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Guest Post: Extend And Pretend Is Wall Street's Friend

Tyler Durden's picture




 

Submitted by Jim Quinn of The Burning Platform

We now have an economy in which five banks control over 50
percent of the entire banking industry, four or five corporations own
most of the mainstream media, and the top one percent of families hold a
greater share of the nation’s wealth than any time since 1930.   This
sort of concentration of wealth and power is a classic setup for the
failure of a democratic republic and the stifling of organic economic
growth.”
- Jesse – http://jessescrossroadscafe.blogspot.com/

Source: Barry Ritholtz

“All of the old-timers knew that subprime mortgages were what we
called neutron loans — they killed the people and left the houses.”
 - Louis S. Barnes, 58, a partner at Boulder West, a mortgage banking firm in Lafayette, Colo

The storyline that has been sold to the public by the Federal
government, Wall Street, and the corporate mainstream media over the
last two years is the economy is recovering and the banking system has
recovered from its near death experience in 2008. Wall Street profits in
2009 & 2010 totaled approximately $80 billion. The stock market has
risen almost 100% since the March 2009 lows. Wall Street CEOs were so
impressed by this fantastic performance they dished out $43 billion in
bonuses over the two year period to their thousands of Harvard MBA paper
pushers. It is amazing that an industry that was effectively insolvent
in October 2008 has made such a spectacular miraculous recovery. The
truth is recovery is simple when you control the politicians and
regulators, and own the organization that prints the money.

A systematic plan to create the illusion of stability and provide
no-risk profits to the mega-Wall Street banks was implemented in early
2009 and continues today. The plan was developed by Ben Bernanke, Hank
Paulson, Tim Geithner and the CEOs of the criminal Wall Street banking
syndicate. The plan has been enabled by the FASB, SEC, IRS, FDIC
and corrupt politicians in Washington D.C. This master plan has funneled
hundreds of billions from taxpayers to the banks that created the
greatest financial collapse in world history. The authorities had a
choice. This country has bankruptcy laws. The criminally negligent Wall
Street banks could have been liquidated in an orderly bankruptcy. Their
good assets could have been sold off to banks that did not take their
extreme greed based risks. Bond holders and stockholders would have been
wiped out. Today, we would have a balanced banking system, with no Too
Big To Fail institutions. Instead, the years of placing their cronies
within governmental agencies and buying off politicians paid big
dividends for Wall Street. Their return on investment has been
fantastic.

The plan has been as follows:

  • In April 2009 the FASB caved in to pressure from the Federal
    Reserve, Treasury, and Wall Street to suspend mark to market rules,
    allowing the Wall Street banks to value their loans and derivatives as
    if they were worth 100% of their book value.
  • The Federal Reserve balance sheet consistently totaled about $900
    billion until September 2008. By December 2008, the balance sheet had
    swollen to $2.2 trillion as the Federal Reserve bought $1.3 trillion of
    toxic assets from the Wall Street banks, paying 100 cents on the dollar
    for assets worth 50% of that value.

  • In November 2009 the Federal Reserve and IRS loosened the rules for
    restructuring commercial loans without triggering tax consequences.
    Banks were urged to extend loans on properties that had fallen 40% in
    value as if they were still worth 100% of the loan value.
  • By December 2008 the Federal Reserve had moved their discount rate
    to 0%. For the last two years, the Wall Street banks have been able to
    borrow from the Federal Reserve for free and earn a risk free return of
    2%. The Federal Reserve has essentially handed billions of dollars to
    Wall Street.
  • When it became clear in October 2010 that after almost two years of
    unlimited liquidity being injected into the veins of zombie banks was
    failing, Ben Bernanke announced QE2. He has expanded the Fed balance
    sheet to $2.6 trillion by injecting $3.5 billion per day into the stock
    market by buying US Treasury bonds. Bernanke’s stated goal has been to
    pump up the stock market. While taking credit for driving stock prices
    higher, he denies any responsibility for the energy and food inflation
    that is spurring unrest around the world.
  • The Federal Reserve has increased the monetary base by $500 billion
    in the last three months in a desperate attempt to give the appearance
    of recovery to a floundering economy.

FRED Graph

  • Beginning on December 31, 2010, through December 31, 2012, all
    noninterest-bearing transaction accounts are fully insured, regardless
    of the balance of the account, at all FDIC-insured institutions.  The
    unlimited insurance coverage is available to all depositors, including
    consumers, businesses, and government entities. This unlimited insurance
    coverage is separate from, and in addition to, the insurance coverage
    provided to a depositor’s other deposit accounts held at an FDIC-insured
    institution.

When You’re Losing – Change the Rules

Wall Street banks had absolutely no problem with mark to market rules
from 2000 through 2007, as the value of all their investments soared.
These banks created products (subprime, no-doc, Alt-A mortgages) whose
sole purpose was to encourage fraud. Their MBA geniuses created models
that showed that if you packaged enough fraudulent loans together and
paid Moody’s or S&P a big enough bribe, they magically became AAA
products that could be sold to pension plans, municipalities, and
insurance companies. These magnets of high finance were so consumed with
greed they believed their own lies and loaded their balance sheets with
the very toxic derivatives they were peddling to the clueless
Europeans. They didn’t follow a basic rule. Don’t crap where you sleep.
When the world came to its senses and realized that home prices weren’t
really worth twice as much as they were in 2000, investment houses began
to collapse like a house of cards. The AAA paper behind the plunging
real estate wasn’t worth spit. After Lehman Brothers collapsed and AIG’s
bets came up craps for the American people, the financial system
rightly froze up.

After using fear and misinformation to ram through a $700 billion
payoff to Goldman Sachs and their fellow Wall Street co-conspirators
through Congress, it was time begin the game of extend and
pretend. Market prices for the “assets” on the Wall Street banks’ books
were only worth 30% of their original value. Obscuring the truth was now
an absolute necessity for Wall Street. The Financial Accounting
Standards Board already allowed banks to use models to value assets
which did not have market data to base a valuation upon. The Federal
Reserve and Treasury “convinced” the limp wristed accountants at the
FASB to fold like a cheap suit. The FASB changed the rules so that when
the market prices were not orderly, or where the bank was forced to sell
the asset for regulatory purposes, or where the seller was close to
bankruptcy, the bank could ignore the market price and make up one of
its own. Essentially the banking syndicate got to have it both ways. It
drew all the benefits of mark to market pricing when the markets were
heading higher, and it was able to abandon mark to market pricing
when markets went in the toilet. 

