Does this explain Comrade Kristina's good fortune?

Experts agree that free money is the best kind.

Can I get in on the deal by defaulting on loans to myself?

has anybody else heard this story?

"brand spanking new Airbus 340-600, the largest passenger airplane ever built, sits just outside its hangar in Toulouse , France without a single hour of airtime..
Enter the flight crew of Abu Dhabi Aircraft Technologies ( ADAT)
to conduct pre-delivery tests on the ground, such as engine run-ups prior to delivery to Etihad Airways in Abu Dhabi . The ADAT crew taxied the A340-600 to the run-up area.Then they took all Four engines to takeoff power with a virtually empty aircraft. Not having Read the run-up manuals,they had no clue just how light an empty A340-600 Really is..
The takeoff warning horn was blaring away in the cockpit because they had All 4 engines at full power. The aircraft computers thought they were trying to take off, but it had not been configured
properly (flaps/slats, etc..)Then one of the ADAT crew decided to pull the circuit breaker on the Ground Proximity Sensor to silence the alarm. This fools the aircraft into thinking it is in the air. The computers automatically released all the Brakes and set the aircraft rocketing forward. The ADAT crew had no idea that this is a safety feature so that pilots can't land with the brakes on. Not one member of the seven-man crew was smart enough to throttle back the engines from their max power setting, so the $200 million brand-new Aircraft crashed into a blast barrier, totaling it! The extent of injuries to the crew is unknown due to the news blackout in the major media in France and elsewhere.
Coverage of the story was deemed insulting

A French Airbus ........ $200 million dollars
Untrained Flight Crew... $300,000 Yearly Salary
Unread Operating Manual...... $300

AIRCRAFT MEETS RETAINING WALL -- WALL WINS"

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No link at the moment, but complex systems require greater attention that what happened here!

This is the 'least costly' way to deal with these from Freddie Macs perspective. This assumes Freddie Mac is solvent and a viable entity. In reality its only functioning on the government teat and in a real market the banks would be forced to take a cramdown on their garuntees or Freddie Mac would declare bankruptcy. So more bailout money to the banks hidden from view.

Perhaps France is paying their pilots $20 grand a year as well?

fudge_hend wrote:

In reality its only functioning on the government teat

De facto money printing into the future.

Dawg might be right. Once this thing whipsaws, inflation might spike up big for a year or two.

I'm actually busy all day today. L8R.

broward wrote:

Dawg might be right. Once this thing whipsaws, inflation might spike up big for a year or two.

I agree. Now if I could just call the timing...

FNMA and FHLMC buy-out delinquent loans on an on-going basis. The news here is that they have decided to shorten the delinquency term to 120 days, and to do it all at once.

This actually hurts holders of FHLMC MBS, such as banks, because the bonds are almost all trading several points over par, and the loans get bought out at par.

Too fun not to repeat...

"Fraud!" cried the maddened thousands, and echo answered fraud;
But one scornful look from Obama and the audience was awed.
They saw his face grow stern and cold, they saw his muscles strain,
And they knew that Obama wouldn't let the Unabankers win again.

The sneer is gone from Obama's lip, his teeth are clenched in fate;
He pounds with cruel rhetoric his preference upon the state.
And now the Unabankers hold the ball, and now he lets them go,
And now the air is shattered by the force of Obama's blow it.

Oh, somewhere in this favored land the sun is shining bright;
The band is playing somewhere, and somewhere hearts are light,
And somewhere men are laughing, and somewhere children shout;
But there is joy in Moneyville - mighty Obama has struck out.

sm_landlord wrote:
I agree. Now if I could just call the timing...
... "And I would've gotten away with it too, if it weren't for you meddling kids..."

There is more than just one metaphor in that Airbus story....

Ciao
MS

We really should have nationalized the banks. No way should the creditors of FNM, FRE and all the banks be profiting so mightily on the backs of the majority.

The shifting of losses and profiteering is criminal.

Looks like this happened in 2007:

Airbus A340-600 Ground Test Accident at Flightstory.net - Aviation Blog

sm_landlord wrote:

Now if I could just call the timing...

Aye. There's the rub.

To sleep: perchance to dream: aye, there's the rub;
For in that sleep of death what dreams may come,
When we have shuffled off this mortal coil,
Must give us pause: there's the respect
That makes calamity of so long life;
For who would bear the whips and scorns of time,
The oppressor's wrong, the proud man's contumely,
The pangs of despised love, the law's delay,
The insolence of office, and the spurns
That patient merit of the unworthy takes,

This made me sad. IIRC the first time I said "aye, there's the rub" in context Tanta scratched behind my ears.

Just have your ducks in a row ready for inflation, and there's no need for timing...

