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4 down as of 6:30 pm
7 last week and 'only' 4 (and counting) this week.. Tyler, if we hold at sub-7, does this count as an improving second derivative?
This is a green shoot right? S&P 1250 on Monday?
just stopped paying my chase card after they jacked up the rate to 28%
will stop paying citi next week
and capital one the week after
Total contribution = 80K
I had 800+ credit just two months back and wish I had opened more credit cards back then....Never thought I will get out of debt this easy.....filing for unemployment claim next week...
REMEMBER IF WE ALL DEFAULT AND STOP PAYING THEM AT THE SAME TIME IT WILL MAKE A DIFFERENCE....BANKSTERS HAVE HIGHJACKED OUR GOVERNMENT OFFICIALLY OR THIS WEBSITE WOULD HAVE NOT EXISTED.....GOD BLESS TYLER AND LETS FURTHER PROJECT MAYHEM..
Just opened DELL PREFERED ACCOUNT AND THEY APPROVE ME FOR $2000 via CIT...YEAh BABY, CONSUMER SENTIMENT WILL BE UP BABY....BUT SOMEONE WILL HAVE DEFAULTS INCREASE BY $2000
In normal times I would have called your behavior woefully irresponsible.
Today, I call it Civil Disobedience on a par with anything about which Thoreau wrote.
If GS can pay record bonuses after taking in $56.7 billion in direct and indirect gifts from the taxpayer, anything goes if it somehow levels the playing field in some small way.
Think about it as you've just paid yourself a bonus!
You may be able to get into a LOT more cards before Equifax catches up, so don't stop now.
You're on a roll . . . sounds like a rational business decision to me. You're selling your credit rating.
You might want to pick up the best cell phone you can get on an off-brand service soon . . . you won't be getting another one for a while and your old number will be getting blown up night and day by those pesky creditors.
These are more small fry. I want a whopper!
You didn't get the memo? Whoppers happens in October.
Citibank Aquired by... www.Lampoon.me
I can't believe Guaranty Bank is going to live for another week.
The FDIC just can't afford it, I guess.
FDIC been out of money for a long time. It's a shell game.
actually not....they received a fresh infusion
of 500b usd from congress a few weeks ago....
they received this money about the same time
that the sham(e) stress "tests" declared the
banks safe and sound....
row row row your boat gently down the motherfucking waterfall of all the free money that evaporated in the past 2 yrs ( I've officially gone insane )
Lloyd...LLOYD! Wake Up, Lloyd!
It's only 23TRILLION dollars.
and a couple of billion in spare change left as a tip to GS and the boys ...
agreed on Guaranty
unfortunately Guaranty keeps dragging everyone along and making facility participants scramble on every renewal they're in. We tried to buy debt at a discount from another failure, but it has taken so long that's been a waste of time. After this experience with the FDIC I have little faith in their ability to execute said programs going forth.
$200MM +/- in total cost to DIF.
Keep an eye on Corus and Guaranty Bank. The following list by Weiss is useful:
Wow, that's a lot of banks in the failure pipline.
No wonder there are rumors floating around of a bank holiday this fall.
TD you're really grasping at straws here. 2500 banks should have failed by now. You're saying this little faux announcement means something. The meaning occurred quite some time ago.
Every journey is comprised of individual steps.
how on earth is a coneyance of a fact without commentary grasping at straws?
Easy. The fact is of so little significance that it i not worth conveying. That's true of a lot of what you report. You're on the outside looking in. When unemployment hits 50% you MAY be on the inside looking out. But not necessarily even then. You should be more realistic about the current state of things, and what counts as "news." The government has its GDP "news" and you come back with your bank failure "news." When the reality is that none of it matters, and nothing can be done with this "news." No on is going to move until the system collapses.
you must have very good eyes.....
about the only thing that is insignificant is you...go somewhere else if you don't like what you see dipshit
i'll just pull down my shades, thank you.
But he's right. You've got a pure fascist economic play going on now in the Federal Government. The line is drawn. How do you propose to cross it? By providing "clarity" to investors and reporting four bank closures? Get serious with your political solution. Otherwise you're just small fry.
"July 16 (Bloomberg) -- Federal Deposit Insurance Corp. Chairman Sheila Bair told lawmakers that 500 more banks are at risk of failure “unless something dramatic” happens, Senator Jim Bunning said.
Bunning, a Kentucky Republican, said at a Senate Banking Committee hearing today that he had “just” left a meeting with Bair in which she made the statement. "
They are low balling the figure.
what is more dramatic than 500 banks in standby for failure ?
Dickweed, the rest of the article reports that she did not say that...
An FDIC spokesman, Andrew Gray, disputed Bunning’s recollection of the meeting.
