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Three Wholesale Credit Unions Nationalized As US Securitizes $50 Billion In Legacy Toxic Assets; Failure "Sweep Under The Rug" Friday Just Got Real
It is Friday afternoon, and of course the most troubling news come out. Last week it was that the idiots in charge are raising their stake in Ally to 80%; this week also did not disappoint: the WSJ reports what can arguably be the most important story of the week - to wit: the government just seized three wholesale credit unions and has launched an "unusual plan" to manage $50 billion of troubled assets inherited from failed
institutions. The unions taken into conservatorship include Members United Corporate Federal Credit Union in Warrenville, Ill.,
Southwest Corporate Federal Credit Union of Plano, Texas, and
Constitution Corporate Federal Credit Union, Wallingford, Conn., which
had a total of $19.67 billion in assets as of July. As for the funding of the new bailout program: "To help fund the rescue, the National Credit Union Administration plans
to issue $30 billion to $35 billion in government-guaranteed bonds,
backed by the shaky mortgage-related assets." Once again, uncle Sam bails out those who have committed federal crime and sticks Joe Sixpack with the bill. How is it a crime? "Under federal rules, wholesale credit unions were supposed to invest
only in safe, liquid assets. But some institutions chased higher returns
by loading up on securities backed by subprime mortgages or other risky
loans. Their portfolios were decimated by the mortgage meltdown."And here is the punchline: "Officials said the plan won't cost taxpayers any money." How can one not simply laugh at the continued lies and crimes that occur each and every day, and are perpetrated by every single person in charge of this collapsing country?
And this kind of shit continues to this day, as the morons at the pension and mutual funds are now loading up on high yield debt and stocks trading at thousands of forward PEs, which will be decimated the second rates start turning up. And guess who will pay for that next rescue, which will come just as "free" as this one, save for the several hundred billion of new bonds that will have to be issued again... and again... and again.
More from the WSJ:
[This intervention] marks the latest aggressive intervention by U.S. government officials
into a corner of the financial system threatened by losses. Bad bets on
mortgage-backed securities have killed five of the nation's 27
wholesale credit unions since March 2009. The federal government, which
now controls about 70% of the total assets at such credit unions, also
said the surviving institutions will be reined in so that they take
fewer risks with their investments.
And some more:
Losses on the mortgage-backed securities held by the five seized credit unions are expected by regulators to total about $15 billion. Wiping out the capital of the failed institutions will cover a chunk of those losses, but the remaining $7 billion to $9.2 billion eventually will be passed along to the nation's 7,445 federally insured credit unions in the form of future assessments.
Bert Ely, a longtime financial-industry consultant in Alexandria, Va., said regulators share some of the blame for the resulting mess because wholesale credit unions were allowed to pursue a strategy that was "viable only because of what clearly has turned out to be excessive risk-taking."
Ms. Matz, the nation's top credit-union regulator, said the investment losses reflect "unprecedented economic times" and "bad decisions" by regulators, credit-union managers and board members "by heavily over-concentrating in mortgage-backed securities."
New regulations issued by the NCUA on Friday will make oversight of wholesale credit unions much tougher and are meant to fix any regulatory shortcomings, she said.
As part of the plan announced Friday, regulators will eventually wind down the operations of the five failed credit unions, which together had about $50 billion in shaky mortgage-backed securities on their books, according to Larry Fazio, NCUA's deputy executive director. Based on current market values, those securities are worth roughly half of their face value, representing a potential loss of $25 billion.
And oddly enough, this whole "viable only because of what clearly has turned out to be excessive risk-taking" strategy continues, and now has focused on pension funds like the Illinois TRS which is counting down the days to its own "conservatorship." Only now it is occurring in broad daylight, with blogs like Zero Hedge discussing it all day, yet nobody taking any action.... Much like nothing would have ever been done on HFT if the criminal practices of the cabal had not been exposed for all to see.
As for the tally, as another reader so well recaps it, here is the tally so far:
The federal government now runs the student loan business, has
controlling interest in the American auto industry, and controls the
wholesale credit industry, which essentially gives them control of
retail credit unions via control of their investment assets. They want
control of the health insurance industry and will take control by
running the private insurance companies out of business. They want
control of individual medical decisions, with veto authority.
We would add that the government also controls the stock market, the bond market, and the FX market.
Can the farce of the US "democratic" experiment just accelerate?
On second thought, the only way things will unravel is not for stock and bonds to gradually go to their fair values around 95% lower, but for everything to burst in a meltup of unprecedented historic proportions, as the very few remaining players terminally cannibalize each other. Perhaps it is time that those hoping for a fresh start start cheering every single uptick in the Dow Jones (the government still doesn't realize the S&P index exists), as all that does is bring us one step closer to the final disequilibrium.
Frankly, we have had enough of this farce.
