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Merrill's RateLab On GSE's: The Denouement
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Last week the administration said they were "light years away" from a plan like WaPo proposed. The big push for healthcare and climate change legislation makes me think the administration isn't too worried about FRE and FNM right now. This is going to drag out forever...
FRE & FNM are working on getting their houses in order. A few more high profile suicides and everything should be OK. Future whistle blowers within the organizations will get the message loud and clear.
Hansel. He's so hot right now. Hansel.
Watching CNBC Mad Money atm...involuntarily...CEO wants to watch it...anyhow, every friggin caller that calls in sounds like a friggin Hillbilly who dont know what the F is happening to their country!...BOOYAH! BYE! BYE! BYE!
hahhahahahhha
you made my day !
this scribd thing kinda sucks.
it consumes resources, does not respond to mouse wheel ... generally a pain in the ass.
is there not some other way to post documents ??
like just post them and let the user decide?
There is an attachment and a hyperlink both pointing to the doc itself. Does anyone pay attention to detail
scribd does suck indeed notwithstanding attention to detail a simple link to a pdf would do the trick - f scribd
Scribd has more purpose than just document formatting and display.
Stop with your naughty language.
The high yield/treasury spread broke to a new high last week but has since retreated but not yet broken below its previous
I like Scribd don't change a thing.
TIA
second dat.
Typical self-serving drivel. The argument that we need the GSEs in any way, shape or form is false, perpetuated by Wall Street dealers and mortgage originators who benefit from their existence (gee, I wonder how much GOS revenue BofA is going to book this quarter from agency MBS?).
The comparison to the cost of creating a jumbo structure today with agency MBS today is bullshit. What is the real cost of agency MBS today? Bernanke is the only real buyer. The agencies have been bailed out to the tunes of tens of billions and counting. We, the taxpayer, and anyone who holds USD, is paying a pretty high price to generate a par price on a Fannie 4.5% MBS today.
A jumbo securitization is probably cheaper if you add in all those costs.
Even better would be a covered bond, where the bank originates and holds the risk.
Housing finance seems to work pretty well in other countries, who don't have monsters like Fannie and Freddie. The arguments in this paper are self-serving, put out by an organization that benefits very nicely by being able to shove off credit risk to the public (or a "private corporation" with a government backstop - yeah, that model worked so fucking well).
We need FHA to support affordable housing goals, and a private covered bond market for everything else.
RapeLab; Intellectual Property of BoA.
Expect the same analysis by the shills from JPM, Wells/Wachovia, and Citi. And of course Goldman and MS, who help them sell debt - to the Fed. And of course the Fed money is managed by Blackrock, who will also come out in support of "GSE reform" that suits them.
Lots of taxpayer-funded fees to strip off.
Not to mention the FHLB debt, someone has to help them sell it. Those stupid entities could go away as well under a covered bond model.
The Bilderberg Group says that they need a new set of veneers. Because information has become so readily available the old tricks have to change quicker.
"We need less transparency" said Carl Bildt in the 2009 meeting of Bilderberg participants in Greece. Following up by saying "This Internet thing is hard to beat".
Carl Bildt, Sweden's minister for foreign affairs.
Is there any relationship between a certain website that is hosted in Sweden and The Bilderberg Group?
Here is the proof in image format.
http://i26.tinypic.com/25hh835.jpg
Ummmm but according to the MSM Bilderberg doesn't exist....
this one slipped through the filters at CNN circa 2004:
"It didn't hurt, either, that fellow Senator Jon Corzine and former U.N. Representative Richard Holbrooke called Kerry with rave reviews of how Edwards had wowed the business and political élite at last month's Bilderberg conference in Italy, a secretive annual session where international business and political leaders discuss the state of the world."
http://www.cnn.com/2004/ALLPOLITICS/07/12/gleam.team.tm/
Well, this fathead is 4% right. Sniff housing and you ARE sniffing something. But you certainly miss the big picture. It's not about HOUSES, it's about HOUSING.
Is ML aware that the Fed is not an "arm" of the government? It's a privately owned bank. 3rd paragraph down, page 6.
A lot of people are not aware of the fact. Kind of scary that a privately owned bank controls our currency and charges us interest to print it, IMO.
Actually, the Board of Governors of the Federal Reserve is an agency of the Federal Government. The Reserve Banks (NY, Philly, Chicago, et al.) acting under the oversight of the Board of Governors however are private institutions. The ownership interest in the Federal Reserve Banks by member banks is determined by the capital surplus of the member banks, which increases and decreases with changes in said surplus.
