• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Treasury Quid To Banker Pro Quo: "You Can Raise Dividends If You Buy My Toxic Mortgages"

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 03/21/2011 - 09:44 | 1081426 lizzy36
lizzy36's picture

Not that this move by treasury has ANYTHING to do with the debt ceiling. ;)

Mon, 03/21/2011 - 09:59 | 1081481 Bananamerican
Bananamerican's picture

really?

are repups more likely to continue caving on the debt ceiling, making token "fiscal responsibility" noises/gestures in the process or...?

"the next downturn, which nobody will have seen coming, will result in another cool 10-20 trillion in pieces of linen thrown at it"

Really? Isn't THAT the point the amerikan peeps go mubarak?

Mon, 03/21/2011 - 10:18 | 1081578 Larry Darrell
Larry Darrell's picture

Threadjack

The banks must have forgot to make their payments to the Supreme Court members.

Because the SC just ruled that the FED has to release the list of banks that received emergency loans.

Mon, 03/21/2011 - 10:40 | 1081679 Catullus
Catullus's picture

This is the biggest circle jerk ever.

Mon, 03/21/2011 - 11:02 | 1081778 chunga
chunga's picture

Smash the title insurance companies. Check the docket below.

http://www.scribd.com/doc/50983614/Fight-Club-Lawyer-Redux

Mon, 03/21/2011 - 10:40 | 1081682 disabledvet
disabledvet's picture

or a war on...er...IN...IN Libya.

Mon, 03/21/2011 - 09:45 | 1081428 sudzee
sudzee's picture

Looks like the Treasury is now bailing out the FED.

Mon, 03/21/2011 - 09:45 | 1081430 John McCloy
John McCloy's picture

   I am all for that. Load them back up boys and get em while they are hot. Looks like the great unwind is about to commence and judging by the reverse repo experiments noted on ZH last year I am sure it is going to go Swimmingly.

Mon, 03/21/2011 - 09:46 | 1081432 mtomato2
mtomato2's picture

Directive #1.  I love it.  Atlas Shrugged, anyone?

Calling John Galt.

Mon, 03/21/2011 - 14:09 | 1082458 Go Galt. Please.
Go Galt. Please.'s picture

Directive #2: You can't sue anyone over these MBS. Even if there's no mortgages backing the security

Mon, 03/21/2011 - 09:50 | 1081453 TradingJoe
TradingJoe's picture

Low Volume Dead Cat Bounce! IMHO the LAST ONE!

Mon, 03/21/2011 - 09:55 | 1081465 Cdad
Cdad's picture

Agreed.  Shaka, when the walls fell!

Mon, 03/21/2011 - 09:53 | 1081463 silvertrain
silvertrain's picture

"as banks will have dangerously low cash and capitalization levels" 

 Isnt our treasury{as reported by zerohedge a few days ago} already out of cash? Are we waiting on auctions this week? Anybody have a followup on that deal?

Mon, 03/21/2011 - 09:54 | 1081470 Cognitive Dissonance
Cognitive Dissonance's picture

The sales could generate a profit for taxpayers of about $15-$20 billion as market conditions have improved, the official said.

I thought the US Government was a non-profit organization? Oh wait a minute, now I get it. This is our share of the vig? I'm a little slow at first but I eventually catch up.

But wait a minute. Didn't it cost us like a Zillion Billion dollars to make that "profit"? Now I'm really confused.

Mon, 03/21/2011 - 10:01 | 1081494 Cdad
Cdad's picture

Brother CD,

It would seem that your dissonance is coging you.  Suggest you chuck back a handful of Pfizer products...it should straighten things out for you so that you can see the beauty of the Ponzi Fed more clearly.

The new American Marxist/Banker party asks that you quit sweating the details. 

Mon, 03/21/2011 - 10:10 | 1081537 Cognitive Dissonance
Cognitive Dissonance's picture

Federal Reserve marching orders. "Don't worry, be happy."

Roger that. Where's my morning dose of Valium?

Mon, 03/21/2011 - 10:19 | 1081587 Cdad
Cdad's picture

Mmmmmmmmmmmmmm.  Valium.  Personal favorite. 

Now that you are feeling better, get out there and buy some casual dining stocks!  They look historically cheap, I'm tellin' ya...ripe for criminal syndicate Wall Street banker/Marxist  upgrades.

Mon, 03/21/2011 - 10:20 | 1081596 FOC 1183
FOC 1183's picture

forget valium and go straight for the 714s

Mon, 03/21/2011 - 10:26 | 1081620 Cognitive Dissonance
Cognitive Dissonance's picture

I suspect it speaks volumes about me that I instantly knew that 714s meant Quaaludes. :>)

 

 

Mon, 03/21/2011 - 10:31 | 1081645 FOC 1183
FOC 1183's picture

yes it does.  and probably means we had the same foggy adolescence.

Mon, 03/21/2011 - 11:03 | 1081782 LowProfile
LowProfile's picture

Drugs 'r bad, mmmmkay?

Mon, 03/21/2011 - 11:24 | 1081852 bookwurm
bookwurm's picture

"Better living through chemistry"

Mon, 03/21/2011 - 11:37 | 1081896 Cognitive Dissonance
Cognitive Dissonance's picture

Not foggy. Thick as pea soup. :>)

Mon, 03/21/2011 - 10:45 | 1081697 disabledvet
disabledvet's picture

i hear "some of these boondoggles are so big you can drive an Abrams through them."

Mon, 03/21/2011 - 10:10 | 1081544 Joe Davola
Joe Davola's picture

Didn't it cost us like a Zillion Billion dollars to make that "profit"?

 

Don't worry, they'll make it up in volume.