“Suspending mark-to-market accounting, in essence, suspends reality.” – Beth Brooke, global vice chair, at Ernst & Young

Wall Street desired all the billions of upside from creating new
markets for new products. Their creativity knew no bounds as they
crafted MBOs, MBSs, CDOs, CDSs, and then chopped them into tranches,
selling them around the world with AAA stamps of approval from the
soulless whore rating agencies. When the net result of a flawed system
of toxic garbage paper was revealed, there was no room at the exits for
the stampede of investment bankers. The toxic paper was on the banks’
books and no one wanted to admit the greed induced decision to purchase
these highly risky, volatile “assets”. The trade had not gone bad, the
ponzi scheme had unraveled. Suspending FASB 157 has been an attempt to
hide this fraudulent business model from investors, regulators and the
public. By hiding the true value of these assets, the financial system
has never cleared. The banks remain in a zombie vegetative state, with
the Federal Reserve providing the IV and the life support system.

Let’s Play Hide the Losses

Part two of the master cover-up plan has been the extending of
commercial real estate loans and pretending that they will eventually be
repaid. In late 2009 it was clear to the Federal Reserve and the
Treasury that the $1.2 trillion in commercial loans maturing between
2010 and 2013 would cause thousands of bank failures if the existing
regulations were enforced. The Treasury stepped to the plate first. New
rules at the IRS weren’t directly related to banking, but allowed
commercial loans that were part of investment pools known as Real Estate
Mortgage Investment Conduits, or REMICs, to be refinanced without
triggering tax penalties for investors.

 

The Federal Reserve, which is tasked with making sure banks loans are
properly valued, instructed banks throughout the country to “extend and
pretend” or “amend and pretend,” in which the bank gives a borrower
more time to repay a loan. Banks were “encouraged” to modify loans to
help cash strapped borrowers. The hope was that by amending the terms to
enable the borrower to avoid a refinancing that would have been
impossible, the lender would ultimately be able to collect the balance
due on the loan. Ben and his boys also pushed banks to do “troubled debt
restructurings.” Such restructurings involved modifying an existing
loan by changing the terms or breaking the loan into pieces. Bank,
thrift and credit-union regulators very quietly gave lenders flexibility
in how they classified distressed commercial mortgages. Banks were able
to slice distressed loans into performing and non-performing loans, and
institutions were able to magically reduce the total reserves set aside
for non-performing loans.

If a mall developer has 40% of their mall vacant and the cash flow
from the mall is insufficient to service the loan, the bank would
normally need to set aside reserves for the entire loan. Under the new
guidelines they could carve the loan into two pieces, with 60% that is
covered by cash flow as a good loan and the 40% without sufficient cash
flow would be classified as non-performing. The truth is
that billions in commercial loans are in distress right now because
tenants are dropping like flies. Rather than writing down the loans,
banks are extending the terms of the debt with more interest reserves
included so they can continue to classify the loans as “performing.” The
reality is that the values of the property behind these loans have
fallen 43%. Banks are extending loans that they would never make now,
because borrowers are already grossly upside-down.

Extending the length of a loan, changing the terms, and pretending
that it will be repaid won’t generate real cash flow or keep the value
of the property from declining. U.S. banks hold an estimated $156
billion of souring commercial real-estate loans, according to research
firm Trepp LLC. About two-thirds of commercial real-estate loans
maturing at banks from now through 2015 are underwater. Media shills
proclaiming that the market is improving, doesn’t make it so. The chart
below details the delinquency rates from 2007 through 2010 as reported
by the Federal Reserve:






  Real estate loans Consumer loans
All Booked in domestic offices All Credit cards Other
Residential Commercial
2010 4th Qtr 9.01  9.94  7.97  3.71  4.17  3.10 
2010 3rd Qtr 9.77  10.90  8.69  4.03  4.60  3.39 
2010 2nd Qtr 10.02  11.32  8.74  4.25  5.07  3.37 
2010 1st Qtr 9.78  10.97  8.66  4.63  5.76  3.48 
2009 4th Qtr 9.48  10.29  8.74  4.64  6.36  3.48 
2009 3d Qtr 9.00  9.67  8.57  4.72  6.51  3.61 
2009 2nd Qtr 8.19  8.69  7.84  4.85  6.75  3.69 
2009 1st Qtr 7.19  7.89  6.55  4.62  6.50  3.52 
2008 4th Qtr 5.99  6.57  5.49  4.29  5.65  3.37 
2008 3rd Qtr 4.88  5.26  4.66  3.73  4.80  3.05 
2008 2nd Qtr 4.21  4.39  4.15  3.55  4.89  2.80 
2008 1st Qtr 3.56  3.70  3.50  3.48  4.76  2.76 
2007 4th Qtr 2.89  3.06  2.75  3.41  4.60  2.66 
2007 3rd Qtr 2.40  2.78  1.98  3.20  4.41  2.48 
2007 2nd Qtr 2.01  2.30  1.63  2.99  4.02  2.37 
2007 1st Qtr 1.77  2.03  1.43  2.93  3.97  2.29 

 

Delinquency rates on residential and commercial loans in early 2007
were in the range of 1.5% to 2.0%. Now the MSM pundits get excited over a
decline from 8.7% to 8.0%. These figures show that even after trillions
of Federal Reserve and Federal Government intervention, delinquencies
remain four times higher than normal. In the real world, cash flow
matters. Payment of interest and principal on a loan matters. Actual
market values matter. According to Trepp, LLC, a data firm specializing
in commercial data, non-performing commercial real estate loans makes up
72% of the $320 million in non-performing loans reported by banks in
February. These figures are after the “extremely” relaxed definition of
non-performing allowed by the Federal Reserve. The game is ongoing.
Misinformation abounds. The SEC now issues press releases saying they
are worried that banks are covering up losses, when they were involved
in encouraging the banks to cover-up their losses. Last week the SEC
announced they have become concerned that extend and pretend, along with
another practice known as “troubled debt restructuring” that allows
banks to break loans into pieces, may have been abused in order to
diminish the volume of reserves banks are holding. What a shocking
revelation. Who could have known?

