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US Treasury Admits It Conducted A Circular Ponzi Scheme For Years

Tyler Durden's picture


While one may wonder about the implications of the just announced "accelerated windown" of the GSEs, predicated in no small part by the surge in animosity between Tim Geithner and the FHFA's Ed DeMarco, there is one aspect of the announcement that is completely and utterly unambigious: as part of its justification to demand faster liquidation of Fannie and Freddie's "investment portfolio" Tim Geithner gave the following argument:

This will help achieve several important objectives, including... Ending the circular practice of the Treasury advancing funds to the GSEs simply to pay dividends back to Treasury

In other words not some fringe blog, not some "partisan" media outlet, not some morally conflicted whistleblowing former employee seeking immunity, but the US Trasury itself just admitted it had been engaged in circular check kiting scheme, which essentially has all the components of a Ponzi scheme in it, ever since the nationalization (about which there is no now doubt and which means the GSE's $6 trillion in debt is now fully on the Treasury's balance sheet) of Fannie and Freddie in 2008.

Transfer one more conspiracy theory into the conspiracy fact bin.


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Fri, 08/17/2012 - 09:30 | 2713835 diogeneslaertius
diogeneslaertius's picture

Transfer one more conspiracy theory into the conspiracy fact bin.




(someone find me an aircraft carrier to land on)

Fri, 08/17/2012 - 09:38 | 2713870 Dalago
Dalago's picture

Hey guys... we've been fucking you over.  No lube.  Sooo... how are thiiiiiiings??

Fri, 08/17/2012 - 09:47 | 2713896 Precious
Precious's picture

He should admit it about the banks too.

Fri, 08/17/2012 - 10:08 | 2713959 Doubleguns
Doubleguns's picture

Do not forget that a great portion of that transfer does not come back to the treasurey. It goes to the bond holders in places like ummmmm........China!!

Fri, 08/17/2012 - 10:41 | 2714085 Stock Tips Inve...
Stock Tips Investment's picture

That's one of the serious distortions of U.S. economy. There must be a national sacrifice to end the unlimited growth of public debt. In the long term, we subtract competitiveness and make us poorer.

Sat, 08/18/2012 - 09:53 | 2714157 LMAOLORI
LMAOLORI's picture




Yes and another thing this $6 Trillion was not on obama's budget the American people should be told the truth about what our debt really is...


Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars



"Today, to much fanfare, the administration released its ridiculous $3+ trillion budget (we say + because at that size the one thing certain is that the budget will certainly never hit the target and while we wish it would be lower, we are certain it will end up materially higher), which consists of a "short" 192-page summary section and a 1420 page appendix. We are confident that not one politician will read the whole thing from cover to cover. We won't either. Not because we don't care about what's in it, but because we are much more concerned with what is not included, namely $2.8 Trillion and $1.9 Trillion of MBS guaranteed portfolios at Fannie and Freddie, and an additional $782 billion and $809 billion in company debt outstanding for the two GSEs, respectively. This amounts to a total of $6.3 trillion in liabilities which should be counted toward the budget. And yet, oddly, the error-checker somehow made this rather justifiable omission: after all if we were to look at a number which written out looks as follows $6,264,000,000,000.00, we would also probably just avoid it - it is somewhat difficult to hide a number that big even in the 1,420 pages of the budget's appendix. That's ok, we are here to remind them about the omission, and also to remind Mr. Orszag, who himself, in that long ago 2008, espoused that these companies should be put on the Federal Budget. Isn't it strange what one and a half years worth of realizations just how broken beyond repair the system is, will do to one's convictions?"


Crony Socialism Strikes Back: Geithner Retaliates Against DeMarco; Accelerates Wind Down Of GSE Treasury Backing


More on Orzag

Corporate Crime, Russia, Peter Orszag and Getting Away with Murder

Fri, 08/17/2012 - 09:39 | 2713872 malikai
malikai's picture

I like the way they frame it. One could read that and think "yea, it's no big deal'.

Fri, 08/17/2012 - 10:08 | 2713961 Hype Alert
Hype Alert's picture

And the channel quickly brings up a picture of Assange and the latest attempts at bringing him to "justice".

Fri, 08/17/2012 - 10:22 | 2714015 tekhneek
tekhneek's picture

Well he can't just come out and say it's one big circle jerk now can he...

Fri, 08/17/2012 - 10:35 | 2714056 Big Slick
Big Slick's picture

This is big!