“In both public and private settings, the chairman and the FDIC is always careful to not make predictions on the number of upcoming bank failures,” Gray said in an e-mail. “No estimate” was given during the meeting, which took place last week, Gray said.
“We would regret any miscommunication, but she did not say that,” Gray added.
An FDIC spokesman, Andrew Gray, disputed Bunning’s recollection of the meeting.
“In both public and private settings, the chairman and the FDIC is always careful to not make predictions on the number of upcoming bank failures,” Gray said in an e-mail. “No estimate” was given during the meeting, which took place last week, Gray said.
“We would regret any miscommunication, but she did not say that,” Gray added.
There wasn't any miscommunication. You can bet the bank on that.
You know we are in deep trouble when the FDIC runs commercials adds begging people to keep their money in the banks.
It is best to be safe the sorry. Take some money out of the bank and keep it in the safe. Just in case.
you should REALLY look up the definition of what NEWS mean ... you're way over your head here you GE/GS/ACORN bitchwhore ( yes i insult people, but only when they insult themselves first with their ignorance )
21450....sorry pal, but your paragraph sounds like the runnings on of a shroomed out kid at a phish festival. other than that, it was fantastically nebulous.
thanks for pitching in!
You better pipe-down or you're going to get banned from posting comments.
You sound like all the lenders 3 years ago. Predicting a new world of Real estate where underlying value was unimportant and neg equity loans were the norm. Good luck with that strategy.
The meaning occurred some time ago? Are you just an idiot or is it a legal requirement for you to think that everything is peachy while you lose peoples money in the market?
Maybe he's saying that he's SOL and unemployed like me and most of my friends... in that light, the numbers really don't matter that much.
Shouldn't be surprising that a lot of people in my situation are cheering for the wheels to come off.
No, I get it, I'm the only one of my friends with a job... but the point is that it's getting worse and saying "oh, what does it matter at this point" is plain out ignorant. Hell yeah it matters if banks are still failing, hell yeah it matters if the FDIC continues to push banks into bankruptcy, hell yeah it matters that Sheila steals assets from working folks and then sells them on the cheap to their buddies.
And now, this time around it's going to be the upper middle class who somehow managed to survive the first crash who are going to get hit worse. All of the idiotic rich clients who come into my job are now taking out *MARGIN* loans on their equity portfolios to invest in REAL ESTATE. The more that they just gloss over "another 3 banks failed today" and say "oh it's normal" or "oh, they're small banks", the more that they will be able to take from us. Hell yeah I'm cheering for the wheels to come off, but the point is, THE BANKS ARE NOT SUFFERING. They want the crash to happen so they can buy back the assets on the cheap. Duh... what does it matter.... Why the fuck even bother reading this website if it doesn't matter.
TAPPING MARGINS ON REAL ESTATE? That's the most encouraging thing I've read in a while. The only thing that will begin pulling this wreck from the ditch is spreading the pain. Very encouraging on that account.
Sad when the bad news is good news, but we is where we is.
I read Corus has Tier 1 Capital of something like -2.1%...
minus capital? wtf?
How are they still alive?
FDIC don't have the money to cover them. That's the only logical reason why they're still in business. Get your money out ASAP. You don't want to be the person holding the bags.
All I have to add to this is that those banksters carrying munis as Tier 1 Capital are in deep kim-chee now. The Ambac downgrade has hit THOUSANDS of muni bonds and 150 VRDOs have been zapped thus far. Also add that the Colonial BancGroup financing agreement blew up and now you have 4 major regional banks out of capital requirements compliance. I believe old Sheila can not reload though until October 1st (FY 2010) to seize the big ones unless Uncle Ben spots her quite a few billion and fast.
Look away, look away, look away, Dixieland.
Sorry, couldn't help that.
All I have to add to this is that those banksters carrying munis as Tier 1 Capital are in deep kim-chee now.
This is absolutely correct in my view. But they'll just keep them marked at par until the very end. Just before they all go to Ben for another bailout, Maria Bartiromo will interview the CEOs, 'Your bank is fine?! So is everyone else's! That's a-MAZING!'
FisherBlack, do you know, are any of the banks that have failed this year Fed member banks?
Here is a list of Fed member banks that have gone inactive this year. Just cross-reference this list with the list of failed banks and you'll have your answer.
Well the chart didn't come through correctly, but the names are there...
Here's the search site I used:
Under 'Bank Charter Class' select 'Member of the Federal Reserve System'.
6 Failed Fed member Banks:
Bankfirst, Sioux Falls, SD
County Bank, Merced, CA
Riverside Bank of the Gulf Coast, Cape Coral, FL
Neighborhood Community Bank, Newnan, GA
Community Bank of West Georgia, Villa Rica, GA
Michigan Heritage Bank, Farmington, MI
Thank you so much FisherBlack!!!!!
