Is 60 Minutes the new propaganda department of the FDIC, or what? Again, they drop the ball in their coverage of the mortgage crisis, leaving viewers more misinformed than ever.
My esteem for the fabled news show is quickly diminishing.
Under the proposal Geithner is pushing, the Treasury would provide both banks and outside investors, such as private equity firms and hedge funds, with incentives to jumpstart the market, according to the people.
Private investors would get government financing, perhaps through a program similar to the Federal Reserve
Tim waiting for 2012 says:Today, 10:56:40 AM PDT
Rob Dawg +1
Some of these projects I read are applying for stimulus money. I'll finds a link. The argument here is that they will create retail jobs. YAY
The Charlie Rose interview was fascinating in that it revealed the basic assumption of the current administration: Preserve the existing system.
The current system is broken. They are advocating the retention of dysfunction. Not "fix," not "change," not "replace." Rather "preserve." The Rolling Stones had a song "19th [1920s] Breakdown" that talked about the same thing. How did that work out?
Geithner's plan will will result in more looting. Offering non-recourse leveraged lending to hedge funds is idiotic. They'd be better off spending the money into the eCONomy.
Dallas, Fort Worth among cities that aimed big with stimulus
"Irving included $350 million each for an office/residential high-rise, a retail development, and a convention center and entertainment district."
Ha! I know that deal, well. I can assure you it's not needed. None of these projects were able to fetch private-sector financing. That should tell us all something.
Is it any coincidence that just as Social Security goes broke, Medicare/Medicade, and the Federal Debt gets to it's breaking point...We just happen to have a depression or that we just happen to have this overwhelming call from the Federal Gov't for Social change? Change my azzz......Roll over and become Socialist or else!
re: Last thread, Chinese auto sales
I recall China lowered taxes on purchases of new autos in the Chinese new year and coinciding with the pomp of the 'stimulus'.
A couple posters were impressed by sales up 30%+ YoY, but that's not what stood out for me. I saw an inventory growth of 200k autos per month, or 0.3mths of inventory growth per month.
Maybe 25% of production going towards inventory build isn't a problem is other times. The argument could be made that over time sales grow faster than production.
However there are 2 primary and 3 secondary concerns more immediate.
Primary:
• Because of the high growth, profit margins are tight. Manufacturers cannot profitably move that production
• There is not an export market for the excess production
Secondary:
• What are the figures when adjusted for any recent and temporary boosts, or seasonal variations
• The reliability of government figures for a single month, especially when they are pulled out to make a point
• This one really isn't a concern, but the distribution of sales. Are they basic work trucks, or sedans? GM and Volkswagen still leading? Who's buying at what prices?
Now I'm not doom + gloom about the report, but I thought maybe these points were outside the consciousness of posters who are looking for a 'decoupling' moment.
“Sixteen years ago, two economists published a research paper with a delightfully simple title: “Looting…
“The investors displayed a “total disregard for even the most basic principles of lending,” failing to verify standard information about their borrowers or, in some cases, even to ask for that information. The investors “acted as if future losses were somebody else’s problem,” the economists wrote.”
Amazing! For five years I was warning about “the System of the Crooks, by the Crooks, and for the Crooks.” Manhattan is a breeding ground for fraud. Evildoers like Greenspan, Rubin, Summers, Paulson and Bernanke, as Fed Chairman and Treasury Secretary, were simply looking the other way because they wanted the looting to go on for the simple reason that they were, and still are, agents of what I had called, in 2003, Bankrupters and Fraudsters of New York City. These people were “raised in a culture of fraud” and until that culture is exterminated there will be no economic prosperity in America again. Unfortunately, democracy is not unto the task and some form of dictatorial regime, even first elected democratically, not unlike Hitler, will take on these perennial Crooks and parasites.
Also, for eleven years I have been warning about “It is the debt, Stupid!”
Why is this man going to give up the publicity from the trial of the Millennium by pleading guilty to all 11 charges and, diminish into the East? This would be a major boost to the networks as the trial of the millennium being televised 24/7. Think of the add revenues.