Are You Smarter than a Wall Street CEO?

The Federal Reserve paid shills and Wall Street front men are out in
droves declaring that TARP was a success and the banking system is
recovering strongly. Columnists like Robert Samuelson declare  TARP was a
great investment and will profit the taxpayer. Samuelson says that the
Treasury has recouped $244 billion of the $245 billion it invested in
banks and that, when it winds down its last investments, it likely will
show a $20 billion profit from the banks. This type of propaganda is
ludicrous, as Barry Ritholtz succinctly points out:

“No, we are not profitable on the bailouts. TARP has $123B to go
before breakeven, and the GSEs are $133B in the hole. All told, the
Taxpayers have a long way to go before we are breakeven. That’s before
we count lost income from savings, bonds, etc., the increased costs of
food stuff and energy due to inflation (the Fed’s has done this on
purpose as part of their rescue plan), the higher fees the reduced
competition of megabanks has created, and the future costs our Moral
Hazard will have wrought in increased risks and disasters.”
Barry Ritholtz

Source: Barry Ritholtz

Fannie Mae and Freddie Mac have hundreds of billions in bad loans
sitting on their balance sheets. Their total cost to taxpayers will
reach $400 billion, and never be repaid. The Federal Reserve has over $1
trillion in toxic assets on its balance sheet, off loaded by the TARP
recipient banks in 2009. The taxpayer will never be repaid for this
toxic waste. The government is implementing the Big Lie theory. If you
tell a big lie often and loud enough, the non-thinking masses will
believe it. That leaves us with today’s fantasy world.

The reality on the ground does not match the rhetoric coming from the
government, Wall Street and the corporate mainstream media. The truth
is as follows:

  • The vacancy rate for office space in the U.S. is currently 16.5%.
  • The vacancy rate for industrial space in the U.S. is currently 14.2%.
  • The vacancy rate for retail space in the U.S. is currently 13%.
  • Delinquencies within collateralized debt obligations in commercial
    real estate loans rose to 14.6% in February. The increase signals a
    trend of higher delinquencies in the segment. Signs of pressure surfaced
    as early as January when the delinquency rate on CDOs within commercial
    real estate loans hovered well above 13%.
  • According to Moody’s, CRE prices are down 4.3% from a year ago and down about 43% from the peak in 2007.
  • The delinquency rate on loans packaged and sold in commercial
    mortgage-backed securities rose to a record 9.2% in February, according
    to a March 15 report by Moody’s.
  • Regional and local community banks have as much as 80% of their
    balance sheets tied up in commercial real estate, and very few other
    sources of significant fee income to offset CRE losses.
  • CRE once had an estimated national value of $6.5 trillion.  Today it stands at an optimistic $3.5 trillion.
  • There are 1.8 million homes seriously delinquent, in the foreclosure process or REO that are not currently listed for sale.
  • There are about 2 million current negative equity loans that are more than 50% “upside down”.
  • Home prices are off 31.3% from the peak. The Composite 20 is only
    0.7% above the May 2009 post-bubble bottom and will probably be at a new
    post-bubble low soon.

In the face of this data, mouthpieces for the Federal Reserve go
before Congress and try to paint an optimistic picture. ”While we expect
significant ongoing CRE-related problems, it appears that worst-case
scenarios are becoming increasingly unlikely,” Patrick Parkinson, the
Federal Reserve’s director of banking supervision and regulation, told
Congress. Parkinson said that since the beginning of 2008 through the
third quarter of 2010, commercial banks had incurred almost $80 billion
of losses from commercial real estate exposures. Banks are estimated to
have taken roughly 40% to 50% of losses they will incur over this
business cycle, he said.

The Federal Reserve will be forced by the Federal Courts to reveal
the banks they have saved from failure since 2008 by funneling billions
of practically interest free tax payer dollars into their hands. The Fed
is expected to release this week documents related to discount window
lending from August 2007 to March 2010, including the peak month of
October 2008, when loans hit $111 billion. It will be revealed they kept
alive hundreds of banks that should have died. Shockingly, the
supposedly taxpayer protecting Dodd-Frank law exempts past discount
window lending from an audit by the Government Accountability Office,
that’s examining much of the central bank’s other crisis-era programs.
That champion of the little people, Barney Frank, said such disclosures
might have “a negative market effect. If people saw the data the next
day, they come to the conclusion that the bank must be in trouble.”
Openness and transparency are evidently grey areas for Mr. Frank.
Despite the non-disclosures, free Fed bucks, accounting fraud and
uninterested regulators, over 300 banks managed to go out of business in
the last two years, essentially bankrupting the FDIC. Have no fear. The
Treasury gave the FDIC an unlimited line of credit with your money.

 

It is fascinating that every Friday afternoon the FDIC announces
approximately three bank failures. Steady as she goes. No panic. Just a
slow trickle of failure. But the reality is much worse than the show.
Despite the gimmicks of extending and pretending, there are 900 banks
essentially insolvent sitting on the FDIC “Problem” list. This is after
closing the 300 banks. There are at least a couple hundred billion of
losses in the pipeline, to be funded by the American people/Chinese
lenders. A critical thinking American might ask, if things are getting
better, why does the number of troubled banks continue to rise week
after week, month after month?

One year ago the website www.businessinsider.com
listed the 10 major regional banks with the highest risk from
commercial real estate loans. These 10 banks had $133 billion of
commercial real estate loans on their books. Most, if not all, are still
in business today. The fact is those real estate loans are worth 30% to
50% less than they are being carried on the books. A true valuation of
these loans would put all 10 of these banks out of business. They are
dead banks walking. In a world where transparency, honesty, and true
free markets reigned supreme, these banks would pay for their poor risk
taking choices. They would be liquidated and their assets would be sold
off to banks that did not make horrific lending decisions. Failures
would fail.  




