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God love ya Turd I thought of exactly the same thing - thx also to Tyler for the set up.
Here we go with that fictitious word " TAXPAYER" again. Will they finally get it over with already? I feel my $300 paycheck is too much. Please Mr Taxman, take it all . Its yours. Just leave me enough for my Cablevision. I needs my WiFi and American Idol
Shit, Now that brings back memories. I used to watch that show when i was a kid way back in the 70s. I loved the opening
Thanks for the memories.. I remember guarding my Sgt Pepper Vinyl album with my life
The taxpayer too has ceased to function, but the government is covering it up by continuing to loan money to itself and pretending like it's real.
Or selling erstwhile assets: http://www.rollingstone.com/politics/news/17390/222206?RS_show_page=1
As a PA resident and occasional turnpike traveller, I am willing to let someone else have the turnpike - real cheap.
Not sure what you mean about the PA turnpike - if you read their CAFR, they make as big or bigger a gross profit margin as any high tech company such as Google, Microsoft, or Apple.
What's wrong with loaning money to yourself? Oh, wait a minute...
You want clear, obvious fraud involving nearly all of the major players? This is it. I've said for a while now that these zombies are only being kept alive for fraudulent purposes, to make it appear that insurance is in place, when all the players know that the opposite is true.
can we just call this what it is, "extortion"
I'm beginning to think it would actually be cheaper to let the deadbeats keep the $800k homes that they owe $1mil on.
Unfortunately, that wouldn't bail out the banks.
MIs will be the first to go, but not the last. Once that domino falls I don't see how the hell this train wreck stays on the rails.
Of course Whalen can't bring himself to blame the private sector MI's themselves for being anything more than "stupid' rather than the blatant insurance frauds they are. He has to somehow blame the GSEs and government for everything so he can cling to efficient markets theory. That said, this article was very informative.
Agreed, he gives them too much credit - go back to the earnings calls circa 2007 - their managements were BRAGGING about how much business they were getting.
The 2007 vintage loans will probably end up with 30%+ losses - almost a third of all those mortgages will go to foreclosure.
That wasn't stupidity, that was gambling that the housing bubble wouldn't burst.
Have you read the full original article?
Whalen is putting a huge "fraud" tag on pretty much everything there.
Treason in addition to tyranny.
"Treason doth never prosper: what's the reason? Why if it prosper, none dare call it treason."
Yes, this is tyranny.
...yes, i very much agree. but, yet, it feels like such a virtual tyranny, because only the ones that know the truth to what is unraveling see it that way...everyone else is still in their virtual freedom.
the real SHTF will follow the virtual SHTF...prepare for both.
When will Americans finally have enough of this shit and tweet each other to spontaneously overrun Capital Hill and dare the military to shoot them dead! Think DC is ready for such a flash revolt?? They must be... Something will have to trigger it...but what? The Internet going down across the board for more than a few hours? MTV going off the air? Glee being cancelled? It is getting surreal how much abuse Americans are taking sitting down.
It is getting surreal how much abuse Americans are taking sitting
But the reason is obvious enough, isn't it Wynd? It was to me while I was there:
1) Programming (literal through TV and now computers and by every form of media and every kind of sterotype you can imagine, and then some. Look at all hollywood creations and then see how every following generation absorbed and emitted those archetypes (as far back as mass media, ie. Radio actually and magazines before that).
2) Bad, often poisoned food. I remember a drive through Illinois and Indiana. Through the great breadbasket of America. Indianapolis was weird. Everyone looked fat and happy. ANd all along the highway: this farm proudly uses (insert cargill, monsanto et. al.) I would highly recommend a book "My year in Meats" by I forget who. Tells a real story about the use of propaganda in food habit alteration.
3) Pathetic education system, especially public schools.
4) Fluoride in your water
5) For effect, once again with a drum roll: TV! Tee Vee! TV has the masses hooked by thier balls/hair/brains, depending. Think Jackass. Enough Said.
and about a dozen more.
Long live ballywood, indians trying to replicate the worst parts of America. Fluoride in our water, copious amounts of human waste in yours.
I've met enough indians in the US who despite what their resumes claim suffer from an even worse education than rural Mexicans.
They don't want to face it... will do or believe almost anything rather than facing it.
Why? Because if they do face it, responsibility reverts to them. They'll take ANYTHING but that!
One way to stop the incestuous linkage (too interconnected to fail) is simply to ban the insuring of financial instruments. I have no problem with hedging with a derivative trade, but all this interlinked trading/insuring between firms was a distaster from the beginning.
Of course "Social Security is an insurance progam" too. As I have been told "there's no such thing as a government entitlement." So "bail 'em out because we're already Throwing Mama from the Train." Utica NY? "49% property tax increase." Just for starters....
Theoretically pre-funded by its participants. I am not a big fan of SS, but, can you imagine a system where SS retirement monies is directly handled by Wall Street?