If I were Madoff, I would plead not guilty and be remembered throughout time as the having done the greatest ponzi scheme in the history of the planet. If not, be forgotten like the Enron people.
Why is he being forced to plead guilty? Is it because his wife would be skewered and his sons murdered? Is that what he cares about? Or him with his ego, want to be remembered throughout history?
That is the question.
I will give 50/1 odds that Madoff will plead not guilty.
Madoff could save face if he claims he did it to fix the system.
Does anyone have any idea how much stimulus money is budgeted to provide financing to small business? Banks that are receiving TARP money pulled lines of credit from a couple of small cients last fall for no reason, so they're struggling with that.
Looks like a swap of 3% 10year gilts for zero percent cash to me. It should get interest rates down as the central bank is a purposely "dumb" buyer, but I don't know if it will increase the desire to borrow/lend.
“Sixteen years ago, two economists published a research paper with a delightfully simple title: “Looting…
“The investors displayed a “total disregard for even the most basic principles of lending,” failing to verify standard information about their borrowers or, in some cases, even to ask for that information. The investors “acted as if future losses were somebody else’s problem,” the economists wrote.”
Amazing! For five years I was warning about “the System of the Crooks, by the Crooks, and for the Crooks.” Manhattan is a breeding ground for fraud. Evildoers like Greenspan, Rubin, Summers, Paulson and Bernanke, as Fed Chairman and Treasury Secretary, were simply looking the other way because they wanted the looting to go on for the simple reason that they were, and still are, agents of what I had called, in 2003, Bankrupters and Fraudsters of New York City. These people were “raised in a culture of fraud” and until that culture is exterminated there will be no economic prosperity in America again. Unfortunately, democracy is not unto the task and some form of dictatorial regime, even first elected democratically, not unlike Hitler, will take on these perennial Crooks and parasites.
Also, for eleven years I have been warning about “It is the debt, Stupid!”
This bodes well for my indoor dog daycare IPO. We'll advertise massive amounts of secure indoor space for dogs to run, heated and airconditioned space, tv for dogs when they are tired.
With some retail and industrial space in big metro areas below $3/sq ft/year, you don't need many dogs to make this work.
Seems to coincide (shortly after 2p) with a budget update at the low end of expectations. Seemed like a pretty sharp move for something so benign. Maybe shooting broke out in some 3rd world.
Unemployment Rate Highest Since 1983 Play Video CNBC – Unemployment Rate Highest Since 1983
Related Quotes Symbol \tPrice \tChange
DOW \t6.39 \t-0.48
NSM \t11.34 \t-0.36
ROH \t77.90 \t-0.10
UTX \t40.99 \t+0.20
Lawmakers told stimulus will create fewer jobs AFP/Getty Images/File – Unemployed construction workers demonstrate outside the offices of a Los Angeles lawmaker in California. …
WASHINGTON – Four states — California, South Carolina, Michigan and Rhode Island — registered unemployment rates above 10 percent in January, and the national rate is expected to hit double digits by year-end.
Tax receipts off 17% in Feb... http://www.marketwatch.com/news/story/Budget-deficit-widens-10-receipts/story.aspx?guid={E595148D-3756-4F39-A1A6-773ABA0039A8}&dist=hplatest
WASHINGTON - The federal agency that insures bank deposits, which is asking for emergency powers to borrow up to $500 billion to take over failed banks, is facing a potential major shortfall in part because it collected no insurance premiums from most banks from 1996 to 2006.
Bill would dismantle Florida's growth management agency - St. Petersburg Times
The problem in Florida right now is a lack of development apparently The move is one of a host of measures proposed by lawmakers to stimulate the state's economy by loosening the rules on construction permitting. Other proposals include eliminating impact fees designed to make developers pay for roads, sewers and schools needed for growth, and cutting in half the time allowed for reviewing permits for wiping out wetlands.
No matter how hard you blow, you cannot reinflate a balloon you have burst. idjits
Good that we've now recognized that we have two or three classes of building loans yet to crash. We must be at the bottom! ALT-A, CRE, C&D mmmmmm sh*t sandwich.