2 week total $3.499B potential loss as stated on http://www.annuityiq.com/blog/main/friday-night-fun-at-the-fdic-2/
For consumers around the country watching even small banks fail in their area must have a huge psychological impact on confidence. The Fed, however, thinks everyone measures everything by the stock market - cause thats where their roots are.
Turing an insolvent banking system into an insolvent country one Friday at a time.
Yes, but at this rate it will take twenty years to make the country insolvent!
What are you talking about? The US is already insolvent.
50% budget deficit and the Central Bank has to buy 1/3 of each bond issue.
You guys will feel what it is like to go through a currency crisis.
wow the recession is over 7 last week and only 4 this week.
Corus, Guaranty, Colonial and Synovus are all on the Night of the Living Dead list I watch. I figure the FDIC doesn't have the $$$ to act yet.
Synovus has 30 separate charters. they arent going anywhere unless the FDIC gets the go ahead to close a BHC.
Read their quarterly report. They are technically insolvent now. FDIC wise, no, because she can't pull the trigger without ruffling some political feathers. But read the numbers and understand they are holding a lot of the CRE crappola in Florida.
Most of which is empty and collecting mold, not payments.
It seems like a lot of big ones piling up will the exact sort of un-ignorable problem that would lead to a bank holiday type of interdiction. The faster they pile up without some word of how the FDIC will be backstopped, the more likely something extreme becomes.
If I were "Them", I would do it in August when everyone is on vacation and things are as sleepy as possible instead of in Sept. or Oct.
Guess I got my tinfoil hat on here.
if you aren't wearing tin you are wrong.
That's it, I'm going long on RLM.
*scramble* what's tin at, what's it at dammit? Buy! BUY!!
Maybe the FDIC will release the list of zombie banks in 3D.
Serious post, which national bank has the best credit/capital?
FDIC is broke, and interest rates are at roughly zero.
Should we store our gold & cash in our mattress?
Where does Rothschild put his money? Which single bank could best ride out the depression?
I am hiding my cash in Toronto Dominion. Most solvent large bank in the Hemisphere. They have US subsidiaries.
You may also try to go to the old school Swiss banks like Odier and Pictet
Let me just add that I don't believe in the bank holiday rumor and I don't believe the system will all just go to hell. We are going Japanese. A decade or more of no growth and deflation. But guess what? The Japanese are still there and life is not so bad. Less prosperous, but nothing cataclysmic.
Hide your cash in a country that has a government controlled Central Bank. There are very few.
I am split on the bank holiday issue as well. Nevertheless, you cannot compare the Japanese mentality with the like of folks in the United States. They are accustomed, traditionally, to a kind of calm - taking it as it comes mentality as a culture. The folks in the US tend to be more gung-ho with the "I am free and have rights mentality." Couple that with the right to bear arms and you have a potential situation for some heat when the squeeze gets too tight.
Total societal collapse in the US? No, not likely. Revolution? Well... the coins still flipping in the air on that one.
i agree, we are going Japanese, in every possible way, we are tracking their direct experience (including all the retarded policy mistakes). having said that, the one major difference is the global environment. "they are still there" simply because we were here spending away. the global synchronicity of this slow-down is what is so terrifying about this situation.
earlier posts were right, about currency crisis - but i dont think it is going to be here that we have to worry. My single biggest fear is the Euro. All it takes is for one Estonian/Latvian/Lithuanian to say "F this, i dont give a damn about what the IMF says - devalue the damn currency." and then all the giant banks of Europe on their Mary-Kate Olson capital ratios are going to implode, taking down a number of governments with them. From there, it becomes very easy to see one of the PIIGS getting the same idea and deciding its not worth sticking around either.
its gonna make us wish for the good ol days of Asian contagion.
also, if anyone cares, Mort Zuckerman and Wilbur Ross have both been on bloomberg TV in the last few days. Check out their interviews. To call either optimistic is to say Geithner knows his face from his a$$.
very sensible points
Where does Rothschild put his money?
One of the Rothschilds did an interview with Bartoromo several months ago and with a look of the 'cat ate the canary' mentioned how he was pleased to have his gold close to him or words to that effect.
A list by a different name,
looks like TGIF's will continue for a long time unless, according to Kudlow;"
The credit crisis is over. And the banks will earn their way out of their toxic-asset problems provided that the nerds at the Financial Accounting Standards Board (FASB) don’t resurrect mark-to-market accounting and force immediate distressed-market write-downs."
They sacked up another one in IL
FASB has their sharks teeth flashing now....they might put M2M back in force...
More money = #1 on the demand list for the banksters. And if demands are not met, that will of course be the reason for the next shoe to drop...what a setup!
won't happen....fasb is an accident scene - with
bought and paid for newsfakers at the site reporting
drunk drivers as pillars of sobriety.
