• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

YouWalkAway.com: Bringing Moral Hazard To A Deadbeat Near You

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Wed, 09/21/2011 - 00:21 | 1691107 Ahmeexnal
Ahmeexnal's picture

KABOOM!

Goodbye bankster thugs!

Wed, 09/21/2011 - 01:01 | 1691202 CrazyCooter
CrazyCooter's picture

Sounds great, but because banks own Congress, the only outcome is really nasty inflation.

Banks, on paper, will be made whole. Prepare accordingly.

Regards,

Cooter

Wed, 09/21/2011 - 01:13 | 1691229 Cliff Claven Cheers
Cliff Claven Cheers's picture

Love your insight Cooter. Keep on keeping on.

Wed, 09/21/2011 - 04:56 | 1691503 oobrien
oobrien's picture

These are scary shit-your-pants times.

And I don't see us getting out of it--unless we can manufacture WWIII.

What a pisser!

http://geraldcelente.proboards.com

 

Wed, 09/21/2011 - 05:28 | 1691517 dlmaniac
dlmaniac's picture

A more accurate name should be DumpItOnTaxpayers.com.

Wed, 09/21/2011 - 06:09 | 1691550 jeff montanye
jeff montanye's picture

these debts will never be paid.  until this is admitted, the debts restructured (principal eliminated, bond and mortgage holder haircuts taken) and counterparty transparency restored, there will be no sustainable recovery.

Wed, 09/21/2011 - 06:41 | 1691568 nmewn
nmewn's picture

Exactly right...in a normal world this is how its done.

But in their interconnectivity, they can't allow that. So the devaluation will continue until faux balance. The fact that what is paid back is worth less never seems to cross their minds. 

Its as if they think fiats are still backed by something of real value.

Paradoxically, the thing they do back it with now (faith & credit), the thing they put their trust in & value the most, is being destroyed right along with the currency.

A race to the bottom, insanity doesn't even properly describe it...party on Garth...lol.

Wed, 09/21/2011 - 10:05 | 1692126 MachoMan
MachoMan's picture

So why is there an all or nothing approach to requiring financial institutions to recognize these losses?  Why can't we get some middle of the road approach, e.g. babystepping them into write downs by requiring X amount of losses to be realized over Y years?  If we had done this from the beginning, we'd be quite a few years down the road to resolving the issue...  and people would probably be less pissed at the amount of bonuses taken because it would necessarily mean certain death to the institution if a solvency issue arose down the road.  If we have the power to step in and prohibit mark to market or change capital requirements, etc., then we have the power to do whatever...

Seems like there are plenty of ways to go about it...  just that no one wants to brainstorm because no one really wants to fix it.  The neat part about fighting gravity though...  it always wins.  Doing nothing, in this case, will still be a losing affair.  I'm just curious as to how much pain we'll have to go through waiting for natural forces to "fix" the problem.

Wed, 09/21/2011 - 08:54 | 1691867 Nascent_Variable
Nascent_Variable's picture

Strategic default is a calculated middle finger to the banks, and I support it whole-heartedly.  Bank losses only get passed to taxpayers directly through bank bailouts.  The public doesn't have the stomach for another direct bailout any time soon. If Washington tries it, they will only hasten the guillotines. 

As for the Fed's infinite money-printing, that issue has gone way past mortgages at this point.

Wed, 09/21/2011 - 09:26 | 1691960 jdrose1985
jdrose1985's picture

Uhhh...what are the banks losing, exactly? The note was paid in full from the signature on application for credit...lol.

You all have no clue.

Wed, 09/21/2011 - 09:38 | 1692011 wisefool
wisefool's picture

The american (keynesian) dream.

http://www.youtube.com/watch?v=ZPWH5TlbloU

Wed, 09/21/2011 - 09:58 | 1692092 MachoMan
MachoMan's picture

Unless the loan came directly from the FED or initial lending source, then the banks are going to have to beam the scratch back to the mother ship.  While technically it is correct to say that "the banks" created the money out of thin air, this broad brushed approach misses the interchange between the parties (fails to recognize that same loan is actually a liability on many financial institutions' books, and probably a net liability at that in this underwater day and age).

Wed, 09/21/2011 - 09:59 | 1692097 Nascent_Variable
Nascent_Variable's picture

By all means, please explain how losing an interest bearing loan on the books does not affect the banking system.  Also, please explain how losing perhaps decades worth of interest payments on that loan doesn't affect the banking system.

