[CA renter]

davelj,

I think your plan is excellent (much like what I proposed in the “call your representative” thread). 😉

The only thing I would disagree with is the loans for new mortgages. The govt should not be in the mortgage business, as it will continue to distort prices. Besides that, many of the current homes on the market will still lose over 30%, and the 10% down will lead us to the same problems we have today, except the govt is directly on the hook.

I think there is plenty of money out there (both to buy houses and to make mortgage loans), but we are not willing to pay prices that were determined by specuvestors with Monopoly money.

There is lots of evidence that the hardest-hit areas are already seeing huge increases in sales volume and multiple bids. We need to get there with the rest of the market, and there’s nothing that can do that better than letting prices drop to such levels that people who have something to lose (significant down payments and good credit) will step up to the plate.

We need tighter money, and that is a GOOD thing. This whole notion that debt = wealth needs to be put to rest, permanently. Debt is the means used to transfer money from the poor/weak to the strong/wealthy. Self-liquidating debt is okay, but consumer debt (including mortgages) should be wound-down significantly, IMHO. Let the poor people save for a change.

[CA renter]

Agree with forming our own group, nostra.

There are a couple of sites/people who have been trying to organize, and I think we ought to join forces…every bubble/financial blog and related groups should absolutely join together to fight this.

If the Fed/Treasury think loading the taxpayers with trillions in additional debt is the answer, they should at least have to show us ALL the details they have which lead them to their conclusion.

They should NOT be able to keep this information opaque if we are going to pay for it.

Many people, including myself, have been trying to warn regulators, law-enforcement agencies, politicians, etc. for years. They have all sent the same basic response (if any at all) like the one Mike posted above.

F— them. They’ve screwed us over enough. Time for them to get on their knees and BEG us for ***OUR*** money. And they better damn well prove to us that it would be the best response to the CREDIT BUBBLE (not “foreclosure crisis”). Additionally, they better show us how they will make us whole when the debacle — that THEY AND WALL STREET created — is over (with interest).

This is why I favor a very progressive tax. It’s the top 1% that got us here in the first place.

[CA renter]

Agree with forming our own group, nostra.

There are a couple of sites/people who have been trying to organize, and I think we ought to join forces…every bubble/financial blog and related groups should absolutely join together to fight this.

If the Fed/Treasury think loading the taxpayers with trillions in additional debt is the answer, they should at least have to show us ALL the details they have which lead them to their conclusion.

They should NOT be able to keep this information opaque if we are going to pay for it.

Many people, including myself, have been trying to warn regulators, law-enforcement agencies, politicians, etc. for years. They have all sent the same basic response (if any at all) like the one Mike posted above.

F— them. They’ve screwed us over enough. Time for them to get on their knees and BEG us for ***OUR*** money. And they better damn well prove to us that it would be the best response to the CREDIT BUBBLE (not “foreclosure crisis”). Additionally, they better show us how they will make us whole when the debacle — that THEY AND WALL STREET created — is over (with interest).

This is why I favor a very progressive tax. It’s the top 1% that got us here in the first place.

[CA renter]

Agree with forming our own group, nostra.

There are a couple of sites/people who have been trying to organize, and I think we ought to join forces…every bubble/financial blog and related groups should absolutely join together to fight this.

If the Fed/Treasury think loading the taxpayers with trillions in additional debt is the answer, they should at least have to show us ALL the details they have which lead them to their conclusion.

They should NOT be able to keep this information opaque if we are going to pay for it.

Many people, including myself, have been trying to warn regulators, law-enforcement agencies, politicians, etc. for years. They have all sent the same basic response (if any at all) like the one Mike posted above.

F— them. They’ve screwed us over enough. Time for them to get on their knees and BEG us for ***OUR*** money. And they better damn well prove to us that it would be the best response to the CREDIT BUBBLE (not “foreclosure crisis”). Additionally, they better show us how they will make us whole when the debacle — that THEY AND WALL STREET created — is over (with interest).

This is why I favor a very progressive tax. It’s the top 1% that got us here in the first place.

[CA renter]

Agree with forming our own group, nostra.

There are a couple of sites/people who have been trying to organize, and I think we ought to join forces…every bubble/financial blog and related groups should absolutely join together to fight this.

If the Fed/Treasury think loading the taxpayers with trillions in additional debt is the answer, they should at least have to show us ALL the details they have which lead them to their conclusion.

They should NOT be able to keep this information opaque if we are going to pay for it.