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"Indeed, I believe that people ought to be ashamed to work at such a place; an institution that has done so much damage to American prosperity and freedom, as well as to the freedom and prosperity of the whole world. For example, I want no more bowing and scraping to the Fed chairman when he goes to Capitol Hill to peddle his nonsense. He is just a bureaucrat, albeit a disastrous one." - Ron Paul
Too bad there is only 1 man on Capital Hill with courage to say this.
Would credit unions be part of the 'shadow banking'' industry?
Poof - And its gone...
http://www.southparkstudios.com/clips/222624/
- excellent
Tyler etal I need HELP. This happens 45 days before an election. WHY? Nothing happens in DC unless it is orchestrated. So the timing on this is very deliberate. But what could be the motive?
This could easily have been delayed for another two months. So who pulled the trigger now and why??
Because there is even worse news coming out soon that they can't delay, so they thought they'd release this first so it gets buried by the even worse bad news.
Isn't that the way things are usually done in this game?
Yeah it's because they don't want a melt-down 5 days before the election.. that would be bad for DC business. Define bad ? Every molecule in your body exploding outward at the speed of light, complete protonic reversal.
Every incumbent's complete set of molecules doing the MC**2 thing.
At least in their minds.
Even here in MA, (figurative) pitchforks are being lubricated. Don't want to put it in and can't pull it out (and can't squeeze a round off to clear the hangup).
- Ned
Define Bad?
8.5 billion oz of silver or 9 years of mining supply, naked short sold by bullion banks. Not delivering it..... that's bad. Or good, ...... ear to ear smile.
Here is the chart you have been looking for. Nothing like corroboration for an opinion.
http://v3.caseyresearch.com/images/Days-to-Cover-orig-100925.gif
Because maybe if they lose they would have had trouble just "doin" the bailout some Friday in November? As in, perhaps they might ACTUALLY (I know unlikely!) have gotten some push back? It looks like they're just trying to do like no big deal just another day at the office.
Go short, old man.
Go very short.
I am short and it has been murderous. The question is how long can I hold on and they have so much more money than this dumb-ass retailer. Blah, blah, blah...
Nothing and no one is safe.
The 2 big to fails have shown us that there is no reason any bank has to or should fail. It's all show. They fucking ignore rules when they borow from social security to spend becoming their own creditor and debtor. Why do they all of a sudden feel it necessary to follow rules on this bank and that bank in arbitray fashion.
Are they going to send the failed bankers in for new training?
http://thechive.com/2010/04/11/tae-kwon-do-math-academy/
apparently you didn't read the Volcker speach in Chicago. And of course "the economic team has quit." There's no political motive here. This is pure panic.
My bet is that we'd all shit our pants if we knew how bad things really are.
This brings up a question that has me puzzled. The fed has purchased 1.2 trillion in MBSs. What is the market value of that purchase? Or if that is debatable, what is the annual income from those notes?
Market value ? Depends on who you talk to. Fed and the banks want you to believe it's $1.2 Trillion, even though they're not getting much cash flow these days on those mbs.
In $ terms?
Whatever the central bank thinks appropriate.
Market value = 0, where's the confusion?
Monetize, bitchez!
EXACTLY!
Good Morning Cartoon - Obama
http://lacson.name/wp-content/uploads/2009/03/milking.jpg
Robotic Milker at work
http://www.youtube.com/watch?v=IcXKlbz1jKw
Just having a little fun. 1995 nutter info. I use to play this game. Stop at 15 sec
http://www.youtube.com/watch?v=mQ8TSuKQ0Io
This is reposted from http://www.marketwatch.com/story/bernanke-defends-models-that-missed-cre...
I did not write or collate it, but it should be pasted all over the interwebs anytime Bernanke says anything.
Orignal poster was http://www.marketwatch.com/Community/AceCreditVampire
***
Sorry for the long post, but it is on topic. In short Bernanke is a CROOK.
7/1/05 – Interview with CNBC
“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”
10/20/05 – Testimony before the Joint Economic Committee
“House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”
11/15/05 - Nomination of ben s. bernanke, of new jersey, to be a member and chairman of the board of governors of the federal reserve system
“With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly. The Federal Reserve’s responsibility is to make sure that the institutions it regulates have good systems and good procedures for ensuring that their derivatives portfolios are well-managed and do not create excessive risk in their institutions.”
2/15/06 – Hearing before the Committee on Financial Services
“Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”
2/15/07 - Semiannual Monetary Policy Report to the Congress
“Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low.”
3/28/07 - Testimony before the Joint Economic Committee
“At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”
5/17/07 - At the Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition
“All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”
8/31/07 - At the Federal Reserve Bank of Kansas City’s Economic Symposium
“It is not the responsibility of the Federal Reserve–nor would it be appropriate–to protect lenders and investors from the consequences of their financial decisions.”
1/10/08 - Q&A after speech
“The Federal Reserve is not currently forecasting a recession.”
