[DWCAP]

How much you wanna bet me that in a few months we will “discover” that Fannie and Freddie will have a program to buy loans like this from banks. Lets do it both ways, TARP money in, Taxpayer dollars to buy the stuff (channeled through the former GSE’s) out.

[DWCAP]

How much you wanna bet me that in a few months we will “discover” that Fannie and Freddie will have a program to buy loans like this from banks. Lets do it both ways, TARP money in, Taxpayer dollars to buy the stuff (channeled through the former GSE’s) out.

[DWCAP]

I really think this is an enlightened article. If you can, check out the charts on the link.

This is my favorit part. It sums up the problem perfectly, cept it isnt just Geithner’s misconseptions.

“We think Geithner is suffering from five fundamental misconceptions about what is wrong with the economy. Here they are:

1)The trouble with the economy is that the banks aren’t lending.
The reality: The economy is in trouble because American consumers and businesses took on way too much debt and are now collapsing under the weight of it. As consumers retrench, companies that sell to them are retrenching, thus exacerbating the problem. The banks, meanwhile, are lending. They just aren’t lending as much as they used to. Also the shadow banking system (securitization markets), which actually provided more funding to the economy than the banks, has collapsed.

2)The banks aren’t lending because their balance sheets are loaded with “bad assets” that the market has temporarily mispriced.
The reality: The banks aren’t lending (much) because they have decided to stop making loans to people and companies who can’t pay them back. And because the banks are scared that future writedowns on their old loans will lead to future losses that will wipe out their equity.

3)Bad assets are “bad” because the market doesn’t understand how much they are really worth.
The reality: The bad assets are bad because they are worth less than the banks say they are. House prices have dropped by nearly 30% nationwide. That has created something in the neighborhood of $5+ trillion of losses in residential real estate alone (off a peak market value of housing about $20+ trillion). The banks don’t want to take their share of those losses because doing so will wipe them out. So they, and Geithner, are doing everything they can to pawn the losses off on the taxpayer.

4)Once we get the “bad assets” off bank balance sheets, the banks will start lending again.
The reality: The banks will remain cautious about lending, because the housing market and economy are still deteriorating. So they’ll sit there and say they are lending while waiting for the economy to bottom.

5)Once the banks start lending, the economy will recover.
The reality: American consumers still have debt coming out of their ears, and they’ll be working it off for years. House prices are still falling. Retirement savings have been crushed. Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average. Consumers don’t have room to take on more debt, even if the banks are willing to give it to them.”

http://www.businessinsider.com/henry-blodget-geithners-three-big-misconceptions-2009-3

[DWCAP]

I really think this is an enlightened article. If you can, check out the charts on the link.

This is my favorit part. It sums up the problem perfectly, cept it isnt just Geithner’s misconseptions.

“We think Geithner is suffering from five fundamental misconceptions about what is wrong with the economy. Here they are:

1)The trouble with the economy is that the banks aren’t lending.
The reality: The economy is in trouble because American consumers and businesses took on way too much debt and are now collapsing under the weight of it. As consumers retrench, companies that sell to them are retrenching, thus exacerbating the problem. The banks, meanwhile, are lending. They just aren’t lending as much as they used to. Also the shadow banking system (securitization markets), which actually provided more funding to the economy than the banks, has collapsed.

2)The banks aren’t lending because their balance sheets are loaded with “bad assets” that the market has temporarily mispriced.
The reality: The banks aren’t lending (much) because they have decided to stop making loans to people and companies who can’t pay them back. And because the banks are scared that future writedowns on their old loans will lead to future losses that will wipe out their equity.

3)Bad assets are “bad” because the market doesn’t understand how much they are really worth.
The reality: The bad assets are bad because they are worth less than the banks say they are. House prices have dropped by nearly 30% nationwide. That has created something in the neighborhood of $5+ trillion of losses in residential real estate alone (off a peak market value of housing about $20+ trillion). The banks don’t want to take their share of those losses because doing so will wipe them out. So they, and Geithner, are doing everything they can to pawn the losses off on the taxpayer.

4)Once we get the “bad assets” off bank balance sheets, the banks will start lending again.
The reality: The banks will remain cautious about lending, because the housing market and economy are still deteriorating. So they’ll sit there and say they are lending while waiting for the economy to bottom.