AND EVEN MORE THAN WHAT IS WRITTEN IN THIS ZH PIECE, the Treasury press release states... "The agreements will replace the 10 percent dividend payments made to Treasury on its preferred stock investments in Fannie Mae and Freddie Mac with a quarterly sweep of every dollar of profit that each firm earns going forward."

So if I get this right, instead of this situation being a public ponzi and a government embarassment, they're  going to change the rule of law so that the  "circular practice of the Treasury advancing funds to the GSEs simply to pay dividends back to Treasury" is replaced by a "why bother" accompanied by an non-transparent process.

Henry Hill: "This is the bad time."


Fri, 08/17/2012 - 10:38 | 2714068 Precious
Precious's picture

They are going to save time and remove the middleman.

In the future the Treasury, on the money it prints, will simply pay interest to itself.

Fri, 08/17/2012 - 11:33 | 2714221 fockewulf190
fockewulf190's picture

My phyzz stack just gained another magnification of brightness. Time to burn some more fiat powder right quick and add to this bitch pronto.

Fri, 08/17/2012 - 11:57 | 2714248 Big Slick
Big Slick's picture

In considering the additional condition in the Treasury Press Release mentioned in my above post:

"The agreements will replace the 10 percent dividend payments made to Treasury on its preferred stock investments in Fannie Mae and Freddie Mac with a quarterly sweep of every dollar of profit that each firm earns going forward."

The broadness of the new term sends shivers down my spine.  Obviously this term has absolutely no intent.  Becuase if by miracle, the "profits" were twice as much as the old 10% dividend, that would be not acceptable to the GSE.  If profits are less (and they are 99.99% likely to be MUCH LESS), the "circle" is allowed to be broken. 

It's obvious here that the Treasury is trying to figure out how to get rid of a dead body.

!!!One more thing, can anyone extract a hint from the presser text (though hugely & subjectively implied) on the govt's plan for direction of interest rates?


Fri, 08/17/2012 - 09:32 | 2713842 Jason T
Jason T's picture

Game Over

Insert Coin

Fri, 08/17/2012 - 10:15 | 2713987 pods
pods's picture

Great, now I have that voice from Gorf in my head:

"Insert coin, Insert coin......"

Fri, 08/17/2012 - 10:40 | 2714075 Big Slick
Big Slick's picture

Remeber Berzerk?  "Stop the intruder."

Bernanker: "The dollar must not escape"

Fri, 08/17/2012 - 09:34 | 2713845 Debtonation
Debtonation's picture


Fri, 08/17/2012 - 09:35 | 2713848 buzzsaw99
buzzsaw99's picture

the agencies books are as rotten as the big banks. losses in the trillions yet to come and yes turbo timmy will be writing more checks. that rat bastard never told the truth in his whole worthless life.

Fri, 08/17/2012 - 09:37 | 2713857 Robot Traders Mom
Robot Traders Mom's picture

Thanks for coming by yesterday, Buzz!

Fri, 08/17/2012 - 09:36 | 2713852 Robot Traders Mom
Robot Traders Mom's picture

At this point, it really wouldn't surprise me if Geithner was moonlighting on ZH as my kid.


The shit they say certainly matches up.

Fri, 08/17/2012 - 09:50 | 2713911 Dr. Engali
Dr. Engali's picture

I am probably going to regret saying this, but I think you're off base. Your not quite a dumb as Turbo Timmy. There I said it..ugh

Fri, 08/17/2012 - 10:03 | 2713948 Robot Traders Mom
Robot Traders Mom's picture

Don't sell yourself short, Judge. He's a tremendous slouch!

Fri, 08/17/2012 - 10:03 | 2713947 Agent P
Agent P's picture

Quit being such a helicopter mom and let your kid start posting soft porn pics again! 

Fri, 08/17/2012 - 09:36 | 2713859 Winston Churchill
Winston Churchill's picture

Oh dear.

Debt/GDP is now 140% +

Hello to  the Greek province of Amerikanos.

Fri, 08/17/2012 - 09:36 | 2713860 Rattling Bones
Rattling Bones's picture

In fairness, Geithner could always, reasonably, claim that he didn't know what he was talking about.

Fri, 08/17/2012 - 09:43 | 2713886 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

He could just blame it on TurboTax. Usually works for me.

