Interesting article--probably right on the mark in many ways--but the author could stand to lose the "Anti-American" attitude.
We have lots of friends in the UK who have told us they would have given their first born to be able to live in America--and still hope to someday. They can't stand the hypocrisy of the British Government--and these are wealthy, educated individuals.
Guess there is truth to the saying about cleaning up the trash in your own backyard before ranting about the trash in your neighbors yard.
I've lived all over the world--and yes, America has lots of problems--perhaps some have now become almost insurmountable--but I'll take it every day of the week over any place else.
"I've lived all over the world--and yes, America has lots of problems--perhaps some have now become almost insurmountable--but I'll take it every day of the week over any place else."
Really, where have you lived all over the world? Look, Brits love hate, that's their thing, but I can promise you most would not give their first born to live in the US. And if they did, you'd want them to go home because they'd whine about everything here too. Criticism is a bitter pill to swallow my friend but sometimes it's part of the cure.
Anyway, I wanted to post this since it's more on topic:
The health insurer FDIC (Fiscally Doubtful Insurance Corp), refuses to cover liposuction to remove cellulite for an overweight Fannie, that has suffered years of abuse due to lack of regulatory exercise and high calorific tax breaks. Meanwhile, a close friend Freddie the freeloader chokes on lunch in the lobby. Apparently, the offending morsel was actually an angry tax payer looking for accounting records for the last ten years.
As to the surprising coincidence, marxist tabloid the NY Times, reports that both parties are fitted with 'somnambulant' regulators, a kind of defibrillator that insulates internal CEOs (Cholestral Eating Organs) from the outside world. Apparently, a toxin called 'subprime lending' has caused internal rupturing, and new donors are currently being sought.
Meanwhile, the pop duo Bernanke and Paulson break through with another hit single, entitled "It's Contained", and CNN continues to report the mortgage crisis is somehow linked to recent UFO sightings.
So let's say the Hanky and Bernanky nationalize Freddie and Fannie. Aside from how they fund it, what does this mean for all the bad loans they own or guarantee?
We're talking 5 TRILLION dollars here, and even if 5% goes bad (feasible, right? considering housing lost +10% nationally so far) that's $250 BILLION dollars that what...? Goes to investors holding MBS? Or do they give it to the homeowner to keep paying their loans?
At what point does the bad debt outweigh the source of guaranteeing that debt, and more importantly, then what?
"At what point does the bad debt outweigh the source of guaranteeing that debt, and more importantly, then what?"
Insert JWM post here.
Mr. Paulson says the two gse's must continue in their current form shareholder corporate form. We must wait until Hilobama is in office to officially "Nationalize" them. For now handouts will do. What sarcasm?
For info, William Buiter is originally Dutch and has joint US and UK citizenship so I guess he must be unbiased.
The US is certainly lucky to have Fannie and Freddie and whatever they turn into otherwise the market collapse would have set a record for centuries. But then again, maybe the boom occurred because of their existence...for after all they created securitisation.
Submitted by qwerty007 on July 14, 2008 - 10:05am.
Gdcox, I think the issue here needs to be scrutinized and people need to be told the truth. The New York Times ran three articles on Sunday, one of which pointed the finger at lobbyists, silencing the competition by monopolist means, congressmen being recruited onto the boards, paying off charities to keep their silence etc. It seems powerful interests were being protected, and a few loners who said this was going to happen unless regulation was tightened were ignored.
Submitted by stockstradr on July 15, 2008 - 12:04am.
Brilliant FT article. Thanks for posting.
I greatly respect FT. It was one of five newspapers that landed on my stoop each morning; however, it broke my heart to cancel it several weeks ago as my wife complained that newspapers are taking over the house. Also, wives as a rule HATE it when husbands take them out to dinner only to bring several newspapers along which then command far more of husband's attention during the meal than goes to wife!
Querty. yes love Marmite , but many hate it.
Your synopsis is depressing. And the Cassandras don't get recognised either; just the over-paid incompetents. In the UK the CEO of the most stupid bank , Royal Bank of Scotland , who has lost me and millions 80% plus of our money, is a Knight: perhaps for services to RMBS investment without question.
Interesting article--probably right on the mark in many ways--but the author could stand to lose the "Anti-American" attitude.
