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This and That
Question for Bernanke
Two charts from the CBO, then a question.
No surprise in this chart. 11m people are in the US illegally. 8.5m are from Mexico or Central America. This one was a surprise:
Looking at this chart I concluded that the unemployment rate at the end of 2012 for the native born population was very close to 6.5%. Based on what has happened so far in 2013, I would expect that the rate today is less than the YE level.
The 6.5% number is significant because Bernanke has set this level as a line in the sand. If the overall unemployment rate falls to this magic level, then the Fed has promised it will back off on the insanity that is now US monetary policy. Now the question:
Mr. Bernanke, are you running monetary policy to achieve a significantly lower rate of unemployment for undocumented workers? If so, please tell us why this is in the best interest of the country.
How Much Did Paulson Buy??
I've been following the Fannie/Freddie Pref story for a long time. My first article (July 2009) asked the question:
Agency Preferred Stock – Who’s Buying?
To some extent, that question has now been answered. It's hedge funds, apparently lead by none other than John Paulson.
The confirmation that Paulson has been leading the charge, comes from Senator Bob Corker (R-TN). His words:
“There are funds that have taken very large positions, large hedge funds, and they are lobbying heavily”
So good old JP, who just got his faced ripped off in a gold play, is now making a come back with a bet on busted Preferred stock?
I didn't make too much of the Bloomberg story, and neither has the market. The price of the Agency Pref has drifted sideways since this story broke. I was beginning to wonder if Paulson's involvement with the Pref was not just another kiss of death. "If JP's long - then maybe I should be out"; did cross my mind. But in the last 48 hours there has been an interesting development. Somebody bought a boatload of junk.
Yesterday, 21m shares of FNMAS crossed in just two transactions. Today another 39.6m shares (10 times average volume) went through in big block trades. Add to this, another block of 10m of the FMCKJ (Freddie Pref) and it comes to 75m shares - A total of $350,000,000 of buy-side demand.
All that money being put up for swill. That is a bet worth noting. Either something is brewing in this goofy story, of JP has bet the farm. Stay tuned.
Setting Priorities
An interesting new law has been offered up by Congressman Tom McClintock (R-CA). The Bill has come from the House Ways and Means Committee and is working its way through Congress.
Simple stuff. In the event that Congress could not agree on a debt limit extension, there would be a new carve-out of what would get paid. Principal and interest on the national debt that is held by the public, and the debt held by the Social Security Trust Fund would be honored. Everything else would be at risk.
To me, this sounds like some Republicans are preparing for a debt limit fight. The theoretical debt-limit deadline is in May, but the issue can fester for another three months. The Bill to allow for payments of debts to SS and bond holders would limit the consequences of a deadlock, so the law has a thread of logic to it.
My problem is that once something has been granted senor status, then everything else immediately becomes subordinated. No one likes to be forced onto the back of the bus. In this case, those that would be subordinated includes all retired Military and Federal workers, the entire military (and all of the contractors), food stamps and Medicare payments to doctors/hospitals. Any government guaranties that were not funded by debt to the public would also be on the "B" list.
I'm thinking of the old couple down in Boca, who get checks, and the generals, lieutenants and sergeants who don't. Social Security checks are more important than Food Stamps? Who says?
The real insanity here is that there is even a discussion (much less new legislation) of the "proper" way to default. Should this legislation pass, it would go a long way toward insuring that there is no resolution of the debt ceiling by the end of the summer. There would be less incentive for D.C. to come to terms with the debt limit. H.R. 807 would minimize the consequences of of a debt limit crisis, but it would split the country apart. Like I said, no one likes to forced to set in the back of the bus.
Just Silly
I'm sure there is some intelligent explanation for this proposed new law; just reading the words makes me laugh. What are these people thinking about?
Reader Question
Who's the lady in the Pic.?
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I think I see Heinrich Himmler at the bottom right.
I guess the rumors and pictures of his death were greatly exaggerated.
I have no idea who she is but I hope at least one of those guys got to bend her over.
The U.S.S.A.? Cooked, done, stick a fork in it, crossed the Rubicon and pursuing the Fall of Rome with a vengeance.
Fuck off Bruce, you shill.
Pelosi never looked that good.
Bruce, is that your Lady in Red?
Its not Pelosi, even as a baby she was ugly.
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Someone is either blind or can't do basic math. Miss Lube Rack 1955 would have been 15 in Pelosi years...lol.
Again, ya gotta pop the hood to see whats in it before ya buy the damned thing ;-)
I.e., you gottsa screw it to find out what's in it?
Looks like you're right, that ain't no Piglousy:
http://urbanlegends.about.com/od/nancypelosi/ss/Nancy-Pelosi-Miss-Lube-R...
Thats what it looks like to me.
The cars "front end" has me more intrigued (more than all the guys wedding bands...lol)...I can't place the front bumper to a year/model of Oldsmobile...the emblem looks like an Olds.
I think Bruce is throwing out a few "red" herrings...playfully ;-)
Nmewn:
My comments:
There seems to have been some kind of optional $5 bumper guards for the 1949-50 Oldsmobiles. The grille definitely originates from a 1949-50 Oldsmobile. There also seems to be a chrome strip on the front fender just below the beltline which was not found on the 1949 models.
Hey, thanks.
The bumper was throwing me off, in the age of photo-shop anything is possible...lol.
Thanks again!
It's John Boehner!!
That's no lady; that's the former Speaker of the House.
mom???
Nice try! Trick question, right? lol That's no "lady"...that's a future corrupt, lying, sociopathic, regressive, Marxist, traitor and all out scumbag.
Nasty Pelosi, of course!!! lol
She probably blew all those guys to get "elected" the princess of goop.
That pic is'nt Pelosi.
Nancy was 11 yrs, old when that pic was took.
http://www.truthorfiction.com/rumors/m/Miss-Lube-Rack-1951-05012013.htm#...
Botox then Botox now
of course then it was called STP
good thing it wasn't a tire changing shop other wise the sign might say Miss Rim Job