Mon, 03/21/2011 - 10:20 | 1081597 Cognitive Dissonance
Cognitive Dissonance's picture

Maybe it's my simple mind, but every time I see that phrase about how someone will turn a loss on each sale into a profit by way of volume, the absolute and shear absurdity of the entire proposition makes me laugh out loud. Yet the brilliance of the con is remarkable because people swallow the bullshit.

Mon, 03/21/2011 - 10:13 | 1081551 DaveyJones
DaveyJones's picture

I prefer to call it our share of the viag

Mon, 03/21/2011 - 10:27 | 1081627 Hero Protagonist
Hero Protagonist's picture

I wonder if the sales will be subject to the same taxpayer guarantees as the FDIC "loss share" program?

http://www.fdic.gov/bank/individual/failed/lossshare/

 

Mon, 03/21/2011 - 11:39 | 1081906 Cognitive Dissonance
Cognitive Dissonance's picture

He who owns the Fed makes the rules. Everyone else lives by them. Time for a peaceful revolution.

Mon, 03/21/2011 - 11:08 | 1081796 Overpowered By Funk
Overpowered By Funk's picture

Remember this...

http://www.zerohedge.com/article/guest-post-how-ny-fed-gifted-extra-157-million-wall-street-yesterday

The Fed giveth and the Fed maketh banks do whatever they want. Bought and paid for - by us sorry taxpayers of course.

Mon, 03/21/2011 - 09:56 | 1081471 Boilermaker
Boilermaker's picture

I love a good old fashioned debt daisy chain.

This is fucking ridiculous.

Oh shit, the DOW is climbing like a tomahawk!!!  Everyone in the deep end of the pool!!

Mon, 03/21/2011 - 10:15 | 1081569 Long-John-Silver
Long-John-Silver's picture

Tomahawks eventually plow into something on the ground and explode creating a crater.

Mon, 03/21/2011 - 10:28 | 1081624 Boilermaker
Boilermaker's picture

Not these.  They simply go into orbit and continue on unabated into the unknown universe on inertia.  They are the new and improved version.

Mon, 03/21/2011 - 09:55 | 1081475 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The game will go on as long as it has to.

lol

Mon, 03/21/2011 - 10:08 | 1081533 Boilermaker
Boilermaker's picture

Exactly.  What's more is that they'll simply ramrod it harder as it gets worse, literally.  Once it's not real then it's not real.  There isn't anything to try to feign now, especially credibility.  Everyone knows it's bullshit so why not just go for it.

Mon, 03/21/2011 - 09:56 | 1081479 lsbumblebee
lsbumblebee's picture

Change "portfolio" to "heap".

Mon, 03/21/2011 - 09:57 | 1081484 Yen Cross
Yen Cross's picture

Calling Tokyo. Come in Tokyo!

Mon, 03/21/2011 - 10:01 | 1081493 Boilermaker
Boilermaker's picture

That's only interesting if you twisting on some chicks nipples while she puts her arms behind her head and swings back-and-forth like a radar dish....then, it gets interesting.

Mon, 03/21/2011 - 10:05 | 1081506 Bananamerican
Bananamerican's picture

"domo arigato mr. bu-kka-ke...but we are busy with our own meltdowns"

Mon, 03/21/2011 - 09:58 | 1081488 Boilermaker
Boilermaker's picture

In more standard daily news, the REITs are back to their moon shot trajectory.  Good news, bad news, no news...fuck it, SPG deserves a triple digit multiple or more.

I thought the 'reinstitution' of the dividends in the financials would peel away a layer or two of the REITs.  How fucking stupid of me.

Mon, 03/21/2011 - 10:08 | 1081527 Yen Cross
Yen Cross's picture

The commercial REITS are suffocating at best. So that is your backgrownd?

Mon, 03/21/2011 - 10:10 | 1081545 Boilermaker
Boilermaker's picture

Suffocating???  On what, their astronomical valuations and declining assets?  IYR is right back to it's high.

Nothing can suppress the awesomeness that is CRE.  NOTHING!

Mon, 03/21/2011 - 10:18 | 1081584 Yen Cross
Yen Cross's picture

Thanks for being Honest!

Mon, 03/21/2011 - 10:25 | 1081622 Boilermaker
Boilermaker's picture

That's my whole motto!

Mon, 03/21/2011 - 10:00 | 1081489 truont
truont's picture

This shell game of toxic feces will not fool anyone, Geithner...

Mon, 03/21/2011 - 10:04 | 1081509 Boilermaker
Boilermaker's picture

No, it won't.  But it will cornhole the shorts, right?

Remember, it's not a lie if you believe it.  Obviously, the equities markets are the one and only game in town.  It doesn't have to represent anything, actually.  Most people don't even know what equity is.  They only know their 401(k) statement was larger.

Give credit where credit is due, they are subduing the masses quite well.

Mon, 03/21/2011 - 10:12 | 1081546 Yen Cross
Yen Cross's picture

I like you but lose the 401k theory.

Mon, 03/21/2011 - 10:18 | 1081577 Boilermaker
Boilermaker's picture

LOL, it's all about the 401(k)'s.  I would say that 95% of people in 401(k)'s don't even know what they 'own'.  It's just the system was provided to them and they were told to participate.

It's a way for the banks to recapitalize without congressional approval and to silence the masses while they do it.  Yes, they'll be the eventual bag holders.

Try to have a logical discussion with Betty the admin assistant about why pushing up the equity markets is wrong.  She'll immediately point to her 401(k) statement and have a deeply confused look on her face.  Then, when the discussion gets complicated, dismiss you and say "well, it's up, that's all I know".

Mon, 03/21/2011 - 10:16 | 1081572 DaveyJones
DaveyJones's picture

"it doesn't have to represent anything, actually"

at least it lives up to its expectations 

Do NOT follow this link or you will be banned from the site!