We have lots of friends in the UK who have told us they would have given their first born to be able to live in America--and still hope to someday. They can't stand the hypocrisy of the British Government--and these are wealthy, educated individuals.
Guess there is truth to the saying about cleaning up the trash in your own backyard before ranting about the trash in your neighbors yard.
I've lived all over the world--and yes, America has lots of problems--perhaps some have now become almost insurmountable--but I'll take it every day of the week over any place else.
"I've lived all over the world--and yes, America has lots of problems--perhaps some have now become almost insurmountable--but I'll take it every day of the week over any place else."
Really, where have you lived all over the world? Look, Brits love hate, that's their thing, but I can promise you most would not give their first born to live in the US. And if they did, you'd want them to go home because they'd whine about everything here too. Criticism is a bitter pill to swallow my friend but sometimes it's part of the cure.
Anyway, I wanted to post this since it's more on topic:
The health insurer FDIC (Fiscally Doubtful Insurance Corp), refuses to cover liposuction to remove cellulite for an overweight Fannie, that has suffered years of abuse due to lack of regulatory exercise and high calorific tax breaks. Meanwhile, a close friend Freddie the freeloader chokes on lunch in the lobby. Apparently, the offending morsel was actually an angry tax payer looking for accounting records for the last ten years.
As to the surprising coincidence, marxist tabloid the NY Times, reports that both parties are fitted with 'somnambulant' regulators, a kind of defibrillator that insulates internal CEOs (Cholestral Eating Organs) from the outside world. Apparently, a toxin called 'subprime lending' has caused internal rupturing, and new donors are currently being sought.
Meanwhile, the pop duo Bernanke and Paulson break through with another hit single, entitled "It's Contained", and CNN continues to report the mortgage crisis is somehow linked to recent UFO sightings.
Thanks so much for clearing up my "fawlty" thinking--truly brilliant. Thank God I've put all of our millions under a mattress in our La Jolla mansion.
So let's say the Hanky and Bernanky nationalize Freddie and Fannie. Aside from how they fund it, what does this mean for all the bad loans they own or guarantee?
We're talking 5 TRILLION dollars here, and even if 5% goes bad (feasible, right? considering housing lost +10% nationally so far) that's $250 BILLION dollars that what...? Goes to investors holding MBS? Or do they give it to the homeowner to keep paying their loans?
At what point does the bad debt outweigh the source of guaranteeing that debt, and more importantly, then what?
they would have given their first born to be able to live in America
Stupid people. They should learn from the Mexicans. The way to live here is to have the first born here!
"At what point does the bad debt outweigh the source of guaranteeing that debt, and more importantly, then what?"
Insert JWM post here.
Mr. Paulson says the two gse's must continue in their current form shareholder corporate form. We must wait until Hilobama is in office to officially "Nationalize" them. For now handouts will do. What sarcasm?
San Diego native
For info, William Buiter is originally Dutch and has joint US and UK citizenship so I guess he must be unbiased.
The US is certainly lucky to have Fannie and Freddie and whatever they turn into otherwise the market collapse would have set a record for centuries. But then again, maybe the boom occurred because of their existence...for after all they created securitisation.
Gdcox, I think the issue here needs to be scrutinized and people need to be told the truth. The New York Times ran three articles on Sunday, one of which pointed the finger at lobbyists, silencing the competition by monopolist means, congressmen being recruited onto the boards, paying off charities to keep their silence etc. It seems powerful interests were being protected, and a few loners who said this was going to happen unless regulation was tightened were ignored.
BTW, gd, do you like marmite? :)
Brilliant FT article. Thanks for posting.
I greatly respect FT. It was one of five newspapers that landed on my stoop each morning; however, it broke my heart to cancel it several weeks ago as my wife complained that newspapers are taking over the house. Also, wives as a rule HATE it when husbands take them out to dinner only to bring several newspapers along which then command far more of husband's attention during the meal than goes to wife!
Querty. yes love Marmite , but many hate it.
Your synopsis is depressing. And the Cassandras don't get recognised either; just the over-paid incompetents. In the UK the CEO of the most stupid bank , Royal Bank of Scotland , who has lost me and millions 80% plus of our money, is a Knight: perhaps for services to RMBS investment without question.
Stockstradr... you can get the web access.