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UCGal
Participant[quote=enron_by_the_sea]Adding couple of small local EE-Comm employers to the layoff list
(a)Entropic cuts 55
http://tinyurl.com/dd52ev(b)Pulse~link lays off 40+
http://tinyurl.com/cup6ar
[/quote]Yikes about Entropic… I’ve worked with them.
UCGal
Participant[quote=enron_by_the_sea]Adding couple of small local EE-Comm employers to the layoff list
(a)Entropic cuts 55
http://tinyurl.com/dd52ev(b)Pulse~link lays off 40+
http://tinyurl.com/cup6ar
[/quote]Yikes about Entropic… I’ve worked with them.
March 26, 2009 at 4:50 PM in reply to: How do lenders deal with houses with un-permitted additions #373486UCGal
ParticipantContinuing the hijack on the appraisal rules…
Washington state has had this rule for a while.
The appraiser she got, was coincidentally, the “preferred” one of her broker… but that was luck. He wasn’t out of business, just worked as assigned by the system, rather than for specific banks/brokers/realtors.
March 26, 2009 at 4:50 PM in reply to: How do lenders deal with houses with un-permitted additions #373768UCGal
ParticipantContinuing the hijack on the appraisal rules…
Washington state has had this rule for a while.
The appraiser she got, was coincidentally, the “preferred” one of her broker… but that was luck. He wasn’t out of business, just worked as assigned by the system, rather than for specific banks/brokers/realtors.
March 26, 2009 at 4:50 PM in reply to: How do lenders deal with houses with un-permitted additions #373940UCGal
ParticipantContinuing the hijack on the appraisal rules…
Washington state has had this rule for a while.
The appraiser she got, was coincidentally, the “preferred” one of her broker… but that was luck. He wasn’t out of business, just worked as assigned by the system, rather than for specific banks/brokers/realtors.
March 26, 2009 at 4:50 PM in reply to: How do lenders deal with houses with un-permitted additions #373983UCGal
ParticipantContinuing the hijack on the appraisal rules…
Washington state has had this rule for a while.
The appraiser she got, was coincidentally, the “preferred” one of her broker… but that was luck. He wasn’t out of business, just worked as assigned by the system, rather than for specific banks/brokers/realtors.
March 26, 2009 at 4:50 PM in reply to: How do lenders deal with houses with un-permitted additions #374101UCGal
ParticipantContinuing the hijack on the appraisal rules…
Washington state has had this rule for a while.
The appraiser she got, was coincidentally, the “preferred” one of her broker… but that was luck. He wasn’t out of business, just worked as assigned by the system, rather than for specific banks/brokers/realtors.
March 26, 2009 at 4:34 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373466UCGal
Participant[quote=arraya]Recedite, · plebes! · Gero · rem · imperialem![/quote]
I will admit, my latin’s non-existant. I had to go look that up.March 26, 2009 at 4:34 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373748UCGal
Participant[quote=arraya]Recedite, · plebes! · Gero · rem · imperialem![/quote]
I will admit, my latin’s non-existant. I had to go look that up.March 26, 2009 at 4:34 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373920UCGal
Participant[quote=arraya]Recedite, · plebes! · Gero · rem · imperialem![/quote]
I will admit, my latin’s non-existant. I had to go look that up.March 26, 2009 at 4:34 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373964UCGal
Participant[quote=arraya]Recedite, · plebes! · Gero · rem · imperialem![/quote]
I will admit, my latin’s non-existant. I had to go look that up.March 26, 2009 at 4:34 PM in reply to: How is this not a formula for looting the U. S. Treasury? #374082UCGal
Participant[quote=arraya]Recedite, · plebes! · Gero · rem · imperialem![/quote]
I will admit, my latin’s non-existant. I had to go look that up.March 26, 2009 at 12:12 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373283UCGal
Participant[quote=Diego Mamani]Let’s see an example. “Bank” has a mortgage-backed security (MBS) with original par (nominal) value of $100. In 2008 Bank “marked-to-market” and now values the MBS at $95 in its books. But we all know that this MBS is worth a lot less, maybe less than $60, but Bank won’t acknowledge reality.