2/27/08 - Q&A after testimony to Senate Banking Committee
“I expect there will be some failures [referring to smaller regional banks]. Among the largest banks, the capital ratios remain good and I don’t anticipate any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.”
6/10/08 - Boston Federal Reserve’s 52nd annual economic conference
“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
7/18/08 - Remarks to the House Financial Services Committee
“The GSEs are adequately capitalized. They are in no danger of failing.”
HEY BEN, THERE IS A THING CALLED THE PUBLIC RECORD!
RichyRoo - Thanks for the post and link.
Here's a follow-up comment from TheElder on Bernanke's research recommendations:
"Three areas of research he recommended were human behavior in times of panic, the role of liquidity in markets and how asset bubbles are created and pop" ... how about researching what jail time to these people committing this fraud on the American people may do to change their behavior via a live study?
http://www.marketwatch.com/story/story/commentstab?guid=D94B1998-C816-11...
How obvious does it need to be?
Bernanke, widely considered to be the foremost living expert on the Great Depression and deflation[1], was confirmed by the Senate as Chairman of the Federal Reserve in February of 2006.
Three years later the economy was embroiled in the "worst recession since the Great Depression".
Awesome coincidence, no?
Incidentally, Greenspan -- who more or less encouraged the use of "exotic" mortgages by homeowners while doing his part in assisted the housing bubble by keeping short term rates too low for too long[2] -- as the world was unraveling hooked on as a adviser to the hedge fund ( Paulson's ) that reaped massive profits from the collapse of the housing market.[3]
[1] http://press.princeton.edu/titles/6817.html
http://www.princeton.edu/~pkrugman/bernanke_paralysis.pdf
[2] http://www.federalreserve.gov/boarddocs/speeches/2004/20040223/
[3] http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/2782593/...
Thanks for posting this. I usually read Telegraph fairly closely, but I completely missed that. That frankly is the missing piece - Greenspan is a certifiable crook. He ought to rot up in jail.
1) Lower base interest rates.
2) ???
3) Profit.
I think we just worked out step 2.
actually it's called a "two step." you know how to dance don't you?
Bernanke is not imcompetent. Like the rest, he's smart and knows exactly what he's doing.
We are the fools believing him and his cohorts are trying to do what's good for America after they have clearly demonstrated year after year they're serving their own interests and couldn't care less about America.
Hey CNBC miscalls markets everyday , and their pundits still have worshippers . So... why not Benny Boy . Just small errors of judgment on his part. O% correct is bullish for me !! <sarcasm off>
Look, it's simple. FDIC is broke, so time to pick off some CUs, cuz you slobs think CUs are safe.
Anyone not in Bank of Sealy or PMs deserves what they get.
+$21.45
Once again. the agenda
Press Briefing by Caroline Atkinson, Director, IMF External Relations
http://www.imf.org/external/mmedia/index.aspx
To Bruce: digging a little deeper is required. US Central and Western Corporate, both firms (and the largest institutions in the corporate CU network) were ad-hoc taken over into conservatorship by NCUA in March 2009. The greatest percentage of these proposed losses, both realized + unrealized, had previously resided with these two entities. What this should do is set the stage for a new period where the next phase of wholesale services to member credit unions is less "rinky dink risky".
New regulatory approaches have been hashed, discussed, and hashed upon again. These new proposals were scheduled to commence in a few weeks. Moving forward, in any shapre or form, almost required this step to be taken. There are smaller institutions in this business line that performed their roles more appropriately, and accordingly so, have been successful in raising new forms of capital. These smaller institutions will receive the blessing of "winner" in the next phase.
Tks McG,
But I still ask why now? This could have been put off for a bit longer. As you say thins has been a dead end since 09. Why September 10?
NCUA is likely doing some defense of their turf, in which they (regulators) can prove behaving like adults in the room is thoroughly possible.
I've only maintained a wandering eye on the proceedings. There was a prior release of proposed regs, whereby all CU participants could comment on future likely NCUA regulations (such as limiting corporate CU investment strategies). It's not been a dead-end since then; I think the appropriate term would be "wishful", as in asset values might reflate to a level (over a 9-15 month horizon) that this step would not be necessarily taken.
Wishful in the vein of "GDP exceeding 2%", or "unemployment trending < 9%" kind of wishful. I'll add this includes personal supposition, with a reasonable gathering of the facts behind it. NCUA could not secure long-term funding of these crap MBS, and so today's action becomes necessary to proceed.
(Perhaps their future roadmap for wholesale / corporate CU closely mimics the FHLB system. That would certainly be appropriate.)
