The squeaky wheel

February 28, 2008

which groans the loudest ain’t necessarily the one that should be attended to.

It seems the elected representatives of our once fair nation believe they are doing right by buying votes, showing the broad populace they are indeed on top of the crisis.

At-risk folks are screaming loudest,  yet the fault lies at their feet.

They are not the majority.

They are an ailing minority.

And once the cause of their troubles go away, so will their squealing.

Meantime, we have “leaders” who are pandering to the wrong segment.

The prudent, the frugal, the solvent, the smart, the upstanding, the realistic, the cautious, the ones who actually get out and vote- are all watching, and taking down names and numbers.

By not interfering in the debacle interference started in the first place, the market will cycle naturally, which will allow those people with sufficient funds to (finally) afford a home.

Interrupting the flow only serves the undeserving.

Let’s see who gets re-elected come November.

“The market here is very different…” -The most persistent delusion of all.

Advertisements

Hmmmfest

February 27, 2008

Dollar sinks to a new low against euro (.66).

A new ice age upon us?

Oil is at a new high.

And despite the (bad) news, somehow Wall St. DJIA is up again. Is the PPT in action?

The next bubble: alternative energy? Nah, not sexy enough. Not feasible either.

Analogy o’ da day (On the monoline/duoline bailouts by banks):

This is like you getting into a car accident, calling your insurance company, and having them tell you that you need to loan them some money in order for them to help you out.

Beggar nation? At what point do beggars realize that big daddy ain’t got no more no more?


Hell, I coulda told them that

February 27, 2008

if only they had asked:

Prozac, used by 40m people, does not work say scientists

Analysis of unseen trials and other data concludes it is no better than placebo 


Assclowns on parade

February 26, 2008

Ladies and gentlem, I introduce to you the Federal Homeowner Preservation Corporation.

BofA wants banks bailed out. Hell, everyone wants to be bailed out.

I thought bail was for those accused of wrong-doing?

What happened to the free market anyway? I thought everyone was so jazzed about that, since, at least, Ronny Raygun. I guess in their wallets hearts they do want a free-market, up until they FUCK IT UP.

The NYT sets them up, and Mish takes them down.

Nationalize Housing? WTF?
Essentially, the bail out as proposed by BofA transfers the bad loans banks made- which they made lots of money on in fees BTW- into the above named (new) government entity who will take the loss [BOHICA] – because the banks wants to be paid more than the homes are worth, and the market still has a (LONG) way to fall. (If the banks didn’t think the housing market was heading down, do you think they would be proposing a bailout?)

There’s a primo opportunuity here for a whole lotta more fees to be charged too, no doubt .

We learned the hard way that war-mongering neocons had influence (hey, who elected them anyway?), but who knew the Bush regime and congreff was chock full of national socialists as well?

It is just a proposal, but really, does anyone think for a minute that the banks will be denied?

I didn’t think so.

Of course everyone and their loan-defaulting brother-in-law has a plan, man.

Might I suggest the best plan is the first line of the Hippocratic Oath: “First, do no harm””

It just fits.


Wall Street: privatising gains and socialising losses since 1907.


Linkfest

February 25, 2008
  • Stuff White People Like [blog]
  • Part of Salton Sea’s desolate shore made into a lush oasis [latimes]
  • The breakdown of Wall Street alchemy [Asia Times]
  • Porn blogging? [NSFW]

My browser tabs are now hereby cleared.


Dirty little secrets

February 23, 2008

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]?

From Wikipedia:

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.

Separation anxiety
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.”

Statistics
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


No bidders

February 22, 2008

No fun. [WP]

Tumbleweeds roll by. “I wonder what the Maytag repairman is up to these days?” thinks the auctioneer. “Maybe we should do lunch.”

The beat goes on
Of course, not everyone feels intimidated by the mortgage lender and the documents full of legalese.

Some people- correctly- point out to that in order for the lender to foreclose, they need to show proof they are the actual owner of the home.

[Bloomberg]

The mortgage loan for many homes sold in the last few years were bundled together with other loans, and sold as securities- and resold, perhaps many times over.

Apparently, during boom time, the paperwork wasn’t always completed.

Free rent for many years for the more savvy deadbeat out there.  ReeeeSULT!

You know, I believe I have pinpointed the cause of this entire RE/Debt debacle now cutting the throat of this once great nation of ours.

The culprit?

Incomprehension.

How so?

Weeeeeelp, did anybody borrowing that much money fucking bother to read their loan docs? Did investors bother to read whatever document explains the securities they were about to invest in (c’mon there has to be something, otherwise DON’T FUCKING PUT YOUR MONEY THERE)? Did lenders, who accepted docs from mortgage brokers, bother to read what was potentially damning evidence of a future default, right there, in black and white?

Of course they could not be bothered. But if they did, all this brouhaha mighta woulda never have happened.

An individual who dives in the deep end without looking to see the depth of the water is potentially going to break his neck.

But if they did read it, but failed to understand it because it was too complex, but then went ahead with the transaction anyway… well, whose fault is that?

Another word that comes to mind- negligence.

Remember, folks, the job isn’t complete until the paperwork is done (the image on the right should be a sufficient reminder).

I think there is a meme developing here.

“The market here is very different…” -The most persistent delusion of all.