5)Once the banks start lending, the economy will recover.
The reality: American consumers still have debt coming out of their ears, and they’ll be working it off for years. House prices are still falling. Retirement savings have been crushed. Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average. Consumers don’t have room to take on more debt, even if the banks are willing to give it to them.”

http://www.businessinsider.com/henry-blodget-geithners-three-big-misconceptions-2009-3

[DWCAP]

I really think this is an enlightened article. If you can, check out the charts on the link.

This is my favorit part. It sums up the problem perfectly, cept it isnt just Geithner’s misconseptions.

“We think Geithner is suffering from five fundamental misconceptions about what is wrong with the economy. Here they are:

1)The trouble with the economy is that the banks aren’t lending.
The reality: The economy is in trouble because American consumers and businesses took on way too much debt and are now collapsing under the weight of it. As consumers retrench, companies that sell to them are retrenching, thus exacerbating the problem. The banks, meanwhile, are lending. They just aren’t lending as much as they used to. Also the shadow banking system (securitization markets), which actually provided more funding to the economy than the banks, has collapsed.

2)The banks aren’t lending because their balance sheets are loaded with “bad assets” that the market has temporarily mispriced.
The reality: The banks aren’t lending (much) because they have decided to stop making loans to people and companies who can’t pay them back. And because the banks are scared that future writedowns on their old loans will lead to future losses that will wipe out their equity.

3)Bad assets are “bad” because the market doesn’t understand how much they are really worth.
The reality: The bad assets are bad because they are worth less than the banks say they are. House prices have dropped by nearly 30% nationwide. That has created something in the neighborhood of $5+ trillion of losses in residential real estate alone (off a peak market value of housing about $20+ trillion). The banks don’t want to take their share of those losses because doing so will wipe them out. So they, and Geithner, are doing everything they can to pawn the losses off on the taxpayer.

4)Once we get the “bad assets” off bank balance sheets, the banks will start lending again.
The reality: The banks will remain cautious about lending, because the housing market and economy are still deteriorating. So they’ll sit there and say they are lending while waiting for the economy to bottom.

5)Once the banks start lending, the economy will recover.
The reality: American consumers still have debt coming out of their ears, and they’ll be working it off for years. House prices are still falling. Retirement savings have been crushed. Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average. Consumers don’t have room to take on more debt, even if the banks are willing to give it to them.”

http://www.businessinsider.com/henry-blodget-geithners-three-big-misconceptions-2009-3

[DWCAP]

I really think this is an enlightened article. If you can, check out the charts on the link.

This is my favorit part. It sums up the problem perfectly, cept it isnt just Geithner’s misconseptions.

“We think Geithner is suffering from five fundamental misconceptions about what is wrong with the economy. Here they are:

1)The trouble with the economy is that the banks aren’t lending.
The reality: The economy is in trouble because American consumers and businesses took on way too much debt and are now collapsing under the weight of it. As consumers retrench, companies that sell to them are retrenching, thus exacerbating the problem. The banks, meanwhile, are lending. They just aren’t lending as much as they used to. Also the shadow banking system (securitization markets), which actually provided more funding to the economy than the banks, has collapsed.

2)The banks aren’t lending because their balance sheets are loaded with “bad assets” that the market has temporarily mispriced.
The reality: The banks aren’t lending (much) because they have decided to stop making loans to people and companies who can’t pay them back. And because the banks are scared that future writedowns on their old loans will lead to future losses that will wipe out their equity.

3)Bad assets are “bad” because the market doesn’t understand how much they are really worth.
The reality: The bad assets are bad because they are worth less than the banks say they are. House prices have dropped by nearly 30% nationwide. That has created something in the neighborhood of $5+ trillion of losses in residential real estate alone (off a peak market value of housing about $20+ trillion). The banks don’t want to take their share of those losses because doing so will wipe them out. So they, and Geithner, are doing everything they can to pawn the losses off on the taxpayer.

4)Once we get the “bad assets” off bank balance sheets, the banks will start lending again.
The reality: The banks will remain cautious about lending, because the housing market and economy are still deteriorating. So they’ll sit there and say they are lending while waiting for the economy to bottom.

5)Once the banks start lending, the economy will recover.
The reality: American consumers still have debt coming out of their ears, and they’ll be working it off for years. House prices are still falling. Retirement savings have been crushed. Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average. Consumers don’t have room to take on more debt, even if the banks are willing to give it to them.”

http://www.businessinsider.com/henry-blodget-geithners-three-big-misconceptions-2009-3

[DWCAP]

I really think this is an enlightened article. If you can, check out the charts on the link.