Even if the mortgage is sold, it is still within the system, and in fact, is most likely leveraged heavily, making the losses to the system even greater.

I'd like to know where I'm wrong.  No sarcasm.  I'm here to learn.

Wed, 09/21/2011 - 10:51 | 1692363 Jumbie
Jumbie's picture

The loan is lost, and the title is gained.

The decades of interest are not lost; past payments are banked, future forgone payments are mearly put off at negative interest while the market adjusts.

The 3 card monty played by shuffling mortgages and skimming 1% each time is the problem, and the heavy leverage is the source of profits and bonuses (inaddition to the CDS sold on top of the bundled mortgages). The "system" looses heavily, is bailed out by taxpayers, and those who designed and actively participated in the ball-under-the-cup game retire to St. Maartin.

The misconception here is that the system is somehow supposed to be working in the best interest of taxpayers/mortgage owners, when it fact it has become a giant skim operation.

Wed, 09/21/2011 - 10:36 | 1692289 Jumbie
Jumbie's picture

Not quite; since the poor don't "own" houses (sorry, meant "own mortgages") and the richest don't pay taxes, the middle classes are shifting the burden between themselves. All this by making what top employers would consider a Good Business Decision, taught by every mBA school in the country: The Doctrine of Sunk Costs. Open pit mine not producing? Forward prospects unfavorable? Spin it off to a new corp and abandon it - pure win.

Banks are able to take full posession of real property at negative real cost and sit on it via mark-to-myth, negative interest and other welfare, and so have no incentive to relenquish any part of the title until inflation reaches desired levels. It worked well for the largest banks in the '30s, and the acknowledged expert of the time ;-) will see that it does again.

Synopsis: the poor don't matter here, the working schleps are helping drive more of each other into the poorer classes by increased tax burdens, and the banksters take title to more of their land and property by printing money for themselves, FTW.

 

Wed, 09/21/2011 - 01:20 | 1691247 Jasper M
Jasper M's picture

I'll take the 'under' on that trade.
Jesus of Nazareth couldn't inflate this pig.

Wed, 09/21/2011 - 02:59 | 1691411 Temporalist
Temporalist's picture

I never read that was one of his bread and butter miracles...

Wed, 09/21/2011 - 03:45 | 1691451 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Sermon on Mount = 5000 loaves of Back Bacon. (give or take)

Wed, 09/21/2011 - 06:12 | 1691552 jeff montanye
jeff montanye's picture

perhaps srs is the etf for you.  interesting three year weekly chart. http://stockcharts.com/h-sc/ui

Wed, 09/21/2011 - 02:00 | 1691322 AldousHuxley
AldousHuxley's picture

Even real casinos are losing money these days and resorting to tried and true method of ponzi schemes:

Online poker site with FBI logo on the home page:  http://www.fulltiltpoker.com/

 

What is not a ponzi these days?

Wed, 09/21/2011 - 02:04 | 1691324 EscapeKey
EscapeKey's picture

Physical gold?

Wed, 09/21/2011 - 02:58 | 1691407 caerus
caerus's picture

ponzis are so hot right now

Wed, 09/21/2011 - 04:20 | 1691476 AldousHuxley
AldousHuxley's picture

Get this...Charles Ponzi's scam company was called SEC: Security Exchange Company

Wed, 09/21/2011 - 07:36 | 1691620 Stax Edwards
Stax Edwards's picture

haha good one!

Wed, 09/21/2011 - 07:50 | 1691653 jimijon
jimijon's picture

That is why he should be nominated for a Nobel in Economics. Let's admit it. He influenced more businesses and banksters than any bullshit University of Chicago bs artists. I even have a form... maybe I will make a website to gain signatures.

 

Wed, 09/21/2011 - 02:37 | 1691380 suckapump
suckapump's picture

Cooter, lest you forget, most of the banks don't lend any of their own money anyway. These are all sold as various asset-backed securities to...you guessed it...us (in the form of pension funds, 401k funds, other retirement funds, guarantees on Fannie/Freddie mortgages, etc.).

Remeber that (through Fannie/Freddie) we are forced to be responsible for managing something like 90+% of all residential mortgages (in the form of MBSes).

Thank you Uncle Sam.