Bank CRE Loans (bil.) % of Tier 1 Capital
NY Community Bank $22.0 915%
Wintrust Financial Corp. $3.4 419%
M&T Bank $20.8 378%
Synovus $11.2 376%
Wilmington Trust $4.0 369%
Marshall & Iisley $13.8 283%
Zions Bancorporation $13.4 253%
Regions Financial $28.3 218%
UMB Bank $1.3 156%
Comerica $14.3 97%

 

How could anyone deny the world is back on track after examining the following chart?

 

It should warm your heart to know that Financial Profits have
amazingly reached their pre-crash highs. All it took was the Federal
Reserve taking $1.3 trillion of bad loans off their books, overstating
the value of their remaining loans by 40%, borrowing money from the Fed
at 0%, relying on the Bernanke Put so their trading operations could
gamble without fear of losses, and lastly by pretending their future
losses will be lower and relieving their loan loss reserves. The banking
industry didn’t need to do any of that stodgy old school stuff like
make loans to small businesses. Extending and pretending is much more
profitable. 

The big four of JP Morgan, Citigroup, Bank of America, and Wells
Fargo should have undergone orderly bankruptcy liquidation in 2008. They
took on a vast amount of leverage and a vast amount of risk. Their
greedy bets went bad. In a true capitalist system, they would have
failed. Instead, in our crony capitalist system, they were bailed out by
taxpayers and continue to function as zombie banks pretending to be
healthy. They reported profits of $34.4 billion in 2010. Every dime of
these profits was generated through accounting entries that relieved
their provisions for loan losses. These “brilliant” CEOs who virtually
destroyed the worldwide financial system in 2008, looked into their
crystal balls and decided their loan losses in the future would be
dramatically lower. I’ll take the other side of that bet. I dug into
their SEC filings to get the information in the chart below. Just the
fact that Citicorp and Bank of America have still not filed their 10K
reports after 3 months tells a story.









Bank   Source CRE Mortgages Credit Card Total Loans Loss Reserve % of Loans
JP Morgan 12/31 10K $53,635 $174,211 $137,676 $692,927 $32,266 4.7%
Citicorp 9/30 10Q $79,281 $209,678 $216,759 $654,311 $43,674 6.7%
Bank of America 9/30 10Q $77,062 $394,007 $142,298 $933,910 $43,581 4.7%
Wells Fargo 12/31 10K $129,783 $337,105 $22,375 $757,267 $23,022 3.0%

 

These four “Too Big To Fail” bastions of crony capitalism have $340
billion of commercial real estate loans on their books. That’s a lot of
extending and pretending. Just properly valuing those loans at their
true market value would wipe out most of their loan loss reserves. I
wonder if Vikrim and his buddies have noticed that home prices have
begun to plunge again. Deciding to not foreclose on home occupiers that
haven’t made a mortgage payment in two years is not a long term
strategy. These four banks have $1.1 billion of outstanding mortgage
debt on their books. I wonder what a 20% further decline in home prices
will do to these loans. Throw in another half a billion of credit card
loans to Americans being hammered by soaring energy and food prices and
you have a toxic mix of future losses. These banks are gonna need a
bigger boat.

The game of extend and pretend at the expense of the American working
middle class is growing old. When this game is over, Wall Street will
be looking for another bailout. The American people will not fall for
the lies again. Wall Street’s oppression reeks of greed and disgrace.
They are liars and thieves. They have pillaged and stolen all that was
left to steal. I will be surprised if they get out alive.

Well you are my accuser, now look in my face
Your opression reeks of your greed and disgrace
So one man has and another has not
How can you love what it is you have got
When you took it all from the weak hands of the poor?
Liars and thieves you know not what is in store

There will come a time I will look in your eye
You will pray to the God that you always denied
The I’ll go out back and I’ll get my gun
I’ll say, “You haven’t met me, I am the only son”

Dust Bowl Dance - Mumford & Sons

 

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Thu, 03/31/2011 - 15:57 | 1122635 That Peak Oil Guy
That Peak Oil Guy's picture

What's better than Too Big To Fail?

Too Biggerer To Fail!

TPOG

Thu, 03/31/2011 - 15:58 | 1122641 DavidPierre
DavidPierre's picture

SmokeyQuinn... didn’t follow a basic rule.
"Don’t crap where you sleep."

EXTEND ... the sorrowful life of your pathetic website!
Kill off "Smokey", the fictitious, racist, and transparent alter-ego which was really you !
PRETEND ... that you were not posting obscene comments, under various aliases for the past two years, just to generate phantom traffic to your pitiful blog.
Bi-Polar much... MORON?
Openness and transparency are evidently grey areas for Mr. Quinn.
 www.TheBestialityPlatform.com

Thu, 03/31/2011 - 16:48 | 1122840 Logans_Run
Logans_Run's picture

Gee, troll much?

Thu, 03/31/2011 - 18:23 | 1123139 DavidPierre
DavidPierre's picture

Logans_Run:

Just a little SmokeyQuinn history to document where he his head is really at.

.................................................................

#577149

Here's a typical, if less obscene, response from SmokeyQuinn to a polite comment at his lousy blog... wwwTheBestialityPlatform.com

"Administrator says:

red

It is good that you were able to take time out from the truther sheep fuck convention* to develop a sitcom.

I hear JFK is on today. You can sit in front of your TV and jerk off to it. Do you have any ideas about detective dads that bring up morons? By the number of thumbs up you received, it appears that the 9/11 truther retards are still onboard. I guess no other sites will have you mongoloids.

The truthers swarmed the site with their bullshit immediately. Anyone who has been on my site for the last two years realizes that if you don’t have facts to back up your argument, I will obliterate you.

I had the facts when Jason Rines (SmokeyQuinn's former webmaster) pulled the plug on my old site.

I really don’t care who I offend.

Anyone who has been offended can hit the fucking road.

