
Lawsuits are very interesting to read.
anonymous
Agreed - but who makes the law?
What we are seeing is the non-overt execise of nationalization.
Putin would be proud.
It'll be "Weekend at Bernie's" with the Fed & Treasury holding up the dead bodies of TBTF banks and saying "See! Everything's FINE Here!!!".
Posted this comment yesterday. Must say I nailed that one.
Children of Men is amazing.
fallonPDX | 01.16.09 - 12:20 am | #
Yes, excellent movie, have it on DVD.
Who's tapped to take over NY FRB?
I enjoyed the technological aspects of Children of Men, one of the few movies where the technological evolution seemed realistic instead of all powerful magic that other movies try to make it into. The HUD on the car right before the ambush scene was particularly well done I thought.
Credit enima is coming..... writes:
\tIs anyone looking at putting money in Rhodium metal ?
Credit enima is coming..... | 01.16.09 - 12:13 am | #
-----
I'm not but for the simple reason that the average J6P wouldn't even know what it is. Also, if you are trying to capture its metal movement, I don't foresee it going anywhere near the sky from which it fell last summer. Not in the current world in which we live, but JMHO.
p.s. I updated the December 2008 numbers for Ventura County and the San Fernando Valley. No major change but distressed sales hovering at around 70% of closed sales is still very impressive:
Effective Demand: Short Sale & Foreclosure for San Fernando Valley & Ventura County - December 2008
Anyone got the over/under on how many months until we hit 80%?
"Rhodium metal ?"
you were supposed to hook us up with the info on that one!
does such a thing as rhodium bullion exist?
never seen it personally.
Bernie Madoff's investment fund may never have executed a single trade, industry officials say, suggesting detailed statements mailed to investors each month may have been an elaborate mirage in a $50 billion fraud.
An industry-run regulator for brokerage firms said on Thursday there was no record of Madoff's investment fund placing trades through his brokerage operation.
That means Madoff either placed trades through other brokerage firms, a move industry officials consider unlikely, or he was not executing trades at all.
Madoff's fund may not have made a single trade
| Reuters
The Madoff story will be the cautionary tale told if we have a future.
This is hard to believe.
three of the top ten original flicks of the decade were made by mexican directors - children of men is just one of them, amores perros and pan's labyrinth are the other two.
I'd agree with yagij.
From Kitco:
Description and Uses: Rhodium is a silver-white metallic element, is highly resistant to corrosion, and is extremely reflective. It is used as a finish for jewelry, mirrors, and search lights. It is also used in electric connections and is alloyed with platinum for aircraft turbine engines. Another use is manufacturing of nitric acid and used in hydrogenation of organic compounds. Rhodium usage is dominated by autocatalyst applications where it is used together with platinum and palladium to control exhaust emissions
All this talk about Children of Men...
Just keep saying "Pull my finger" as the government runs out of ammo.
I'm having a hard time locating physical bars . I paid $250 a gram 6 months ago . This is the closest to finding bars or coins so far ..Dear Chris,
Thank you for your recent inquiry. Unfortunately we currently do not have Rhodium metal bars or coins, as you have requested, in stock at this time. We do, however, have high purity Rhodium metal shot available. If you are purchasing the metal as an investment, we will provide a certified assay and weight with your purchase. If this form works for you, please let me know and I will get back to you immediately with our corresponding costs.
Best regards,
Annie
Annie Simons
American Elements
annie.simons@americanelements.com
Rescue of Banks Hints at Nationalization
We are down a path that this country has not seen since Andrew Jackson shut down the Second National Bank of the United States, said Gerard Cassidy, a banking analyst at RBC Capital Markets. We are going to go back to a time when the government controlled the banking system.
Nationalization Hinted in Rescues - NY Times
Sorry if this has been posted. Sea change. The tide is going out. There goes our boats. Wave bye to the bankers as they head for warmer climates.
Oops. Published before I got the chance to highlight "autocatalyst applications", too.
Given that aircraft & automobile production is dying on the vine, the market for Rhodium will be weak for the foreseeable future.
Well I am inspired to pull out a 2001 Oregon Pinot Noir and look to my options, which are many as I am very fortunate, and watch Children of Men.
You youngins need to get yerself an education. Too bad political economy is not taught anymore.
And BB I am sure as hell in the event. Live it everyday and have architects and developers calling me after hours for word on the street leads and am working to get a bunch of us to voluntarily reduce our hours so we can save some jobs. It is called be a mensch. Go rent The Apartment, read some Adams, Marx, Gramsci, and Harvey. Get a clue my boy.
Night all.
will be weak
Comrade Bear (tj & the bear) | 01.16.09 - 12:34 am | #
Should've said "should be weak IMHO".
Anonymous writes:
Who's tapped to take over NY FRB?
Anonymous | 01.16.09 - 12:24 am |
new NY FRB prez...no one ive heard yet
keep in mind the prez of a federal reserve bank is a bottom up not a top down appointment
each fed reserve bank has a board of directors drawn from the public community of banker type people and community- business leaders
(usually sourced from member banks)
this board appoints the bank president
i ,think, this is right... but check me...this comes from econ 201 30 years ago
Obama just bought the old lady a rhodium ring Michelle Obama's $30,000 Rhodium Ring; Gift from Barack Obama Backlash - Associated Content - associatedcontent.com
We get a coulo cosi (holds curved hands up to make a circle)
Apparently Italians think that to have a big asshole means to be lucky...
thanks CE!
still wish i'd picked up some Pt around $800 a couple months ago
American Elements
Credit enima is coming..... | 01.16.09 - 12:33 am | #
-----
AE is the only place that I know which was providing Rh in an investment form. If you wanted it in a wire or chemical solution (aka industrial form), then you would have options...
Comrade Bear
i think your judgment on Rhodium is on target
here is a free tip
(worth exactly what it costs you
palladium is the one and only metal (and material at this time*) that when rolled into a thin foil can filter hydrogen from all other gases
hydrogen economy anyone??
also ke as a catlyst in fuel cell technology
if your timing is good and it is not TEOTWAWKI...there is a pike of money to be made in palladium
maybe
Anon @ 1234 -
Which in some regards makes this akin to the Depression of 1837.
Yep.
It is called be a mensch.
fallonPDX | 01.16.09 - 12:35 am | #
Never more important than in the bad times!!
Madoff is going to be next New York Banker FRB guy...
anonymous @ 01.16.09 - 12:15 am:
Thanks for response.