I said last week that the nuclear option was on the way.
Get ready.
Here it comes. Kaboom.
Dilute the dollar. Screw the taxpayers. Bail out Wall Street and the bankers, moral hazard be damned.
Angelo Mozilo must be laughing, and rubbing himself orange with all his money.
Plan for Banks' Toxic Debt May Be Unveiled Next Week
The Obama administration is close to deciding on a plan to purchase bad—or non-performing and illiquid—assets from banks, according to industy sources. The plan could be announced early next week.
The so-called "bad bank" plan, would address the key problem of how to price the assets by using a model-pricing mechanism.
The model would take account of the government's ability to hold onto assets, even to maturity, and pay for the them with cheap funding. Result: the government might end up paying more than current market prices for the securities.
On the other hand, if the government paid less than the value at which the asset is carried on the bank's books, the bank would issue common equity to the government.
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Here's a good view of what happened, and what comes next
http://www.kitco.com/ind/Gerbino/jan272009.html
This fecal material will hide on government books for decades. The criminals will get away with what they pulled and live happily ever after. Gotta respect a well played scam.
It's good to be the king.
They won't deviate until they fear for their physical safety.
These dudes are Boomers who came of age in the 70s; self-restraint is anathema to them. It is against their New Age religion.
I call this "Bad Bank" scheme:
"RTC II, The Larger and Scarier Sequel".
This time, the amounts will be measured in the trillions of dollars instead of the measly few hundred billion of the original RTC.
Also, you can bet that the feds will be paying full list price for the toxic trash because if they don't they will be tacitly admitting that the other ten trillion dollars or so of junk mortgages, MBS and CDOs/CDS are also worthless.
However, even the creation of this "Bad Bank" won't necessarily convince the sheeple to run out and bury themselves in home debt once again.
This should be very good for the big financial institutions.
I sold my XLF yesterday due to a guilty conscience. I think my conscience could have waited another day though as XLF is up 10% in extended hours. Citigroup is up 23% in extended hours.
Someone needs to be held accountable. Justice should matter.
Angelo Mozilo for President.
Angelo in '12!
Vote for Ange!
Screw the little guy as usual.Why are there no arrests here.It pays to be a white collar crook.
"It's a big club and your not in it." "They want it all and you know what? They're gonna get it and there's nothing you can do about it."
George Carlin
Obbbbammmmyyy what a shit bag. Ya, change you can believe in. Oh well, this sleezebag crook is doing the new world orders bidding filling up sacks full of iou's for when he gets thrown out of office.
Just like Clinton and Boooooosh hey where did that 500 million come from, isn't life grand. The American sheeple disgust me and deserve everything their going to get. How could anyone with a brain vote for him or McShitstain. Thats like paying someone to rape you and sell you into slavery and then licking their boots! DISGUSTING.
i think it may be about time to buy some TBT.
It is clear that the government that operates inside the DC beltway is not the American government. This is an alien government that has no relation to the U.S. Government as defined by the Federal Constitution. It is composed of robbers, thieves, thugs, and financial rapists. It operates like a swarm of locusts, devouring everything in its path...liberty, justice, freedom, democracy, and the rule of constitutional law. It represent only money, banksters, and so-called global exigencies. It has no relationship to what it deems are its subjects...American citizens.
When will Americans realize this fact and rise up and transform this alien government back to the US government?
When?
They'll need a slurry of arrests to occupy the same morning headlines for this to go over well.
C'mon guys, sing along: We are the world, we are the Ponzi...
NYT -- In Florida, not far from the Palm Beach clubs where Mr. Madoff wooed some of his investors, George L. Theodule, a Haitian immigrant and professed “man of God,” promised churchgoers in a Haitian-American community that he could double their money within 90 days.
He accepted only cash, and despite the too-good-to-be-true sales pitch, he found plenty of investors willing to turn over tens of thousands of dollars.
“The offices were beautiful, and I was told it was a limited liability corporation,” said Reggie Roseme, a deliveryman in Wellington, Fla., who lost his entire savings of $35,000 and now faces foreclosure on his home.