That's weird, they just took it off the list.....Mutual Bank, Harvey, IL
It seems to be coming and going, lol. From the press release, when I was able to retrieve it
he FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $696 million. United Central Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Mutual Bank is the 69th FDIC-insured institution to fail in the nation this year, and the thirteenth in Illinois. The last FDIC-insured institution to be closed in the state was First National Bank of Danville, Danville, on July 2, 2009.
just in case
I have missed alot of articles ( and comments lately) so forgive me if i am missing something, but would someone please tell me if they know of any Fed member banks on the list of banks that have failed so far this year?
Interesting note on Corus:
FDIC rate caps for undercapitalized institutions
why on earth does GFG continue to get a pass?
Everyone, including Tyler, should carefully re-condiser what #21405 is saying. It's true, 2,500 banks should have failed by now. Why didn't they? Has the federal government's intervention actually forestalled futher deterioration, or is it merely a stop-gap measure aimed at buying more time before the ride ends at hell station?
I believe the majority of readers at ZH fully understand the reality of the underlying dynamic. Fannie, Freddie, the Fed, the FDIC, state, cities, counties + the federal freaking government itself are all insolvent. Drink a beer and/or glass of wine (or both) and noodle that single fact through your noggin.
The only thing propping everything up is a strategy of ignore & pray, combined with a healthy dose of printing up new money in which to "purchase" Treasuries. But it's all an illusion - the end game is already baked in. This is all going to end very badly.
Get ninja sword.
but the question is - will this be hyperinflation or deflation? inflationary will = protectionism at the cost of all imports and maybe a disintegration of the union and deflationary = china's very own louisianna purchase.. one acre of farmland or miami/ny/la hi-rise at a time
Radio Zero Hedge impending or not? Come out, come out, wherever you are.
Some things are more important than national insolvency and insovereignty, you know!
Five now, Mutual Bank Harvey IL
BTW Freddie and Fannie got another 300 billion this week. That covers them to Oct.
This is chump change
heh, 69 banks, heh-heh
None in Georgia - wooo hoooo! Things are getting better!
UGA's summer graduation is tomorrow, they gave us this weekend off.
Paul O. Boisvert for The New York Times
Capco moved its offices from New York to Burlington, Vt.
A failure, for instance, like the one that brought down Lehman Brothers nearly 11 months ago. Now, after years in the shadows, the insurer, the Customer Asset Protection Company, could finally be put to the test, and questions are starting to swirl.
The worry is that the company, which has never paid out a claim, might be unable to cope with the Lehman bankruptcy.
If it were overwhelmed by claims, the banks and brokerage companies that own Capco, as it is known, could end up owing billions of dollars.
Capco representatives dismiss such concerns, but state insurance regulators are keeping an eye on the company. Officials at the New York State Insurance Department are concerned about the company’s ability to withstand the Lehman bankruptcy, the largest in history.
By some industry estimates reviewed by the insurance department, Capco could face nearly $11 billion in claims but has only about $150 million with which to meet them. The state is examining whether the company sold policies without the means to cover them, according to a person with direct knowledge of the inquiry who had signed confidentiality agreements.
The issue has even reached Washington, where a member of the Senate Finance Committee, Robert Menendez, has sounded an alarm. Mr. Menendez, Democrat of New Jersey, wrote the Treasury secretary, Timothy F. Geithner, in June to express his concern.
“It has become clear that this entity is thinly capitalized,” Mr. Menendez wrote in the letter. Capco, he said, potentially posed “systemic risk.” Capco was created in 2003 by Lehman and 13 other banks and brokerage companies as a kind of marketing tool. The pitch was that while Capco would not insure customers against investment losses, it would compensate them if the firms failed. Capco promises to provide virtually unlimited coverage above the $500,000 offered by the Securities Investors Protection Corporation and its equivalent in Britain.
Capco is virtually unknown even in financial circles, but it is being thrust into the spotlight by the events at Lehman. Creditors and former customers are battling over who will get what and when from the fallen bank, including more than $32 billion of assets that have been tied up in Lehman’s London prime brokerage unit. Untangling the mess could take years. Some former Lehman clients, which include big hedge funds, are looking to Capco for answers — and money.
Dewey & LeBoeuf, the law firm that represents Capco, said in a statement that Capco had no current policies outstanding and was “preserving all assets to address claims that might arise out of the insolvency of Lehman Brothers Inc. and Lehman Brothers International (Europe).”
The law firm called worries about Capco’s potential exposure to Lehman “speculation.”
Capco, which is private, is something of a financial mystery. Its members include Wall Street giants like Morgan Stanley and Goldman Sachs, banks like JPMorgan Chase and Wells Fargo, smaller brokerage firms like Robert W. Baird & Company and Edward Jones, and Fidelity, the mutual fund giant. Capco was initially registered in New York but later moved to Vermont, where state law enables it to operate without disclosing much about its finances.