Then all of the truthers I’ve offended today can quit my site. They can discuss gravity, explosives, jet fuel, video clips of the Pentagon, and how to properly fuck a sheep*."

Since you say you were a firefighter, that makes you an intelligent person.

You should really have special insight into the 9/11 towers. You are a bonafide sleuth.

You really have that mystery solved.

Nobody can pull anything over on you. You are too smart to fall for any tricks.

You are a mystery solver. A man with keen analytical skills. —-A fucking inbred, maggot-infested douchebag. You and all of the rest of the duped Truthers eat dog shit."

....................................................................................

That's just one of the many really intelligent responses from Quinn and his Ewe diddlers.

.......................................................

Jason Rines:

{Quinn's former webmaster who dumped him over a year ago}

"Smokey and Jim are the same people, yes. I mapped both the I.P.'s back to his office at Wharton.

... TBP is a place where if you want to be abused and argue with someone ... then go for it.

As for me, I moved on.

3,000 of my countrymen are dead, they were not enemy combatants.

Radical Islam was used as the convenient manipulated fools they are. They like blood money and Islam gives these individuals the convenient excuse for murder-for-hire. No different than the 1880's in Russia and the 1930's in Germany. 

I want as close to the truth as we can all get and we are only partially there.

I cannot waste time on the wannabe dictators while my dead countrymen have not received justice.

Justice will be served when I feel the rest of my countrymen are safe and that also is a long ways away. We will probably be old men by the time we feel we know enough truth to say we concluded our own investigation and many of the perpetrators dead of old age, war or both.

So I have little time for Quinn."

http://ragingdebate.com/politics/remembering-911/c41097#c41097

...................................................................................

So there it is from someone who really knows Quinn.

SmokeyJimQuinn is a FRAUD and a LIAR.

...................................................................

 *You will always have your 'sheep' who will still respect you in the morning.

Thu, 03/31/2011 - 16:49 | 1122848 zaknick
zaknick's picture

WTF with the junks. Those who know DP know he is that rare breed: an unindoctrinated American. You people live in the Matrix and know not reality. If DP says Smokey's a bitch, then Smokey is a cocksucker (good research not withstanding).

PERIOD, brainwashed (soon to be rudely awakened -yay!), bitches!

Thu, 03/31/2011 - 17:09 | 1122944 zaknick
zaknick's picture

I knew I was correct about DP

by DavidPierre
on Mon, 03/14/2011 - 12:53
#1050613

The Fourth Turning...
 
Shallow catholic rhetoric... more aptly named The 4th Turd  ... faith-based tripe ... "bring back tradition!"  it screams... a true believer's rote catechism.
 
The 4th Turd  is prescriptive, traditionalist, 'virtue-cratic', mombo-jombo, mixed with puritanism and a dash of Tipper Gore. Bring back values like honour and duty, observe decency in personal conduct, discipline, develop tighter societal standards, traditional virtues.
 
When it's not talking about early historical eras, the book is bemoaning the ever-branching diversity of choices and lifestyles in modern life or criticizing the edginess of pop culture.
 
All the absurd theory about supposed cycles of the supposed generations, the fabled historical parallels, the dire warning that a new era of crisis is to come, is just an excuse to tell readers to prepare for a crisis era that may or may not be coming by celebrating the importance of authority; cease unconventional behaviour in an era that will demand conformity, and settling down to focus on prescribed values.  A hollow diatribe, pushing to get back to trust in public institutions and in the government... more restrictions on personal behaviour. 

Advice to set up strict regimes of rules, zero tolerance of conflicting opinions, demands on conduct and development to make sure that children can grow up to be the next 'HERO' generation, as they are corraled as fodder for the eternal crusades... a heavily conservative bent sticking out like a sore thumb, no doubt reflecting some of the attitudes and wishes of the infamous liar, SmokeyQuinn.  
 
The theory about "generations" and "turnings", the quotes and events of early historical generations are only fished out of the shallow AmeriKlan Sea, and, more importantly, ignore the rest of the world... only to find a few lame examples that will make the generations seem to fit into the imaginary pattern.
 
Worse yet, the portraits painted of the four recurring generational archetypes in the whannabee theory, the predications are incredibly vague and  sound like weakly created parodies.
Of course many theories will run into a FEW problems like this, but The 4th Turd  is whipped up to sound just convincing enough to sell an authoritarian ideology.
  
Though there is some element of truth in The 4th Turd, certainly mankind's recorded experiences have been one of cyclical ebb and flow, one cannot make anywhere near the many pat characterizations and conclusive and farfetched leaps of simple reason and logic. 
 
If intended as a work of propaganda, the book is perfect, for all good propaganda contains enough of an element of probable truth to be plausible.
 
Most everything in this book is arranged and written with the assumption that the thesis is essentially correct, a mode which is overreaching, suspect, and at best sloppy.
 
The wholesale grading & categorization of people is facile, diminishing, and overly fatalistic.
 
The book is an oligarchic collectivist's wet dream. The warning is that we are but mindless automatons, locked in an endless and stupid cycle of mass destruction, following our collectivist predestination, but that we might fail and then woe is to us. A stock false choice if there ever was one.
 
Either these guys were commissioned to write this stuff, or they have a more than adequate knack for figuring out which way the ill wind is blowing and sucking up to the NWO Elites for fun and profit.
 
Where in The 4th Turd  is the experience of Korea, Viet Nam, the Cold War, all the endless wars, Globalism, consumer society, etc. etc.?
 
The TRUTH of September 11, 2001, when it is dealt with openly and properly, will be the pivot to the next TURNING.
 
Truth might finally emerge someday in the semi-consciousness of people like SmokeyQuinn? Best take that ameriKlan ring out of your nose!

reply flag as junk (6) 

by buzzard
on Mon, 03/14/2011 - 14:15
#1051175

Nice try Mr. Pierre. Heard it all before. No cigar. I understood Strauss and Howe's ideological basis when I read the book in 1997, but it did not detract in any way the truth of their message at all. By the way, have you read it yourself? If not, May I suggest that you do it... soon.