Many people, including myself, have been trying to warn regulators, law-enforcement agencies, politicians, etc. for years. They have all sent the same basic response (if any at all) like the one Mike posted above.

F— them. They’ve screwed us over enough. Time for them to get on their knees and BEG us for ***OUR*** money. And they better damn well prove to us that it would be the best response to the CREDIT BUBBLE (not “foreclosure crisis”). Additionally, they better show us how they will make us whole when the debacle — that THEY AND WALL STREET created — is over (with interest).

This is why I favor a very progressive tax. It’s the top 1% that got us here in the first place.

[CA renter]

Agree with forming our own group, nostra.

There are a couple of sites/people who have been trying to organize, and I think we ought to join forces…every bubble/financial blog and related groups should absolutely join together to fight this.

If the Fed/Treasury think loading the taxpayers with trillions in additional debt is the answer, they should at least have to show us ALL the details they have which lead them to their conclusion.

They should NOT be able to keep this information opaque if we are going to pay for it.

Many people, including myself, have been trying to warn regulators, law-enforcement agencies, politicians, etc. for years. They have all sent the same basic response (if any at all) like the one Mike posted above.

F— them. They’ve screwed us over enough. Time for them to get on their knees and BEG us for ***OUR*** money. And they better damn well prove to us that it would be the best response to the CREDIT BUBBLE (not “foreclosure crisis”). Additionally, they better show us how they will make us whole when the debacle — that THEY AND WALL STREET created — is over (with interest).

This is why I favor a very progressive tax. It’s the top 1% that got us here in the first place.

[CA renter]

I’m all for the following bailouts:

1. FDIC

2. SIPC (for brokerage accounts)

3. PBGC (guarantee/backstop for retirees and their money)

4. Money-market accounts under the FDIC like they have already done.

5. A fund that will help the insurance companies pay out regular property and casualty claims to citizens.

I think the large financial institutions can be taken over completely, with all existing and future potential profits staying with the govt (wind-down, and do NOT spin-off into the private market when it’s profitable again).

And the most important thing of all is to investigate all the regulators, ratings agencies, and executives/directors of the large financial institutions, politicians and others who enabled and encouraged this to happen in the first place. The Federal Reserve should be at the top of that list. ALL of their assets should be seized (overseas accounts, accounts held in family/friends names, homes, cars, yachts…EVERYTHING) to pay for all the damage they’ve done. This should be done BEFORE a single cent of taxpayers’ money is used.

Why do we hear about all the investigations into short selling when the real criminals are right under their nose (those who pushed the credit market to expand like it did).

[CA renter]

I’m all for the following bailouts:

1. FDIC

2. SIPC (for brokerage accounts)

3. PBGC (guarantee/backstop for retirees and their money)

4. Money-market accounts under the FDIC like they have already done.

5. A fund that will help the insurance companies pay out regular property and casualty claims to citizens.

I think the large financial institutions can be taken over completely, with all existing and future potential profits staying with the govt (wind-down, and do NOT spin-off into the private market when it’s profitable again).

And the most important thing of all is to investigate all the regulators, ratings agencies, and executives/directors of the large financial institutions, politicians and others who enabled and encouraged this to happen in the first place. The Federal Reserve should be at the top of that list. ALL of their assets should be seized (overseas accounts, accounts held in family/friends names, homes, cars, yachts…EVERYTHING) to pay for all the damage they’ve done. This should be done BEFORE a single cent of taxpayers’ money is used.

Why do we hear about all the investigations into short selling when the real criminals are right under their nose (those who pushed the credit market to expand like it did).

[CA renter]

I’m all for the following bailouts:

1. FDIC

2. SIPC (for brokerage accounts)

3. PBGC (guarantee/backstop for retirees and their money)

4. Money-market accounts under the FDIC like they have already done.

5. A fund that will help the insurance companies pay out regular property and casualty claims to citizens.

I think the large financial institutions can be taken over completely, with all existing and future potential profits staying with the govt (wind-down, and do NOT spin-off into the private market when it’s profitable again).

And the most important thing of all is to investigate all the regulators, ratings agencies, and executives/directors of the large financial institutions, politicians and others who enabled and encouraged this to happen in the first place. The Federal Reserve should be at the top of that list. ALL of their assets should be seized (overseas accounts, accounts held in family/friends names, homes, cars, yachts…EVERYTHING) to pay for all the damage they’ve done. This should be done BEFORE a single cent of taxpayers’ money is used.

Why do we hear about all the investigations into short selling when the real criminals are right under their nose (those who pushed the credit market to expand like it did).