According to federal regulators who have accused him of operating a Ponzi scheme, Mr. Theodule bilked thousands of investors of modest means, like Mr. Roseme, out of $23 million in all, and put $4 million in his own pocket. This money helped pay for two luxury vehicles for Mr. Theodule, a wedding, a lavish house in Georgia and a recent trip to Zurich that federal authorities are now investigating. The fate of the other $19 million is still unknown.
If the attached link doesn't make people here stand up say no more, I don't know what will.
http://www.cnbc.com/id/28893628/?site=14081545
Our gov't is going to buy the crap from their buddies (read previous and future employers) and then reduce the principle down for these speculators sitting in their McMansion.
I'd say f-it all, but there is no way we will be here as we know it in 6 months.
"Angelo Mozilo must be laughing, and rubbing himself..."
Master Baiter?
Pump Daddy??
Mozilo has 'made-off' with billion$ while taxpayers unwillingly assume-the-position as the 'greater fools' to remedy his 'pump and dump' manipulations.
Off topic but true story:
I work for a fortune 500 company in the US; we have a partnership with an Israeli company.
For the past few days we’ve had a brainstorming workshop with the folks from Israel approx 15 of them.
This is the first time I’ve actually met Israelis in person, it is an eye opening experience.
They are a very friendly bunch and very cultured, but more then that these guys who I would have thought would be highly stressed due the crazy environment they live in, are actually quite the opposite- laid back yet sharp.
I am writing this because after spending some time with them I realized something I have not understood before.
How is it that a tiny country with a tiny population can survive in the harshest of all areas, neighbors that are 1000 of times more in numbers, size, and riches, committed to destroy little Israel, and yet she not only survives but prospers.
I always thought it was because of the support from countries like the US.
That’s not it.
There is something about the core of these people that is ---- I can not yet pin it down
perhaps a level of truth, a cultural attitude, an incredible energy??
But I can tell you all for sure; that all the Arabs and Muslims combined will never match these incredible people.
Israel would be successful even if she had zero support from anyone else.
I now sort of understand how the Egyptians, the Greeks, the Persians, the Romans, the Church, the Nazis, the Commies where not able to defeat these people.
It is surreal listening to these people chit chat in Hebrew with such high spirits in 2009 after all they have been thru.
I decided that Israel is the one place I must visit before I die.
Keith, in all your travels have you ever been there? It’s a must!
I hear that it is an oasis in the desert and safer then NYC ;-).
I have fallen in love with the Israelis.
In relation to the Israeli / Arab conflict it is clear that Israel is 100% in the right and the Arabs are 100% in the wrong.
I have no feelings for Arabs in general so long that they continue torturing their most amazing neighbors.
It also shows how dumb and stupid the Arabs are for choosing to martyr themselves for their oppressive rulers rather then supporting Israel who only want to provide a better life for everyone.
PS. I'm Irish and think we have something special in common with Israel.
PPS. I did not drink the coolaid
We reach a new "Low" of moral hazard every week ...
i sense a turning point coming. this bad bank does nothing, it is simply a shell game. The question is, how to play it.
the tax payer will pay full price, otherwise the banks won't sell, they will just keep it off the books and/or marked to fantasyland values like the do now.
so, national debt will need to increase by trillions. bad news for the dollar but the problem is (as schiff has found out) that there is no "decoupling" of economies. we are all in the same boat and all the other countries are at the sinking end.
will banks see a short term spike up as they unload this crap? I am thinking treasuries will drop but not come crashing down.
Perhaps gold will be a good investment but the problem with gold is that you can go dig more up. heck, if the value goes really really high they will start harvesting if from the ocean.
Off topic but still intereseting:
Just reported that Obama will be traveling to Canada.....with allt he crisis we face all over the aorld, why Canada first? The Amero is coming....
What is the alternative? Nationalize all of the banks? Seems this is the only option, and the Feds wind up paying less than they would, in practical terms, if they did have to step in and take over all of the reins, no?