Social Security was never pre-funded and it's not an insurance program. It was, is and always has been a transfer payment from younger to older workers that "saves" money in the Trust Fund only to compensate for demographic changes.
SS is the King of all Ponzi schemes.
I agree with you guys.....but what is the alternative?.....does it make sense to put wage workers at the mercy of stocks?
If we had sound money, people could simply save money for retirement on a 3-6% yield in CDs, bonds, savings accounts, etc. because inflation wouldn't eat them alive. The only reason people "need" to buy stocks for retirement is because they need the capital gains on top of the dividends in order to beat inflation.
I agree, theoretically. However, there is a pervasive price creep that occurs independent of inflation, mainly in food, fees, services and the like. And, of course, there are always the potential of future events (wars, etc) that can drive inflation beyond our ability to control it.
Actually, minus inflation, there is a negative price creep. As things are produced more efficiently - and presuming effective competition - prices gradually decline.
How much corn was produced per acre in 1900 as compared to now? How much cheaper is it to use robots in manufacturing? And so on. (Then consider electronics!)
Think about it a bit and see if you don't agree.
Yeah, but expanding the size of the Leviathan Govt cannot be justified if prices are continually falling due to productivity/efficiency increases!
I have no problem with a government-sponsored retirement program as long as it is managed properly. It is no different than what happens in other countries, for instance in most of Asia, where parents are taken in to live with their children...it is just a different kind of wealth transfer. The problem is, banks, investment firms and companies cannot be trusted to handle other peoples money without ripping them off. I don't trust the government very far either....but give me a viable alternative? If you want to privatize retirement wealth, then I can go for that, if you also give me the legal right to hunt down the shithead that ripped me off and cut his fucking toes off till he makes it right, or gut the basterd like a chicken if he doesn't.
I have a huge problem with government programs: They are paid for by taking money from people by force.
We have a name for such people!
But, but...I'm from the Govt, and I'm here to HELP! (help myself to some of your property, that is!)
let's just drop the charades and nationalize all mortgages. Fed takes all mortgages and gives the banks treauries in return, let the FED then re-fi everyone out there a 2.5%. isn't that the end game anyway? the FED and the big banks have screwed this thing up so much, nothing short of a complete collapse will ever enable us a foundation to rebuild a sound ecnomic system.
nothing short of a complete collapse will ever enable us a foundation to rebuild a sound ecnomic system.
nothing short of a complete collapse will ever enable us a foundation to rebuild a sound ecnomic system.
Do major financial collapses generally result in "sound economic systems"?
Let's look at history, shall we?
Okay, we've got the 1) Fall of Rome - that produced the Dark Ages, so no luck there.
2) The Fourth Crusade - caused the fall of the Byzantine Empire and assorted medieval chaos.
3) Welsh Conquest - not bad, unless you were Welsh.
4) Philip II of Spain default - 500 years of decline for Spain.
5) The Darien Scheme - Battle of Culloden, destruction of the Scottish nation.
6) John Law Bubble - French Revolution, invention of fascism under Napoleon.
7) Ottoman Default - WW1
8) Russian Default - Russian revolution.
9) Weimar Default - Hitler
10) Panic of 1907 - The Federal Reserve system
11) Great Depression - WW2
Need I go on?
"It can't happen here."
No time for a real historical overview, but that's not quite right. The "Dark Ages", for example, were a slow reset after the distortions of Rome. Crop yields rose during that time, for example.
The 'history' you were taught in school was political more than historical. (Sorry.)
Of course, you are right that there are no guarantees. I do, however, have confidence in most Americans. They are good people... and shockingly effective, once they get the state out of their heads.
This would easily swallow QE., it could be a credit event, one way or the other. ..should the govt. wish to hold this potato, it would become more than likely that housing in the US does eventually become a social provision.
How is gold doing today? I can't get to my computer to check...
Let me know, OK? Sprot predicted a pop yesterday, he said there is be a great buy in the miners. So we bought a lot on the close. Did we get it?
Can I get a quote on spot?
Ouch! Fucking miners.
I'll buy your shares.
$1320 per OZ.
PMI is just another fraudulent enterprise that must be sustained to keep the other fraudulent enterprises moving along. Why anyone would take a <80% LTV carrying an outrageous PMI vig in a market like this befuddles the hell out of me. The entire RE market is riddled with fraud and incompetence. Big Fail is unavoidable.
After the crash in 2008 I read somewhere that the total of all real estate loans was around $2T and the estimate of the total of MBS and/or CDO's was around $40T. Maybe someone here has better numbers.
But my point is this: the government via bail-outs and such cannot lay this entire thing onto the tax payer because it's simply too enormous. It needs to unwind and the last gang standing gets to go BK and not pass Go and not collect $200.
Had the government simply purchased ALL the mortgages and written them off to 50% then the country would be way ahead of the game at having only lost $1T.
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