Implementing the nationalization agenda in private

[Arraya]

[quote=Hobie]Doesn’t your last statement, “But banks like LoanMax of the rod aycox fame have achieved much mainly by doing market research even in the rural areas and by identifying the prospective customers needs.” — a free market solution — completely negate the argument for nationalization of the banks?

I prefer capitalist solutions over government mandates any day.[/quote]

Doesn’t everything the Fed do negate the free market argument. They are the invisible hand.

[Arraya]

I don’t know where this post is coming from but I think the banks could be nationalized next year. They are still insolvent.

http://market-ticker.denninger.net/archives/1476-The-Banking-System-Is-Insolvent.html

The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is “eating”, is insolvent. These facts are why the government is lying – they’re well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.

(Remember that these numbers do not include any commercial real estate losses and we have found that banks are frequently over-stating their claimed values for these loans by 50% or more – as was seen with Colonial.)

It gets better. The FDIC has a negative balance both in its fund balance and the reserve ratio projected for the end of the quarter, which is, big surprise, tomorrow. Oh, and there is this pesky problem that the FDIC has – contrary to its mandate – been issuing bond guarantees for banks, so if and when that banking insolvency is recognized the FDIC will implode into a gravity well also, since it is on the hook for the entire deficiency of those bonds that were issued with its “guarantee” should they default.

Care to argue with the math folks?

[Arraya]

I don’t know where this post is coming from but I think the banks could be nationalized next year. They are still insolvent.

http://market-ticker.denninger.net/archives/1476-The-Banking-System-Is-Insolvent.html

The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is “eating”, is insolvent. These facts are why the government is lying – they’re well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.

(Remember that these numbers do not include any commercial real estate losses and we have found that banks are frequently over-stating their claimed values for these loans by 50% or more – as was seen with Colonial.)

It gets better. The FDIC has a negative balance both in its fund balance and the reserve ratio projected for the end of the quarter, which is, big surprise, tomorrow. Oh, and there is this pesky problem that the FDIC has – contrary to its mandate – been issuing bond guarantees for banks, so if and when that banking insolvency is recognized the FDIC will implode into a gravity well also, since it is on the hook for the entire deficiency of those bonds that were issued with its “guarantee” should they default.

Care to argue with the math folks?

[Arraya]

I don’t know where this post is coming from but I think the banks could be nationalized next year. They are still insolvent.

http://market-ticker.denninger.net/archives/1476-The-Banking-System-Is-Insolvent.html

The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is “eating”, is insolvent. These facts are why the government is lying – they’re well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.

(Remember that these numbers do not include any commercial real estate losses and we have found that banks are frequently over-stating their claimed values for these loans by 50% or more – as was seen with Colonial.)

It gets better. The FDIC has a negative balance both in its fund balance and the reserve ratio projected for the end of the quarter, which is, big surprise, tomorrow. Oh, and there is this pesky problem that the FDIC has – contrary to its mandate – been issuing bond guarantees for banks, so if and when that banking insolvency is recognized the FDIC will implode into a gravity well also, since it is on the hook for the entire deficiency of those bonds that were issued with its “guarantee” should they default.

Care to argue with the math folks?

[Arraya]

I don’t know where this post is coming from but I think the banks could be nationalized next year. They are still insolvent.

http://market-ticker.denninger.net/archives/1476-The-Banking-System-Is-Insolvent.html

The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is “eating”, is insolvent. These facts are why the government is lying – they’re well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.

(Remember that these numbers do not include any commercial real estate losses and we have found that banks are frequently over-stating their claimed values for these loans by 50% or more – as was seen with Colonial.)

It gets better. The FDIC has a negative balance both in its fund balance and the reserve ratio projected for the end of the quarter, which is, big surprise, tomorrow. Oh, and there is this pesky problem that the FDIC has – contrary to its mandate – been issuing bond guarantees for banks, so if and when that banking insolvency is recognized the FDIC will implode into a gravity well also, since it is on the hook for the entire deficiency of those bonds that were issued with its “guarantee” should they default.

Care to argue with the math folks?

[Arraya]

I don’t know where this post is coming from but I think the banks could be nationalized next year. They are still insolvent.

http://market-ticker.denninger.net/archives/1476-The-Banking-System-Is-Insolvent.html

The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is “eating”, is insolvent. These facts are why the government is lying – they’re well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.

(Remember that these numbers do not include any commercial real estate losses and we have found that banks are frequently over-stating their claimed values for these loans by 50% or more – as was seen with Colonial.)

It gets better. The FDIC has a negative balance both in its fund balance and the reserve ratio projected for the end of the quarter, which is, big surprise, tomorrow. Oh, and there is this pesky problem that the FDIC has – contrary to its mandate – been issuing bond guarantees for banks, so if and when that banking insolvency is recognized the FDIC will implode into a gravity well also, since it is on the hook for the entire deficiency of those bonds that were issued with its “guarantee” should they default.

Care to argue with the math folks?

[Allan from Fallbrook]

Arraya: You and I both know you cannot argue with the math. The problem is that the government has done an exceptional job in ginning the numbers and gulling the public into believing that all is well and things aren’t nearly as bad as they really are.

If we were to gain access to actual unemployment numbers, or actual inflation numbers, or actual bank numbers, you’d see wholesale panic in the markets. The entire system is built on trust, or, more correctly, confidence and everyone from Obama on down understands that, once that confidence is blown, its game over.

You have some incredibly dire numbers here in California, and yet you see posters insisting that we’ve “turned the corner” or “the worst is over” and nearly all of that is based on deliberately erroneous numbers. The truth would be an absolute killer at this point and that’s why we’ll never get it.