This won't fix anything but will make things worse. Banks will still not lend to those that aren't credit worthy, and people won't borrow to spend as job losses continue to pile up.
Where's my TARP? I want my TARP! Anybody in America saddled with mortgage payments who doesn't default immediately is a fool! Mortgagees have a window of opportunity to get free money from the Fed. All they have to do is stop paying their mortgage for two months!
The government wants homedebtors to stay in their homes and is ready to hand out taxpayers' money.
He who has a mortgage to default on is the lucky winner!
In today's America, the responsible consumers, their children, and their children's children, do qualify for a series of most-preferred tax increases to pay for those handouts to the happy, lazy homedebtors!
Bought some Citi around $3 and sold a little over $4 to make a little money. The only thing propping it up is shorts selling SKF etc. Long term I think Citi could have 2009 earnings of $1 but just too risky to hold.
I think the rally is close to being over although it could go up to 900 before falling back.
Triangle
HYPERINFLATION HERE SHE COMES!
Hey Sashers; I TOLD YOU THIS WAS GOING TO HAPPEN!!!! Once the government gets a hold of the "bad debt" then people like me will benefit tremendously. Then the government will lower our principal balances. That is what I am waiting for.
You Sashers were betting on the economy collapsing so you would benefit. Well the economy is in poor shape. But it is nowhere near a collapse! So I won and you lost.
Anonymous Kelly said...
Off topic but true story:
I work for a fortune 500 company in the US; we have a partnership with an Israeli company.
For the past few days we’ve had a brainstorming workshop with the folks from Israel approx 15 of them.
This is the first time I’ve actually met Israelis in person, it is an eye opening experience.
They are a very friendly bunch and very cultured, but more then that these guys who I would have thought would be highly stressed due the crazy environment they live in, are actually quite the opposite- laid back yet sharp.
I am writing this because after spending some time with them I realized something I have not understood before.
How is it that a tiny country with a tiny population can survive in the harshest of all areas, neighbors that are 1000 of times more in numbers, size, and riches, committed to destroy little Israel, and yet she not only survives but prospers.
I always thought it was because of the support from countries like the US.
That’s not it.
There is something about the core of these people that is ---- I can not yet pin it down
perhaps a level of truth, a cultural attitude, an incredible energy??
But I can tell you all for sure; that all the Arabs and Muslims combined will never match these incredible people.
Israel would be successful even if she had zero support from anyone else.
I now sort of understand how the Egyptians, the Greeks, the Persians, the Romans, the Church, the Nazis, the Commies where not able to defeat these people.
It is surreal listening to these people chit chat in Hebrew with such high spirits in 2009 after all they have been thru.
I decided that Israel is the one place I must visit before I die.
Keith, in all your travels have you ever been there? It’s a must!
I hear that it is an oasis in the desert and safer then NYC ;-).
I have fallen in love with the Israelis.
In relation to the Israeli / Arab conflict it is clear that Israel is 100% in the right and the Arabs are 100% in the wrong.
I have no feelings for Arabs in general so long that they continue torturing their most amazing neighbors.
It also shows how dumb and stupid the Arabs are for choosing to martyr themselves for their oppressive rulers rather then supporting Israel who only want to provide a better life for everyone.
PS. I'm Irish and think we have something special in common with Israel.
PPS. I did not drink the coolaid
January 28, 2009 6:08 PM
I agree with you 100% we must support Israel all the way. I am an American jew and I appreciate your love for our people and my eternal homeland. I am very upset because America doesn't do enough to help Israel. Right now, Israel is suffering through a severe recession and they need help. America needs to do more.
Kelly said:
"PS. I'm Irish and think we have something special in common with Israel.
PPS. I did not drink the coolaid"
--
No Kelly! You weren't drunk and you didn't drink the Kool-Aid, but you were totally wrong in saying that you--an Irish-- have something in common with the Israelis! That's how a lot of Russians, many of whom are not Jewish, moved to Israel and became settlers!
