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Recession "Over" As Consumer Bankruptcies On Track To Hit 1.6 Million Total For 2010

Tyler Durden's picture




 

After declining in August by a solid 8%, September consumer bankruptcy filings once again are on the rise, with the monthly total hitting 130,329, 4.4% higher than the prior month. Overall, YTD bankruptcies of 1,046,449 are 11% higher than compared to the same period last year, as America revels in its newly found post-recession reality by going straight to bankruptcy go and not passing go. As Dow Jones reports, "the bankruptcy filings so far in 2010 represent the highest total since 2005" and are on track to hit 1.6 million by the end of the year. Can someone please forward this data over to the nice Ph.D.'s over at the NBER to whom timing recessions is now apparently nothing but a joke. 

Log scale representation of bankruptcies:

From the American Bankruptcy Institute:

U.S. consumer bankruptcy filings totaled 1,165,172 nationwide during the first nine months of 2010 (Jan. 1-Sept. 30), an 11 percent increase over the 1,046,449 total consumer filings during the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The consumer filings for the three-quarters of 2010 represent the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to try and stem the tide of filings.
 
“While the 2005 bankruptcy overhaul law aimed to reduce filings, overall consumer debt and continued financial stress have led to consumer bankruptcies climbing back to pre-BAPCPA levels,” said ABI Executive Director Samuel J. Gerdano. “We expect that there will be nearly 1.6 million new bankruptcy filings by year end.”
 
The overall September consumer filing total of 130,329 was 4.4 percent more than the 124,790 consumer filings recorded in September 2009. The September total also represented a 3.3 percent increase from the August 2010 total of 127,028 consumer filings. Chapter 13 filings constituted 30 percent of all consumer cases in September, a slight increase from August.

It was unclear as of the time of this posting, how many of the 1+ million consumer bankruptcies were filed by current or former Wall Street employees.

 

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Mon, 10/04/2010 - 17:11 | 624502 Turd Ferguson
Turd Ferguson's picture

Apparently, Jim Sinclair has figured out that this is pretty important...


The Day Securitized Debt On Mortgages Died

Posted: Oct 04 2010     By: Jim Sinclair      Post Edited: October 4, 2010 at 4:53 pm

Filed under: General Editorial

Dear CIGAs,

The following is BREAKING NEWS:

Racketeering suits (RICO), now as civil class action suits in two states, have hit the nail on the head. The civil suit says the banks do not have proper title to the homes on which they are foreclosing. This by direct inference questions if securitized debt on mortgages have real collateral behind them.

Simply stated a long time ago by Marie McDonnell and myself, THEY DO NOT.

That means legacy assets are cooked, dead, and worthless, yet are now marked up in value to cost and above. This is all thanks to FASB’s capitulation that now represents a large amount of capital for the Western world’s financial entities.

The you know what hit the fan today for those that understand. October 4th 2010, the essence of securitized debt on mortgages died!

That alone gives you gold at $1650.

Mon, 10/04/2010 - 17:15 | 624508 TheMonetaryRed
TheMonetaryRed's picture

So massive deflation = Gold to $1650. 

Okay. 

And what will the Gold/CRB ratio be?

Eh, who cares. Gold to $1700. 

 

 

 

Mon, 10/04/2010 - 17:21 | 624519 Hephasteus
Hephasteus's picture

Massive INFLATION.

Debt debt debt = securitized. It's commodity backed money.

Debt debt debt = nothing. It's zimbabwe.

Mon, 10/04/2010 - 17:30 | 624532 TheMonetaryRed
TheMonetaryRed's picture

But how does default - which is what we're talking about - lead to inflation?

Default is not debt. Default is...anti-debt, I guess. 

 

 

Mon, 10/04/2010 - 17:34 | 624541 Hephasteus
Hephasteus's picture

They are freaking banks. They don't default EVER. They just print money. Same with a bank run. If there is a bank run you'll get a really good look at what our economy looks like with an extra 400 billion of M0.

Mon, 10/04/2010 - 17:44 | 624559 TheMonetaryRed
TheMonetaryRed's picture

Well, fair enough if they weren't securitized loans. 