Byz,

Wouldn't that be:

Mission Accompliced

Hmmm...I guess that's one way of explicitly extending the bailout dollars to Main Street.

nova: "Well my big adventure into a hard currency fund has not worked out so well..."
FXE/Euro: "I'm sorry, this has never happened before..."

"Well my big adventure into a hard currency fund has not worked out so well... "

Nova you were supposed to by the currency fund containing CDN, CNY and JPY not the one containing Lira, Drachma, Euro and Kroner.

What exactly are you referring to? & ? CHF?

Here Nova why don't you try on my

Lobbyist Ben Dover wrote:

Can I get in on the deal by defaulting on loans to myself?

ONLY if you also short them with CDS held by a zombie institution...

Rob Dawg wrote:

we appear poised to finally be willing to exit the denial phase

I have no idea what your basis is for that. Is Dr. Paul leading 2012 polls?

no surprise, and no big deal

this is interesting, worth a watch, someone did some good math here.

Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Juvenal Delinquent wrote:

What's a 'hard currency fund'?

Like This:
MERKX: Holdings for MERK HARD CURRENCY INVESTOR SHA - Yahoo! Finance

Odd. Should just be called the "Golden loonie" fund.

"The result will be a "pulling forward" of bad loans. Not quite moral hazard but similar. Taking the bad loans in explicitly nd addressing them would be cheaper but that ignores adaptive behavior changes. $2T of bad loans subsumed will cause another $3t of previously off balance sheet or misreported loans to suddenly show up equally eligible."

Exactly how I see this as well...and If this is good then it really depends on the perspective one views it with.

Ciao
MS

greenchutes wrote:

Rob Dawg wrote:
we appear poised to finally be willing to exit the denial phase
I have no idea what your basis is for that. Is Dr. Paul leading 2012 polls?

Worse. ABC polls show the Reps recapturing Congress.

Among registered voters in this ABC News/Washington Post poll, 48 percent say they'd support the Republican candidate in their congressional district if the midterm elections were today, 45 percent the Democrat. That's a rare level of GOP support in nearly three decades of polls.

And:

Disapproval of Congress, at 71 percent, matches its highest since 1994, when the GOP swept to control in a midterm rout of the Democrats. Americans by a 20-point margin say they're inclined to look around for someone new to support for Congress. And by a 13-point margin, 48 to 35 percent, Americans call themselves anti-incumbent rather than pro-incumbent – not quite the levels in 1994 or 2006 (when the Democrats regained control) but broad nonetheless.

Remember my clarion call to don't vote incumbent?

All currencies are doomed, they just don't know it yet.

"The decision to effect these purchases stems from the fact that the cost of guarantee payments to security holders, including advances of interest at the security coupon rate, exceeds the cost of holding the nonperforming loans in the company's mortgage-related investments portfolio as a result of the required adoption of new accounting standards and changing economics."

In other words, once again FASB gave a financial industry participant a pass.

The current global QE spree reminds me of the show Whammy. Everyone hoping for money instead of landing on the whammy sign and losing all their money.

Press Your Luck - Wikipedia, the free encyclopedia

Oxtail wrote:

Airbus A340-600 Ground Test Accident at Flightstory.net - Aviation Blog

That'll buff out.

I think Wink Martindale is available, and younger than Greenie in his last term or two. Can we get him? I'm sure his take on the Depression is a bit more coherent than BB's.

Yeah, they will save a little money, they are on the hook for a non-performing loan in either case, today they are essentially funding the loan at the note rate, on balance sheet they will be funding the loan at their funding costs, which is lower, that is the best way to look at it imho.

A few weeks ago Obama shared what he likes to read, and there were some thoughtful choices he mentioned like the New Yorker, but mostly he seemed to like to read sporting magazines from the gist of what I read.

Should we be surprised that he uses sporting metaphors?

JD<
Is Seriously any relation to you?

How many of these will be immediately modified after purchase? Could these be loans that were not eligible for HAMP refi or mod prior?

silvertoes two wrote:

Then one of the ADAT crew decided to pull the circuit breaker on the Ground Proximity Sensor to silence the alarm.

Darwin Award 2010. Nominations and votes closed. There's lots of reasons to override warning/safety systems but NOT in a pre-acceptance ground test. There is only one response to this pre-emergency condition; shut down, file report, tell Airbus to fix it.

1:06pTreasurys extend losses after 10-yr auction

1:05pIndirect bidders buy 33.2% of 10-yr auction

1:04pBidders offer $2.67 for each $1 of 10-yr debt sold

1:04pTreasury sells $25 bln in 10-year notes at 3.692%

It costs them less because they are funding each loan today at the mortgage note rate, on balance sheet they will be able to fund it at their funding costs, which are lower.