Capco’s owners referred questions about the company’s liability to Dewey & LeBoeuf. Since it stopped writing policies on Feb. 16, most of Capco’s owners have purchased account protection for their clients through private insurance companies like Lloyd’s of London. Pershing, a unit of Bank of New York Mellon, told clients in a December notice that their Capco insurance would expire and that the firm had a new policy with Lloyd’s to “provide our customers and their investors with extra comfort that their assets are safe.”
It’s unclear who actually serves as the current president of Capco, and the company’s main phone number connects to a recording that tells callers they’ve reached a “nonworking number at Morgan Stanley.” A unit of Marsh & McLennan, the giant insurance services company, is listed as Capco’s administrator, but no contact information is listed on Capco’s Web site. The unit is based in the same Burlington building as Capco.
Brokerage companies used to buy account protection insurance from large insurance companies like Travelers and the American International Group. But in 2003, those insurance companies stopped offering such policies, saying it was impossible to calculate their liability. Enter Capco.
The Capco members played up their coverage when pitching their brokerage services to clients, especially large hedge fund customers who could lose billions of dollars if a firm went under. Although Capco’s finances were never disclosed publicly, the company was initially a given high rating by Standard & Poor’s.
That rating, however, was cut to junk status last December, and the ratings were withdrawn altogether in February. In its report, S.& P. said it was concerned about potential claims from customers of Lehman’s London unit, which “could create a liability for Capco that exceeds the insurer’s resources.” Charles Schwab, UBS and Merrill Lynch never opted for Capco, arguing that the arrangement seemed risky. Schwab requested the company’s financial statements from the insurance department through a Freedom of Information Act request in 2004, but was told the books were confidential.
The New York State Insurance Department later told Capco’s members that the company would eventually have to release the information. Before that happened, however, Capco relocated to Vermont, a haven for so-called captive insurance companies, whose owners are the ones buying the policies.
“Right away, the whole Capco thing just did not pass the smell test,” said Robert Meave, an outside consultant for Schwab at the time, who evaluated the insurance company. “Schwab was not about to go to their clients and tell them we’re providing account protection and, oh by the way, they were owners of the insurance company.”
Firms who sought coverage elsewhere, mainly through Lloyd’s of London, could buy only up to $150 million of insurance per account and a maximum of $600 million for the entire firm. As a result, some customers moved their money to firms that offered Capco coverage.
“Let’s face it, none of us could have foreseen an event like Lehman, but we didn’t feel the capitalization of Capco as it seemed to be forming was going to be adequate in the extremely unlikely event that something happened,” Mr. Meave said.
Owners of the assets tied up in Lehman’s London unit, including pension funds and university endowments, believe they may have claims against Capco if all of their money is not returned by Lehman’s liquidator.
If Capco can’t pay out the claims and files for bankruptcy, several customers said they would bring lawsuits against the other brokerage houses.
“The bottom line is, this insurance should have never been sold to clients, and it just shows how Wall Street again miscalculated the risks involved with one of their own going under,” said an adviser working on the Lehman bankruptcy who was not authorized to speak for the company.
Yeah baby. Now that's what I call F-U-C-K-E-D. (taxpayers)
CAPCO seems to be a less ethical version of AIG financial products. They've been writing insurance policies for years that they *knew* would bankrupt them if they were ever really needed. AIGFP just believed their own hype.
Interactive Brokers has purchased excess SIPC coverage from Lloyd’s of London insurers. Is Interactive Brokers a safe place to leave my money?
Banks are broke? No problem! Congress is working on the Cash for Banksters program as we speak. Instead of $2-3B it will be $2-3T! Are you hearing this China? You send us boatloads of production, we're going be sending you boatloads of paper in the coming years! And you're going to lick it up aren't you!
and then hillary and timmy foreclose property
through emminent domain to satisfy creditors....
that is fema's and dhs's role - to enforce the
ps. that is what full faith and credit of
the united states mean and i do not say that
facetiously at all....
In 2012, US government plans to replace the phrase 'Full faith and credit' with the words 'Yo ese is da Street Cred homee, say what'.
"Cash for Banksters program"
Yeah, for every $10K you borrow, the FedGov will pay you $4500. However, the stipulation is the money must be used to buy either an LCD TV in excess of 52" in size, THX certified home theater equipment, or new granite countertops.
What of Corus
when's Fifth Third going to bite it?
Not too much longer. Read their CRE holdings and NPLs.
yep...number changed to 5...do i hear 6 anyone with 6?
I find it very interesting that there are so many houses and office buildings and malls that are not used... that if everyone is given their own apartment or home there would still be a substantial excess of housing. The only obvious reason for this is that China will repopulate the USA. Chinese generals have spoken at length about this.