Fri, 08/17/2012 - 09:45 | 2713864 Mercury
Mercury's picture

Not so fast Timmah!

Think of the opportunity here.  Those GSEs could be securitizing those circular payments and selling them to yield-strapped pension plans.

That's just the kind of product innovation and American can-do spirit we need to see from our nation's public-private partnerships.

Go ahead, you know you haven't practiced this one in a while....get on the stool, stand in front of the mirror and belt out your best:   Welcome to the recovery!


Fri, 08/17/2012 - 09:41 | 2713876 TheDarkKnight
TheDarkKnight's picture

At this rate we're gonna need a bigger bin

Fri, 08/17/2012 - 09:41 | 2713877 lizzy36
lizzy36's picture

Hey maybe Geithner can get a job with former Obama operative, Corzine.

2/4 the price of 1 LLP.

Fri, 08/17/2012 - 12:09 | 2714322 ptoemmes
ptoemmes's picture

And should they get any customers they can be TurboCorzined.



Fri, 08/17/2012 - 09:48 | 2713885 Dr. Engali
Dr. Engali's picture


but the US Trasury itself just admitted it had been engaged in circular check kiting scheme,


I'm not sure if you meant Trashury or Treasury. By the way it is currently operated why don't we just go with Trashury?

Fri, 08/17/2012 - 10:11 | 2713973 Dr. Richard Head
Dr. Richard Head's picture

The funny thing is that the plebes go to jail for check kiting.  For the cabal it matters not.

My Mexican immigrant neighbor was renting a house next to me for two years.  He ran a "payroll" company during that time.  Turns out it was a check kiting scheme.  Police officer is the neighbor on the other side of me and he asked if I knew of Mexican's whereabots after he disappeared leaving his pregnant wife and three kids behind.  They were looking to serve a warrant for his arrest.

Since Timmy is working on behalf of keepinf the ponzi going, he will certainly receive a nice promotion when his Treaserve sentence is done.  Possibly a top spot at Corzine's Cornhole Hedge fund?

Fri, 08/17/2012 - 09:45 | 2713889 Rainman
Rainman's picture

Counting Solyndra, GM , AIG , etc. these Obama operatives really know how to vaporize taxpayer fiat.

Fri, 08/17/2012 - 09:46 | 2713894 jefe95
jefe95's picture

Are there any regulators or journalists or anyone, other that ZH, that are shining a spotlight on this outright fraud??  Banana republic indeed.

Fri, 08/17/2012 - 11:12 | 2714169 notbot
notbot's picture

That's why we need a non-democrat in the white house, so the press will go after stories, I don't know, white house leaks of CIA info, college transcripts that might show you registered as a foreign student, wars you start, tax payer money you spend on black holes like the GSEs.  

Or we can just focus on whether Mitt payed cap gains rates (how shocking!!!).

Fri, 08/17/2012 - 12:50 | 2714523 Canaduh
Canaduh's picture

Don't blame me, I voted for Kodos.

Fri, 08/17/2012 - 09:47 | 2713897 asteroids
asteroids's picture

Well Timmah, no one put a gun to your head to start doing it, so stop whining. If you don't like things then stop funding them. What a weasel.

Fri, 08/17/2012 - 09:47 | 2713899 Bay of Pigs
Bay of Pigs's picture

I remember telling my mortgage business buddies on the day Fannie was nationalized that the country was finished (Sept. 6th, 2008).

They laughed at me.


Fri, 08/17/2012 - 10:18 | 2713991 Disenchanted
Disenchanted's picture


Bay of Pigs said:


"the day Fannie was nationalized that the country was finished (Sept. 6th, 2008)."


Hold it! Stop the presses...You mean the 'communist marxist muslim' had nothing to do with that!? /s


Keep it in your pants red team operatives, I despise the corporatist/fascist Obama as much as I did Bush II. But it's high time that some of you also acknowledge your team's role in our situation.



'no teamer'


You can freely substitute the name G. W. Bush in place of Romney in the following(except for #2):


The fact is that there is no essential difference between the so-called corporate-sponsored "choices" couldn't be more clear than a list of 40-points compared in a Michael Snyder piece at The American Dream this week.  Among his 40-points in common?



"1. Barack Obama and Mitt Romney both supported TARP.