Not only in US has large C&D stopped but was on a Panama site when it appeared D.Trump has a hugh thingy going there that has come to a halt. Someone clue me in.
Funny, their definition of "profitable" is different than mine. I would count write-offs due to bad loans and taxpayer bailout money in that calculation. This must be the new "mark-to-myth" CON-fidence-based accounting they're looking to implement.
[Contracts on the Markit iTraxx Financial index of credit- default swaps linked to the senior debt of 25 banks and insurers were more expensive today than the Markit iTraxx Europe corporate index. That hasn’t happened since Lehman Brothers Holdings Inc. went bankrupt in September and, before that, JPMorgan’s takeover of Bear Stearns, according to BNP Paribas. It reflects “systemic stress” in the financial system.]
The headline crawl claiming JPM was profitable in Jan-Feb just like Citi got me thinking. Any concern this might have something to do with the suspension of foreclosures in some areas notably California?
as a taxpayer this pleases me as taxpayers are first in line for any profit whatsoever right? Right?
Schwarzmann:
Between 40 and 45 percent of the world's wealth has been destroyed in little less than a year and a half, Schwarzman told an audience at the Japan Society.
Would this count as an Equivocation fallacy (Equating Funny Money with Wealth)
Here in the PDX metro area we have had a disproportionate number of FDIC actions, and there was a 20 month supply of existing homes for sale in January. Two local builders in CH 11 BK held a 100 home liquidation sale over the weekend, and only managed to get rid of 33.
speaking of boomer retirement, if you look at the US Census' data you see that basically only the top qunitile of people on the edge of retirement have enough net worth to retire (every lower quntile is less than $500,000 per household)
It's absolutely insane if you consider the social ramifications
speaking of boomer retirement, if you look at the US Census' data you see that basically only the top qunitile of people on the edge of retirement have enough net worth to retire (every lower quntile is less than $500,000 per household)
It's absolutely insane if you consider the social ramifications
You're absolutely right. This is a fact that is going to have huge ramifications in the future.
"Structural demographic effects imply that prospects in the full-time labor market will be poor for those over age 50-55 and workers under age 30. Teen and college-age employment could suffer a great deal from (1) a dramatic slowdown in discretionary spending and (2) part-time Boomer reentrants into the low-paying service sector; workers who will be competing with younger workers.
Ironically, older part-time workers remaining in or reentering the labor force will be cheaper to hire in many cases than younger workers. The reason is Boomers 65 and older will be covered by Medicare (as long as it lasts) and will not require as many benefits as will younger workers, especially those with families. In effect, Boomers will be competing with their children and grandchildren for jobs that in many cases do not pay living wages."
Maybe the retirees we compete with will come down with some kind of disease preventing them from filling those positions.
Rally Fizzles as Stocks Head South- AP
Wall Street Struggles to Extend Rally- AP
Wall Street Turns Positive in Choppy Trade- AP
those above were headlines within last 10 min, are those guys .. nuts?
can;t they just say markets are mixed, etc and leave it for a day?
(their headline changed over a dozen times today, it's like they are ranning a random headline generator rofl)
FFDIC, incredible...just incredible, it appears the stupidity of our elected officials knows no boundaries...Why charge fees during the boom times? That would actually make sense... DONT_KNOW
“Everyone in the media is focused on consumer foreclosures. What they’re not focused on is the builder developer foreclosures which are only in the early innings and which will continue to wreck havoc as these assets are liquidated at depressed prices. Until they are cleared there can’t be a stabilization in home prices,” said Ivy Zelman, a longtime housing analyst at Zelman & Associates, who thinks the pressure will cause “hundreds of banks” to be closed and liquidated.
“The Federal Deposit Insurance Corporation doesn’t have the funds to deal with all this. They don’t have the scalability to deal with all these problem banks. They can’t examine the smaller banks fast enough,” she said.