These are securitized loans, which have generally been taken off the books of banks (although by no means all of them). So...I'm not absolutely following you here. 

 

 

Mon, 10/04/2010 - 18:49 | 624637 Hephasteus
Hephasteus's picture

Ok. Let me try to explain this to you. They take all these mortgages, all these credit card debts all these, all these studen loans, all these commercial real estate "asset" backed securities.

http://en.wikipedia.org/wiki/Securitization

Ok look under taxonomy. Bonds are issued backed by the cashflow from one of these securities classes. In this case mortgage backed securities. Once the underlying security legally implodes around these. Then the entire bond market implodes. As some portion of nearly 10 trillion in debt is instantly converted from secured to unsecured. This leaves a 3 trillion dollar hit If it's that big to china, japan, and UK. Only it doesn't because you can NOT have international settlements unsecured. This I think takes us to resecuritization. Which means issuing bonds in foreign currency most likely.

Now you got all these countries manipulating currency. Trick is america and UK have less gold than thier currency says they do. Everybody else has MORE gold than their currency says they do. This leaves you hunting gold in the open market with dollars and whatever foreign reserves you have.

This is instant rise every currency relative to the dollar and instant plummet of the dollar. It will likely take upwards of 2 thousand euro's to buy an ounce and upwards of 5k dollars to buy an ounce. I don't have any idea what it will be to GPB but it's going to take a big hit in the nuts.

No matter how it goes down or what legal fights ensue. The forex markets are toast. Well scratch that. Countries don't do legal battles. They fight with weapons.

9/09/09 It was announced that all the oil producing countries were decoupling from the dollar.

10/10/10 That process will likely be done. Now is the decoupling happening in truely sovereign states or is it happening in cia controlled puppet states. Depends if Iraq installment holds, Pakistan is still a problem and Afghanistan is doing what it does. Kill empires. I don't know if Iran can hang long in a fight but I'm thinking they will fight like they just don't give a damn what happens.

Tue, 10/05/2010 - 01:17 | 625191 TheMonetaryRed
TheMonetaryRed's picture

Okay, but the process you're talking about - of a defaulting bond market forcing investors to take haircuts - is clearly deflationary. 

In terms of the currencies' being backed by gold - or the U.S. and U.K. having to go and find gold to back their currencies, that's from the 30's, when there was a gold standard. There isn't a gold standard any more. 

 

 

Tue, 10/05/2010 - 11:41 | 626036 Hephasteus
Hephasteus's picture

There is a global fractional reserve gold standard for all international settlements whether you believe it or not or like it or not. All currencies move relative to gold. And our decades of low gold priced in US dollars were bought by running a good money for bad scam of massive depreciation of the us dollar WHILE it was in foreign hands used as reserves.

The cia and IMF taking over countries installing dicators, loaning them dollars to build stupid shit has kept the dollar decline in check long enough to make everyone think everything is working while it slowly eroded the dollar to what it is today. A lame duck currency.

China and Japan are not going to take a 100 percent hair cut on bonds.

Mon, 10/04/2010 - 20:04 | 624726 Implicit simplicit
Implicit simplicit's picture

Default doesn't lead to inflation, and the whole inflation/deflation debate is overcooked. There are more than two colors (black and white) in the spectrum, and they vary according to many input economic and psychological variables. Depending on the asset, time, and place inflation and deflation coexist just as yellow sunshine some places appears red over the horizon from further west or east.

Right now, some hard asets like grains, gold, rare earth metas  etc... seem to be inflating while real estate, consumer goods, debt, etc... seem to be deflating; this all happenning in a precarious balancing act  teetering on an inflection point.  

Mon, 10/04/2010 - 17:27 | 624529 tmosley
tmosley's picture

In deflation, money goes up in value, so yes, gold to $1650 and beyond.  Debt goes down in value, as it will not be repaid.  Dollars aren't called Federal Reserve NOTES for nothing.  They aren't the type that you passed back in 3rd grade.  These are notes as in DEBT.

Mon, 10/04/2010 - 17:32 | 624534 TheMonetaryRed
TheMonetaryRed's picture

Okay, I'll bite. 