2. Mitt Romney supported Barack Obama's "economic stimulus" packages.

3. Mitt Romney says that Barack Obama's bailout of the auto industry was actually his idea.

4. Neither candidate supports immediately balancing the federal budget.

5. They both believe in big government and they both have a track record of being big spenders while in office.

6. Barack Obama and Mitt Romney both fully support the Federal Reserve.

7. Barack Obama and Mitt Romney are both on record as saying that the

 president should not question the "independence" of the Federal Reserve.

8. Barack Obama and Mitt Romney have both said that Federal Reserve Chairman Ben Bernanke did a good job during the last financial crisis.



You owe it to yourself to click over here and read his whole column.  The list goes on and on...


h/t UrbanSurvival

Fri, 08/17/2012 - 10:42 | 2714070 Disenchanted
Disenchanted's picture




btw I'll take issue with #3 in my previous post...some of you 'red teamers' seem to have forgotten this as well:


WASHINGTON — The emergency bailout of General Motors and Chrysler announced by President Bush on Friday gives the companies a few months to get their businesses in order, but hands off to President-elect Barack Obama the difficult political task of ruling on their future.

source:   (Dec. 19, 2008)

Fri, 08/17/2012 - 11:01 | 2714138 Bay of Pigs
Bay of Pigs's picture

Spanky and Buckwheat are both are pathological liars.

Ultimate Mitt Romney Flip-Flop Collection

Fri, 08/17/2012 - 15:24 | 2715015 malek
malek's picture

So what's your point?

We should still vote for the Messiah this time?

Fri, 08/17/2012 - 09:50 | 2713910 Seasmoke
Seasmoke's picture

Circle Jerks are never as good as they seem

Fri, 08/17/2012 - 10:12 | 2713978 Dr. Richard Head
Dr. Richard Head's picture

Especially when you are the first to drop your load.  Post ciotal remorse indeed.

Fri, 08/17/2012 - 09:52 | 2713917 tuttisaluti
tuttisaluti's picture

The Fan starts to turn.

Fri, 08/17/2012 - 10:13 | 2713979 Dr. Richard Head
Dr. Richard Head's picture

Shits been flying for some time now.  We need to introduce these two soon.

Fri, 08/17/2012 - 09:55 | 2713926 Sofa King
Sofa King's picture

Is Geitner looking for a sevrence package before the shit really hits the fan?

Fri, 08/17/2012 - 10:07 | 2713957 insanelysane
insanelysane's picture

He is looking for a way to not get prosecuted if the Repubs end up winning in November.

Fri, 08/17/2012 - 09:56 | 2713930 fuu
fuu's picture

Fuck you TIMMAH!

Fri, 08/17/2012 - 09:56 | 2713931 LongSoupLine
LongSoupLine's picture

Hmmm, that would be admitting to financial treason against the United States of America.


Let me seeeee....hmmm, yup, here it is...punishable by death.  Ok then, well, sorry Timmy boy.  Bub-bye then.

Fri, 08/17/2012 - 09:56 | 2713932 rawsienna
rawsienna's picture

Move was done to avoid downgrade.  In a normal year, the agencies will not earn enough to pay the 10% dividend and earn a profit so by definition they would eventually have exceeded the 200bb cap.  No money to can flow to anyone other than taxpayers ..Dont read more into it

Fri, 08/17/2012 - 10:11 | 2713974 Dr. Engali
Dr. Engali's picture


"the agencies will not earn enough to pay the 10% dividend and earn a profit"


Dividends do not apply to profits. Dividends are purely a cash flow operation.

Fri, 08/17/2012 - 09:58 | 2713936 GMadScientist
GMadScientist's picture

When one's SOP is having one's head rammed into one's colon, these circle jerks may appear "normal".


Fri, 08/17/2012 - 10:05 | 2713951 Agent P
Agent P's picture

Left pocket, right pocket...bitchez!

Fri, 08/17/2012 - 10:05 | 2713952 XitSam
XitSam's picture

Tyler, do you ever look at the server log IPs to see how many hits come from the Fed, Treasury, White House, ...

Fri, 08/17/2012 - 12:31 | 2714420 XitSam
XitSam's picture

Even better, get some code to grep out the IPs and post the count live with each story.

Fri, 08/17/2012 - 10:09 | 2713960 moriarty
moriarty's picture

If a member of the TPTB admits to part of the Ponzi and the sheeple do not “hear” do they say anything?

Fri, 08/17/2012 - 10:08 | 2713962 Zero Debt
Zero Debt's picture

The treasury should have known better than to run a circular ponzi when a pyramid scheme was clearly a better option.