Welcome to the “new normal”, as pundits are calling it. Remember: Big Brother loves you.

[Allan from Fallbrook]

Arraya: You and I both know you cannot argue with the math. The problem is that the government has done an exceptional job in ginning the numbers and gulling the public into believing that all is well and things aren’t nearly as bad as they really are.

If we were to gain access to actual unemployment numbers, or actual inflation numbers, or actual bank numbers, you’d see wholesale panic in the markets. The entire system is built on trust, or, more correctly, confidence and everyone from Obama on down understands that, once that confidence is blown, its game over.

You have some incredibly dire numbers here in California, and yet you see posters insisting that we’ve “turned the corner” or “the worst is over” and nearly all of that is based on deliberately erroneous numbers. The truth would be an absolute killer at this point and that’s why we’ll never get it.

Welcome to the “new normal”, as pundits are calling it. Remember: Big Brother loves you.

[Allan from Fallbrook]

Arraya: You and I both know you cannot argue with the math. The problem is that the government has done an exceptional job in ginning the numbers and gulling the public into believing that all is well and things aren’t nearly as bad as they really are.

If we were to gain access to actual unemployment numbers, or actual inflation numbers, or actual bank numbers, you’d see wholesale panic in the markets. The entire system is built on trust, or, more correctly, confidence and everyone from Obama on down understands that, once that confidence is blown, its game over.

You have some incredibly dire numbers here in California, and yet you see posters insisting that we’ve “turned the corner” or “the worst is over” and nearly all of that is based on deliberately erroneous numbers. The truth would be an absolute killer at this point and that’s why we’ll never get it.

Welcome to the “new normal”, as pundits are calling it. Remember: Big Brother loves you.

[Allan from Fallbrook]

Arraya: You and I both know you cannot argue with the math. The problem is that the government has done an exceptional job in ginning the numbers and gulling the public into believing that all is well and things aren’t nearly as bad as they really are.

If we were to gain access to actual unemployment numbers, or actual inflation numbers, or actual bank numbers, you’d see wholesale panic in the markets. The entire system is built on trust, or, more correctly, confidence and everyone from Obama on down understands that, once that confidence is blown, its game over.

You have some incredibly dire numbers here in California, and yet you see posters insisting that we’ve “turned the corner” or “the worst is over” and nearly all of that is based on deliberately erroneous numbers. The truth would be an absolute killer at this point and that’s why we’ll never get it.

Welcome to the “new normal”, as pundits are calling it. Remember: Big Brother loves you.

[Allan from Fallbrook]

Arraya: You and I both know you cannot argue with the math. The problem is that the government has done an exceptional job in ginning the numbers and gulling the public into believing that all is well and things aren’t nearly as bad as they really are.

If we were to gain access to actual unemployment numbers, or actual inflation numbers, or actual bank numbers, you’d see wholesale panic in the markets. The entire system is built on trust, or, more correctly, confidence and everyone from Obama on down understands that, once that confidence is blown, its game over.

You have some incredibly dire numbers here in California, and yet you see posters insisting that we’ve “turned the corner” or “the worst is over” and nearly all of that is based on deliberately erroneous numbers. The truth would be an absolute killer at this point and that’s why we’ll never get it.

Welcome to the “new normal”, as pundits are calling it. Remember: Big Brother loves you.

[Arraya]

Agreed, perception control is going full court press with the “everything is rosy” meme.

Still, just a casual glance at the immense amount of defaults coming back and the capital on hand at the banks does not add up. Juxtaposed with the consistent credit contraction that is with us for the foreseeable future. Means to me that at some point we are going to have another panic in the markets when it is exposed. You can only hide reality for so long. After the next panic the sheep wont be so easily coaxed back in.

We are teetering on the brink, of something. I can smell the fear coming back.

Oh, Big brother loves you and wants you to take your vaccine…

[Arraya]

Agreed, perception control is going full court press with the “everything is rosy” meme.

Still, just a casual glance at the immense amount of defaults coming back and the capital on hand at the banks does not add up. Juxtaposed with the consistent credit contraction that is with us for the foreseeable future. Means to me that at some point we are going to have another panic in the markets when it is exposed. You can only hide reality for so long. After the next panic the sheep wont be so easily coaxed back in.

We are teetering on the brink, of something. I can smell the fear coming back.

Oh, Big brother loves you and wants you to take your vaccine…

[Arraya]

Agreed, perception control is going full court press with the “everything is rosy” meme.

Still, just a casual glance at the immense amount of defaults coming back and the capital on hand at the banks does not add up. Juxtaposed with the consistent credit contraction that is with us for the foreseeable future. Means to me that at some point we are going to have another panic in the markets when it is exposed. You can only hide reality for so long. After the next panic the sheep wont be so easily coaxed back in.

We are teetering on the brink, of something. I can smell the fear coming back.

Oh, Big brother loves you and wants you to take your vaccine…

[Arraya]

Agreed, perception control is going full court press with the “everything is rosy” meme.

Still, just a casual glance at the immense amount of defaults coming back and the capital on hand at the banks does not add up. Juxtaposed with the consistent credit contraction that is with us for the foreseeable future. Means to me that at some point we are going to have another panic in the markets when it is exposed. You can only hide reality for so long. After the next panic the sheep wont be so easily coaxed back in.

We are teetering on the brink, of something. I can smell the fear coming back.

Oh, Big brother loves you and wants you to take your vaccine…

[Author]

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