[CA renter]

I’m all for the following bailouts:

1. FDIC

2. SIPC (for brokerage accounts)

3. PBGC (guarantee/backstop for retirees and their money)

4. Money-market accounts under the FDIC like they have already done.

5. A fund that will help the insurance companies pay out regular property and casualty claims to citizens.

I think the large financial institutions can be taken over completely, with all existing and future potential profits staying with the govt (wind-down, and do NOT spin-off into the private market when it’s profitable again).

And the most important thing of all is to investigate all the regulators, ratings agencies, and executives/directors of the large financial institutions, politicians and others who enabled and encouraged this to happen in the first place. The Federal Reserve should be at the top of that list. ALL of their assets should be seized (overseas accounts, accounts held in family/friends names, homes, cars, yachts…EVERYTHING) to pay for all the damage they’ve done. This should be done BEFORE a single cent of taxpayers’ money is used.

Why do we hear about all the investigations into short selling when the real criminals are right under their nose (those who pushed the credit market to expand like it did).

[CA renter]

I’m all for the following bailouts:

1. FDIC

2. SIPC (for brokerage accounts)

3. PBGC (guarantee/backstop for retirees and their money)

4. Money-market accounts under the FDIC like they have already done.

5. A fund that will help the insurance companies pay out regular property and casualty claims to citizens.

I think the large financial institutions can be taken over completely, with all existing and future potential profits staying with the govt (wind-down, and do NOT spin-off into the private market when it’s profitable again).

And the most important thing of all is to investigate all the regulators, ratings agencies, and executives/directors of the large financial institutions, politicians and others who enabled and encouraged this to happen in the first place. The Federal Reserve should be at the top of that list. ALL of their assets should be seized (overseas accounts, accounts held in family/friends names, homes, cars, yachts…EVERYTHING) to pay for all the damage they’ve done. This should be done BEFORE a single cent of taxpayers’ money is used.

Why do we hear about all the investigations into short selling when the real criminals are right under their nose (those who pushed the credit market to expand like it did).

[CA renter]

I believe the PTB is primarily concerned with credit-default swaps (CDSs).

A credit default swap is like insurance on underlying debt. An issuer (might be an insurance company like AIG or Ambac, etc., or a financial firm or some other issuer) of a swap is basically saying, “if your borrower defaults, we will cover $XX of your loss.”

The issuer might have issued many swaps. In order to protect themselves in the event of a payout/triggering event, they will often use a reinsurer and/or buy swaps from another issuer. This can go on and on down the line.

At some point, **somebody** is on the hook in the event of a default. Problem is, that final bag-holder might not actually have the money to cover the agreement, and all the players down the line get screwed. Multiply this by billions++++ (derivatives market is in the tens of trillions, IIRC), and you see why everyone is freaking out.

BTW, they use math models to predict probabilities (that’s basically what insurance companies do). If the actual events differ greatly from their models (as it is now), the sh!t will hit the fan.

You’d be surprised how deep everyone is in these derivatives — pension funds, bond funds, mutual funds, banks, corporations, insurance companies, financial firms, municipalities, etc. The list is endless and these derivatives are entrenched in our financial world.

That is why everyone is freaking out right now. It’s not so much the FBs who default on an individual basis, but the amount of paper that was traded based on a model that greatly underestimated what the FBs would do (unlike the common sense bubble bloggers who had this all pretty much figured out from the get-go. Where are our
4$$multi-million$$$ golden parachutes???).

To make this even longer…(sorry)…it is these swaps which enabled the leverage to grow like it did because they had found a “new and glorious way” to “manage risk”. The players honestly believed they were immune from losses, so they extended the leverage…until it could go no further. We are witnessing the snap-back of the largest and most dangerous credit bubble in the world, IMHO.

[CA renter]

I believe the PTB is primarily concerned with credit-default swaps (CDSs).

A credit default swap is like insurance on underlying debt. An issuer (might be an insurance company like AIG or Ambac, etc., or a financial firm or some other issuer) of a swap is basically saying, “if your borrower defaults, we will cover $XX of your loss.”

The issuer might have issued many swaps. In order to protect themselves in the event of a payout/triggering event, they will often use a reinsurer and/or buy swaps from another issuer. This can go on and on down the line.

At some point, **somebody** is on the hook in the event of a default. Problem is, that final bag-holder might not actually have the money to cover the agreement, and all the players down the line get screwed. Multiply this by billions++++ (derivatives market is in the tens of trillions, IIRC), and you see why everyone is freaking out.