Let's say you have a 100 dollar federal reserve note in your pocket. 

Okay, now who owes you what?

Mon, 10/04/2010 - 21:11 | 624719 Red Neck Repugnicant
Red Neck Repugnicant's picture

To understand how your $100 bill is actually a debt, read this:

http://www.michaeljournal.org/fedreserve.htm

Here is another article which you might find interesting:  

http://www.the-privateer.com/paper.html

It chronicles how paper money evolved from an instrument of debt (an IOU) redeemable for tangible gold, to merely a worthless piece of paper with nothing but faith as collateral. 

It is the greatest scam in the history of this country.    

 

Mon, 10/04/2010 - 22:21 | 624926 Jerome Lester H...
Jerome Lester Horwitz's picture

Or you could read this monograph written by Edwin Viera.

http://www.fame.org/HTM/Vieira_Edwin_What_is_a_Dollar_EV-002.HTM

Tue, 10/05/2010 - 01:12 | 625185 TheMonetaryRed
TheMonetaryRed's picture

GUYS, I've read that stuff. 

The question is this: As of NOW, if I have a 100 dollar federal reserve note in my pocket WHAT AM I OWED AND BY WHOM - now, not then, now, actually, not ideally, actually. 

If the 100 dollar bill doesn't mean anybody owes me anything, then it's not a debt instrument. 

Tue, 10/05/2010 - 04:17 | 625254 Red Neck Repugnicant
Red Neck Repugnicant's picture

The fact that you would ask what am I owed and by whom proves that you didn't read the articles.  

Seriously.

Take some time some evening, read the articles and do some research - your perception of money, and the ominous role of the Fed will change forever. You should also pay attention to the posts of Trav777 -  he's an exceptionally arrogant prick, but he has a solid understanding of what money really is and he takes time to explain it clearly.   

By having that $100 bill in your pocket, you are the one in debt.  That bill belongs to the Federal Reserve, not you.  Your government (Congress and the Treasury) borrowed it from the Federal Reserve at face value, plus interest.  Once it was borrowed, it was put it into circulation for your use. You think that $100 bill is an asset of yours?  That $100 bill represents the slow, methodical transfer of wealth from you to the Federal Reserve. Think it through for a minute: if the Fed sells money, someone must go into debt to buy it.  As a tax-paying citizen, that someone is you.

If money is debt, then what the fuck is interest on that money?  How is interest ultimately created?  If interest is money, and money is debt, then more debt is created to pay interest.  It is a very shrewd and crafty cycle of eternally increasing debt that will gradually move all assets to the Fed like a neutron star.   

You need to understand how money is created and goes into circulation.  It enters the economy as debt, backed by nothing but faith that the monetary charade orchestrated by our government and our Fed can continue indefinitely.  Any debt requires interest...which is simply more money...which is more debt...which requires more interest....etc.....

Once you understand that money is issued as debt, then you need to wrap your brain around this:  on a long enough timeline, all assets become the property of the Federal Reserve - they win the game of Monopoly.  If you can understand that, then you will truly understand how money is debt.     

 

 

Tue, 10/05/2010 - 12:29 | 626194 blacksheep
blacksheep's picture

That is a very clear explaination of this complex situation. Thanks.

Mon, 10/04/2010 - 17:18 | 624513 traderjoe
traderjoe's picture

Institutional firms have to be ramping up their examinations of their RMBS to see if title was properly transferred in. Rumor has it that virtually none of the Countrywide titles were ever transferred. 

Mortgage investors will be suing the TBTF banks, etc. in order to prove the RMBS offerings were fraudulent. The TBTF banks will lose after years of lawsuits (if we ever get there).

Of course, the MSM only focuses on the very small aspect of this - just the fraudulent affidavits. The mortgage documentation issues are massive, including MERS. 

This will be huge as the onion gets pulled back...

Mon, 10/04/2010 - 17:33 | 624537 TheMonetaryRed
TheMonetaryRed's picture

I completely agree and it seems to me that all this default will lead to deflation. 

But this leads to a high gold price how?

