"This extraordinary resilience reflects the widespread political lust in America for subsidising housing. Anyone who doubts this should look at Ginnie Mae, another fully state-owned agency which guarantees and bundles mortgages, usually of below-average quality, that are insured by the government. Fannie and Freddie are now being conservative about writing new business, but Ginnie is enjoying its own bull market, issuing guarantees at a furious rate. It is expected to have a trillion dollars outstanding by next year. “We are seeing a gravitation of the subprime universe from Fannie and Freddie to Ginnie”, says Mr Setia. It will be a miracle if taxpayers get their money back from Fannie and Freddie. Worse, there is a chance the disaster will be repeated."
Try inevitible as more companies fire here and hire in Asia. Or shut their doors and have their assets, but not their employees, sold off to a multi-national.
It will be repeated. Proof is in the ever increasing unemployment, foreclosures, bankruptcies and upcoming "resets."
"... This is very nearly the same path that Zimbabwe took,... "
Funny how the Zimbabwean Finance Minister came out in support of Bank Bailout 1.5 last September. I'm sure he was really proud of the vote payback that was contained in Stimulus 126.33 (or whatever, we have had a ton) and lack of actual stimulus.
You can't make this shit up, no one would believe you.
Or, how about Chavez commenting on Obama firing Wagoner, taking over GM and gifting it to the UAW? He said something along the lines that Fidel and himself better watch out or they might find themselves RIGHT of Obama.
Dear god you can't make this up.
Obama, Congress, the Fed, Treasury, Banks and Foreign equivalents are playing the largest check kiting scheme ever attempted.
Crap!
Trouble ahead. Big, big trouble.
We have to quit trusting this government in ALL things and start demanding they stop helping us.
Or prepare to pay for this scheme when one member drops the ball. And they will. They always do.
--TeresaE
Thu, 08/27/2009 - 08:59 | Anonymous
The sad part is that they have pushed it so far over the decades that there really is no way out. Meaning, we either watch the entire world financial system collapse in a matter of days, or try to re-inflate an unsustainable economic model. There is really are no other options, and the latter will not buy much time.
In short... They can spin whatever they like about "better than expected growth", but a decline is still a decline. Also, with accounting rules changing to a cash flow model, eventually one of the big giants will collapse and then we will be back in the same situation we were last year with all of them failing at one time...
Wed, 08/26/2009 - 23:22 | Anonymous
Hey, I've made $12,500 PLUS $13 x 52 weeks in stimulus!
I have bought a new house for $80,000 on a 105 Rural Development loan, so I barely came up with closing costs. Then I turned in my "hoopdie" and they gifted me the $4500 down.
Now I know the phone barely rings at work and I know my company is effectively bankrupt, but I'm not worried.
As soon as I lose my income, I will just quit paying!!!!!!!
Ain't America great?
But hey, the bank gets a nice car back that they can resell, eventually they get the house and hopefully, I get a new job.
But why worry. Foodstamps and Section 8 housing (new bill coming) for ALL!
The author is really a struggling business owner who is trying to make it while cutting staff to one, on no personal paycheck with a mortgage and tax value worth many thousands more than it reality.
I was pissed last night and out came that diatribe - because I know a few UAW workers that are doing exactly that.
On the end of the "welfare queen" (what a beautiful, old fashioned term too) my sister lives rent free in a three bedroom town house. Rent cost for the working is about $700, or up to 25% of their income. Then she gets a "utility stipend" and food stamps. Total take, tax free, without getting out of bed in the morning? Around $17,000 a year free and clear. Throw in a little "off the books" income and all of sudden you realize, how little you make for the time you work.
This is expanding, as is the burden to those of us stupid enough to go back to work everyday.
where's "Peggy the Moocher" to cheer you on when you need her?? Drat!
Wed, 08/26/2009 - 21:44 | Anonymous
Ah so, more vital sign of green shoot!
DJIA ramped up 450+ pts tomorrow at 3:30 PM.
YEAH!
Wed, 08/26/2009 - 21:41 | Anonymous
From, too big to fail, all the way down to, too little to fail. What's the possibility of those folks livin in tent cities outside the White House and across the country having a chance at this bailout. Or do you need indoor plumbing and internet access to play this game?
Hey, don't laugh. GS applied for and got $13 billion in Centerflex cash for its lousy AIG CDSs - enough for about 13 ZH T-shirts at the current Euro to Dollar exchange rate.
Trouble ahead, trouble behind.....high on that train, high on cocaine...
Dearest Leader, enjoy your vineyard vaca.
Great song, and apropo
As the real economy tanks, illegal activity/business explodes.
Cocaine was quite popular in the late 70s/early 80s for that very reason.
Misery and many with a need to make money to survive.
Speaking of learning from history, take a look at this great summary of a credit bubble from Roman history.
http://www.fourmilab.ch/fourmilog/archives/2008-12/001089.html
WTF!!!!!!!!!!!!!!!!!!!!!!!!
Self-explanatory- no need for me to comment.