Having said that,you are right in saying that the Israelis are great people. I visited Israel several times. Israel is an amazing place. I also know many Arabs and Israelis and some of them are good friends of mine (FYI, 20% of Israelis are Arabs). I keep telling both sides (Arabs and Jews are true cousins and both are Semitic people) should get together and use their obvious wealth (Arab oil) and genius (Jewish know-how and intelligence) to conquer the world.
After all, the world is so full of stupid, gullible and easily impressible people. Just think about the three most important monotheistic religions, Judaism, Christianity and Islam--they all emanated from the Middle East and, in no time at all, took over the entire globe!
Also, if you dig deep into your "Fortune 500" company, you'll most probably find out that Arabs and/or Jews are financing some or all of it and/or running it (calling the shots!). Don't you think that those feuding cousins need to forget their silly land dispute and join their forces to further advance their own interests in today's strange world?
And the financial types like Mozillo will get away with it.
This is America.
Rob a 7-11 for $50 with a gun and go to jail for 20 year.
Rob the tax payers or financial clients like Madoff and you get arrested in your ubber luxury Manhattan penthouse.
That's America. It's always been that way. It always will be.
Meanwhile all the sheeple want to know, "What happened on American Idol last night?"
See how much difference Obama makes? He's just another pol whoring for the plutocrats. Anyone surprised?
I still cannot believe that a crazy have not taken a single one of these people out.
It is clear that the government that operates inside the DC beltway is not the American government. This is an alien government that has no relation to the U.S. Government as defined by the Federal Constitution.
Glad you finally figure the shady government out. It's also called, Illuminati. Now come over to www.infowars.com and listen to the Alex Jones show podcast or radio. Join the resistance. Battle stations, battle stations!
It is surreal listening to these people chit chat in Hebrew with such high spirits in 2009 after all they have been thru.
I decided that Israel is the one place I must visit before I die.
Dude, seriously, you know what to do with your Zionist trolling. I have the Vaseline if you need it. Can you believe this Mossad freak?
Yo Zionists and Mossad operatives, get the f*ck out of here. We aren't buying your pathetic propaganda.
Let's face it, everyone: O-man inherited a mess. The economy is only one of several nearly intractable problems left behind by the bull in the china shop former administration.
One glimmer of hope is that we are no longer play-acting and pretending there is no problem, throwing around Monopoly money, but instead facing it head on and taking some action.
No one on Earth knows what to do with all that bad paper. Sweeping it all into one big, steaming mass may be just as good as anything else and does not necessarily mean the perps go free.
The Big O is on fire, if you ask me, undoing an amazing amount of wreckage this first week alone - can't even recount it all!
And, despite the Republicans amazingly not getting on board and - after getting hit on the head with ten anvils from the stupidity of giving tax breaks to the top 5% (most went to the top 1%!) - still wanting to do more of the same, the stimulus package passed. Score Barack.
What is this, some sort of gambler's mentality? Does being GLARINGLY, HORRIFICALLY WRONG about everything have some kind of momentum? What will it take for these guys to come off it? Their hero Greenspan even admitted he was dead wrong.
But they should call it the "sad bank". I picture an old refrigerator box somewhere in the District.
If they were such good people they wouldn't be bombing and killing 1000+ people. Is it that the Israelis are good people and the Arabs are bad people? That would make he US good and the Iraqi bad, because the US is there for benevolent purposes? Ramming a donated good delivery boat is good? Maybe you don't see the amazing perseverance of the Arabs? Maybe you haven't met any Arab?
Attention bailout nation: Rental car companies seeking a bailout.
FUCK the US!
http://online.wsj.com/article/SB123318870746326703.html
Paul,
You play these bailout trades like a pro. Best to become a day trader while Rome burns. Beats actually working for a living.
It pains me to see Obama talk about hard work being the values of Americans, then going out and getting Geithner to drop money bombs like a crazy fool. Surely Obama is intelligent enough to realize the hypocracy in this???
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