Mon, 10/04/2010 - 17:42 | 624556 traderjoe
traderjoe's picture

I personally think people are focused too much on the deflation v. inflation question. They will be one and the same, IMHO - as a currency collapse is both inflation and deflation at the same time (or followed so closely together as to be indeterminable). 

If the banking system collapses, that will be 'deflationary' but confidence will be lost in the currency which will by hyper-inflationary. You'll see a rush to hard assets like gold, grains, oil etc., etc. 

If the ultimate end-game is a currency collapse (which you may or may not agree on), then this will be 'inflationary'. In our current fiat, debt-based fractional reserve system, there cannot be meaningful deflation without a banking collapse.

"Hyper-flation". 

Mon, 10/04/2010 - 17:48 | 624565 TheMonetaryRed
TheMonetaryRed's picture

Fair enough. 

There's no question that, historically, governments have responded to deflationary crises with massive paper-printing. But they've also responded to deflationary crises with massive default - whether the constructive default of "restructuring" or outright default.

See, I'm different from the crowd here. I see the path of least resistance as one of a monetization/restructuring/default program where today's debt becomes tomorrow's liquidity to soak up yesterday's debt.

Lots of historical precedent for that.  

Mon, 10/04/2010 - 17:40 | 624551 Ripped Chunk
Ripped Chunk's picture

+ 100  Shaping up to be the biggest cluster fuck of all time (until the next one of course)

Everyone wanted into the game. And the game was moving at a really rapid pace as the dollar value and number of mortgages outstanding exploded causing values to balloon. No one was checking on the legalities and eventualities. Investors thought these securities worked the same way GNMA's & FNMA's worked in "the old days"   WRONG!!!!!!

 

Mon, 10/04/2010 - 17:56 | 624574 TheMonetaryRed
TheMonetaryRed's picture

This is an essential point:

The whole securitization game relied on the assumption that things were going to remain very orderly and "gentlemanly".

The way I see it, these SIVs, SPVs and QSPEs are like Panamanian-flagged cargo ships off the Somali coast. It's all well and good to flag your ship in Panama (and pay your crew crap wages and dump your oil whenever you feel like it), until you get attacked by pirates, in which case the Panamanian navy is not going to be much help to you. 

When these jokers call their Cayman Islands trustee, I'm betting they're just gonna get "All Circuits Busy At This Time." 

Mon, 10/04/2010 - 19:39 | 624697 Miss Expectations
Miss Expectations's picture

I'm just waiting for the feds to invent some sort of US Mortgage Certificate of Authenticity with raised seals and blue ribbons that they will use to replace the missing, destroyed, falsified, non-existent, damaged, fraudulent titles of today.  Each one will cost the banks $10,000 (or less).  Of course, these certificates will be backed by the full faith and credit of the US government.  At which point, I leave town.

Mon, 10/04/2010 - 19:32 | 624687 Implicit simplicit
Implicit simplicit's picture

If the gov. boys sweep this fiasco under the rug to save the banks, then the US has completed its transformation into a definitve fascist country.

Mon, 10/04/2010 - 19:33 | 624690 Fred Hayek
Fred Hayek's picture

Does this mean that millions of average americans got "VIP" (verification ignited previously) loans and that they should consider themselves friends of Angelo?

Mon, 10/04/2010 - 17:14 | 624506 treemagnet
treemagnet's picture

Anybody got a an update on the foreclosure mess - this is my new favortie topic....just think of the possibilities!

Mon, 10/04/2010 - 17:20 | 624515 mynhair
mynhair's picture

Denninger has 2 new posts today.  Full text of the Kentucky suit, too.

http://www.market-ticker.org/akcs-www?post=168144

Mon, 10/04/2010 - 18:16 | 624602 Bob
Bob's picture

Karmic justice is life's most GLORIOUS bitch . . . bitchez!

Thanks for the link.  Didn't know that ground zero on this issue might be elsewhere in blogland.

Mon, 10/04/2010 - 21:36 | 624850 ThreeTrees
ThreeTrees's picture

Only appropriate response is hysterical laughter.

