Archive - Jul 20, 2009 - Blog entry

The FDIC has been making noises for a couple of months about a dry-run of the PPPIP for Legacy Loans, where Uncle Sam will provide half the equity and and up to 6 turns of seller-financed leverage for Public Private Investment Funds to buy whole loans off failed institutions. Well, the first run is here. Peek under the hood...

Dear Pension/Endowment/etc Trustees and Investment Committees:

I understand you enjoy your secure, relatively well-paid job, and your forgivable desire to maintain this status-quo for as long as possible. So long as you like your job and want to keep it, don’t you think its in your best interest to get rid of nonsensical, self-defeating policies like the following (from CalPERS)?

Advanta Corp., embattled small-business lender and sponsor of the renowned World TeamTennis league (wtt.com), has been winding down its credit card business over the past few weeks, another victim of the failed wholesale funding model. Today the company announced a dramatic increase in charge-offs on it's credit card lending book. The numbers are shockingly bad.

A comical piece was aired on CNBC this morning, which was similar in composition to horse manure. Take a look at this video right here. Does this guy have any idea what he is talking about?

It seems Hypo is back asking for more money according to the chairman of the oversight board, Michael Endres, in his interview with Welt am Sonntag. Ed Harrison at Credit Writedowns wrote a smashing post on this venerial disease known as Hypo Real Estate (HRE). It extends on latest analysis done by Ambrose Evans-Pritchard, which is highlighting tell-tale signs of serious problems in the Spanish real estate market.