I'm with you, what I gather is that they took over three this Friday and the other two where taken over back in 2009 (google the action). These credit unions acted like a clearinghouse for other credit unions, that is the answer. I will post a link to the two that where taken over on March 20 of 09. But in essence "Corporate credit unions are the retail credit union's credit union, providing services including lending, and check and payment clearance services". So it was priority for the govt. to have something in the works that would have funded the NCUA because they didn't have the 50 billion to do it. And on top of that the 2 from last year had assets taken over to the tune of 57 billion dollars total. And then add to it another 50 billion dollars and it comes to 107 billion at least and they needed a bailout.
I also think that something else is on the way and either the republicans and their friends or just the markets are maybe wanting something to tank miserable before the elections. But it could be that the game of pretend and extend has run it's course.
http://www.reuters.com/article/idUSTRE52K00Q20090321
and of course the law had to be changed during the crisis in 2008 so that depositors would be protected at credit unions. these government banks are the only banks left insofar as lending is concerned. the "last line of defense" insofar as actual credit to the American people. welcome to the door getting slammed shut here, too. not even cops gettin' loans and having to pay with worthless dollars? at least the hospitals should stay open for the next year or so.
What this should do is set the stage for a new period where the next phase of wholesale services to member credit unions is less "rinky dink risky".
Yep, loans to all that apply.
That'll fix it.
WSJ: Under federal rules, wholesale credit unions were supposed to invest only in safe, liquid assets.
What "new regulatory approaches" could possibly be more straightforward and appropriate? Investing in crap is/was already illegal, they did it anyway and the government watchdogs (that keep getting minted by the bureau-load by the way) didn't lift a finger.
What - this time will be different?
Bingo. Once you figure out the FDIC auditors are recent college grads with a bachelors in accounting, a lot of things fall in place... you could have the most stringent laws known to man regarding what they can invest it, but without the manpower to police it, you will never uncover the issues.
Ultimately, regulators are like appraisers... you tell them what to put on the line. You might run into some honest ones, but by and large, they know what they need to put on the line ("low" or "high"), simply based upon your position in the transaction, and it gets done. Keeping the simile, once you are aware there are accounting shenanigans and the regulators fail to do anything, then their motives/directives become apparent... apathy or stupidity can no longer be excuses.
As an aside, I think a lot of state regulators are very competent and I suspect that going forward, when states have to clean house/stallown federally owned/backed institutions, there will be some pretty solid fireworks. At this point, you might even call it a good cop/bad cop... eventually, it will boil down to good cop, rogue "you killed his family and now he's out for blood" cop.
actually this time is different. Far WORSE. We're not looking for a tipping point anymore...this is about a breaking point where something "bigger than the government" fails and can't be papered over. Remember the fires on 9/11 at the Pentagon. Our government didn't put them out. Eventually they just stopped burning.
The zombie dance party always ends with mutual cannibalization.
http://www.youtube.com/watch?v=H8gHMU-pDbU
http://maxkeiser.com/
.
Mike Maloney: Great explanation of how the Treasury and Fed create debts (money) from nothing – starting at 8:15 September 24th, 2010 by maxkeiser.
this is important.
it bothers me that he doesn't mention, but i guess it is obvious, that
every loan , except in certain cases of outright fucking fraud,
( savings and loan fraud, enron and bailout tarp )
has an
associated collateral real asset or "property" associated with it,
as in what the bank will own, the country, its property and people, should
the borrower be unable to pay, ultimately, the
unpayable loan (mathematical impossibility). usury as a way of life comes to mind.
so the system as is dictates the too big to fail private banks receive
free money at will and can lend at interest, if they choose, and as much as
they choose, and when, and create the loan funds from nothing and attach
claim to real property. yes! key phrase: legal claim to property.
for what? for buying off, with fiat debt, politicians, legislators, judges and
keywords: investors and speculators. aka doomed fools.
this is how the usa abolished slavery, by turning every participant in the economy
into slaves, decanted from the elite. thomas jefferson referred to this as the culture of the
"angloman". his metaphoric enemy and cause of the american revolution,
now the sovereign by way of a congressional hand off, bought off, sell out,
treason for personal gain/profit!
end the fed.
your mind/life is like a brick wall for graffiti artists wearing
designer suits that cost more
than your children will earn in a month or more.
end the fed before it ends you, and yours
We used to have loans with collateral on them, but not anymore, as GMAC is finding out. Now the peoples are getting the collateral and the banks get to keep all the bad loans. HaHa! End the Fed.. I'd prefer just to have our laws being enforced. The Fed has its uses, but they overstepped their bounds, and our politicians don't know how to stop spending. The pols forgot they were the government and just keep on giving to the bankster of their choice. The system is falling over, as well it should.
"the people are getting the collateral" really?
the people are getting the tax bill, the use fees, the debt burden, the collapsing
infrastructure and their demised loved ones. the people don't
have two nickels to rub compared with the finances their owners
create out of thin air to destroy the buying power the people might posses
by working for and saving "money".
it is a debt based economy and no one qualifies to take on more debt.
the standards were lowered, bought time. the standards were eliminated,
bought time. now we see the fed for what it is.
or not, and let them strip the country bare, lay it waste and then they will
buy it up for , lets make up a word, twiddle. sold for twiddle, sure.
political spending ran on the back of the fiat system which made it so
attractive to the vote seeking incumbent crowd. treason artists, yes.
did you watch the presentation? just asking.