Mon, 10/04/2010 - 17:19 | 624516 gwar5
gwar5's picture

I'm with you on this, if you're thinking of the possibilities of nailing some properties.

...They're all on hold in the 23 judicial states. I'm looking to see which ones those are. Ever heard of a Mariner's lien?

Mon, 10/04/2010 - 18:02 | 624586 Hansel
Hansel's picture

I was considering finding a vacant house with a title assigned to MERS that is owned by a bankrupt entity.  MERS can't foreclose as the bankruptcy trustee is the only one who can assign the mortgage, and I'll be betting on them not noticing.  Then, pay property taxes long enough to take adverse possession.

Mon, 10/04/2010 - 19:36 | 624694 Fred Hayek
Fred Hayek's picture

In Massachusetts, I believe adverse possession requires 19 or 20 years of open and notorious use of land.  But owners can restart that clock at any time by sending out a letter that says, "Hey, get off that land" even if they don't really do anything about it.  Of course, the letter might have no force if it's issued by a bank that doesn't really have title.  Still, 19 years is a long time.

Mon, 10/04/2010 - 21:17 | 624814 MachoMan
MachoMan's picture

Maybe I'm missing the significance of this, but what's new about it being illegal/unenforceable to pretend to own a parcel and try and foreclose on it?  The reason everything must be halted is to ensure that future hiccups are not made and they lose the ability to foreclose as a punishment for the fraud on the court.  Prospectively, all this means is that they have to get their shit in order before they foreclose (this means infighting amonst all of the lineage of assignees and assignors of the mortgage mess).  Once it's sorted out, there will still be a party that is entitled to foreclose...  there is a person/entity that has the right to do so presently...  it's just that this time around, they'll make sure their i's are dotted and t's crossed before defrauding the court.  (and coach your client to say "yes, i verified everything in the document i swore i verified").  They'll take a mulligan (and a slap on the wrist) and go on.

Now, retroactively, they may be in a world of hurt as there's no telling how many foreclosures may be recalled/rescinded and redone...  practically speaking, I think there is limited opportunity to put the former owner back in the home simply because you likely have a BFP who has been living there for...  years? and making improvement(s) to the property.  Also, what damages does a foreclosed owner have?  Could he/she have actually redeemed the property anyway?  So long as there is a BFP out there, I doubt these get overturned en masse and the BFP booted onto the street.  However, if this stuff was foreclosed and then sat in shadow inventory (shouldn't have, no point in foreclosing if you're not going to sell...  no point in recognizing the loss if it's just going to sit on the shelf), then they may also be in a world of hurt...  there would be no disinterested intermediary and, well, the banks have a bit of a PR problem anyway.

Retroactively speaking, if the jurisdiction were to hold the foreclosures void ab initio (really good shot), even the BFP may be ousted...  never know.

The other issue that most people aren't discussing is that the property taxes on the foreclosures are going to accrue before this mess gets sorted out....  as a result, you'll likely have properties certified to the state and sold to a new BFP while all the other turmoil is going on...  I think this is your real recipe for disaster...  then you would have a total divestment from a third-party (not in the chain of assignee/assignor).  That is your doomsday scenario.  In other words, banks have always had a limited life span to offload these properties...  the underlying economic conditions fell faster than they could recapitalize...  and now they're in for pain, one way or the other, in the fairly near future.  Generally takes 5 years here start to finish on nonpayment of property taxes til tax sale...  but I figure this process will...  speed up as municipalities get more and more desperate for tax revenue and banks get more and more desperate to cut costs, failing to pay the tax on the property still technically owned by a defaulting mortgagor.

Mon, 10/04/2010 - 20:55 | 624770 TheMerryPrankster
TheMerryPrankster's picture

Texas Attorney General asking for foreclosure moratorium and names of robosigners.

http://www.chron.com/disp/story.mpl/ap/business/7231699.html

 

AUSTIN, Texas — Texas Attorney General Greg Abbott is asking loan servicing companies to suspend all foreclosure activities over concerns about the accuracy of foreclosure documents.

In letters sent Monday to 27 companies, Abbott's office demands the immediate suspension of foreclosures, selling foreclosed properties and evicting people living in those properties.

