December 31, 2008

Your tax refund check fom the state of CA for 2008 might be an IOU in lieu of a check. [MSNBC]

Will banks accept it? Unknown, though they did in 1992.

Meanwhile, here is an eye-popping article [LATimes] which exposes the financial legerdemain cities in CA have practiced in order to finance themselves into looming bankruptcy.

Gotta love them FI-NAN-SHALL geniuseseses.

Hmmm, I guess if I paid the state my taxes owed with my personal IOU they’d understand, eh?

Robert Rubin is a part owner of the highend fly fishing shop Urban Angler (stores in NYC and DC), in which Andy and Mark Madoff are also investors.


Why is the Fed. Res., Inc. purchasing $500B of agency debt thru June?

December 31, 2008

Because nobody else wants it.

Holdings by foreign central banks, over the last one year, were a net decrease. A net sell-off.

Meanwhile, Treasuries spike, as this is the preferred ‘safe haven.’

So in case you were wondering ‘who funded the housing bubble?’ there is the answer.

Chart above plainly tells the story: red line tracks foreign purchases of agency (FNM and FRE) debt (notice how it ends below zero); yellow line reflects the humongous recent increase in the purchase of Treasuries. To the moon Alice! TO THE MOON!

Housing Doom picks up Brad Setser’s article and runs with it.


It is neither “Federal” nor “Reserve.”

DOW 3800!

December 29, 2008

Obama backpedals on promise (first in a series)

December 28, 2008

We just got through eight years of absolutely the worst president the people of this country should ever have to suffer… Yet we survived… So far… then we wipe a brow and and let out an audible WHEW! only to realize, no, NOT AGAIN, how much longer must we suffer the slings and arrows of outrageous fortune?

Is Barry Hussein nothing more than a serving of Bush II’s  sloppy seconds?

Yeah difficult to fathom, I know. But at the end of the day…. it’s night, and a politician is a politician… especially one from <ahem> Chicago.

I bet the true believers(tm) never saw that one coming, eh?

Scrooged by the Democrats: Will the Rich Ever Pay Their Fair Share? [Mother Jones]

Historically, public employees accepted lower salaries in exchange for attractive retirement pensions and cushy jobs handed to them by relatives and/or political friends. Now their salaries have become competitive with private sector employees, most of whom have been stripped of their pensions. [wallstreetexaminer]

Where are the indictments?

December 24, 2008

Banking officials and investors like Madoff are being treated like victims, not the common variety of gutter snipe they really and truly are. What gives?

If you or I held up a liquor store at point of index finger we’d likely receive not just a stiff sentence, but the possibility of death by cop.

You don’t suppose this dearth of prosecutions has this anything to do with Bush appointments of know-nothing and do-nothing insider cronies into positions as federal prosecutors does it?

Maybe just a little?

“Greenspank, Bukkake, and now Bernie Madoff- a few jews who have done more harm to the reputation of the Jewish people than Hitler.”


December 23, 2008

At some point, the U.S., states and local government will be forced to default on all their financial obligations such as interest on bonds, pensions, medical care, etc. This will happen in one of two ways: either insolvency will be announced, i.e. we can no longer pay our obligations, or the dollar will be devalued to 10 cents (or less), thus reducing everyone’s Social Security pension of $1,000 down to $100 (or less). Magically, all debt and interest due gets cut by 90%, too.

[of two minds]

“Remember, to arrive at the bailout number the Treasury bean-counters just picked ‘a really big number.’ How do you have confidence in anyone like that, who dares to refer to themself as an economist? I refer to them by what they really are: bean-counters, ass-hats, pretenders, criminal co-conspirator. They know as much about economics as a priest really knows about God.”

TPTB defined

December 23, 2008

“Basically 2/3 of all productive assets and investment income are owned by 1% of the populace. The effect has been for the richest 1 per cent of the population to increase its share of interest extraction, dividends and capital gains from 37 per cent ten years ago to 57 per cent five years ago, and nearly 70 per cent today. Savings remain high, but only the wealthiest 10 per cent are saving – and this money is being lent out to the bottom 90 per cent, so no net saving is occurring.”

[of two minds]

“Only a nation convinced of its invulnerability could be so deluded as to spend its waning days of wealth arguing about how the borrowed trillions should be divided, as if they were the spoils of conquest rather than the outright theft of our children’s future.” -Charles Hugh Smith