Zelman estimates that U.S. banks risk having to charge off an additional $84 billion of ADC loans between now and 2013, equal to a hit of nine percent of Tier 1 capital Reuters.com
I've covered this topic a number of times on my blog. Here's what I have:
FDIC current deposit insurance fund is insufficient to cover existing non-performing assets on bank books that will be failing soon.
Many of the small and regional banks that are infected with these bad loans are still open, but should be closed.
Most can't raise new capital, and have also seen depositors leave en mass.
first
""60 Minutes" Hauls Water for the FDIC"
Is 60 Minutes the new propaganda department of the FDIC, or what? Again, they drop the ball in their coverage of the mortgage crisis, leaving viewers more misinformed than ever.
My esteem for the fabled news show is quickly diminishing.
“60 Minutes” Hauls Water for the FDIC « Your Mortgage or Your Life…
Should be good for +20% on the KRE.
No worries. The risk has been dispersed to the taxpayer via derivatives.
This comment thread has been HALO-IZED by CRbot.
http://realize.org/cr/halokit.php?halourl=http://www.haloscan.com/comments/calculatedrisk/85129958922091191
First
J Dimon on teevee now. Someone tell him to put his eyepatch back on.
I'm sitting here on an 8 core xeon machine with dual gigabit ethernet, out to a phat T3 line for the building...
and JS-kit is slower than molasses...yikes...very sporatic and mixed refreshes too....
get a triple gigabit ethernet. that'll fix it.
Thus starts the negative feedback loop as failed CRE projects are resold at firesale prices stressing any other properties in a a glutted market.
Never mind
Don't you worry- Obama and Geithner are on the job.
First?
Still smells like depression economics to me.
Rob Dawg +1
Some of these projects I read are applying for stimulus money. I'll finds a link. The argument here is that they will creaste retail jobs. YAY
Last?
Finally an upward trending chart!!!!! Boooooh Yaaahhh!
ext
Under the proposal Geithner is pushing, the Treasury would provide both banks and outside investors, such as private equity firms and hedge funds, with incentives to jumpstart the market, according to the people.
Private investors would get government financing, perhaps through a program similar to the Federal Reserve
Very nice work on that post CR.
No worries. Bernanke says the economy will turn around by the end of 2009.
Tim waiting for 2012 says:Today, 10:56:40 AM PDT
Rob Dawg +1
Some of these projects I read are applying for stimulus money. I'll finds a link. The argument here is that they will create retail jobs. YAY
The Charlie Rose interview was fascinating in that it revealed the basic assumption of the current administration: Preserve the existing system.
The current system is broken. They are advocating the retention of dysfunction. Not "fix," not "change," not "replace." Rather "preserve." The Rolling Stones had a song "19th [1920s] Breakdown" that talked about the same thing. How did that work out?
Maybe the economy should be recreated in the image of Mick Jagger's physiology. He seems to have held up better than all expectations
Deconstructionism - It's not just for hermeneutics anymore!
Geithner's plan will will result in more looting. Offering non-recourse leveraged lending to hedge funds is idiotic. They'd be better off spending the money into the eCONomy.
Another desperate pump job.
Dallas, Fort Worth among cities that aimed big with stimulus
"Irving included $350 million each for an office/residential high-rise, a retail development, and a convention center and entertainment district."
Dallas, Fort Worth among cities that aimed big with stimulus |
News for Dallas, Texas | Dallas Morning News
| Allen News
Dallas, Fort Worth among cities that aimed big with stimulus
"Irving included $350 million each for an office/residential high-rise, a retail development, and a convention center and entertainment district."
Ha! I know that deal, well. I can assure you it's not needed. None of these projects were able to fetch private-sector financing. That should tell us all something.
Also, What about all the alt-A resets happening in 2009 and 2010?
kick em' while their down... don't forget the small business loans
What a disaster.
Ivy Zellman lives! The original kick-ass analyst.
Unintended consequences will bury us in the end.
I second that this is an outstanding CR post. When this s blows up the recovery in 2H09 it will take everyone by surprise... except the CR faithful.
What is unintended about it?