Wed, 09/21/2011 - 04:07 | 1691467 fajensen
fajensen's picture

"Thank you Uncle Scam."

- there, I fixed it for you. :)

 

Wed, 09/21/2011 - 04:39 | 1691493 I think I need ...
I think I need to buy a gun's picture

for the record on whats being taught.....my 7th grade daughter came home from school and told me Andrew Jackson was the worst president. Thats what is being taught in the schools circa 2010.

Wed, 09/21/2011 - 05:14 | 1691511 Moe Howard
Moe Howard's picture

To the Banksters, he was, and they control the schools.

Wed, 09/21/2011 - 06:43 | 1691571 tarsubil
tarsubil's picture

I mean, are you 100% serious? Really? If so, I don't have much hope for this country.

Wed, 09/21/2011 - 08:00 | 1691686 Silver Dreamer
Silver Dreamer's picture

Well, they teach that Lincoln was the best, and we all know how he trampled the US Constitution and was a complete Tyrant.  Hell, the man's memorial is of him sitting on a throne for a reason.

Wed, 09/21/2011 - 14:00 | 1693399 bid the soldier...
bid the soldiers shoot's picture

Beep beep. Incoming snark.

Wed, 09/21/2011 - 08:12 | 1691717 Calmyourself
Calmyourself's picture

My 11 year old came home yesterday and told me CNN student news told him the Presidents Buffett plan cuts spending and helps people Pffft...  

Wed, 09/21/2011 - 10:49 | 1692179 GoinFawr
GoinFawr's picture

Your daughter is such a lib. After all, anyone who thinks that ol` Sharp Knife`s penchant for fashioning his horse's livery out of human skin outweighs his advisors` hard money policy is so obviously a bleeding heart.

Personally, I don`t care how many `whelps` he/she had flushed out of their `dens`, or the number of human noses my head of state cuts off and keeps as trophies, just so long as he/she promotes what I deem to be sound monetary policy and has decent speechwriters; you gotta take the good with the bad.

Unless, of course, I find out he/she has had extra-marital sex, in which case I become incensed to the point where impeachment can be my only relief, because adultery makes the baby Jesus cry.

"America. A place for Americans"

Wed, 09/21/2011 - 11:10 | 1692439 Shock and Aweful
Shock and Aweful's picture

I thought it was "ANDREW JOHNSON" who was the worst president ever...

I was always taught that it was always a toss-up between him...and Rutha"fraud" B. Hayes

Hell, kids in school today only are told the cute little stories about American History...and it is never really explained to them in any detail the back-story on why certain things happened the way they did, or how that has implcations on their lives today.  

I can guarantee you that your duaghter was not taught anything about Andrew Jasckon's life-long fight against the central banks....or how they tried to assasinate him....or heaven-forbid...WHY he thought that the creation of a central bank posed more danger to our nation than any standing army in the world.

Kids are taught ONLY the history that fits into the modern-day, pro-corporation narrative that has been pre-approved...the curriculum that is being taught, in regards to history and government is almost criminal....it is actually WORSE than not teaching them anything. 

Talk to a high-school kid sometime and ask them about the issues that caused us to fight the British...they will probably regurgitate something about "taxation without representation" (if they were even paying attention that ONE DAY it was covered)....or ask them about the civil war...if you are lucky, they MIGHT get the century it was fought in right.  And don't even think about asking them anything about civics....how a bill becomes a law, what the Bill of Rights says....or, heaven forbid, where our money comes from, and why it is that way. (most kids have heard stories about all the gold in Fort Knox and think that the money in their pocket is somehow tied to that)  Hell...a vast amajority of adults have no concept of our monetary system. (that is the real story of the 20th century...and you never hear about it - anywhere)

I truly believe that it is by design that our kids are being taught complete bullshit.  Afterall, our masters need a docile and compliant society...one that will not revolt against the machine...one that does not want to lose its comfortable way of life by rocking the boat.

  When you have a society that does not know how things have been and are being operating...you end up with a nation where 85% of high-school aged kids "supported" going to war with Iraq in 2003...but only something like 15% of that same group could point Iraq out on a map....

I say it all the time...and I truly believe it....

We are totally fucked...and I don't mean that we are fucked in the short term and things will get better.... I think we are fucked by design and that shit is gonna get slowly worse and worse for a long time going forward too. 