China has talked about the US currency being their currency over the last few weeks and the reality of the building is that China supplied the money and materials to build these things. In their mind, they own it. China will not destroy the dollar as it is their currency. The accumulated dollars in Chinese hands is about 6T. The FED can right as many digits as they want but that money cannot get into the economy... so... China does in fact own the USD. And, they want to be the biggest holders of defaulted bonds outstanding. They also have to watch the repayment schedule of Japan to insure that Japan clears out enough so they are not a threat to China. They will use this to their advantage to take the USA. There are already deals done to pass of massive slabs of infrastructure and land and assets to China. China is a command and control economy – if doesn’t have to blow up if the commanders don’t want it to... and they don’t It’s imposable for China to become insolvent. The USA is finished... even its military is at best... on par with what China has. I also find it interesting that in 2006 China placed an order of massive proportions for shipbuilding equipment. This order was placed by their Navy. The combined capacity of the equipment is able to process enough steel to build a warship every two days. Fuck, I could go on and on about this sort of stuff.
How’s that for a conspiracy theory?
the only part i seriously question is the
6t of usd held by chinese....not sure how that
could possibly be given the volume of trade
over the past 20 years....also, zh published
an interesting analysis of chinese trade balance
today which contradicts the common notion that
the chinese have huge trade surplusses....
the chinse are without doubt a rapidly growing
military power and will be able to challenge the
usa navy in every ocean within a couple of years
Chinese own everything on their soil; they own the USD in their country and in Chinese banks abroad and there are many Chinese not in China holding USD. And most importantly they have discovered how to create USD.
"...and will be able to challenge the usa navy in every ocean within a couple of years"
You don't understand submarine warfare. There are two kinds of vessels in the oceans: submarines, and targets.
See my other post, I mention nuclear subs. I would say subs are important... but the ability to bring tanks to foreign shores is very important. You obviously don't understand war and its purpose.
Nuclear subs are currently tracking the US navy. There was an incident not long ago where a Chinese nuclear sub hit the sonar equipment of a US ship. I laugh.
The US nuclear fleet isn't exactly outstanding.
"The US nuclear fleet isn't exactly outstanding."
Sure, except for all the rest. The only thing the Chinese skipper proved is he can't drive.
I'm not particularly worried about the Chinese Navy or military for that matter. The same quality control that brought you lead paint toys and poison dogfood also rules over the Chinese industrial military complex. If China really had anything in the way of stones they would have taken Taiwan back already.
In Asia, where I live, they call the always-impending Chinese invasion of Taiwan the Billion Man Swim.
"...build a warship every two days....How’s that for a conspiracy theory?"
Silly, really. It takes years to build and outfit a modern warship, and the logistics of what you are suggesting are impossible.
There is a thing called lead time... it would be a couple of months. After that, every two days if needed.
Also, the Chinese make a lot of shit that never gets used but gets stored in port cities housed in mammoth warehouses and sometimes underground. That would help reduce lead times. It helps when you fabricate thousands of components that go into a tank before you actually need it... funny how that works.
Also, they stock ship plate is such vast quantities it doesn't make any sense and they currently have massive fabrication facility which are staffed (some active some not)... and they do have underground fabrication facilities. Oh, and they have nuclear subs and can shoot satellites out of space.
I've seen US shipyards. They are pathetic to the point of being deliberately pathetic... all to prolong the build and charge more.
Ask yourself this... why are all the massive cranes in the USA being bought and shipped overseas... EVEN NOW as there is no apparent need for them. Well, because if you can't lift anything heavy, you're not going to be building any ships. You guys are being disarmed and you don't even know it. I've seen your facilities man... they are being gutted.