This is my favorit part. It sums up the problem perfectly, cept it isnt just Geithner’s misconseptions.

“We think Geithner is suffering from five fundamental misconceptions about what is wrong with the economy. Here they are:

1)The trouble with the economy is that the banks aren’t lending.
The reality: The economy is in trouble because American consumers and businesses took on way too much debt and are now collapsing under the weight of it. As consumers retrench, companies that sell to them are retrenching, thus exacerbating the problem. The banks, meanwhile, are lending. They just aren’t lending as much as they used to. Also the shadow banking system (securitization markets), which actually provided more funding to the economy than the banks, has collapsed.

2)The banks aren’t lending because their balance sheets are loaded with “bad assets” that the market has temporarily mispriced.
The reality: The banks aren’t lending (much) because they have decided to stop making loans to people and companies who can’t pay them back. And because the banks are scared that future writedowns on their old loans will lead to future losses that will wipe out their equity.

3)Bad assets are “bad” because the market doesn’t understand how much they are really worth.
The reality: The bad assets are bad because they are worth less than the banks say they are. House prices have dropped by nearly 30% nationwide. That has created something in the neighborhood of $5+ trillion of losses in residential real estate alone (off a peak market value of housing about $20+ trillion). The banks don’t want to take their share of those losses because doing so will wipe them out. So they, and Geithner, are doing everything they can to pawn the losses off on the taxpayer.

4)Once we get the “bad assets” off bank balance sheets, the banks will start lending again.
The reality: The banks will remain cautious about lending, because the housing market and economy are still deteriorating. So they’ll sit there and say they are lending while waiting for the economy to bottom.

5)Once the banks start lending, the economy will recover.
The reality: American consumers still have debt coming out of their ears, and they’ll be working it off for years. House prices are still falling. Retirement savings have been crushed. Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average. Consumers don’t have room to take on more debt, even if the banks are willing to give it to them.”

http://www.businessinsider.com/henry-blodget-geithners-three-big-misconceptions-2009-3

[DWCAP]

SD_R, They are? I havnt gotten to that one yet! So it is a public private partership where we share the rewards and the taxpayers take all the losses. Or, in a more colorful way, F#@*ing the taxpayers in the ass to protect the monied and powerful. I dont know why I was expecting/hoping for any different.

[DWCAP]

SD_R, They are? I havnt gotten to that one yet! So it is a public private partership where we share the rewards and the taxpayers take all the losses. Or, in a more colorful way, F#@*ing the taxpayers in the ass to protect the monied and powerful. I dont know why I was expecting/hoping for any different.

[DWCAP]

SD_R, They are? I havnt gotten to that one yet! So it is a public private partership where we share the rewards and the taxpayers take all the losses. Or, in a more colorful way, F#@*ing the taxpayers in the ass to protect the monied and powerful. I dont know why I was expecting/hoping for any different.

[DWCAP]

SD_R, They are? I havnt gotten to that one yet! So it is a public private partership where we share the rewards and the taxpayers take all the losses. Or, in a more colorful way, F#@*ing the taxpayers in the ass to protect the monied and powerful. I dont know why I was expecting/hoping for any different.

[DWCAP]

SD_R, They are? I havnt gotten to that one yet! So it is a public private partership where we share the rewards and the taxpayers take all the losses. Or, in a more colorful way, F#@*ing the taxpayers in the ass to protect the monied and powerful. I dont know why I was expecting/hoping for any different.

[DWCAP]

And………
Is the point to demenstrate that Life isnt fair, no matter how much we may want it to be?

It also would be alot better if the legacy kids had parents that could help them as they worked in the field and had old matterials they could copy from instead of instant points. Even people who are given everything can still fail at life. I know one or two of those failures, or atleast I use to.

[DWCAP]

And………
Is the point to demenstrate that Life isnt fair, no matter how much we may want it to be?

It also would be alot better if the legacy kids had parents that could help them as they worked in the field and had old matterials they could copy from instead of instant points. Even people who are given everything can still fail at life. I know one or two of those failures, or atleast I use to.

[DWCAP]

And………
Is the point to demenstrate that Life isnt fair, no matter how much we may want it to be?

It also would be alot better if the legacy kids had parents that could help them as they worked in the field and had old matterials they could copy from instead of instant points. Even people who are given everything can still fail at life. I know one or two of those failures, or atleast I use to.

[Author]

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