Is it any coincidence that just as Social Security goes broke, Medicare/Medicade, and the Federal Debt gets to it's breaking point...We just happen to have a depression or that we just happen to have this overwhelming call from the Federal Gov't for Social change? Change my azzz......Roll over and become Socialist or else!
and the question of the day is...
when do they release results of the stress test again, is it the next week?
hm should i stay or should i flee .. rofl
re: Last thread, Chinese auto sales
I recall China lowered taxes on purchases of new autos in the Chinese new year and coinciding with the pomp of the 'stimulus'.
A couple posters were impressed by sales up 30%+ YoY, but that's not what stood out for me. I saw an inventory growth of 200k autos per month, or 0.3mths of inventory growth per month.
Maybe 25% of production going towards inventory build isn't a problem is other times. The argument could be made that over time sales grow faster than production.
However there are 2 primary and 3 secondary concerns more immediate.
Primary:
• Because of the high growth, profit margins are tight. Manufacturers cannot profitably move that production
• There is not an export market for the excess production
Secondary:
• What are the figures when adjusted for any recent and temporary boosts, or seasonal variations
• The reliability of government figures for a single month, especially when they are pulled out to make a point
• This one really isn't a concern, but the distribution of sales. Are they basic work trucks, or sedans? GM and Volkswagen still leading? Who's buying at what prices?
Now I'm not doom + gloom about the report, but I thought maybe these points were outside the consciousness of posters who are looking for a 'decoupling' moment.
† I guess I can only accurately state I don't consider myself doom+gloom
--
very good read... The Looting of America’s Coffers
ECONOMIC SCENE; The Looting Of America's Coffers - NY Times
“Sixteen years ago, two economists published a research paper with a delightfully simple title: “Looting…
“The investors displayed a “total disregard for even the most basic principles of lending,” failing to verify standard information about their borrowers or, in some cases, even to ask for that information. The investors “acted as if future losses were somebody else’s problem,” the economists wrote.”
Amazing! For five years I was warning about “the System of the Crooks, by the Crooks, and for the Crooks.” Manhattan is a breeding ground for fraud. Evildoers like Greenspan, Rubin, Summers, Paulson and Bernanke, as Fed Chairman and Treasury Secretary, were simply looking the other way because they wanted the looting to go on for the simple reason that they were, and still are, agents of what I had called, in 2003, Bankrupters and Fraudsters of New York City. These people were “raised in a culture of fraud” and until that culture is exterminated there will be no economic prosperity in America again. Unfortunately, democracy is not unto the task and some form of dictatorial regime, even first elected democratically, not unlike Hitler, will take on these perennial Crooks and parasites.
Also, for eleven years I have been warning about “It is the debt, Stupid!”
Jas
WE NEED MORE ANALYSIS ON THE MADOFF PLEA BARGAIN!
Why is this man going to give up the publicity from the trial of the Millennium by pleading guilty to all 11 charges and, diminish into the East? This would be a major boost to the networks as the trial of the millennium being televised 24/7. Think of the add revenues.
If I were Madoff, I would plead not guilty and be remembered throughout time as the having done the greatest ponzi scheme in the history of the planet. If not, be forgotten like the Enron people.
Why is he being forced to plead guilty? Is it because his wife would be skewered and his sons murdered? Is that what he cares about? Or him with his ego, want to be remembered throughout history?
That is the question.
I will give 50/1 odds that Madoff will plead not guilty.
Madoff could save face if he claims he did it to fix the system.
Does anyone have any idea how much stimulus money is budgeted to provide financing to small business? Banks that are receiving TARP money pulled lines of credit from a couple of small cients last fall for no reason, so they're struggling with that.
Long end of the curve really jumping now. I guess someone liked the auction results???
Who just kicked the legs out from under Frasier ?
Rocky
Gov't is here to clean up the mess and adopt all the orphan projects. A modern Daddy Warbucks
There is a Mr. Margin calling for Frasier on Line 1...
Speed says, "No worries. Bernanke says the economy will turn around by the end of 2009."