The accounting rule allows them to hold the delinquent loans at par. LMAO!!!

Deutsche Sees New Year’s Surge of Fannie, Freddie Buyouts « HousingWire

It looks like Krugman has upchucked the roast beef.

I haven't been paying attention to Iran...took a quick look and am deeply disturbed. Now I know what you meant re Star Wars bad feeling.

In other words, Dec 31, 2009, a delinquent loan has to be marked down, usually to 60cent on the dollar.

Jan 1, 2010, that delinquent loan can be held at 100cents on the dollar.

So economically the GSEs are better off buying out delinquent loans, that is as true today as it was this time last year.

But now they can obfuscate their actual economic condition through generous GAAP rules.

Unlimited support means government owned. When is this going on the budget balance sheet? Transparency and all that...How can this not be counted against the debt ceiling and impact the treasury rates?

Wouldn't this money be better spent on creating jobs programs or infrastructure investment? Just issue a new currency already FFS and get it over with instead of the incremental destruction. The event horizon was crossed a while ago and now we are getting to experience where the blackhole leads. The gravitational forces are a bitch.

If you possesed knowledge of waht the Iranians plan to do - how would you use it to manipulate todays market? Because the squid surely knows. Shirley told them.

• surely you must be kidding? I'm not kidding, and don't call me shirley!

Really, I'm thinking it will be a nice shot to go long on oil, which I'm considering with UCO, an ETF fund 2x long. I think the has this one figured out and can make some serious money on that trade. IMO!

" Rob, I've thought the GSEs should be more aggressive in buying out delinquent loans (these are loans they are already guaranteeing). This is less expensive for the GSEs and the taxpayers - so I think this is good news.

best wishes "

This is blatantly ridiculous. The taxpayers have no business supporting the GSEs in the first place. Who cares if it is the least costly option? There should never have been any taxpayer involvement in Fannie & Freddie, nor should there have been any bailout of the two. You're statement is operating under the assumption that this is necessary. It is not. The sooner this whole ponzi scheme collapses the better.

Why would the Iranians need to build a bomb, when their buddy Lil' Kim had some ready-made?

The bigger point being, that Israel has a few dozen already, what does it matter if Iran has a few?

Why do you hate America, Gav?

The great thing about winning a Nobel Prize is you get a barbarous starter-kit as a token of their esteem.

nova, I don't think the squid has much traction in a couple of important places, like the Central Committee of the PRC, the DPK, or what passes for the braintrust of Iran.

I don't think the Iranians are quite sure of what they plan to do. Maybe an emp attack on Israel to leave them defenseless?

They have spouted a lot of trash, and if they want to be taken seriously, they need to deliver. That is what concerns me.
Dictatorships have a habit of reaching deep and occaisionally lobbing a succesful long bomb.

Putin comes to mind. Look at how masterfully he dismantled Georgia when they attacked. They stepped right into his masterplan.

Have we stepped into somebody else's?

That is the black swan. In retrospect it will be obvious, but right now, it is concealed in a blizzard of too much information.
We are drowning in data, much of it extraneous.

Someday this war's gonna end...

Citizen AllenM wrote:

Look at how masterfully he dismantled Georgia when they attacked. They stepped right into his masterplan.

He had Saakashvili and McCain on the other side of that one. I look like Bobby Fischer when playing chess against your average 6-year-old.

The TBT knuckleheads are having quite a day or two. Good for them.

Background Thread Music

YouTube - Tom Petty & The Heartbreakers - Even The Losers

"The sooner this whole ponzi scheme collapses the better. "

I actually think ridiculous accounting machinations like this will only bring about the demise of our system, the further disconnected from reality the accounting becomes the more malinvestment occurs, and the sooner the ultimate crash.

It may be paranoia, but essentially that little voice in the back of your head may be waaaay crazy. But sometimes it is right.

I hope that nothing happens while DC is snowed under and Europe is watching PIGS. The Chinese stuff seems super strange lately.

Just a lot of coincidinks. Most likely nothing, but Hu knows?

All I know is the Iranian leaderships looks very weak with all the promises and nothing delivered. That kind of desperation makes for interesting home run attempts. That and the other aligned powers have turned very snarky- look at how Damascus has turned on a dime again.

I hope I am too paranoid. Because if I am not, well, buy some big Defense stocks, TIE, ATI, and RTI. Because they will make money.

Nothing like a real crisis to obviate housing;-}

Someday this war's gonna end...

poic wrote:

looking for :bear_beat_down: icon

If this is a bear beatdown should probably go ahead and throw in the gloves...

From CR's post.