The letter says by Oct. 15, the companies must identify any employees who participated in "robosigning," a practice in which individuals sign thousands of foreclosure documents without reading them or reviewing their contents.

Attorney general spokesman Jerry Strickland says Abbott's office is investigating the companies.

 

Mon, 10/04/2010 - 17:14 | 624507 gwar5
gwar5's picture

They must figure they saved or prevented 5 million bankruptcies and so things are good.

Mon, 10/04/2010 - 17:20 | 624518 Djirk
Djirk's picture

This makes feel all warm and bullish! (obviously not for financials)

Clean out the bad debt (fictional paper value) and consumers will have more free cash flow for (non leveraged) consumables.

Warning may cause short term pain, premature greying, increased porn and dizzyness.

Mon, 10/04/2010 - 17:22 | 624521 London Dude Trader
London Dude Trader's picture

Waddell and Reed is responsible for the surge in bankruptcies

Mon, 10/04/2010 - 19:37 | 624695 Fred Hayek
Fred Hayek's picture

I went running.  I think I have a blister now.  Damn you Waddell and Reed for doing that to my foot!

Mon, 10/04/2010 - 17:22 | 624523 John McCloy
John McCloy's picture

Hey great news. Mr. Bernanke has saved America with his stock market rallies, record low rates, 0.5% interest to savers who keep money in their savings and as pointed out before " record housing affordability". 

 

Mon, 10/04/2010 - 17:25 | 624524 Dismal Scientist
Dismal Scientist's picture

Paulson will buy all your houses, he loves real estate. He's a guru, apparently.

Mon, 10/04/2010 - 17:33 | 624535 John McCloy
John McCloy's picture

  Yeah dont you find it remarkable that "The Man who saw the housing crash" and fallout in the subprime CDO's dominos has just been giddy to purchase stocks since last summer..and banks for that matter. 

Even though the fundamentals and economy are significantly worse. It is as if he is in possesion of information that we are not and has been in possession of this information and had strict assurances from Ben that QE and market manipulation by the Federal Reserve in conjunction with the "Big Short Turned Bull" Paulson himself and his statements last year talking his book in an effort to alter sentiment was all part of the plan of simply creating a market completely reliant upon turning the perception of the market into a riskfree environment with the normalcy it once possessed.

   I am still adamant in my belief that Paulson while being short was working along with Goldman to naked short the banks last year in order to expedite the crash in the market. They were working together to pick apart the weak of the herd to cause the crash. What else can be taken away from a market that would not cease going down and in the same manner refuses to go down. They killed AIG to force a payout.

Mon, 10/04/2010 - 18:07 | 624591 Dismal Scientist
Dismal Scientist's picture

The only bit that doesn't stack up is the new found love for real estate; unless he has a significant counterhedge on in another part of the real estate spectrum. Or he's found loads of houses with gold buried in the back yard that have been foreclosed on. Something stinks to high heaven here. The stock long is/was a trade, at the end of the day. Real estate, less so.

Mon, 10/04/2010 - 17:33 | 624539 johngaltfla
johngaltfla's picture

Hmmm. But it's no big deal. Rally to 1400 just for Abby Joseph so we can all watch her and Maria exchange fake orgasms on air.

 

 

Mon, 10/04/2010 - 17:36 | 624545 RobotTrader
RobotTrader's picture

Poor Jim doesn't get it.

If an "OTC Derivatives" death spiral hits risk assets...

Gold will get dumped en masse along with everything else.

In the words of Bob Brinker:

"When the paddy wagon pulls up to the house of ill repute, everyone goes, including the piano player"

 

 

Mon, 10/04/2010 - 17:39 | 624552 Hephasteus
Hephasteus's picture

Then why didn't it drop again on 2nd dip of the great depression. You need to ask yourself why because the answer depends on you being broke or not.

Mon, 10/04/2010 - 17:55 | 624572 EscapeKey
EscapeKey's picture

Yes - paper gold.

However, large scale investors and central banks are still lining up for physical delivery.

It could ultimately lead to decoupling of the physical and paper markets.