The irony of the GMAC fallout is that if all that real estate falls (unencumbered) into the hands of of distressed home-owners, it might just be enough to save our economy from the ravages of a game-over depression (although a few banks and mortgage servicers will go out of business.. so sad). Consumers with disposable wealth would be a godsend right now.
so sad indeed
IMF is setting the grounds for all sheep to be enslaved. We all hate the FED, be careful what you wish for. They are purposely creating a crisis to form your feeble mind for change. All a ploy for control.
Connect the dots
:>)
Who did taxpayers give money to? Read American Recovery and Reinvestment Act of 2009.
http://www.recovery.gov/Pages/home.aspx
IBM RFID Commercial - The Future Market
http://www.youtube.com/watch?v=eob532iEpqk
Think FINreg and Basel III. More deception heading your way.
Nothing is more entertaining, and depressing at the same time, than laying out a sheet of paper or a napkin, to explain "fractional reserve banking" to the unknowing.
static electricity. good writing but this object is hauling ass through space and Ben Bernanke is "starting to get a little winded" as the balloon he's blown is bigger than the Goodship Lollipop. And like your 5 year old at some point "it's time to let that sucker fly."
Natural person CU are currently on the hook for the greatest risk, and largest on-balance costs, that this proposed bail-out / cleanup scheme will impose. Imposing a cost of 10-15 bps over the next (minimum) 10 years does ultimately, however, cost those US taxpayers who can smartly utilize what a local credit union may offer.
Morons on parade ( in case you missed it):
http://www.imf.org/external/mmedia/index.aspx
yada, yada, yada, Starbux is stable, heck with Portugal.
listening to these people makes me wish i was never born.
It makes me wish THEY were never born. You I got no beef with.
Will this shit ever end?
Or, just shoot me now, please.
no, life sucks, then timmy does his thing, then they don't let you die ;-)
life's a bitch and then you die
that's why i get high
the nightmare continues .....
No problema...
Citibank lets you link accounts to transfer money easily.
This is appropriate for this post:
http://www.gangstagovernment.org/?gclid=CPf7nuXrmKQCFQIHbAodXUsMFw
For those of you who don't like to listen to rap music here's the lyrics.
Gangsta GovernmentWe hail from Chicago, criminal class,
where Capone was the man – yea he kicked some ass.
We learned from the best and perfected his ways
now we’re setting DC ablaze.
Thanks to the press, the people bought our message of hope and change,
now our goal’s in range.
We told you we’re gonna spread your wealth around,
Fortune 500 – up next for a shakedown.
Lots of new policies we plan to debut,
won’t recognize America when we get through.
Don’t need a Constitution or the rule of law,
we abuse our power using shock and awe.
[CHORUS]
We’re the Gangsta Government! – We wear the crown,
we call the shots and shake the people down.
We’re the Gangsta Government! – Stay out of our way,
Sit-down, shut-up, cuz you have no say.
Never let a crisis go to waste,
so we passed the stimulus bill – post haste.
Thousand page bills, see that’s the new norm,
nobody reads ‘em no more so we’ll get our reform.
We love to spend trillions that we don’t got,
paid back by our children while we all rot.
Just crank up the presses at the Fed Reserve,
gotta get our hands on that bread we so deserve.
To pay off our special interest friends,
to get reelected we’ll spend and spend (“I’ll buy that for a dollar”).
Teachers’ unions, pro-aborts and greens,
Greasing-up the wheels of the political machine.
[CHORUS]
Private sector takeover nearly complete,
got health and auto industries under our feet.
Student loans and homes you know we can’t be beat,
and we’re just getting started, we take it to the streets.
Grant illegals amnesty, read terrorists their rights,
abolish secret ballots, change marriage overnight.
We’ll expand social programs to buy more votes,
bail-out union pension plans, keep ‘em afloat.
We’ll name new czars to champion our cause,
unaccountable to Congress and above the law.
We play the race card to squash debate,
accuse our opponents of bigotry and hate.
[CHORUS]
[BREAKDOWN]
Gangsta, gangsta that’s what they yell’n,
This is the reality, we’ll rob you for your salary.
Gangsta, gangsta that’s what they yell’n,
This is the reality, we’ll rob you for your salary.
We’ll use global warming to gain control,
we’ll tax the air you breath and shutdown all the coal.
Offshore drilling, gotta love that ban,
eight bucks a gallon should cut demand.
Putin’ up some windmills and solar panels,
for a permit you’ll have to go through our channels.
Regulate your light bulbs, your car and your pad,
listen up kids, government’s your new dad!
