Zimbabwe: follow the leader

November 29, 2008

For leadership during this time of crisis, we need look no further than overseas to that land of tumult Zimbabwe. There, the leader of this economically challenged country, Robert Mugabe, has seen his stewardship severley tested. This has led to him and his government to set policy that our fine Fed., Inc, Chariman and Secy of Treasury have sought to emualte (albeit with limited success).

Zirpmeister Ben has a friend in Zimbabwe

(Hand to God these are actual words of encouragement from Dr. G. Gono, chairman of the Reserve Bank of Zimbabwe -AM)

“As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their National interests.

…That is precisely the path that we began over 4 years ago in pursuit of our national interest and we have not wavered on that critical path
despite the untold misunderstanding, vilification, and demonization we have endured from across the political divide.

…Here in Zimbabwe we had our near-bank failures a few years ago and we responded by providing the affected Banks with the Troubled Bank Fund (TBF) for which we were heavily criticized even by some multi-lateral institutions who today are silent when the Central Banks of UK and USA are
going the same way and doing the same thing under very similar circumstances thereby continuing the unfortunate hypocrisy that what’s good for goose is not good for the gander.

…As Monetary Authorities, we commend those of our peers, the world over, who have now seen the light on the need for the adoption of flexible and practical interventions and support to key sectors of the economy when faced with unusual circumstances.”

[Anonymous Monetarist]


Always, always question the assumption.


FHA: The new sub-prime

November 26, 2008

But the Cugnos are very much staying in business. While Premier’s bankruptcy proceedings continue in Tampa, members of the family are employing essentially the same model with their new company, Paramount. Only this time they are stressing federally guaranteed FHA loans. Paramount charges branches $1,625 a month to use its name, FHA license, and software. On its Web site, it tells brokers that FHA loans are “the new subprime.”

U.S. District Judge Richard Alan Enslen in Kalamazoo, Mich., began a June 2007 written opinion about Premier’s practices with this observation: “The crooks in prison-wear (orange jump suits) are easy to spot. Those in business-wear are not, though they do no less harm to their unsuspecting victims.”

[Spiegel]

The gummint has been handing out riches to those few that learned how to really milk the system for, well, forever.

Now, their fraud comes with gummint guarantee.

That is, YOU, Mr. Taxpayer, are on the hook for it.

All of this hot fraud economic action courtesy of the 1 2 3 4 5 6 7 8-Trillion dollar Paulson Bailout package.

Enjoy it!

Marc Faber video [Bloomie]

“All obeservers think that to do something is the best option… nobody has asked if to do nothing is the best option.”

“If you drop from $100/share to 2, it is very easy to go back up to $10, before you go to zero.”

“Central banks have turned into insane asylums.”

“The global economy is imploding– repeat: IMPLODING. You have got to be out of the equity markets by no later than March. There is not going to be a recovery.”


“Remember the rule: businesses which actually create tangible products, as opposed to selling fraudulent securities, are not worthy of being ‘bailed out’.”


With such a sweet deal, how could they screw it up?

November 25, 2008

Short dollar, long ammo?

November 25, 2008

What a gruesome two-some

November 25, 2008

Shitigroup: here’s how WE’RE screwing YOU

November 24, 2008

Folks, these bailouts are getting surreal. Shiti and our fugly .gov just gave the taxpayers the finger (again), and has, with each new bailout is, almost overnight, transforming US into debt serfs. Really! We’re on the hook for this people, and practically none of the dweebs making these decisions is accountable to the electorate.

And all of this is being done… why exactly? So everything doesn’t collapse around the heads of Clueless Bush and Darth Cheney, that’s why. Keeping the plates spinning until they’re safely ensconced in Paraguay or Wyoming is the primary objective.

So, when the big crash comes, the black guy gets the blame.

handyThe value of fuck all

Fed Pledges Exceed $7.4 Trillion to Ease Frozen Company Credit
Nov. 24 (Bloomberg) — The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago. [Bloomie]

Leverage works both ways, but is especially nasty on the down side You’d think everyone on Wall Street could have anticipated that, but alas, no, you’d be wrong

Citigroup’s leverage ratio of 56 means that the bank has $56 of assets for every $1 of common equity. If the value of those assets falls 2%, then common stockholders are wiped out. Here’s why: Assets = Liabilities + Equity. If you understand this formula, you will understand the credit crisis. So read on…” [optionarmageddon]


Shitigroup saved in spite of itself

I sure hope it was worth it (hint: it’s not)

“Once the biggest bank in the world, the embattled Citigroup is worth just $20 billion today, compared to $250 billion in 2006. Not even the prospect of a $350 million cash injection from Saudi Prince Al Waleed bin Talal was enough to reverse the tumbling share price.”

“The senior sources claimed that Citi is very different from banks that have collapsed in the credit crunch because it is well capitalized.” [NYPost]

WTF? This statement was as recent as yesterday, Nov. 23. Tell me again WHY THE FUCK do they need to be bailed out if this is a true statement?

Oh yeah, my bad, IT WAS A LIE.

Suppose the Saudi Prince wished he’s waitied?

This is just too good

What Barack Obama Needs to Know About Tim Geithner, the AIG Fiasco and Citigroup

[The Big Picture]

Like Barry Hussein gives a shit. He’d rather put young people to work picking up litter on highways en masse. Now, that’s productive application of labor in the gummint’s eyes! Were wondering where they were going to find 2.5 Million new jobs to create (that’s 100,000 a month, which is far less than what we’re currently hemorhaging)?

Anyone else noticed how, so far, all the recently announced appointments to the new regime are more of the same: insiders, Clintonian’s, Wall Streeters, Goldbrickers*, the guilty, the usual suspects.

Where’s the change? Shouldn’t this be reflected in the cabinet choices? It is the same old-same old, rewarding loyalty with cushy jobs and grand perks at our expense.

For anybody who expected more from this big-eared wimp, told ya!

I tell ye, it’s the Peter Principle operating in high gear. Is Barry going to be a figurehead just like his predecessor?

Did you happen notice Obamamessiah was from Chicago, land of patronage?

*Denizens of the United States of Goldman Sachs

Krugman weighs in

“this bailout is an outrage: a lousy deal for the taxpayers, no accountability for management, and just to make things perfect, quite possibly inadequate, so that Citi will be back for more.

Amazing how much damage the lame ducks can do in the time remaining.” [NYTimes]

My point exactly.

Fed Pledges Exceed $7.4 Trillion in Rescue of Companies With Frozen Credit [Bloomie]

Man, where they gonna get all that money? Oh yeah… <gulp>

Recession’s Grip Forces U.S. to Flood World Economy With Even More Dollars [Bloomie]

“It’s true that, over the long run, too much money creates inflation,” says Lyle Gramley, a former Fed governor now at the Stanford Group Co. in Washington. “But they’re trying to keep the economy from going over the precipice and into the abyss.”

Got suitcase?


Bailouts are, simply put, welfare for the wealthy. It is robbing from current and future taxpayers in order to pay down the debt run up by crazed b-boys who were jacking up the basis of their bonuses and have already moved this ill-gotten wealth off-shore.


Guidance

November 21, 2008

You happy?

Buffett in Trouble?

TARPisTRAPGM a quagmire? (Old GM urban myth debunked)

You, too, can become a bank.

Will this happen here?

BJ Bukkake lacks cojones.

Hanky Panky procrastinaty.

Homeland Insecurity a boondoggle of gagantuan proportions.

Doubting the wisdom, capabilities and ethos of those in charge.

Bond market coming to a dislocation near you… soon!

It’s Called a Depression.