BTW, they use math models to predict probabilities (that’s basically what insurance companies do). If the actual events differ greatly from their models (as it is now), the sh!t will hit the fan.

You’d be surprised how deep everyone is in these derivatives — pension funds, bond funds, mutual funds, banks, corporations, insurance companies, financial firms, municipalities, etc. The list is endless and these derivatives are entrenched in our financial world.

That is why everyone is freaking out right now. It’s not so much the FBs who default on an individual basis, but the amount of paper that was traded based on a model that greatly underestimated what the FBs would do (unlike the common sense bubble bloggers who had this all pretty much figured out from the get-go. Where are our
4$$multi-million$$$ golden parachutes???).

To make this even longer…(sorry)…it is these swaps which enabled the leverage to grow like it did because they had found a “new and glorious way” to “manage risk”. The players honestly believed they were immune from losses, so they extended the leverage…until it could go no further. We are witnessing the snap-back of the largest and most dangerous credit bubble in the world, IMHO.

[CA renter]

I believe the PTB is primarily concerned with credit-default swaps (CDSs).

A credit default swap is like insurance on underlying debt. An issuer (might be an insurance company like AIG or Ambac, etc., or a financial firm or some other issuer) of a swap is basically saying, “if your borrower defaults, we will cover $XX of your loss.”

The issuer might have issued many swaps. In order to protect themselves in the event of a payout/triggering event, they will often use a reinsurer and/or buy swaps from another issuer. This can go on and on down the line.

At some point, **somebody** is on the hook in the event of a default. Problem is, that final bag-holder might not actually have the money to cover the agreement, and all the players down the line get screwed. Multiply this by billions++++ (derivatives market is in the tens of trillions, IIRC), and you see why everyone is freaking out.

BTW, they use math models to predict probabilities (that’s basically what insurance companies do). If the actual events differ greatly from their models (as it is now), the sh!t will hit the fan.

You’d be surprised how deep everyone is in these derivatives — pension funds, bond funds, mutual funds, banks, corporations, insurance companies, financial firms, municipalities, etc. The list is endless and these derivatives are entrenched in our financial world.

That is why everyone is freaking out right now. It’s not so much the FBs who default on an individual basis, but the amount of paper that was traded based on a model that greatly underestimated what the FBs would do (unlike the common sense bubble bloggers who had this all pretty much figured out from the get-go. Where are our
4$$multi-million$$$ golden parachutes???).

To make this even longer…(sorry)…it is these swaps which enabled the leverage to grow like it did because they had found a “new and glorious way” to “manage risk”. The players honestly believed they were immune from losses, so they extended the leverage…until it could go no further. We are witnessing the snap-back of the largest and most dangerous credit bubble in the world, IMHO.

[CA renter]

I believe the PTB is primarily concerned with credit-default swaps (CDSs).

A credit default swap is like insurance on underlying debt. An issuer (might be an insurance company like AIG or Ambac, etc., or a financial firm or some other issuer) of a swap is basically saying, “if your borrower defaults, we will cover $XX of your loss.”

The issuer might have issued many swaps. In order to protect themselves in the event of a payout/triggering event, they will often use a reinsurer and/or buy swaps from another issuer. This can go on and on down the line.

At some point, **somebody** is on the hook in the event of a default. Problem is, that final bag-holder might not actually have the money to cover the agreement, and all the players down the line get screwed. Multiply this by billions++++ (derivatives market is in the tens of trillions, IIRC), and you see why everyone is freaking out.

BTW, they use math models to predict probabilities (that’s basically what insurance companies do). If the actual events differ greatly from their models (as it is now), the sh!t will hit the fan.

You’d be surprised how deep everyone is in these derivatives — pension funds, bond funds, mutual funds, banks, corporations, insurance companies, financial firms, municipalities, etc. The list is endless and these derivatives are entrenched in our financial world.

That is why everyone is freaking out right now. It’s not so much the FBs who default on an individual basis, but the amount of paper that was traded based on a model that greatly underestimated what the FBs would do (unlike the common sense bubble bloggers who had this all pretty much figured out from the get-go. Where are our
4$$multi-million$$$ golden parachutes???).

To make this even longer…(sorry)…it is these swaps which enabled the leverage to grow like it did because they had found a “new and glorious way” to “manage risk”. The players honestly believed they were immune from losses, so they extended the leverage…until it could go no further. We are witnessing the snap-back of the largest and most dangerous credit bubble in the world, IMHO.

[Author]

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