The rules will only apply to you lil peasants,
but for the elite, life’ll be more pleasant.
We’re keeping our gulf streams and SUVs,
we’ve got more important meetings and people to see.
[CHORUS]
Once midterms are over, shit will hit the fan,
lame duck Congress passing all our plans.
The people may object but we don’t care,
we’re large and in charge, gonna grab our share.
Tea party movement is beginning to spread,
gotta call the union thugs to bust some heads.
Sick big sis on those tea party types,
label them as radicals and take away their rights.
We gotta move now – twenty-twelve ain’t far away,
DC is cozy and you know we want to stay.
We’ll legalize illegals to get us the win,
keep voter fraud alive and we’re in like Flynn.
Damn, hope you have oodles in FAS.
Edit - Too many adult beverages.
You fascist "coward" bankers and super "pussy" elites who've junk'd me, don't have the balls to go mano y mano from darkness to the light. Ya'll be hanging from a light post, its only a matter of time....
IMF Caroline Atkinson is no different than Robert Gibbs.
Robert Gibbs is allowed to speak the truth about the nation- Spoof.
http://www.youtube.com/watch?v=u_S3lnWea4I
State controlled media. The joke, you pay to watch it by bundled packages for land line, Internet & mobile phone usage.
Joke is on you to pay for the propaganda.
We pay for Baghdad Bob Gibbs as it is....where's the joke?
No read above. That was a spoof video on Gibbs. Google is a powerful tool to watch the real shit.
I'm clairsentient. Which simply means it's possible to superimpose someones energy right on top of mine. Which means there are a few times I can feel exactly what someone else feels if it's provided for with plantary alignments.
One time I was talking to a friend and I was complaigning about Iching readings just continually repeating you're ignorant to me and they kept talking about returning early for something better or returning without respect. I was like. I think that's a little arrogant. I don't think I'm going to return. This big nasty energy came rushing down and did a big huge threatening dump right in the middle of both of us. She freaked out and excused herself and got off the phone and I haven't talked to her since.
I got that threatening visitor again. I was getting pissed off at my phone company because my battery kept dying and they wouldn't fix it or replace the battery so I ended cell service. Here comes nasty boy with another big threatening dump. Then suprise surprise a month later I find out about how chronically drained batteries means you're being listened to.
So it's not really a joke. But making you pay for your own propaganda is run by an angry angry dude. I'd like to know everything that pisses that guy off. But for now. I know 2 things that pisses him off.
For the adults playing at home this evening, this is just another link in a long list of shit-bonds issued via the prior era's (2001-2007) machinery. Conveniently enough, this shit has a date/time stamp (AAA! AA!) that every institutional investor will recognize as supposedly legitimate (and later, legitimate cowardice in supporting their work).
Moodys, S&P: please step forward to accept your lifetime achievement. Three+ years hence and all this crap is still, still being sorted out. Institutional managers and analysts may lose their livelihood, but your firms' fine product will stand the test of time (or whatever the hell amendment you may select to hide behind)
Sorry to change the subject and tell me if this post is not appropriate for the current discussion. I've been retired since 95.I just got a call from a friend that was part of the UBS repatriation deal. $ 100 MM has to come back to the good ol USA after penalties. I'm looking for a quick refresher on the steps for managing this. Do it right.
Stick it in Honduras. Don't let it hit shore here.
Plenty of nice props on La Cieba beach.
PS, sell 3 adjacent to me at a discount. I'm poor.
For US citizen it may be difficult as personal entity, establish a company somewhere convenient to handle the money.
Google will find you all you need.
Take a look at the Isle of Man.... He should have done a "contract for differences" in the first place. Take a look at this as it may reduce taxes and penalties if not too late. If you need more info shoot me an email @trimanjc@aol.com. I hate the fucking IRS.
Oh, look! More BS:
Printer Friendly Press Releases
Whidbey Island Bank, Coupeville, Washington, Assumes All of the Deposits of North County Bank, Arlington, Washington FOR IMMEDIATE RELEASE
September 24, 2010 Media Contact:
Greg Hernandez
Office: (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov
North County Bank, Arlington, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Whidbey Island Bank, Coupeville, Washington, to assume all of the deposits of North County Bank.
The four branches of North County Bank will reopen on Monday as branches of Whidbey Island Bank. Depositors of North County Bank will automatically become depositors of Whidbey Island Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of North County Bank should continue to use their existing branch until they receive notice from Whidbey Island Bank that it has completed systems changes to allow other Whidbey Island Bank branches to process their accounts as well.
This evening and over the weekend, depositors of North County Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of June 30, 2010, North County Bank had approximately $288.8 million in total assets and $276.1 million in total deposits. Whidbey Island Bank will pay the FDIC a premium of 2.0 percent to assume all of the deposits of North County Bank. In addition to assuming all of the deposits of the failed bank, Whidbey Island Bank agreed to purchase essentially all of the assets.
