As Housing Panic correctly points out, whenever the homedebtor pays only the monthly “minimum payment” on their NegAm loan:
GAAP allowed the holding bank to recognize the shortfall in what was owed every month as NONCASH INTEREST INCOME.
And thus a nominal loss shows up as profit. Alchemy lives!
I wonder if it would be a worthwhile undertaking: identify and add up all the slanted or bogus metrics that are used in the calculation of executive bonuses [See: Enron, Worldcom, Tyco, Global Crossing, KPMG, Arthur Anderson, United States of America]?
It outrages a lot of folks that the neg am balances, which represent interest that has been earned but not paid, is considered noncash interest income.
Fungible is as fungible does
And if you are in the CDO market, it doesn’t.
Nothing like a frozen system of debt investing in the middle of winter to bring on a case of the blues. Pass the sauce! I need me a Bergie(tm)!
Wagers now being accepted
Odds are 10:1 that lame-duck Bush will be “convinced” to bailout the banks exposed to risk.
So much for autonomy; they want their mommy’s teat <sniff>.
Jess Unruh’s said it first: money is the mother’s milk of politics. Truer words, and a new slant on them too.
Who knew so many Americans were addicted to the mother’s milk of home equity lines of credit?
All winners, to a man/woman.
“I didn’t know they could do that. I thought I was too smart to have something like this happen to me.”
Lies and damn liars
Ever get the feeling you’re being cheated?
By lying about the CPI by conveniently changing the metrics to suit (Richard Feynman warned about this dd he not?) the gummint gets to show how good a job they aren’t doing, and the payout to social security recipients means less not more dog food.
Job’s a good ‘un -or- I smell trouble’s afoot lads?
Stealthy is unhealthy
With all this stealth activity- greedy corporate goons conducting deals in the shadows with government dupes to save their own FUCKED asses- who do you suppose is being hung out to dry, d’ya think? Hmmm? The little guy? Joe Middle Class? You? Me? Our feeble parents and grandparents who played by the rules and now get their pooches screwed and asked to love it?
I didn’t ask for any goddamn $300 check to buy my vote. And I didn’t hear the public clamoring for this buyout – but what else would you expect a politician to come up with when they run out of ideas but turn to the corrupt practices they are most familiar with?
If you endorse that check, BTW, you are signing away you’re rights (and hope) to seeing effective governance in your lifetime.
Don’t sell out so cheaply! Hold out for more!
It all goes downhill from here!
“It is easier to rob by setting up a bank than by holding up a bank clerk.” – B.Brecht