Although the circular ponzi tends to be faster, all parties tend to know what's going on, thus sharks eat shark in the unraveling.

The pyramid ponzi has a nice information asymmetry to it allowing the top to detach from the base effortlessly.

Fri, 08/17/2012 - 10:16 | 2713994 youngman
youngman's picture

I agree...guys who run Ponzis seem to have nicer shoes and suits...

Fri, 08/17/2012 - 10:14 | 2713985 Downtoolong
Downtoolong's picture

Wall Street’s favorite mantra for defense has always been:


Past experience is no guarantee of future performance.


And the corollary is:


Past lies and deceptions do not guarantee present justice.



Fri, 08/17/2012 - 10:17 | 2713995 Catullus
Catullus's picture

So everyone's monthly mortgage payment held the GSEs is one big circle-jerk passed btw the GSE and UST? Wonderful.

For the love of god, stop paying your mortgages, people. You're paying someone else's healthcare at this point.

Fri, 08/17/2012 - 10:36 | 2714060 tradewithdave
tradewithdave's picture

Geithner foams the runway for Erskine. Only one question remains... Can you fill a credibility gap with foam?

Fri, 08/17/2012 - 10:37 | 2714061 Dina Strange
Dina Strange's picture

It's in open now. They are not even pretending to hide it anymore.

Fri, 08/17/2012 - 10:40 | 2714077 madcows
madcows's picture

It's only a crime if your not connected... See Corzine.  See Geitner.  See Paulson.  See Clinton.  See ruling elite.  Revolution is in the air.

Fri, 08/17/2012 - 10:45 | 2714100 alfred b.
alfred b.'s picture


    I said last week that Geithner assisted by bernake and dimon are running the country ...into the ditch.   They've made themselves the mastermind....and Obama is the just the front guy.

     With smoke and mirrors (derivatives and gse's)  they have successfully moved trillions of national debt off the books pretty much the same way Greece did.   Meaning that probably another 10 trillion of nat'l debt is hidden at the fed's Cayman acct and spread over a whole slew of gse's.


Fri, 08/17/2012 - 10:50 | 2714113 bubbleburster
bubbleburster's picture

I think that it needs to be said to the crowd that hoists Rick Santelli on its shoulders (and I like the guy).....that were the USA to agree to pass a law to balance their books in 365 days, thus eliminating the yearly deficit, the following realities would be faced by the entire nation:

  1. a nationwide depression with unemployment probably at 35%
  2. military budget cut in half, putting a hell of a lot of trained killers roaming the streets looking for work and a home
  3. government payrolls cut by a third
  4. bank failures that will destroy maybe 1/3 of all US banks in the following 3 years
  5. the Dow Jones index will drop by 1/2 or more
  6. S&P index will drop by 50% within 2 years
  7. all major cities will be zombie hell holes where civil law and order have totally broken down

This is just a taste of what I think is a realistic outcome of stopping the spending as Santelli and the Tea drinkers have been screaming.  They don't realize that were this decision really passed into law (I know, not likely, but), they would destroy the entire country for at least one generation. 

Sounds like a nightmare that is never going to happen.  Maybe.  Perhaps the bond market vigilantes will one day hand this as a coup de grace without the permission of the trolls in Congress.  Could be.....

Fri, 08/17/2012 - 11:28 | 2714214 PMakoi
PMakoi's picture

Meh!  Let's do it!

1.  I don't care, I'm retired and can take care of myself.  If I get sick enough, well,.. I'll die.

2.  I have enough room, enough land, enough livestock, to hire a few "trained killers", maybe they can also farm.  Besides, they might come in handy.

3.  I don't care.

4.  I don't care.

5.  I don't care.

6.  I don't care.

7.  Hmmm,???... no, I still don't care.

Fri, 08/17/2012 - 12:00 | 2714285 Seek2survive
Seek2survive's picture

Yeah it is going to be ugly but all we are doing is delaying the inevitable and perhaps it will be worse the longer we dodge and weave.  As Todd Harrison of Minyanville said "we traded the car crash for cancer".  We have run up our debt to over 100% debt/GDP and the paltry growth we have gotten isn't justifying this continued level of deficit spending.  I am not saying to balance the budget in 365 days but we can't even seem to take some prudent steps in that direction without the media screaming "we are going to run over a fiscal cliff".  We need to raise some taxes and cut some spending but maybe not as drastic as scheduled to go into effect.  As an investor I need some kind of assurance that the US federal government can act fiscally responsible and isn't just a corporate controlled entity that's policies enhance corporate profits at the expense of future taxpayer or possibly future mythical taxpayers.