Rhetorical question: which prints the money and charges Treasury for it, Board of Governors or the Federal Reserve Bank?
http://en.wikipedia.org/wiki/Federal_Reserve_System#Check_Clearing_System you will n eed to decipher all the complex language, but the answer is FBR
yes, it is the FRB. not picking on you cheeky but the question was rhetorical. again, not picking on you, keep sharing info.
cb,
hoping my initial reply did not come across as rude. most of my posts are rhetorical by design or by result (i have mastered self-defecation, uh, deprecation; lol). i appreciate your replies and willingness to share ideas/info. you are probably already aware of the following site but, just in case:
http://solari.com/
if info alleged there is true, it is pretty nauseating. forewarned.
That's the most interesting thing you found on page 6?
The agencies are very, very important cash cows for the malignant incumbency. To hell with MBS, think of the poor CONgreffcritters running for office with no shlobby money. The horror, the horror.
There is an attachment and a hyperlink both pointing to the doc itself. Does anyone pay attention to detail..I see
this is a blog - are we supposed to study the intricacies the "youtube" (wannabe) of publising? A brief summary or excerpt of a document followed by a link may not be fancy but it is very efficient.
Did Merrill Lynch just say something? Other than attempting to glean from whence the next train wreck will come, I stopped listening to them a long time ago. All that said, thank you Tyler for posting this. It confirms one area from which many people believe the next/continuation of a train wreck will come.
-797
"If I was a river, I'd run uphill.
If you call me, you know I will."
Whew, that's some serious conspiracy crap at work. And AMAT "... predicted fourth quarter sales and profit that topped analyst's estimates..." (of course, all those analysts are on Bernanke's payroll
try not to re-post your garbage on every post here; and it is odd that all you trolls come here right after the market closes ...
No kidding. BTW, the CEO of AMAT is on Bloomberg TV today. He was saying they are basically an Asian company now - 70%+ of business from Asia, results driven largely by China stimulus/bubble forming.
Hope that doesn't stop.
yes, and they were given a contract by Abu Dhabi to develop the technology for the biggest solar farm on the planet which is being built near Abu Dhabi. They, basically rely on foreign government spending. That is their business plan; and i am not sure whether its a sustainable one when it comes to China, but when it comes to Abu Dhabi they will be doing some serious business there, because this solar farm is expected to be in construction by 2020. Right now they are at first stage ( testing various materials, positions, angles etc) .... But if China manages to increase domestic demand and stops relying on the US and Europe for its exports we can easily see AMATs stock plunge more than 50% .... And i DO think China will manage to increase domestic demand solely by observing the ammount of the present stimulus and the amount of future ones. But to cut a long story short, AMAT is a good company as long as China is re-balancing their economy, after that; wouldnt be so sure.
Hello CB. Been trying to figure out all the crap, ratings nonsense you were getting on another thread. From what I've seen, you have shared/posted some interesting material. Please keep doing so, I have enjoyed it.
thank you 797, but i have cleared things out with those posters. They don't bother me, i only get upset when they try to insult me on a national basis, nothing else. Bunch of goddamn bigots.
Just noticed new avatar. Love it.
lol... i think that might be one of the main causes of the attacks i get recently; strangely, no one said anything to me while my avatar was Turbo Timmy... dunno, people usually dogmatically lean towards one side of the political arena and are blind by realities that go around them ...
LOL, LOL. What's your Myspace? What's your Facebook and Twitter Cheek? Do you have an AOL?
no
But cheeky I believe you agree that, in reality, there is only one side to the political arena. Two parties? Smoke and mirrors.
There's only two things I can't stand in this world. People who are intolerant of other people's cultures... and the Dutch!
http://www.youtube.com/watch?v=JaUVQkSdPGI&feature=related
2nd
Some may argue that the Cheeky (+,-) point system is re-posting garbage. Might wanna pipe down, TD has banned people for less.
Well, this fathead is 4% right. Sniff housing and you ARE sniffing something. But you certainly miss the big picture. It's not about HOUSES, it's about HOUSING.
All--ALL--the U.S. is, is maintenance of its dinosaur housing establishment. This monster sucks up the cash. We built the Frankenstein that is now going to destroy us. Nothing can prevent that.
08/11/2009 18:17 *DJ First Federal Bankshrs: OTS Considers Co 'Significantly Undercapitalized'
08/11/2009 18:17 *DJ First Federal Bankshares 4Q Loss/Shr $5.46 >FFSX
08/11/2009 18:17 *DJ First Federal Bankshrs: Mgmt Believes Co's Auditor May Express Going Concern Doubt
08/11/2009 18:17 *DJ First Federal Bankshrs: OTS Considers Co 'Significantly Undercapitalized'
that is some bad weed
Keep your eyes on the FHLB system. That's next big thing to become 'insolvent', at least when their equity is zero'ed out...on paper.