What if he's right? What if the end of 2009 is as turned around as it ever again gets?
Speed says, "No worries. Bernanke says the economy will turn around by the end of 2009."
What if he's right? What if the end of 2009 is as turned around as it ever again gets?
He might be right - after the S&P bottoms out at 250 in November, we'll be back up to 255 by December.
Break on through...let's see how far it goes if it goes at all.
Some info on the UK quantitative (dis)easing scheme.
Bank overwhelmed in scramble for 'new money' - Times Online
Looks like a swap of 3% 10year gilts for zero percent cash to me. It should get interest rates down as the central bank is a purposely "dumb" buyer, but I don't know if it will increase the desire to borrow/lend.
The Looting of America’s Coffers
ECONOMIC SCENE; The Looting Of America's Coffers - NY Times
“Sixteen years ago, two economists published a research paper with a delightfully simple title: “Looting…
“The investors displayed a “total disregard for even the most basic principles of lending,” failing to verify standard information about their borrowers or, in some cases, even to ask for that information. The investors “acted as if future losses were somebody else’s problem,” the economists wrote.”
Amazing! For five years I was warning about “the System of the Crooks, by the Crooks, and for the Crooks.” Manhattan is a breeding ground for fraud. Evildoers like Greenspan, Rubin, Summers, Paulson and Bernanke, as Fed Chairman and Treasury Secretary, were simply looking the other way because they wanted the looting to go on for the simple reason that they were, and still are, agents of what I had called, in 2003, Bankrupters and Fraudsters of New York City. These people were “raised in a culture of fraud” and until that culture is exterminated there will be no economic prosperity in America again. Unfortunately, democracy is not unto the task and some form of dictatorial regime, even first elected democratically, not unlike Hitler, will take on these perennial Crooks and parasites.
Also, for eleven years I have been warning about “It is the debt, Stupid!”
Jas
It's also the Collateral stupid.
7 handle gettin farther away
This bodes well for my indoor dog daycare IPO. We'll advertise massive amounts of secure indoor space for dogs to run, heated and airconditioned space, tv for dogs when they are tired.
With some retail and industrial space in big metro areas below $3/sq ft/year, you don't need many dogs to make this work.
Seems to coincide (shortly after 2p) with a budget update at the low end of expectations. Seemed like a pretty sharp move for something so benign. Maybe shooting broke out in some 3rd world.
Chuckie S. says "who, me?".
Jas,
I can't figure out what it takes to shake the gullibility out of the American public. I just don't get it. They never learn.
It just killed me when TPTB (Paulson et al) sold the TARP as profit generating investment for the taxpayer.
The promise of free money - the American public falls for it every time.
Hey brother, Americans aren't the only ones falling for it-there are all kinds things going on.
"With some retail and industrial space in big metro areas below $3/sq ft/year, you don't need many dogs to make this work"
Hmm... indoor paintball course or squirrel farm?
Unemployment Rate Highest Since 1983 Play Video CNBC – Unemployment Rate Highest Since 1983
Related Quotes Symbol \tPrice \tChange
DOW \t6.39 \t-0.48
NSM \t11.34 \t-0.36
ROH \t77.90 \t-0.10
UTX \t40.99 \t+0.20
Lawmakers told stimulus will create fewer jobs AFP/Getty Images/File – Unemployed construction workers demonstrate outside the offices of a Los Angeles lawmaker in California. …
WASHINGTON – Four states — California, South Carolina, Michigan and Rhode Island — registered unemployment rates above 10 percent in January, and the national rate is expected to hit double digits by year-end.
Tax receipts off 17% in Feb... http://www.marketwatch.com/news/story/Budget-deficit-widens-10-receipts/story.aspx?guid={E595148D-3756-4F39-A1A6-773ABA0039A8}&dist=hplatest
"Who just kicked the legs out from under Frasier ?"
If this was MMA Elmo would right now be performing a bit of "ground and pound" on Frasier.
At least we have a backup plan with Stanford, because Madoff may no longer be of any use.
Stanford is pleading The 5TH Amendment.
