[bubba99]

What we get for our billion is bailouts is we avoid financial armegadon.

The damage was already done. The lax regulation that allowed F and F, and B.S. to become so leveraged and so under funded took the system to the point of explosion. Had there not been a bailout, we would be holding worthless fiat currency that spell disaster for most americans. W

We still face an explosion because most of the big banks are also over leveraged and under reserved. Again we will be faced with more bailouts, or armegadon. Don’t think that the 6 trillion of F and F assets are the whole story. It is the derivitives that will spell disaster if massive counter party failures occur. The various derivitives are closer to 50 trillion.

[bubba99]

What we get for our billion is bailouts is we avoid financial armegadon.

The damage was already done. The lax regulation that allowed F and F, and B.S. to become so leveraged and so under funded took the system to the point of explosion. Had there not been a bailout, we would be holding worthless fiat currency that spell disaster for most americans. W

We still face an explosion because most of the big banks are also over leveraged and under reserved. Again we will be faced with more bailouts, or armegadon. Don’t think that the 6 trillion of F and F assets are the whole story. It is the derivitives that will spell disaster if massive counter party failures occur. The various derivitives are closer to 50 trillion.

[bubba99]

What we get for our billion is bailouts is we avoid financial armegadon.

The damage was already done. The lax regulation that allowed F and F, and B.S. to become so leveraged and so under funded took the system to the point of explosion. Had there not been a bailout, we would be holding worthless fiat currency that spell disaster for most americans. W

We still face an explosion because most of the big banks are also over leveraged and under reserved. Again we will be faced with more bailouts, or armegadon. Don’t think that the 6 trillion of F and F assets are the whole story. It is the derivitives that will spell disaster if massive counter party failures occur. The various derivitives are closer to 50 trillion.

[bubba99]

The rise in the dollar is due to China’s intervention.

China has been raising (doubling) the reserve requirements for its central banks for the past month or so. Those reserves must be in dollars. Hence, the banks are buyers of dollars which is supporting the overall internation dollar exchange rates.

It is only fair, now that the US is a socialist state, that China supports our currency.

[bubba99]

The rise in the dollar is due to China’s intervention.

China has been raising (doubling) the reserve requirements for its central banks for the past month or so. Those reserves must be in dollars. Hence, the banks are buyers of dollars which is supporting the overall internation dollar exchange rates.

It is only fair, now that the US is a socialist state, that China supports our currency.

[bubba99]

The rise in the dollar is due to China’s intervention.

China has been raising (doubling) the reserve requirements for its central banks for the past month or so. Those reserves must be in dollars. Hence, the banks are buyers of dollars which is supporting the overall internation dollar exchange rates.

It is only fair, now that the US is a socialist state, that China supports our currency.

[bubba99]

The rise in the dollar is due to China’s intervention.

China has been raising (doubling) the reserve requirements for its central banks for the past month or so. Those reserves must be in dollars. Hence, the banks are buyers of dollars which is supporting the overall internation dollar exchange rates.

It is only fair, now that the US is a socialist state, that China supports our currency.

[bubba99]

The rise in the dollar is due to China’s intervention.

China has been raising (doubling) the reserve requirements for its central banks for the past month or so. Those reserves must be in dollars. Hence, the banks are buyers of dollars which is supporting the overall internation dollar exchange rates.

It is only fair, now that the US is a socialist state, that China supports our currency.

[bubba99]

This would be funny if it were not so tragic.

The new WAMU CEO if from Sovereign Bank. Sovereign Bank has about half a trillion or 13% of its assets in Fannie and Freddie preferred stock.

The new guy is worse than the old one in terms of performance – Sovereign is now technically bankrupt based on 90% haircut on its preferred position.

[bubba99]

This would be funny if it were not so tragic.

The new WAMU CEO if from Sovereign Bank. Sovereign Bank has about half a trillion or 13% of its assets in Fannie and Freddie preferred stock.

The new guy is worse than the old one in terms of performance – Sovereign is now technically bankrupt based on 90% haircut on its preferred position.

[bubba99]

This would be funny if it were not so tragic.

The new WAMU CEO if from Sovereign Bank. Sovereign Bank has about half a trillion or 13% of its assets in Fannie and Freddie preferred stock.

The new guy is worse than the old one in terms of performance – Sovereign is now technically bankrupt based on 90% haircut on its preferred position.

[bubba99]

This would be funny if it were not so tragic.

The new WAMU CEO if from Sovereign Bank. Sovereign Bank has about half a trillion or 13% of its assets in Fannie and Freddie preferred stock.

The new guy is worse than the old one in terms of performance – Sovereign is now technically bankrupt based on 90% haircut on its preferred position.

[bubba99]

This would be funny if it were not so tragic.

The new WAMU CEO if from Sovereign Bank. Sovereign Bank has about half a trillion or 13% of its assets in Fannie and Freddie preferred stock.

The new guy is worse than the old one in terms of performance – Sovereign is now technically bankrupt based on 90% haircut on its preferred position.

[bubba99]

“Hello Deflation!! It’s coming on hard and fast now. What’s Ben’s next trick to get reflation going? I cant wait for this one.”

I have been wondering the same thing, and I came up with the following:

– Fed or Treasury takes over Fannie and Freddie

– The new nationalized lending institution offers home owners refinancing at Greenspan rediciously low rates 1% -2%.

– Now bad mortgages (6%) are refinanced to 2% and the defaults go much lower. The rent to own equation moves in favor of own – the ownership cost is cut by 60%.

– The Fed creates new mortgage bonds that it forces the reserve banks to buy (or locks them out of the short term, or long term lending facilities).

– The Fed justifies this by saying it would cost more to do nothing.

– The cycle of mortgages going bad is stopped or at least the housing crash is delayed and slowly deflates – in a manageable way for banks.

– The new money to pay for the above, adds to inflation, and in a few years, (10), the problem is solved.

I am really hoping that someone can explain why this will not work, and that the FED will need to come up with a real solution!

[bubba99]

“Hello Deflation!! It’s coming on hard and fast now. What’s Ben’s next trick to get reflation going? I cant wait for this one.”

I have been wondering the same thing, and I came up with the following:

– Fed or Treasury takes over Fannie and Freddie

– The new nationalized lending institution offers home owners refinancing at Greenspan rediciously low rates 1% -2%.

– Now bad mortgages (6%) are refinanced to 2% and the defaults go much lower. The rent to own equation moves in favor of own – the ownership cost is cut by 60%.

– The Fed creates new mortgage bonds that it forces the reserve banks to buy (or locks them out of the short term, or long term lending facilities).

– The Fed justifies this by saying it would cost more to do nothing.

– The cycle of mortgages going bad is stopped or at least the housing crash is delayed and slowly deflates – in a manageable way for banks.

– The new money to pay for the above, adds to inflation, and in a few years, (10), the problem is solved.

I am really hoping that someone can explain why this will not work, and that the FED will need to come up with a real solution!

[Author]

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