The FDIC and Whidbey Island Bank entered into a loss-share transaction on $221.9 million of North County Bank's assets. Whidbey Island Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector
Getting closer to my nephew's place.
Not to mention the loss share crap. Basically, they have no assets.
I am really discouraged reading this. I am a bit despondent that this will all end very badly. We will most likely all end up one morning with the banks shut and the income owing to each determined by the government. With 1 in 7 already dependent on the government, and another say 50% not far from it if you consider their true net worth, where does it end. No one seems to have an answer. Our political system does not have the answer. At some point, the ants will turn on the grasshoppers and whoever can convince the military they are right will have the upper hand. The majority of people will probably only realize something has happened when their facebook access disrupted or their cell phone/ipad/fuck shit machine shuts off. This really does not look good, and no one is in control
You think you're depressed with this weekly raping of the taxpayers?
and no one is in control
The entire GFC has been controlled from start to finish. Helio Ben only sounds like he is talking gibberish. Lies are always harder to hear when you have been raised to believe the dogma of the priesthood, Federal Reserve System. Years ago Catholics complacency was reinforced and excused when the mass was in Latin. With Vatican Council II responsibility became every-one's. NOT A SLAM ON CATHOLICS...... using the analogy of understanding the priesthood much as we do not understand the Feds Oracles or High Priests.
if that were the case we'd be in great shape. Unfortunately, it's something in the 44% to 52% arena.
This goobermint is a joke.
Alvin Greene for Prez! Makes more sense than Reid.
Even Roubini is in on the Ponzi Scheme. Shorting can be hazardous to your health
http://www.cnbc.com/id/39332104
CNBS = do the opposite.
You a newbie?
AAPL rules!
Until it doesn't.
Courtesy of HarryWanger.
Dare ya to prove him wrong, even given I h8 him from MW daze.
"Officials said the plan won't cost taxpayers any money."
Of course not, all the money will be provided by Chairm Ben.
Central Bankers Control the USA Sheeple
http://www.youtube.com/watch?v=_su56NJ-DlU
You decide your fate
THE BOYS ARE BACK
http://williambanzai7.blogspot.com/2009/10/happy-birthday-tarp.html
usal results from non players, ill call my shit ass cousin n the hamptons
Cuba is laying off 500k state workers and will try and create private sector jobs in a move toward capitalism, according to the WSJ. Castro himself recently told a reporter that the Cuban system is not working any more, though he later recanted. – FTN Financial – is our system “working”? Perhaps capitalism is the worst form of economy…except for all the others that have been tried.
Our country experienced socialism in the 1980's. The result is always the same thing: make everybody poor and dependent on the government. It is now 2010 and the consequences of that experiment are still being felt throughout our society. Those willing to pursue such a wretched philosophy are evil or stupid. Antonio C.
http://mises.org/resources/4994/Pictures-of-the-Socialistic-Future
http://www.youtube.com/watch?v=9TDgkOOlbwg&feature=related
It's not that any government has lacked information needed to fix the problem but it is institutionally incapable of bringing about the desired result, since the principles of profit and loss, private property and contract, enterprise and entrepreneurship, do not exist in government. Any Government operates with an eye to its own short-term survival, and those of its connected interest groups, and nothing else. Mises
The proposal by Her Majesty's Revenue and Customs (HMRC) stresses the need for employers to provide real-time information to the government so that it can monitor all payments and make a better assessment of whether the correct tax is being paid. Currently employers withhold tax and pay the government, providing information at the end of the year, a system know as Pay as You Earn (PAYE).
There is no option for those employees to refuse withholding and individually.
“Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated. “In the real world, banks extend credit, creating deposits in the process, and look for reserves later”. Their empirical conclusion was just the opposite: rather than fiat money being created first and credit money following with a lag, the sequence was reversed: credit money was created first, and fiat money was then created about a year later: Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees. Academic economics responded to these empirical challenges to its accepted theory in the time-honoured way: it ignored them.
If you take the time to factor in Geo Corporate Rent Dissapation alignments resets the structural factor is a shift in the composition of U.S. output in the coming years.
http://info.worldbank.org/etools/docs/voddocs/215/414/rent_dissipation.pdf
When the collapse comes in any period, the people who are left long on goods and land [and stocks] always make a great outcry and start a political agitation. Their favorite device always is to try to inflate the currency and raise prices again until they can unload. If you doubt this facet, hope is lost to you. You have no excuse. As we are also reminded the Meek will see and remember it is about the seal in the forehead and the weight it truly bears. The Consumer is the issue.
Yes. However, they are not the only screamers in the room so please do not look through such a narrow tube.
On the other side, when the new currency is created, if at all, the old paper is retired at an astronomical rate such a 1 million old to get 1 new, and it is the people with the hard assets who do in fact make out OK. The stocks of local companies probably do not fair too well since the companies themselves may suffer or even go belly up.