From the Economist last week:
"This extraordinary resilience reflects the widespread political lust in America for subsidising housing. Anyone who doubts this should look at Ginnie Mae, another fully state-owned agency which guarantees and bundles mortgages, usually of below-average quality, that are insured by the government. Fannie and Freddie are now being conservative about writing new business, but Ginnie is enjoying its own bull market, issuing guarantees at a furious rate. It is expected to have a trillion dollars outstanding by next year. “We are seeing a gravitation of the subprime universe from Fannie and Freddie to Ginnie”, says Mr Setia. It will be a miracle if taxpayers get their money back from Fannie and Freddie. Worse, there is a chance the disaster will be repeated."
Source: http://www.economist.com/displayStory.cfm?story_id=14214879
"...a chance the disaster will be repeated..."?
A chance?
Try inevitible as more companies fire here and hire in Asia. Or shut their doors and have their assets, but not their employees, sold off to a multi-national.
It will be repeated. Proof is in the ever increasing unemployment, foreclosures, bankruptcies and upcoming "resets."
MUAHAHAHAHA!!!!
More blood!!! More blood!!! More blood!!!
"... This is very nearly the same path that Zimbabwe took,... "
Funny how the Zimbabwean Finance Minister came out in support of Bank Bailout 1.5 last September. I'm sure he was really proud of the vote payback that was contained in Stimulus 126.33 (or whatever, we have had a ton) and lack of actual stimulus.
You can't make this shit up, no one would believe you.
Or, how about Chavez commenting on Obama firing Wagoner, taking over GM and gifting it to the UAW? He said something along the lines that Fidel and himself better watch out or they might find themselves RIGHT of Obama.
Dear god you can't make this up.
Obama, Congress, the Fed, Treasury, Banks and Foreign equivalents are playing the largest check kiting scheme ever attempted.
Crap!
Trouble ahead. Big, big trouble.
We have to quit trusting this government in ALL things and start demanding they stop helping us.
Or prepare to pay for this scheme when one member drops the ball. And they will. They always do.
--TeresaE
The sad part is that they have pushed it so far over the decades that there really is no way out. Meaning, we either watch the entire world financial system collapse in a matter of days, or try to re-inflate an unsustainable economic model. There is really are no other options, and the latter will not buy much time.
In short... They can spin whatever they like about "better than expected growth", but a decline is still a decline. Also, with accounting rules changing to a cash flow model, eventually one of the big giants will collapse and then we will be back in the same situation we were last year with all of them failing at one time...
Hey, I've made $12,500 PLUS $13 x 52 weeks in stimulus!
I have bought a new house for $80,000 on a 105 Rural Development loan, so I barely came up with closing costs. Then I turned in my "hoopdie" and they gifted me the $4500 down.
Now I know the phone barely rings at work and I know my company is effectively bankrupt, but I'm not worried.
As soon as I lose my income, I will just quit paying!!!!!!!
Ain't America great?
But hey, the bank gets a nice car back that they can resell, eventually they get the house and hopefully, I get a new job.
But why worry. Foodstamps and Section 8 housing (new bill coming) for ALL!
Oh yeah, free health care too! Good times!
"there is an increasing tendency for each person's born qualities to determine the point he will reach on the occupational scale." Lennes
President Reagan would call you a Welfare Queen.
It was written tongue-firmly-in-cheek.
The author is really a struggling business owner who is trying to make it while cutting staff to one, on no personal paycheck with a mortgage and tax value worth many thousands more than it reality.
I was pissed last night and out came that diatribe - because I know a few UAW workers that are doing exactly that.
On the end of the "welfare queen" (what a beautiful, old fashioned term too) my sister lives rent free in a three bedroom town house. Rent cost for the working is about $700, or up to 25% of their income. Then she gets a "utility stipend" and food stamps. Total take, tax free, without getting out of bed in the morning? Around $17,000 a year free and clear. Throw in a little "off the books" income and all of sudden you realize, how little you make for the time you work.
This is expanding, as is the burden to those of us stupid enough to go back to work everyday.
where's "Peggy the Moocher" to cheer you on when you need her?? Drat!
Ah so, more vital sign of green shoot!
DJIA ramped up 450+ pts tomorrow at 3:30 PM.
YEAH!
From, too big to fail, all the way down to, too little to fail. What's the possibility of those folks livin in tent cities outside the White House and across the country having a chance at this bailout. Or do you need indoor plumbing and internet access to play this game?
Hey, don't laugh. GS applied for and got $13 billion in Centerflex cash for its lousy AIG CDSs - enough for about 13 ZH T-shirts at the current Euro to Dollar exchange rate.
Where's the article
WSJ today market place...
Masry & Vititoe files bankruptcy, lawfim from Erin Brockovich movie...WTF...where do you piss off 3/4 Billion in settlemens???
I'm waiting for my CenterFlex cash. I also want my $8K from the government.
I'm high maintenance.
Yes, please send CentexFlex cash. I would like to help re-inflate the bubble.
Succinct and to the point. 'nuff said