In 2009 we have the new Treasury plan, whereby “Peter” buys this MBS, for say, $90. That’s because the bank won’t take anything less. If it did, Bank would be shown to be insolvent and would be out of business.
Peter puts only $6 out of pocket. Uncle Sam puts another $6, and the remainder $78 is a nonrecourse loan from Uncle Sam to Peter. (Total, $90).
Then Peter turns around and sells the MBS to his pal “Paul” for $48. Paul pays $48 b/c he thinks the MBS is actually worth $58 as justified by what the homeowners will actually pay in monthly mortgage payments.
Peter’s $6 investment is wiped out. So is the govt’s $6. And the $48 Peter gets from Paul goes to pay back the govt loan of $78. So now, Peter lost $6 but Uncle Sam lost $36 ($84-$48).
Since Peter and Paul are buddies (co-conspirators), the latter can compensate Peter. Say, Paul gives Peter his $6 plus another $2 for his troubles. Paul pays $48 for something worth $58, but because he gave $8 to Peter, his profit is only $2. And the banks get fully $90 for paper that is worth actually $58.
Summary:
Peter puts in $6, makes $2 profit
Paul puts in $48, makes $2 profit
U.S. puts in $84, makes a $36 LOSS
Bank had paper that was really worth $58 but got $90 for it, makes a $32 profitYes, I agree with the OP, this is wholesale looting of the US Treasury. Us taxpayers foot the bill and will pay for it in a combination of higher inflation and higher taxes. The important thing is that the Wall Street types who caused this crisis will get to keep their Ferraris and juicy bonuses, and won’t have to fly coach or go without their manicures, god forbid.
[/quote]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.
March 26, 2009 at 12:12 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373563UCGal
Participant[quote=Diego Mamani]Let’s see an example. “Bank” has a mortgage-backed security (MBS) with original par (nominal) value of $100. In 2008 Bank “marked-to-market” and now values the MBS at $95 in its books. But we all know that this MBS is worth a lot less, maybe less than $60, but Bank won’t acknowledge reality.
In 2009 we have the new Treasury plan, whereby “Peter” buys this MBS, for say, $90. That’s because the bank won’t take anything less. If it did, Bank would be shown to be insolvent and would be out of business.
Peter puts only $6 out of pocket. Uncle Sam puts another $6, and the remainder $78 is a nonrecourse loan from Uncle Sam to Peter. (Total, $90).
Then Peter turns around and sells the MBS to his pal “Paul” for $48. Paul pays $48 b/c he thinks the MBS is actually worth $58 as justified by what the homeowners will actually pay in monthly mortgage payments.
Peter’s $6 investment is wiped out. So is the govt’s $6. And the $48 Peter gets from Paul goes to pay back the govt loan of $78. So now, Peter lost $6 but Uncle Sam lost $36 ($84-$48).
Since Peter and Paul are buddies (co-conspirators), the latter can compensate Peter. Say, Paul gives Peter his $6 plus another $2 for his troubles. Paul pays $48 for something worth $58, but because he gave $8 to Peter, his profit is only $2. And the banks get fully $90 for paper that is worth actually $58.
Summary:
Peter puts in $6, makes $2 profit
Paul puts in $48, makes $2 profit
U.S. puts in $84, makes a $36 LOSS
Bank had paper that was really worth $58 but got $90 for it, makes a $32 profitYes, I agree with the OP, this is wholesale looting of the US Treasury. Us taxpayers foot the bill and will pay for it in a combination of higher inflation and higher taxes. The important thing is that the Wall Street types who caused this crisis will get to keep their Ferraris and juicy bonuses, and won’t have to fly coach or go without their manicures, god forbid.
[/quote]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.
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