Mon, 10/04/2010 - 18:59 | 624646 tip e. canoe
tip e. canoe's picture

<esc> is right.  again robo, imho, you & FOFOA are describing the exact same phenomenon from opposite POVS.   you don't have to admit it, just think about it.

Mon, 10/04/2010 - 17:37 | 624546 TheMerryPrankster
TheMerryPrankster's picture

As W.C. Fields once said " "I'm a broad-minded man, gents," 

"I don't object to nine aces in one deck. But when a man lays down five aces in one hand... and besides, I know what I dealt him!"

 

Bernanke's dealing aces, yet Bankruptcies are up, food stamps are at record high of 40 million Americans, and one in 5 houses is under water.

les bon temps roule

let the good times roll.

Mon, 10/04/2010 - 18:24 | 624613 Bob
Bob's picture

Divine comedy!

Mon, 10/04/2010 - 17:37 | 624547 carbonmutant
carbonmutant's picture

The 2005 attempt by Congress to discourage filings under chaper 7 of the US Bankrupct Code is gonna have a long tail...

Mon, 10/04/2010 - 18:35 | 624628 Bob
Bob's picture

Those subprime ARM's at 105% at origination--and subsequently encumbered with second and thirds at mark to fantasy--are now, in the new world of massive unemployment that the fraudulant MBS explosion spawned, gonna yield a tsunami of Chapter 7's that they did not foresee, me thinks.  Not to mention RICO. 

Nice try, bankster bitchez!

 

Mon, 10/04/2010 - 18:40 | 624634 Rainman
Rainman's picture

....yeah, what a curious turn of events for the boyz and their well financed regime. I suppose they saw the backfire coming soon and thought they could get blood from stone. Another unfortunate miscalculation. 

Mon, 10/04/2010 - 19:28 | 624682 Implicit simplicit
Implicit simplicit's picture

The banks got their bailout, now the masses are taking their's. What goes around, comes around.

Payback is a bitch.

Mon, 10/04/2010 - 21:00 | 624781 UncleFester
UncleFester's picture

Bob, Rainman, et al,

Did you ever stop to consider that bankrupting the entire nation was exactly what the banksters wanted in the first place?  This is how they instituted SS in 1933.  You were tagged and released onto the reservation at birth, and promised as collateral in a national loan.  This is not good, not good at all.  Declaring bankruptcy is not "sticking it to the man", it is sticking your children with an RFID chip.

Mon, 10/04/2010 - 22:24 | 624934 Bob
Bob's picture

Nope. 

Mon, 10/04/2010 - 17:38 | 624549 Thunder Dome
Thunder Dome's picture

THE BANKS OWN YOU!!!

Mon, 10/04/2010 - 17:41 | 624553 JR
JR's picture

WHY I DESPISE KRUGMAN by Gonzalo Lira 10/04/10

Recently, I wrote a take-down of Paul Krugman.

I pointed out how, in some of his recent posts, Krugman was distorting facts in order to score points for his policy prescriptions. I showed how he was pulling sleight-of-hand with the numbers, so as to play on readers’ misconceptions, and thereby make his rather foolish policy prescriptions sound reasonable.

In short, I showed how unreasonable his policy prescriptions really were, capping my read on him as follows: A man who would never tell the truth, when a lie would serve him just as well.

But as I wrote my rebuttal to Krugman’s recent posts, I was surprised to feel a blazing anger towards the man – not towards his policies, or even towards his less-than-honest attempts to fudge facts in order to score points –

        I found that I despised Krugman: With a passion. … More…

http://www.lewrockwell.com/orig11/lira6.1.1.html

Mon, 10/04/2010 - 23:24 | 625030 williambanzai7
williambanzai7's picture

NBER--Bankruptcy clerkships are showing a steep upward trend...

Tue, 10/05/2010 - 00:52 | 625159 Youri Carma
Youri Carma's picture

Consumer bankruptcy filings climb 11% 4 October 2010, by Alistair Barr (MarketWatch) http://www.marketwatch.com/story/consumer-bankruptcy-filings-climb-11-2010-10-04

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