 

Mr. Quinn, I haven't read a better synopsis by plugging in real data and events since the book was written. Thanks.

reply **JUNK** (3)  Flagged as JUNK.

by DavidPierre
on Mon, 03/14/2011 - 22:03
#1053219

Do you really need people like Quinn to blow smoke up your derriere again?

“SmokeyQuinn has no creative ideas of his own, so he just copies and pastes... just feeds off and then regurgitates the dead ideas of Strauss & Howe like a vulture... a buzzard.

God only knows how many times he has rewritten this same stupid article. And now he drags this 4th Turd crap around on ZH again.

Aside from very rough generalities, like S&H’s, quarter century predictions are about as useless as an asshole on your elbow.

SmokeyQuinn liked my above comment so much that he reposted it on his racist and obscene blog.  You would probably like hanging with those MORONs.

 

{h.t. to the only two sane posters @

www.TheBestialityPlatform.com }

Thu, 03/31/2011 - 19:01 | 1123175 DavidPierre
DavidPierre's picture

Tyler Durden:

You might try to do some Due Diligence into the background of writers that you post on ZH.

Go on over to Quinn's blog and check out all the Racist shit that he posts and encourages.

Quinn posts in his own comments section under an alias, "Smokey". His latest...

"Smokey says:

LLPOH—In my opinion you are being a bit harsh. Blacks should be respected. What other form of animal can walk around on two legs and sometimes communicate with humans? Dogs can’t. Cats can’t. Sheep can’t and cows can’t. Blacks are arguably the most sophisticated animal in the history of the planet, yet there are still people who insist on criticizing them. Some blacks could even pass for humans, admittedly a very few, but the reality is that some COULD pass for being human. Admiration, not contempt or pity, should be reserved for all blacks. —-And fudd, you don’t have to be ashamed of being black as midnight. I’d already suspected as much before you gave it away tonight, based upon the rank stupidity and unmatched ignorance of all your comments across the board whenever you post here. No way in hell a white person is as fucking stupid as you are."

Quinn encourages some very sick shit and the man should be pitied but not encouraged.  His previous webmaster kicked him off of a free blog he provided for Racism and other sickening posts.  The man has some serious issues under his facade of economic journalism.

Jim Quinn flaunting his racial fear and class hatred on his new website…

“I have done previous posts on the 30 Blocks of Squalor. You can refresh your memory here:

http://theburningplatform.com/blog/2010/03/17/30-blocks-of-squalor-pothole-update/

http://theburningplatform.com/blog/2010/04/12/spring-has-sprung-on-the-30-blocks-of-squalor/

 I have done a number of posts about the section of Chestnut Street in Phila between 69th street and 39th street. It is a depressing section of squalor. Once nice row homes in disrepair, collapsing porches, boarded up tenements, and Direct TV dishes seemingly on every $15,000 piece of crap house. This stretch of concrete is inhabited by the poorest of the poor. The racial balance is 100% Black, 0% everyone else. I am forced by circumstances on the Schuykill Expressway to take this route into work quite often.

I wonder if Mayor Nutter notes the irony along the 30 blocks of squalor? I observe the poorest of the poor shuffling along talking on their cell phones or listening to their iPods. I observe 22 year old black men driving $60,000 Mercedes cars. Trash, garbage, and filth litter the streets, but every other block has a beautiful mural on the side of a building showing black people doing wonderful things. Maybe if a few more black men in this community actually married the women they impregnated and manned up and raised a family, the pictures would reflect reality. “

Smokey says:

“ Jesse Jackson, Martin Luther King, Jeremiah Wright, and Al Sharpton are fucking worthless, stinking alley niggers of the lowest order. I get sick as shit of the way whites are routinely discriminated against in this country. The fucking spics are just as bad, worse actually, than the blacks. They come over here and murder and steal from this country and make fucking demands of the citizens here. All a spic knows how to do is steal and fuck. That’s it. Steal and fuck. And Tarbaby can’t fucking wait to legalize all of them so that he gets their votes to provide support for his Socialist agenda. Entitlements have pissed this society down the drain.”

.......................................................

SmokeyQuinn:

Nice try... deleting your 30 Blocks of Squalor thread off your BestialityPlatform.

How about you come back here today and explain yourself?

...Waiting!!!

{....sound of cricketts....}

Thu, 03/31/2011 - 19:25 | 1123335 David449420
David449420's picture

OK. It's pretty clear that you don't like this guy. But what does any of your hatred of him have to do with what we have just read ?  You haven't refuted anything he said. I haven't gone and verified that ever chart, every statement that he made is 100% factual, but everything he has said supports what I THINK is probably true or close to the truth. If you want anyone to take anything you say as credible, then you must provide a credible reason(s) why what he is saying is not so.

You claim he is a racist.  Please point to the statement he made in his article that is racist.  You arouse my suspicions that you are a shill, employed  to divert attention from the content of the article.

Thu, 03/31/2011 - 20:33 | 1123540 Jim Quinn
Jim Quinn's picture

You're crazier than a shithouse rat.

I hear they are coming out with Deliverance 2 and they want you to reprise your role as the banjo player.

Tell everyone your theory on George Bush ordering the Twin Towers be brought down. I know you are busting to show everyone how smart you are.

How does it feel to be a miserable failure, along with being a Vietnam draft dodger hiding in Canada?

Tell everyone how much you hate America.

You are pitiful little puke.

 

 

Thu, 03/31/2011 - 21:39 | 1123725 DavidPierre
DavidPierre's picture

SmokeyQuinn... calling other people crazy when he posts comments on his own blog under false names, then when he is exposed by his own webmaster as a fraud, calls everyone but himself a Liar.

Man Up... Tell the nice ZH people why you deleted your '30 Blocks of Racism' thread off your blog when I called you on it here?

At first you only deleted the"Smokey" comments (which was actually you posting under a false name) then you deleted multiple threads which, if they were still up on your miserable blog, I would be happy to link here.  Then everyone would be able to judge for themselves what kind of GirlieMan you really are.

That you are a 9/11Liar and a committed apologist for TPTB and the crimes of treason and murder on that day is self evident.  