Now-needy FDIC collected few premiums from banks for decade - The Boston Globe
Boston Globe
Now-needy FDIC collected little in premiums
With fund going strong, banks didn't pay for decade
WASHINGTON - The federal agency that insures bank deposits, which is asking for emergency powers to borrow up to $500 billion to take over failed banks, is facing a potential major shortfall in part because it collected no insurance premiums from most banks from 1996 to 2006.
" It just killed me when TPTB (Paulson et al) sold the TARP as profit generating investment for the
Hugh Hendry
I'm Short Stocks, Buying Dollars: Hugh Hendry - CNBC
Bill would dismantle Florida's growth management agency - St. Petersburg Times
The problem in Florida right now is a lack of development apparently
The move is one of a host of measures proposed by lawmakers to stimulate the state's economy by loosening the rules on construction permitting. Other proposals include eliminating impact fees designed to make developers pay for roads, sewers and schools needed for growth, and cutting in half the time allowed for reviewing permits for wiping out wetlands.
No matter how hard you blow, you cannot reinflate a balloon you have burst. idjits
MMA Elmo, now I need to go get another glass of water. Funniest image I have had in a long time.
" It just killed me when TPTB (Paulson et al) sold the TARP as profit generating investment for the taxpayer."
Angry Saver: The American public was largely very outspoken against the TARP and angry that banks were getting a handout. Congress passed it anyway.
Proof positive that voting is a pointless waste of time.
That's why we have the 7th amendment.
From Budget deficit widens 10% as receipts fall to 14-year low
In February, individual income taxes fell 64% to just $8.7 billion. That's the lowest monthly total for individual income taxes since May 1985.
I've been waiting for these numbers to come out. Thanks.
Good that we've now recognized that we have two or three classes of building loans yet to crash. We must be at the bottom! ALT-A, CRE, C&D mmmmmm sh*t sandwich.
The American public was largely very outspoken against the TARP and angry that banks were getting a handout. Congress passed it anyway.
Brian,
Your point is well taken, but I thought it would have led to marches and demonstrations. WTO type stuff.
We're taking the looting sitting down.
What happened to the treasury yields?
I like this Amar Bhide guy on bloomberg now. Citi "...a bunch of rubbish." Stop stuttering though.
I agree , Bloomberg is a breath of fresh air versus CNBC,
Whew! Kermit's back.
Anybody who questions Obama is a racist.
that is patently ridiculous- but anybody who makes such a statement is a moron.
JPM just said it was profitable in Jan and Feb as well...
Will we get another 5%+ now.
Sorry CR but the new commenting system sucks.
second that get the old system back
Not only in US has large C&D stopped but was on a Panama site when it appeared D.Trump has a hugh thingy going there that has come to a halt. Someone clue me in.
Funny, their definition of "profitable" is different than mine. I would count write-offs due to bad loans and taxpayer bailout money in that calculation. This must be the new "mark-to-myth" CON-fidence-based accounting they're looking to implement.
Is this the basement dwelling Mannwich?
[Contracts on the Markit iTraxx Financial index of credit- default swaps linked to the senior debt of 25 banks and insurers were more expensive today than the Markit iTraxx Europe corporate index. That hasn’t happened since Lehman Brothers Holdings Inc. went bankrupt in September and, before that, JPMorgan’s takeover of Bear Stearns, according to BNP Paribas. It reflects “systemic stress” in the financial system.]
Taxpayer whippin' boy of first resort. Will bondholders finally get clipped ?
Banks’ Bondholders May Be Next to Share Bailout Pain (Update3) - Bloomberg.com
Jim cramer just cursed JPM by his predictions.. SELL!
Profitable? Sure, as long as the fed and Uncle Sam prop up the derivatives market and allow Level 3 accounting shenanigans.
Bank profits are fiction in the face of collapsing asset prices.
The Latest from Mish:
Boomers' Future Went Down The Drain
The Latest from Mish:
Boomers' Future Went Down The Drain
He should re-title that "Everyone's Future Went Down The Drain".