Schumer: $2 Billion More Not Enough For 'Clunkers'
Jul 31, 2009 8:42 pm US/Eastern
To all of the geniuses that continue to want the fastest/greatest/nonthinking robot in the universe to continue to trade 500 gajillion shares in every asset class every single day. What started back in 2000 when I went to lift some genius ecn that was flashing 10,20,50,100k shares every second on the offer and couldn't get filled on a single share (whether I lifted for partial or whole amount being flashed), has turned into this beautiful game of make approx. 4/5 people very,very,very,very rich in the whole trading universe. I remember calling the ecn and telling them that I wanted to pay the offer that continues to flash for some size, and they aren't filling me, guy tells me that's because he is only there for 1/100th of a second. So, I tell him, what the hell are you doing letting this happen, this is ruining your markets. I received silence with no answer. So, all the politicians wanted to get rid of the trading floors with traders making a couple hundred grand scalping teenies and eighths all day off the flow, so they went to pennies. That eliminated most all trading shops profitability and got rid of all the market makers. Which has led to this distinguished robot market in which every somewhat liquid name is 100k up both sides from 6 market makers. People claim this is fantastic, which sure its good for Joe Q buying a couple hundred shares of whatever, on a spread less than a penny. BUT, in the long run, this game becomes the ultimate game of who has the most money. I trade prop fx now and while I receive the same 10 different 4 letter codes for JPM, Barclays, and RBS, all day every day, I wonder to myself how in the world people have let this happen. As someone who makes his living watching the robots, and fighting them on a daily basis for the last decade, the only thing that I really can think of is how can I go get a different job, because this manipulated game of robot scalper is not only horrible, but is going to end oh so badly. Also, the real people on real trading floors are still not trading, and real liquidity is absolutely zero. When I watch 1 month peso swaps for 10 USD not get filled every single day of the week, I just laugh at what this market thinks it is doing. You want the robot markets, that are there for a million shares both sides, you are voting for a system that will make 5 people so rich they can't see straight, and you will have eliminated an unbelievable amount of perfectly good jobs. Cheers
Thank you so much for your insightful, historic and understandable perspective. You also spell out very clearly the moral tragedy in all of this
From the WSJ: Colonial Financing Pact Collapses
Colonial BancGroup Inc.'s second-quarter loss widened on big charges and a key financing deal fell through, pushing the company out of compliance with Alabama capital requirements and causing doubts about the company's ability to remain a going concern....In June, the Colonial Bank unit agreed to oversight by the Federal Deposit Insurance Corp. and Alabama Banking Department and to other steps ... a $26 billion institution.
From the SEC 8-K filed today:
Going Concern AssessmentAs a result of the above described regulatory actions and the current uncertainties associated with Colonial’s ability to increase its capital levels to meet regulatory requirements, management has concluded that there is substantial doubt about Colonial’s ability to continue as a going concern. The Company expects to update its 2008 financial statements contained in the Company’s Annual Report on Form 10-K, prior to filing its June 30, 2009 Form 10-Q. The Company is working to implement the Capital Action Plan described above which includes strategies to increase capital or to sell the Company in order to address the uncertainties giving rise to the going concern assessment.
HT - CR
The esteemed (former)blogger "London Banker" weighs in on occasion over on Roubini's site. This was his response to Roubini's recent endorsement of Bernanke for a second term:
"Since there is a lot discussion of Fed powers and mistakes, I'll add my views.
The Federal Reserve System has regulatory oversight of all bank holding companies - those companies that have more than 25 percent ownership of any bank. Back in the good old days, no bank holding company could own both a bank and a broker-dealer, commodities broker or insurance company. This meant that the bank couldn't be used to subsidize speculative businesses with cheap credit. It also meant bank holding companies were limited in scale, and couldn't become such huge mega-corporations. That system worked at ensuring risks in the banking sector were the sorts of credit risk and liquidity risks that banks were proven good at managing, and no bank failure, even Citibank, ever rose to be a sizeable systemic threat to the overall welfare of the economy.
Greenspan changed all that. With the repeal of Glass-Steagall and aggressive Fed lobbying to keep all OTC derivatives unregulated, aggressive promotion of interstate banking and consolidation, the Fed switched sides from protecting the American public from corruption of the banking system, to protecting the banks, their shareholders and affiliates from investigation of their increasing corruption and speculative excess.
Bernanke has aggressively promoted the same deregulation positions originally forced through by Greenspan. He opposes oversight of derivatives. He opposes limitations on bank credit to securities/derivatives/insurance affiliates. He opposes restrictions on corrupt international banking practices that disguise profits and avoid taxes. He opposes restrictions on mergers and acquisitions which would limit systemic risk scale. He opposes the Fed enforcing the laws and regulations that would have prevented the massive credit and investment imbalances of the past two decades.
To suggest that Bernanke should be reappointed Fed chairman is like suggesting a mobster shouldn't be prosecuted for murder because he sent such nice flowers to the funeral."
Hide replies Reply to this comment By London Banker on 2009-07-28 05:23:04
Glass-Steagall was never supported by the Federal Reserve as it detracted from the profitability of its member institutions. The Fed is a private concern with the primary responsibility of funding its member banks through fractional banking.
I post the comments here from London Banker as RGE requires registration - he truly was/is one of the great bloggers though now is fully employed as a central banker somewhere: Another post from him:
"It just occurred to me today how the central banks could have orchestrated events to achieve the impossible: issuing up to $5 trillion in government debt worldwide without crashing equity markets or spiking interest rates. It's really quite beautiful - and oh so familiar to those schooled in the glorious history of bank fraud.
The last great daisy chain of bank frauds was the Texas, Florida and California thrift frauds of the 1980s. 25 years of deregulation, securitisation and derivatives, and another Bush in the White House, meant the same could be done on a much bigger, global scale second time around, and now it may be taken to the logical extreme of the central banks themselves.