Come on... you're a smart person... do you really believe that Offal whitewash BS shoved down your throat about how buildings just magically explode.  Go do some impartial homework, as I suggested over two years ago, and bring yourself up to speed about the realities of the world. 

Do you believe in physical science or mythical magic?

Yup... It's really been tough living in BC for the past 41 years.  I sure wish I had let them draft me and gone and killed innocent Vietnamese women and children for people like you.  You had better get those three boys of yours ready to march off to were ever in the world to fight the latest series of never ending imperial wars.

Why should I hate amerKlan people like you? 

Gee... I'll have to think on that for a while.

 

 

 

Thu, 03/31/2011 - 21:46 | 1123745 Jim Quinn
Jim Quinn's picture

Thanks for proving you are crazier than a shithouse rat. The ZH readers weren't convinced. Now they are.

Describe for us what the voices in your head tell you.

Canada sure is lucky to have you.

Are your lithium and shock treatments free?

 

Thu, 03/31/2011 - 22:02 | 1123794 DavidPierre
DavidPierre's picture

Hell... everything medical is free up here... including that super fine BCBud.

http://cannabis.community.forums.ozstoners.com/strainguide/uploads/thumbs/e092183hjdas123798dhjla823jk2321.jpg

Now answer the questions MORON... what happened to your 30 Blocks of Racism threads and why do you post phony comments to yourself?

While your at it why did you delete the 9/11 thread?  You afraid of Truth? 

Oh yeah... now I remember... You lied about that also.

Thu, 03/31/2011 - 22:13 | 1123808 Jim Quinn
Jim Quinn's picture

Those voices are really loud, aren't they?

BUILDING 7

BUILDING 7

BUILDING 7

CONSPIRACY

CONSPIRACY

SHEEP

SHEEP

Please take your lithium. Resist those horrible urges.

 

Thu, 03/31/2011 - 22:26 | 1123821 DavidPierre
DavidPierre's picture

 

LOL !!!

A troll trolling a troll !

You must be frantically searching your keyboard for the well used '1st Amendment' delete button.

Answer the questions... MORON!

 

Fri, 04/01/2011 - 10:30 | 1125000 Jim Quinn
Jim Quinn's picture

Foaming at the mouth doesn't become you.

Back to the barn you lowly despicable traitor.

Thu, 03/31/2011 - 16:02 | 1122652 Beatscape
Beatscape's picture

It's coming...

Kocherlakota, voting member of the Fed, signals Fed funds rate may need to rise 75 basis points in late 2011 - WSJ

Thu, 03/31/2011 - 16:11 | 1122693 dogismyth
dogismyth's picture

i bet you listen to the monkeys too when you visit the zoo.  What secrets have they told you lately?

Thu, 03/31/2011 - 17:19 | 1122950 YouBetYourLife
YouBetYourLife's picture

Listen only to the cobra.  He's the only one smart enough to escape.

Thu, 03/31/2011 - 17:05 | 1122931 Bicycle Repairman
Bicycle Repairman's picture

If it happens, which I doubt, it will be reversed very quickly.

Thu, 03/31/2011 - 16:04 | 1122664 mberry8870
mberry8870's picture

Nice work. The implications of implementing a national policy of no accountability for any corporations and creating government produced opiates for the masses is really not going to end well

Thu, 03/31/2011 - 16:46 | 1122830 Dr. Porkchop
Dr. Porkchop's picture

Corporations are people now too! They have the same right to lie, cheat, steal, and obfuscate as the people in government!

Thu, 03/31/2011 - 16:05 | 1122673 Carl Spackler
Carl Spackler's picture

Why doesn't the Fed just hire Nick Leeson or Jermain Kerviel ??

These guys could easily make the numbers work !

Thu, 03/31/2011 - 16:11 | 1122698 jkruffin
jkruffin's picture

We need a NATIONAL STOP PAYING YOUR MORTGAGE EVENT!!!!!!!!!! Cripple the crooks once and for all.

Thu, 03/31/2011 - 18:33 | 1123157 duncecap rack
duncecap rack's picture

Anybody who organized that would get tossed in jail pretty quick.

Thu, 03/31/2011 - 16:10 | 1122701 OutLookingIn
OutLookingIn's picture

 

 Business in America;

Psssst! Hey! Have I got a deal for you! All you gotts do is......

Business as usual. When the core is rotten, the fruit still tastes bad, but looks real good! 

Thu, 03/31/2011 - 16:12 | 1122708 Pepe
Pepe's picture

I am going to puke

Thu, 03/31/2011 - 16:41 | 1122807 Boilermaker
Boilermaker's picture

Buy some puts on IYR to get the puke really flowing.  They'll just piss all over you and kick you in the nuts.

You'll enjoy it thoroughly.

Thu, 03/31/2011 - 16:20 | 1122736 Atomizer
Atomizer's picture

A mathematician, an accountant and an economist apply for the same job. The interviewer calls in the mathematician and asks "What do two plus two equal?" The mathematician replies "Four." The interviewer asks "Four, exactly?" The mathematician looks at the interviewer incredulously and says "Yes, four, exactly."

Then the interviewer calls in the accountant and asks the same question "What do two plus two equal?" The accountant says "On average, four - give or take ten percent, but on average, four."

Then the interviewer calls in the economist and poses the same question "What do two plus two equal?" The economist gets up, locks the door, closes the shade, sits down next to the interviewer and says "What do you want it to equal?"

Thu, 03/31/2011 - 18:07 | 1123109 usefuloutput
usefuloutput's picture

Nice one,

Tomorrow's April fools day watch out!

Thu, 03/31/2011 - 16:20 | 1122741 TradingJoe
TradingJoe's picture

We All Know The Problem Folks, How About THE SOLUTION, eh?!?!

Thu, 03/31/2011 - 17:56 | 1123056 Youri Carma
Youri Carma's picture

THE PROBLEMS & SOLUTIONS BY YOURI CARMA, 29 December 2008 (Blogs.Reuters - The Great Debate) http://blogs.reuters.com/great-debate/2008/12/29/managing-nonprofits-in-an-age-of-hope/comment-page-1/#comment-4253

OK now we got the solutions what about getting the financial Hanky panky hokes removed from their offices?

