[bubba99]

OK genius, why might it be right for the wrong reasons?

Here is an article from blumberg about bank treasury purchases – more than nothing

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFJpn5iE_vVc

Here is another an interesting article about the banks being the first wave in the calapse of the Treasury market.

At least I am not alone in “my lack of understanding of the subject”

http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html?source=patrick.net#navbar-iframe

The applicable text being “So the TBTF banks, on seeing this run on Treasuries, will add to the panic by acting in their own best interests: They will be among the first to step off Treasuries. They will be the bleeding edge of the wave. Here the panic phase of the event begins: Asset managers—on seeing this massive Fed buy of Treasuries, and the American Zombies selling Treasuries, all of this happening within days of a largish Treasury auction—will dump their own Treasuries en masse.”

[bubba99]

OK genius, why might it be right for the wrong reasons?

Here is an article from blumberg about bank treasury purchases – more than nothing

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFJpn5iE_vVc

Here is another an interesting article about the banks being the first wave in the calapse of the Treasury market.

At least I am not alone in “my lack of understanding of the subject”

http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html?source=patrick.net#navbar-iframe

The applicable text being “So the TBTF banks, on seeing this run on Treasuries, will add to the panic by acting in their own best interests: They will be among the first to step off Treasuries. They will be the bleeding edge of the wave. Here the panic phase of the event begins: Asset managers—on seeing this massive Fed buy of Treasuries, and the American Zombies selling Treasuries, all of this happening within days of a largish Treasury auction—will dump their own Treasuries en masse.”

[bubba99]

OK genius, why might it be right for the wrong reasons?

Here is an article from blumberg about bank treasury purchases – more than nothing

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFJpn5iE_vVc

Here is another an interesting article about the banks being the first wave in the calapse of the Treasury market.

At least I am not alone in “my lack of understanding of the subject”

http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html?source=patrick.net#navbar-iframe

The applicable text being “So the TBTF banks, on seeing this run on Treasuries, will add to the panic by acting in their own best interests: They will be among the first to step off Treasuries. They will be the bleeding edge of the wave. Here the panic phase of the event begins: Asset managers—on seeing this massive Fed buy of Treasuries, and the American Zombies selling Treasuries, all of this happening within days of a largish Treasury auction—will dump their own Treasuries en masse.”

[bubba99]

I think there is an insidious layer to the banks buying and holding treasuries. And that is that without them, the Fed would be forced to buy treasuries directly at an even greater rate. All those assets on the TBTF books are hiding the lack of demand for even more US debt.

It is another house of cards. The FED lends the money to buy the US debt and pays a hundred plus basis points for the lipstick on the pig. If inflation really starts as Paulson argues, look for an absolute collapse in Treasuries as the banks begin to dump the shrinking assets.

[bubba99]

I think there is an insidious layer to the banks buying and holding treasuries. And that is that without them, the Fed would be forced to buy treasuries directly at an even greater rate. All those assets on the TBTF books are hiding the lack of demand for even more US debt.

It is another house of cards. The FED lends the money to buy the US debt and pays a hundred plus basis points for the lipstick on the pig. If inflation really starts as Paulson argues, look for an absolute collapse in Treasuries as the banks begin to dump the shrinking assets.

[bubba99]

I think there is an insidious layer to the banks buying and holding treasuries. And that is that without them, the Fed would be forced to buy treasuries directly at an even greater rate. All those assets on the TBTF books are hiding the lack of demand for even more US debt.

It is another house of cards. The FED lends the money to buy the US debt and pays a hundred plus basis points for the lipstick on the pig. If inflation really starts as Paulson argues, look for an absolute collapse in Treasuries as the banks begin to dump the shrinking assets.

[bubba99]

I think there is an insidious layer to the banks buying and holding treasuries. And that is that without them, the Fed would be forced to buy treasuries directly at an even greater rate. All those assets on the TBTF books are hiding the lack of demand for even more US debt.

It is another house of cards. The FED lends the money to buy the US debt and pays a hundred plus basis points for the lipstick on the pig. If inflation really starts as Paulson argues, look for an absolute collapse in Treasuries as the banks begin to dump the shrinking assets.

[bubba99]

I think there is an insidious layer to the banks buying and holding treasuries. And that is that without them, the Fed would be forced to buy treasuries directly at an even greater rate. All those assets on the TBTF books are hiding the lack of demand for even more US debt.

It is another house of cards. The FED lends the money to buy the US debt and pays a hundred plus basis points for the lipstick on the pig. If inflation really starts as Paulson argues, look for an absolute collapse in Treasuries as the banks begin to dump the shrinking assets.