I think the Seattle FHLB is technically insolvent. Or it was until the accounting rules changed.
ghost,
Used to commute to work with somebody who worked at one of the FHLB branches. He was telling me in January that 10 out of 12 branches would be technically insolvent if FASB 157 was not amended as each would have significant OTIs without amendment. I kept quiet about it to protect his anonymity. Within a week or less, I overheard several FAs talking about it at work. I guess I was the only one keeping it quiet.
The Rate Lab report is important. It is loaded with mumbo jumbo intended to generate more support for subsidies for the GSE's so that the pitiful holders of GSE investments are further subsidized.
The GSE's are proven disasters resulting from the government meddling where it does not belong.
We have to bite the bullet. Let these monstrosities die and RIP. So what if so many trillions of other peoples money goes up in smoke. They made the mistake of putting their money where they did.
The government needs to withdraw it's intrusion into business.
What disturbs more sophisticated financiers is the behaviour of The Federal Reserve. They think the Fed has become chock full of loans to questionable institutions backed by collateral they are not willing to talk about. And to make matters worse, the Fed is purchasing GSE securities backed by depreciating collateral.
These financiers are not neophytes or fools.
Cloaked divestiture of USD holdings are a priority. Got to be careful, under the radar.
"We have to bite the bullet. Let these monstrosities die and RIP."
It's far too late for more talk. Now is high time for the mass public to realize that "we" have zero say in how taxpayer money is truly being used (with the exception of sporadic government social programs). It's great to debate on various TV shows and MSM papers about whether Bernanke/Paulson/etc was the saviour or the fool last year. And about what "we" should do about the messes that the Government has already gobbled up and put control of right in the hands of the Banksters. And so on, and so on - feeling like "we" can influence a solution in the slightest way.
The outrage about the Fed should now be at palpable levels. At such a point where the discussion is no longer what their next move "should" be, but how to disassemble it. We all can talk and yell until we're blue in the face about this policy of theirs, or the fallacy of that solution... The truth is that all the major decisions are, and have been, made behind the scenes by private parties with their own interests at heart - not the country's. The Fed has had the major hand in causing these wild economic swings, and the banks control the credit/money supply to reinforce the game. There is no "risk" anymore to the connected financial institutions. The government now has agencies to use to facilitate transfers. Massive, mind-blowing financial transfers. All made possible by changing/implementing "acts" in Congress - written by and lobbied for by the banking interests made to benefit.
Maybe because the rise of various "blogs" have shown the revolutionary power of the Internet on communication, and ZeroHedge along with a few others have brought about needed attention on issues that caused reaction (and acknowledgement) by the MSM - and subsequent action by politicians/officials... It gives hope to the masses that no longer can the dominant Media solely control information distribution. People can choose what to believe and what to dispute or research further. And possibly draw the attention of the officials who will take a stand.
HR 1207 is an awesome start to expose the Fed. Hopefully it is just the start; the first minor step. I couldn't agree more with the posts above by Bubby and Ghost (and of course others in prior topics). Now is a great time to shine a bright light on the transgressions by the Fed and the transfers going on with taxpayer money.
gilgamesh,
when you're right, you are very right. HR1207 is a nice start.
SRS SKF up
FNM FRE up
Something about that relationship seems disfunctional.
I like the way you deliver Pizza Man. Bonus points for anyone who identifies the peculiarity.
I don't think there is a reason for it. It's a temporary dislocation IMO. I own SRS/SKF and sold calls on FNM/FRE today.
Hopefully it works out.
You cannot deliver pizza to yourself so no bonus points!
Oh yea, your answer is incorrect anyway.
The right answer....
FNM/FRE are not components of either SRS or SKF
c'mon, haven't we been over this? if you don't understand the ponzi scheme funds, don't trade them
?
SRS tracks the Dow Jones Real Estate index - no FNM/FRE in there
SKF tracks the Dow Jones Financial Sector index - no FNM/FRE in there either
Wow, Harley freaking Bassman, I haven't talked to him since 1989. Figured him for dead since he was always insane. Now he has proven he is. We were the few elite institutional options on MBS traders from way back when. Glad to see he is taking his meds after reading this tripe.
Comb throug the portfolios of the insurance comapanies and you will see quickly why the gse are not going away or let fail. Ygr insurance sector on the brink has recoverd from variuable annuity shock and us too tenuous to create another coronary
At this point I wouldn't even care if the bond and preferreds got paid off in full by the taxpayers. As long as we get rid of those monsters.
FUCK MERRILL LYNCH. AND BANK OF AMERICA
But what about all those soon to be out of work dis-enfranchised Credit Managers what will they do? Start a financial blog?
http://articles.moneycentral.msn.com/Investing/JubaksJournal/chinas-reco...
http://www.financialsense.com/Market/dorsch/2009/0811.html