Fri, 08/17/2012 - 12:27 | 2714402 shovelhead
shovelhead's picture


I just got an image of thousands of babies in baskets being floated in the Gulf of Mexico to save them from Pharaoh and his Debt for Life slavery.

Fri, 08/17/2012 - 12:01 | 2714294 Catullus
Catullus's picture

Hank Paulson called. He asked if you'd like to ghost write his next book.

Spare us the fear-mongering. The government produces nothing. It's just stealing what's already been created. So the prices of shit goes down. It's not the end of the world.

Sitting on top of unrealized losses and propping up a failed system... That's what leads to the above.

Fri, 08/17/2012 - 14:34 | 2714850 FRBNYrCROOKS
FRBNYrCROOKS's picture


I don't think you have to worry about the traitors in Congress cutting any spending. Here is one for 615 billion Defense Appropriation.


H.R. 5856: Department of Defense Appropriations Act, 2013 - Legislative Digest -

I thought I would throw this in for good measure:

Federal Law Enforcement Training Center

HSFLGL-12-B-00003, Commercial Leaded Training Ammunition (CLTA)


A. The Federal Law Enforcement Training Center (FLETC), Glynco, GAY anticipates

multiple IDIQ firm fixed price award(s) as a result of this acquisition. The FLETC

ammunition needs are based on FLETCYs student load which can change daily. An

estimated quantity of ammunition that will be ordered cannot be provided due to changes

I in student load. The minimum guarantee for the resultant award(s) is 1,000 rounds per '

contract per year. The maximum limit for the resultant award(s) is 70 million rounds per year. If more than one (1) contract is awarded, the maximum limit will be split between

Federal Law Enforcement Training Center

HSFLGL-12-B-00003, Commercial Leaded Training Ammunition (CLTA)





This specification applies to handgun, shotgun, and rifle ammunition strictly for

training purposes. This type ammunition is designated as commercial lead training

ammunition (CLTA) by the issuing agency: Department of Homeland Security (DHS),

Federal Law Enforcement Training Center (FLETC) with multiple training sites in the

United States.


3.1 DHSIFLETC provides training for 90-1- agencies; numerous manufacturers'

handguns, shotguns, and rifles are used during firearms training (some are FLETC-owned

and some other-agency owned).This requirement covers the following calibers of

handgun, shotgun, and rifle training armpunition (DHSIFLETC reserves the right to add

other calibers during the term of the resultant contract(s) based upon agency training


9MM Luger 1 15 Grain JHP

9MM Luger 124 Grain FMC

9MM Luger 147 Grain JHP

1 OMM Auto 180 Grain JHP

.45 Auto Caliber 230 Grain JHP

.45 Auto Caliber 230 Grain FMC

.40 S&W Caliber 155 Grain JHP

.40 S&W Caliber 165 Grain JHP

.40 S&W Caliber 180 Grain JHP

.380 Auto Caliber 90 Grain JHP

.38 SPL Caliber 158 Grain SWC

.3 8 SPL Caliber 158 Grain Lead Ball (LB)

.38 SPL Caliber 148 Grain WC

.357 Sig Caliber 125 Grain JHP

.357 Mag Caliber 125 Grain JHP

.223 Rem Caliber 55 Grain FMC

.223 Rem Caliber 55 Grain Soft Point

.223 Rem Caliber 62/64 Grain JHP

.223 Rem Caliber 69 Grain BTHP (match grade)

.223 Rem Caliber 77 Grain BTHP (match grade)

.30-06 Springfield Caliber 150 (or higher) Grain FMC

.308 Win Caliber 168 Grain BTHP (match grade)

12 GA 00 Buckshot 8-Pellet, 2 % in, Full Recoil

12 GA 00 Buckshot 8-Pellet, 2 % in, Reduced Recoil

12 GA 00 Buckshot 9 Pellet 2 % in, Full Recoil

12 GA 00 Buckshot 9 Pellet 2 % in, Reduced Recoil

12 GA #4 Buckshot 27 Pellet, 2 % in.

12 GA #7 Target, 2 % in.

12 GA Rifled Slug 102.2 % in, Full Recoil

12 GA Rifled Slug loz. 2 % in, Reduced Recoil

7.62x39MM 123 Grain Soviet


Why does DHS need hollow points for target pratice and traing puposes?