[bubba99]

I found an article that seems to agree that proper recording of mortgage ownership has changed. The applicable text being “Titles and mortgages on real property are officially recorded in county clerks’ offices, a slow-moving, old-fashioned, deliberate world of ink, paper, and filing cabinets. The process has been perfected over a millennium, going back to the Domesday Book, the survey of English property completed in 1086 for William the Conqueror. This paper-based system, though admirably accurate and permanent, wasn’t equipped for the era of rapid-fire refinancing and securitization. When over 8 million new and used homes are sold per year, as at the height of the boom, and most loans are packaged into securities, you need a lot of clerks.”

The whole article is here:

http://www.businessweek.com/magazine/content/10_43/b4200009860564.htm

[bubba99]

I found an article that seems to agree that proper recording of mortgage ownership has changed. The applicable text being “Titles and mortgages on real property are officially recorded in county clerks’ offices, a slow-moving, old-fashioned, deliberate world of ink, paper, and filing cabinets. The process has been perfected over a millennium, going back to the Domesday Book, the survey of English property completed in 1086 for William the Conqueror. This paper-based system, though admirably accurate and permanent, wasn’t equipped for the era of rapid-fire refinancing and securitization. When over 8 million new and used homes are sold per year, as at the height of the boom, and most loans are packaged into securities, you need a lot of clerks.”

The whole article is here:

http://www.businessweek.com/magazine/content/10_43/b4200009860564.htm

[bubba99]

I found an article that seems to agree that proper recording of mortgage ownership has changed. The applicable text being “Titles and mortgages on real property are officially recorded in county clerks’ offices, a slow-moving, old-fashioned, deliberate world of ink, paper, and filing cabinets. The process has been perfected over a millennium, going back to the Domesday Book, the survey of English property completed in 1086 for William the Conqueror. This paper-based system, though admirably accurate and permanent, wasn’t equipped for the era of rapid-fire refinancing and securitization. When over 8 million new and used homes are sold per year, as at the height of the boom, and most loans are packaged into securities, you need a lot of clerks.”

The whole article is here:

http://www.businessweek.com/magazine/content/10_43/b4200009860564.htm

[bubba99]

I found an article that seems to agree that proper recording of mortgage ownership has changed. The applicable text being “Titles and mortgages on real property are officially recorded in county clerks’ offices, a slow-moving, old-fashioned, deliberate world of ink, paper, and filing cabinets. The process has been perfected over a millennium, going back to the Domesday Book, the survey of English property completed in 1086 for William the Conqueror. This paper-based system, though admirably accurate and permanent, wasn’t equipped for the era of rapid-fire refinancing and securitization. When over 8 million new and used homes are sold per year, as at the height of the boom, and most loans are packaged into securities, you need a lot of clerks.”

The whole article is here:

http://www.businessweek.com/magazine/content/10_43/b4200009860564.htm

[bubba99]

I found an article that seems to agree that proper recording of mortgage ownership has changed. The applicable text being “Titles and mortgages on real property are officially recorded in county clerks’ offices, a slow-moving, old-fashioned, deliberate world of ink, paper, and filing cabinets. The process has been perfected over a millennium, going back to the Domesday Book, the survey of English property completed in 1086 for William the Conqueror. This paper-based system, though admirably accurate and permanent, wasn’t equipped for the era of rapid-fire refinancing and securitization. When over 8 million new and used homes are sold per year, as at the height of the boom, and most loans are packaged into securities, you need a lot of clerks.”

The whole article is here:

http://www.businessweek.com/magazine/content/10_43/b4200009860564.htm

[bubba99]

The paper statements are from the servicing company. During the securitization process, mortgages were split in any number of ways – derivatives for principal, interest, various tranches with first claim riders. Who actually owns the mortgage is a real question. I can see that multiple parties have a claim to each actual underlying mortgage.

In the good old days, the principal and interest were owned by the same party. To foreclose you needed both parts to be “harmed” – the underlying note, and missing payment. There is no record except MERs as to the various ownerships. Do you really believe that they will do anything to add integrity to the system?

[bubba99]

The paper statements are from the servicing company. During the securitization process, mortgages were split in any number of ways – derivatives for principal, interest, various tranches with first claim riders. Who actually owns the mortgage is a real question. I can see that multiple parties have a claim to each actual underlying mortgage.

In the good old days, the principal and interest were owned by the same party. To foreclose you needed both parts to be “harmed” – the underlying note, and missing payment. There is no record except MERs as to the various ownerships. Do you really believe that they will do anything to add integrity to the system?

[Author]

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