Looks like USD-Yen is topped and heading back down again. That should be more fear and loathing in Japan and other Asian exporters.
The headline crawl claiming JPM was profitable in Jan-Feb just like Citi got me thinking. Any concern this might have something to do with the suspension of foreclosures in some areas notably California?
as a taxpayer this pleases me as taxpayers are first in line for any profit whatsoever right? Right?
Anybody have a link as to what happened at 2pm to get people to massively start buying long-term treasuries?
Maybe the economy should be recreated in the image of Mick Jagger's physiology. He seems to have held up better than all expectations
over 500 blood transfusions at last count
Schwarzmann:
Between 40 and 45 percent of the world's wealth has been destroyed in little less than a year and a half, Schwarzman told an audience at the Japan Society.
Would this count as an Equivocation fallacy (Equating Funny Money with Wealth)
Here in the PDX metro area we have had a disproportionate number of FDIC actions, and there was a 20 month supply of existing homes for sale in January. Two local builders in CH 11 BK held a 100 home liquidation sale over the weekend, and only managed to get rid of 33.
speaking of boomer retirement, if you look at the US Census' data you see that basically only the top qunitile of people on the edge of retirement have enough net worth to retire (every lower quntile is less than $500,000 per household)
It's absolutely insane if you consider the social ramifications
EHP says:
speaking of boomer retirement, if you look at the US Census' data you see that basically only the top qunitile of people on the edge of retirement have enough net worth to retire (every lower quntile is less than $500,000 per household)
It's absolutely insane if you consider the social ramifications
You're absolutely right. This is a fact that is going to have huge ramifications in the future.
This From Mish;
"Structural demographic effects imply that prospects in the full-time labor market will be poor for those over age 50-55 and workers under age 30. Teen and college-age employment could suffer a great deal from (1) a dramatic slowdown in discretionary spending and (2) part-time Boomer reentrants into the low-paying service sector; workers who will be competing with younger workers.
Ironically, older part-time workers remaining in or reentering the labor force will be cheaper to hire in many cases than younger workers. The reason is Boomers 65 and older will be covered by Medicare (as long as it lasts) and will not require as many benefits as will younger workers, especially those with families. In effect, Boomers will be competing with their children and grandchildren for jobs that in many cases do not pay living wages."
Maybe the retirees we compete with will come down with some kind of disease preventing them from filling those positions.
Rally Fizzles as Stocks Head South- AP
Wall Street Struggles to Extend Rally- AP
Wall Street Turns Positive in Choppy Trade- AP
those above were headlines within last 10 min, are those guys .. nuts?
can;t they just say markets are mixed, etc and leave it for a day?
(their headline changed over a dozen times today, it's like they are ranning a random headline generator rofl)
FFDIC, incredible...just incredible, it appears the stupidity of our elected officials knows no boundaries...Why charge fees during the boom times? That would actually make sense... DONT_KNOW
“Everyone in the media is focused on consumer foreclosures. What they’re not focused on is the builder developer foreclosures which are only in the early innings and which will continue to wreck havoc as these assets are liquidated at depressed prices. Until they are cleared there can’t be a stabilization in home prices,” said Ivy Zelman, a longtime housing analyst at Zelman & Associates, who thinks the pressure will cause “hundreds of banks” to be closed and liquidated.
“The Federal Deposit Insurance Corporation doesn’t have the funds to deal with all this. They don’t have the scalability to deal with all these problem banks. They can’t examine the smaller banks fast enough,” she said.
Zelman estimates that U.S. banks risk having to charge off an additional $84 billion of ADC loans between now and 2013, equal to a hit of nine percent of Tier 1 capital
Reuters.com
They will talk about it when it really starts to hurt and not before.
I've covered this topic a number of times on my blog. Here's what I have:
FDIC current deposit insurance fund is insufficient to cover existing non-performing assets on bank books that will be failing soon.
Many of the small and regional banks that are infected with these bad loans are still open, but should be closed.
Most can't raise new capital, and have also seen depositors leave en mass.
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