The real key is to be off shore. But where? Canada? Australia? Singapore?
It's going to be interesting WTSHTF to see if Canada closes it border to Americans trying to escape. Mexico is not an option.
We was boinked!
THIS JUST IN: New Fed Policy Statement. All government economists to be trained in card counting. They will then fly to Vegas, Reno, Montecarlo, etc. and play no-limit hold'em. The winnings will immediately be leveraged by 1,000,000 X. Unfortunately, Benny "the Joker" Bernanke, Timmy "mumbles" Geithner and Larry "5 aces" Summers cannot participate as they've been "made" and not allowed in casinos.
Today, Marketwatch had the headline "home sales hold steady". A few minutes later, Bloomberg had the headline "home sales 3rd worst in history". I checked back on Marketwatch a few minutes later, and the headline changed to the same as Mike's. The tightrope between getting paid and maintaining some semblance of credibility is getting a little tougher to walk for the MSM outlets.
All this borrowing and money printing will result in hyper-clusterfuckation.
I haven't heard the phrase "Don't fight the Fed" for awhile but haven't you guys figured out that the end game is Dow 13000 yet? "Got a cash crisis coming, no problem, give us a shout, we'll reliquify." As far as I am concerned, this week was an inflection point. Even if the Fed balance sheet goes to 3 trillion, who really gives a rats ass. Monetize, get inflation to 4% and then the Fed is back on the familiar ground of tightening. When people realize it is cheaper to buy today instead of tomorrow we are all right with the world again. I get a chuckle out of people fretting over 5% bond rates in Ireland and calling it a crisis. 16% is a crisis. Climb aboard the commodities steam roller.
Yes, it was an inflection point for the small volume herd of investors to add one of the last grains of sand towards the collapse-herd rush-prerequisite for final capitulation.
ANATOMY OF RISK
http://williambanzai7.blogspot.com/2010/09/anatomy-of-risk.html
Schiff recommends Larry Summers replacement
http://www.youtube.com/watch?v=3uyFm13fQPE
Drip...drip...drip...
Death by a thousand drips.
Which one will kill the golden goose?
You all are great.
http://www.wowsale.net WOW Gold
Bitchez...whilst you were decoding the mysteries of grand theft gone nuclear..I was with Tyler Durden!!! Epic Win!
These are not idiots who are in charge. They are criminals, global usurpers, and slavers. There is a huge distinction to be made here, and there is nothing to gain and much to lose in glossing over it. Even if they are stupid, they are only stupid in their pursuit of evil, and the chances that this is merely serial incompetence by people who are at least neutrally intentioned are nil.
Only a fool would declare the folks in control to be stupid. They are not! They have an agenda which is different than mine, and probably yours.
Are they criminals.....
Are they evil.....
the victor writes history.
If this keeps up, Spin Doctor Extraordinaire David Axelrod is going to have to work with Fox to move up this season's premiere of American Idol.
No doubt that new judge Steven Tyler, of Aerosmith, will be sufficiently entertaining to sedate the American Idiots
I better run to the fridge and crack open a G8TORADE. Then, scurry over to the TV and watch the MSM polish turds.
http://main.fknnewz.com/blog/?p=1488
You think the US isn't a democracy? You think Americans don't choose their leaders of their own free will? You're so optimistic. I guess you're still young.
Yeah, but we got hamburgers sizzlin on open grills night and day, pal.
I wonder what Dave Crockett, William Travis (28 yrs old at the time of his death) and Sam Houston would say if they saw what was going on here? Believe it or not there were lawyers who fought and died at the Alamo. A quote from Al Pacino's speech from the movie "Scent of a woman", "when the shit hits the fan, some guys run and some guys stay, here's Charlie facing the fire, and there's George, hiding in big daddy's pockets ; and what are you doing, your gonna reward George and destroy Charlie".
The only loyalty around this country is to keep the wrongdoers fat, and the productive people beaten down, my opinion.
So there you have it: the Wall Street Journal and ZH are the only ones reporting this story! One freakin' newspaper and ZH?!!!! HAHAHAHAHAHAHAHAHAHAHAHAHAAHA. These folks on TV really...well, "co..fused?" I'll stick to the weather channel from here on out.
I think my next project is going to be the building a guillotine to be brought out and used when the revolution to protect and defend the constitution starts.
David Stockman. He said one thing when he was Reagan's head of OMB. He says another today. Do you really need to know anything else?
Bro - Bernokio's got your back. Stay long the market but keep your finger on the eject switch (and hope when the time comes that you don't hit the canopy and that your parachute works.)
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oh, Wo is me, again.
You know, as bad as this is, things will still get worse. Things just are not fucked up enough. Yes, things look bad, and things look fucked up, but states have not declared bankruptcy yet and unions have not been kicked to the curb. Only after that happens will things be really fucked up enough.
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