The Invitation for Bid # is HSFLGL-12-B-00003 for those that wish to dig further.


Fri, 08/17/2012 - 10:52 | 2714114 DeadOnArrival
DeadOnArrival's picture

When one's SOP is having one's head rammed into one's colon, these circle jerks may appear "normal".

Ring...ring...calling William Bonzai 7 & Limerick King...request for weekend art...1 image of group of "leaders" with heads rammed in a tight daisy-chain formation, al la "circle jerk"!


Fri, 08/17/2012 - 10:56 | 2714124 Hedgetard55
Hedgetard55's picture

It is ironic that President Choomwagon insists that Romney release his tax returns to prove he paid taxes, yet he had no problem with Turbo Timmy the tax cheat becoming Sec Treasury.

Fri, 08/17/2012 - 12:20 | 2714365 shovelhead
shovelhead's picture

Seems a tad incongruous, does it not?

And yet our beacons of truth in the MSM have not noticed this slight discrepancy in standards.


Fri, 08/17/2012 - 11:44 | 2714244 MachuPicchu
MachuPicchu's picture

So there´s no scandal if Corzine will be next secretary of Treasury.. Indeed, he will be the rignt candidate.. America needs him..


Fri, 08/17/2012 - 12:53 | 2714542 chinaboy
chinaboy's picture

Does that mean that QE4 is comming?

Fri, 08/17/2012 - 15:40 | 2715048 FRBNYrCROOKS
FRBNYrCROOKS's picture

I think that means -QE2 is coming because Treasury wants their money back. 

I found this in the FCIC report page 448:


"One glaring example will illustrate the Commission’s lack of objectivity.In March 2010, Edward Pinto, a resident fellow at the American Enterprise Institute (AEI) who had served as chief credit officer at Fannie Mae, provided to the Commission staff a 70-page, fully sourced memorandum on the number of subprime and other high risk mortgages in the fi nancial system immediately before the fi nancial crisis. In that memorandum, Pinto recorded that he had found over 25 million such mortgages (his later work showed that there were approximately 27 million).2 Since there are about 55 million mortgages in the U.S., Pinto’s research indicated that, as the fi nancial crisis began, half of all U.S. mortgages were of inferior quality and liable to default when housing prices were no longer rising. In August, Pinto supplemented his initial research with a paper documenting the eff orts of the Department of Housing and Urban Development (HUD), over two decades and through two administrations, to increase home ownership by reducing mortgage underwriting standards."


This was in the dissenting opinion section of the FCIC Final Report and states: There were 55 million mortgages in 2007. 27 million of those mortgages   were of inferior quality and liable to default when housing prices were no longer rising.

I don't think creating more "inferior quality loans" to bundle in MBS so BB can buy them is the solution. I think it is high time for the Gov't and the FRBNY to get out of the mortgage business.

Raise interest rates now!!!

Fri, 08/17/2012 - 21:03 | 2715878 chinaboy
chinaboy's picture


Last time I checked, it was not what how you and I (or Pinto) think that matters. Plus, there are trillions of outstanding MBS that will be formally under the name of Uncle Sam. Me thinks is that the Fed has to buy it because no one has the capacity to shoulder that much.

Fri, 08/17/2012 - 15:52 | 2715093 SmittyinLA
SmittyinLA's picture

This is good, as "they" didn't pay any debt down, as long as we don't pay any debt down we reserve the "right to stiff". 

The herd of idiots (retirees, public employee pensions) are all going to eventually eat shit, but not without first paying interest on eating shit for a few years before we're allowed to default and then eat shit. 

Bon apetite 



Fri, 08/17/2012 - 16:13 | 2715195 deez nutz
deez nutz's picture

Bet everyone lines up for some more tasty, delicious, U.S. goobermint guaranteed DEBT!!

These clowns can do more with debt than a 5 yr old with play doh!! 

Fri, 08/17/2012 - 17:21 | 2715418 hockeypuck777
hockeypuck777's picture

Does anyone have a FULL LIST of all of the GSE's out there that are potential additions to the US Govt balance sheet when all heck breaks loose?  All government chartered entities?  Tote up all of their liabilities and and you will get the real picture of what the taxpayers are on the hook for.

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