In the 1980s the corrupt networks of thrift executives created fraudulent "deposits" for each other on their books to enable fraudulent loans to their associates in real estate development. Cooking the books with each other's help meant that they could fool investors into thinking the thrifts were safe places to put their cash. Corrupt regulators and politicians ensured there were never any inconvenient investigations or prosecutions. Rising real estate prices - from fraudulent valuations - kept the scam going long after it should have collapsed, as more investors could be suckered in. The money streamed from the phoney developers to drugs, arms for Saddam, the Contras and the usual offshore tax havens - all with plausible deniability and untraceable.
I've been wondering lately how the US Treasury and UK Treasury could have sold record amounts of debt without interest rates rising or equities falling. Yesterday I read that SAMA had confirmed that it bought a lot less Treasuries in the first half of 2009, but that doesn't square with the auction results of fully subscribed auctions.
An orchestrated daisy chain would explain it - central banks in the chain fraudulently create "assets" and "liabilities" for each other without any money moving between them - only money from the suckers outside the network who really buy the auctions. Any real money invested is streamed to the bankster collaborators in the asset markets where it will conveniently disappear into untraceable "losses" when the time is right.
This fits with the changes to the "indirect" category reporting for Treasury auctions. Now it is impossible to distinguish legitimate foreign central bank buying from fraudulent "wash" purchases from connected daisy chain central banks or Fed-funded "indirect" purchases by crony banksters.
No auction among daisy chain banks will be allowed to fail, no interest rates will be allowed to rise, as phony assets and liabilities can be recorded just as in the thrift daisy chains to keep the scam going. The banksters get the cash, just like Texas developers, and wash it in ever rising asset markets, just like Texas real estate, skimming off a heavy slice with each iteration. The markets have to keep rising, otherwise the suckers wouldn't keep putting real money into the rigged game.
Organised crime at its best - premeditated, organised, continuous, and facilitated by relationships between its perpetrators and public officials.
And yes, I have a big smile on my face from being "first" above.
Hide replies Reply to this comment By London Banker on 2009-07-27 08:47:40 "
Would you please ask this London Banker to join the conversation over here? And, thank you for the awesome posts!
He stops by RGE on rare occasions -- here is the link to his blog which went dormant as of last December - this was his final blog entry
thank you Anony! I just read your link, i wish i could read what he has to say more often-- he defined the big picture beautifully. Thank you!!!
More money for Goldman. Goldman is a bunch of big government wusses. I want a free market and capitalist society back. I am sick of Goldman using all their government power positions to game the economy and society their way. Goldman don't know squat about free markets.
I thought Tyler was a fast writer, but that Anonymous guy really writes from a lot of perspectives, really fast. He must be from Goldman Sachs.
July 31, 2009, 8:32 pm
In defense of Larry Summers
How can Krugman be so scattered and also so strict his idealogies. How can he be a Nobel winnning academic and one of few mainstream economist that sawa some of this coming and also almost never present a deep, definitive analysis in his writings or have any consistency to what he expresses?
To think I kinda like this guy a year ago.
Krugman is a conman.
How many banks/branches is that now? Didn't I hear Sheila Bair talking on NPR early this year that no expert was predicitng we were going to lose as many banks as last crisis, SnL, and that was 300. How do we count Wachovia etc..
However, I have heard FDIC is one of the best operated bureacracies out there, their staff is chop/chop professionals as it is apparently staffed by many people that worked at FDIC siezed banks previously, so they are respectful of the siezed bank employees as they understand their position, and also know how to be skeptical, smell a rat, at least on the small scale they are given.
Makes me think all prosecuters, before being allowed to work, should first be arrested, charged and tried for something they did not do, all defense attorney must first, before defending must a loved on victimized by a crime committed by someone freed by unethical legal-trick of a well-compensated lawyer, we could go on....
Ask yourself why you posted that.
YOU are the problem. YOU and everyone around you that lives like you do. It makes me sick how you've brought this on me and mine.
Kinda silly honey. You don't know shit about how I live.
My comment was to anonymous above you. I'm sure you are livin fine. ;D
Opps, looks like I'm kinda silly! Sorry!
#21657, look up the rules of fight club.
OMG. even the Comments section is all narrowed out.
there is even an overlap where the time of post is superimposed onto the actual post of the comments so the top 2-3 lines can not be seen.
Please, fix this layout and do AWAY w/ the 3 columb layout ZH.
Love the blog, its the best, but this layout is horrible, its terrible on the eyes ot read, really it is.....please look into WIDER posts
and now a word from the economy herself
actually five ( 5 ) got eated by the FDIC
that makes 69 failed banks for 2009
BUT THE RECESSION IS OVER THEY TOLD ME SO
'Climbing the wall of worries' is the new con phrase for manipulation.
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