Wed, 09/21/2011 - 01:48 | 1691298 Michael
Michael's picture

The second tsunami wave of foreclosures, as expected, from mid-prime and prime mortgage re-sets and re-casts are hitting our shores right on schedule.

It's almost as big as the sub-prime debacle.

 

Wed, 09/21/2011 - 03:18 | 1691429 Michael
Michael's picture

Just watch this shit if you want to know everything that's fucking wrong with our country and the rest of the fucking world.

best of walstreetpro2 (greatest fuckin hits) - 1 of 3

http://www.youtube.com/watch?v=4k4xPUZRdC0

best of walstreetpro2 (greatest fuckin hits) - 2 of 3

http://www.youtube.com/watch?v=LyE1GoPtLyI

best of walstreetpro2 (greatest fuckin hits) - 3 of 3

http://www.youtube.com/watch?v=Qd0m_bN2qdY

Wed, 09/21/2011 - 03:35 | 1691447 Michael
Michael's picture

There should be a walstreetpro2 DVD you can buy with all his episodes, uncut and un-edited.

Wed, 09/21/2011 - 03:46 | 1691452 Michael
Michael's picture

walstreetpro2 is like the Studs Terkel of our modern times.

http://en.wikipedia.org/wiki/Studs_Terkel

Wed, 09/21/2011 - 04:14 | 1691471 Michael
Michael's picture

So many people are afraid of 2012.

Solar Max occurs around 2012. Except this 26,000 year Myan calender cycle ending in 2012, the Sun is not behaving is a typical manner. Solar Max in 2012 will be but a whimper of previous episodes. Is the Creator smiling on us?

"Part of the 2012 mystique stems from the stars. On the winter solstice in 2012, the sun will be aligned with the center of the Milky Way for the first time in about 26,000 years."

Wed, 09/21/2011 - 13:56 | 1693377 bid the soldier...
bid the soldiers shoot's picture

I'm still afraid of 2011.

Wed, 09/21/2011 - 06:59 | 1691580 j0nx
j0nx's picture

I always assumed that the reason WSP2 disappeared was he got arrested by the SS or something. He just dropped off the face of the earth 2 years ago for no apparent reason. His vids were pretty racey to a few politicians and maybe they sent the SS goons after him.

Wed, 09/21/2011 - 03:49 | 1691454 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

He has a way with words!  (and a ballbat)

He should sell trinkets out of the debris from his tirades.

Wed, 09/21/2011 - 04:52 | 1691502 Vlad Tepid
Vlad Tepid's picture

Talking to himself is its own reward.

Wed, 09/21/2011 - 05:06 | 1691510 Michael
Michael's picture

Sorry. I didn't expect to have an audience this evening.

Wed, 09/21/2011 - 05:50 | 1691533 Mentaliusanything
Mentaliusanything's picture

Leave Mick alone, I once thought he was a useless waste of Oxegen. But I was wrong. He really has some points that are well thought out and deeply pertinant to what is unfolding.

OK, put it this way, he was a prick but now I see just a reformed sweet Putana.

Change your Avitar, and you won't smell like a Hells Angels week old armpits.

Pandas are popular .... bitch

Wed, 09/21/2011 - 04:39 | 1691492 macholatte
macholatte's picture

get that guy one of these.......

http://www.youtube.com/watch?v=XyoAP10uKTk

Wed, 09/21/2011 - 10:01 | 1692107 FreeNewEnergy
FreeNewEnergy's picture

Thanks for the links, Michael. Made my morning.

Wed, 09/21/2011 - 07:31 | 1691611 johnQpublic
johnQpublic's picture

just wait til the obamacare 4.2% sales tax on homes kicks in....seller pays this (starts 1 jan 2012)

if we take a 25% loss on the sale of our home(most likely loss), then we'd need to come to the table with almost 13k just to pay this cost, not counting normal closing costs

thats normal middleclass home price here in delaware, one mile from Pa. line(close to philly)

not even a mcmansion

just a '79 built 2000 sq ft home

800 bucks to walkaway ,or 13k to obamacare

thats us walkin' away

wonder how long it would take them to realize we'd left

we have still never missed a payment, but work calls for a move, and the math doesn't care what we choose to do

so sell by dec 31 or walk

dont even know if its worth calling a realtor

they will want 7%, and thats net zero, or come to the table with cash as it is

what would you do?

cue Pantera "walk"

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