Democracy is a farce and won't change the system in this rigged mind controlled two party notin to vote system. We're pretty much stuck.

See also Dmitry Orlov for an update on the state of economic collapse in America with Max Keiser http://www.youtube.com/watch?v=KLdwzcA9ZdM

Thu, 03/31/2011 - 16:40 | 1122809 DoChenRollingBearing
DoChenRollingBearing's picture

Jim Quinn looks like he will snatch the honor (from Jim Willie) of being the Bearing´s No. 1 Uber-Bear.

Thu, 03/31/2011 - 18:01 | 1123066 themosmitsos
themosmitsos's picture

Jim, all well and good.

You know what's missing? The ... "US is doomed, bug-in-windshield, Americans are fat, lazy, & stupid" coloful language & equivalent name calling of your Japan article.

Oh, and the demographics analysis, and how it impacts housing, lending, & banking. I mean, if it's ok to talk about who's dying in Japan in such colorful terms, when are you gonna talk about who's "burgerfying" and mexicanizing?

Link me up, when you find one. Hypocrite

Then again, I dont know why I bother, you're quoting Business Insider  & Ritholtz LOOOL! What's Britany up to?

Thu, 03/31/2011 - 20:38 | 1123556 Jim Quinn
Jim Quinn's picture

How did you manage to keep your comment to less than 4,000 words you moron?

Thu, 03/31/2011 - 22:05 | 1123796 taraxias
taraxias's picture

Anger issues?

Thu, 03/31/2011 - 18:07 | 1123103 AUD
AUD's picture

Bond holders and stockholders would have been wiped out

This is the bit everyone, including the author of this piece, ignores. A bank deposit is a bond, if you have your 'money' in the bank you are a bondholder.

If the banking system had crashed in 2008 everyone would have lost everything.

 

Thu, 03/31/2011 - 18:13 | 1123119 usefuloutput
usefuloutput's picture

...and we could be starting to rebuild the economy.
Now we're just struggling on in a world full of lies.

Thu, 03/31/2011 - 18:43 | 1123176 AUD
AUD's picture

With what? Unless you had a wad of physical $ & ultimately a pile of gold you'd be destitute.

The author claims that it has all been a nefarious scheme to bail out the bondholder bankers but if the bankers had gone down they would have taken your money with them.

How would that have gone down with 'main street'?

 

Thu, 03/31/2011 - 21:57 | 1123775 usefuloutput
usefuloutput's picture

With what?
With honesty clearness and trust I guess.
Not with the PDF released by the FED
'Main street' is now slowly going down.

Thu, 03/31/2011 - 18:13 | 1123124 Youri Carma
Youri Carma's picture

Sleep tight sheople. Oh and Happy dying in WOIII later when you're drafted.

Thu, 03/31/2011 - 20:41 | 1123564 Jim Quinn
Jim Quinn's picture

WRONG!!!!

Depositors would have been fine. The investors would have been wiped out. The banks would have been liquidated in an orderly manner. Bankruptcy laws exist for a reason. Don't fall for the company line. THINK.

Fri, 04/01/2011 - 00:45 | 1124126 AUD
AUD's picture

Since when has any bank guaranteed your deposit with them? Do they post collateral with you?

It was the government that 'guaranteed' everyone's 'money', not the banks. You are assuming that if the banks had not been 'saved' they would have had any assets at all.

Fri, 04/01/2011 - 10:29 | 1125012 Jim Quinn
Jim Quinn's picture

You're clueless or you are a Wall Street bank shill.

Thu, 03/31/2011 - 20:07 | 1123459 Diogenes
Diogenes's picture

It's official. Zero Hedge's comments columns have jumped the shark.

Thu, 03/31/2011 - 21:12 | 1123655 Blythes Master
Blythes Master's picture

Hey Jimbo......

 

It's funny how douchepenis only shows up when you post.

 

Like he's stalking your shit, lol!

 

How are the boys? Avalon? You?

 

Have you linked TBP to CIAbook yet?

 

Say 'ello to Cocksucker in NewJersey for me.

 

TG

 

Oh yeah, I almost forgot...PHUCK FILLY!!!

Thu, 03/31/2011 - 21:25 | 1123684 Jim Quinn
Jim Quinn's picture

TG

Where did you go?

I always lose my bet commentors. First you and then Smokey.

Comeback home to TBP.

Thu, 03/31/2011 - 21:43 | 1123737 Blythes Master
Blythes Master's picture

Been busy Farmin', Firefightin', Shovelin' snow, and Fuckin' the Fed over and over and....

 

I barely have time to check emails.

 

Maybe soon.

Fri, 04/01/2011 - 01:40 | 1124204 tony bonn
tony bonn's picture

this is a zh platinum moment - a perfect precis of the sacking of rome for literally the criminal bankster mob has pillaged and plundered america - its inept incompetent ceos and executives serving as the raiding parties....

but where did this come from? the ceos learne from the donald trump saga of the 1980s/90s when hairsprayed buffoon pleaded too big too fail in a test run of what he and others knew was to come in the in the 2000s....

the rockefeller / rothschild axis of evil serves only mammon....their damned souls will not be missed....

Fri, 04/01/2011 - 07:49 | 1124398 woofer
woofer's picture

There is no solution. The Mafia is running the show, the whole show and nothing but the show. They've got the Fed, the government, the major institutions, the CIA and the FBI, the media, and especially the military and the law enforcement agencies. You stick your neck out and its the guillotine. This has to be the best summary of the whole mess that I've read in a long time. Keep up the good work!

Sun, 04/03/2011 - 20:37 | 1130850 malek
malek's picture

Fantastic article, great summary of so many bits and pieces!

Mon, 04/04/2011 - 04:33 | 1131572 No More Bubbles
No More Bubbles's picture

I'm oiling up and sharpening the blade on my GUILLOTINE!

LETS GET BUSY PEOPLE!!!!!!!!
Lots of necks need chopping!

Do NOT follow this link or you will be banned from the site!