"The Federal Reserve is considering the utility, during the transition to a more normal policy configuration, of communicating the stance of policy in terms of another operating target, such as an alternative short-term interest rate....The Fed might use an alternative short term interest rate - such as interest rate paid on reserves - to communicate policy."

My good friends, If the head bankers intend to stimulate this means to jump start lending. Raising interest rates on reserves won't do it. Ending interest on reserves would help some. Negative interest rates on Fed reserves would do the trick. Add in an asset backed currency and you have the Hertzian Economic Superbubble Model.

Think just a second what happens if cash has a shelf life. The money multiplier explodes and any marginal endeavor with a barely positive rate of return gets funded because anything is better that a guaranteed loss. Assets will increase in value because time decay currency will be converted to real things. Since the dollar is backed by assets it too will rise. Once this dollar backing becomes more explicit more people will understand the implications.

One little trick is left and then the banking system changes forever.

Comrade Kristina wrote:

If this is a bear beatdown should probably go ahead and throw in the gloves...

That has been one long slog from 9970 to 10070 today on very light volume. No one is sticking their neck out. Again.

Expect the DJIA to stay around 10k, as the maim-stream-media makes hay by calling it "The Battle for 10,000" or some other tomfoolery.

great observation..makes sense...turn a negative into a positive....

This might be interesting...
SEC didn't look into red flags going back to 1999 until 2005...which just doesn't make sense...
CNBC will have an 'expose' tonight on the Allen Stanford story...

I mention UCO fund, 2x crude, and at about the same time crude jumps about $2 a barrell in the last 30 minutes! Crazy! WTF is going on?

ghost -- I agree. It should be clear to everyone on this board that our political and economic system is broken beyond repair. In fact it is so bad that they are no longer actively trying to fix it, and are instead trying to loot whatever limited wealth remains before our government repudiates all of its obligations. Social security, medicare, debt, pensions, retirement assets, you name it: all up in smoke.

An unconstitutional banking system, corrupt politicians, manipulation of currency and financial markets, control of the media (and concerted propaganda efforts), a military industrial complex that requires constant wars. An economic system that requires continuous expansion of the monetary supply to prevent contraction, eroding the savings of the responsible via inflation.

This rabbit hole goes very deep indeed.

INO Futures and Commodities - Currencies - U.S $ INDEX Mar 2010 (E) (NYBOT:DX.H10.E) Price Chart and Quote

As much as I despise the coppers in general, no thin blue line and all hell breaks loose.

Juvenal Delinquent wrote:

As much as I despise the coppers in general, no thin blue line and all hell breaks loose.

That is the one line I sincerely hope is never crossed, because there's no going back.

Jumping jack flash, it's a gas gas gas...

YouTube - The Rolling Stones-Jumpin' Jack Flash live

Kangaroo court justice aint my bag.

What you can't be judge and jury and executioner? Multitasking at its finest or worst...can't always tell you know...

kind of looks like the mortgage piggie thats building a left shoulder on the daily..

Wow, even the Canadian bankster are blackmailing their government. I didn't know that happened up there.

Ottawa warned against altering mortgage rules - The Globe and Mail

An Insider’s View of the Real Estate Train Wreck - Casey Research

For all intents and purposes, the United States home mortgage market has been nationalized without anybody noticing. Last September, reportedly over 95% of all new loans for single-family homes in the U.S. were made with federal assistance, either through Fannie Mae and the implied guarantee, or Freddie Mac, or through the FHA.

So why couldn't all the Federal workers in DC help with snow removal?
Talk about a "shovel ready" project!

creditcriminalslovetarp wrote:

kind of looks like the mortgage piggie thats building a left shoulder on the daily..

The Hunchpig of Notre Swine.

"Juvenal,
You forget many folks have 'home protection'... "

Takes a long time for the person answering the phone to get to your house from India.

OK, Whose idea of funny was to name a currency "eeewwww?"

"But no. If the Bloomberg story is to be believed, Obama thinks his key to electoral success is to trumpet “the influence corporate leaders have had on his economic policies.”

We’re doomed."

You are right, strongest words to date from the Krug man.

The only other reason I can think of to pay interest on bailout dollars held in reserve by banks at the Fed is to keep them there. An alternate explanation is that the banks need the cash on hand to cover demand deposits to mitigate societal meltdown resultant of government insolvency. They need to at least have enough cash on hand to slowly dole out $600 a day through ATMs.

Cheeky Suicide Bankers

SNAFU wrote:

"We’re doomed."
You are right, strongest words to date from the Krug man.

Of course if you don't like Krug's positions then this is a

creditcriminalslovetarp wrote:

10 year above 3.7% ......

Wait a few months when that post looks dyslexic.