Banksters Looting Domino PIIGS one by one...
The great Lootapalooza continues unabated.
From zerohedge.com:
zerohedge.com
"Now that Greece is thoroughly irrelevant, the market
just told the ECB, the IMF, and the EMU to prepare another
$1 trillion in bailout packages.
The reason: the Greek bailout just made it abundantly clear
the bond vigilantes have free reign to call the bureaucrats
bluff whenever they see fit. The result: CDS of all non Greek
PIIGS are now blowing out, and represent the top 4 names of
all biggest CDS wideners for the day, each pushing a 10%+
change from yesterday.
This movement wider will not stop until the IMF resolves
to backstop all the PIIS ex. G. At this point nothing that
happens in Greece is important, although the thing that will
most likely happen is that the Greek government will fall
imminently, killing the austerity package and destroying
whatever credibility the EMU and the EU have left, but not
before the IMF and the EU soak up another 110 billion euro
in their slush funds."
----------
First the banksters profited by issuing massive amounts
of debt to the PIIGS.
Then they created (and profited from) the very structures
that allowed the PIIGS to hide their debt in order to meet
EU admission and debt compliance standards.
They then placed huge derivatives bets that the value of the
the PIIGS debt would ultimately collapse.
And now they're blowing up the PIIGs one by one, by shorting
that debt - forcing a 10 x increase in the IMF's bailout fund,
bailout funds in which the US taxpayers will ultimately foot
a majority portion of the bill.
From John Mauldin's "Outside The Box" newsletter:
"Let me start this week's Outside the Box by venting a little
anger. It now looks like almost 30% of the Greek financing
will come from the IMF, rather than just a small portion. And
since 40% of the IMF is funded by US taxpayers, and that debt
will be JUNIOR to current bond holders (if the rumors are
true) I can't tell you how outraged that makes me.
What that means is that US (and Canadian and British, etc.)
tax payers will be giving money to Greece who will use a lot
of it to roll over old bonds, letting European banks and
funds reduce their exposure to Greece while tax-payers all
over the world who fund the IMF assume that risk.
And does anyone really think that Greece will pay that debt
back? IMF debt should be senior and no bank should be allowed
to roll over debt and reduce their exposure to Greek debt on
the back of foreign tax-payers.
I don't think I signed on for that duty. Why should my tax
money go to help European banks? This is just wrong on so
many levels and there is nothing seemingly we can do."
-----------
Sadly, John Mauldin identifies both the problem, and the
reason why it will never go away...
Mauldin states: "there is nothing seemingly we can do."
Bull$hit. There's a lot we can do... the real problem is
that the vast, vast majority of people - do nothing!
And that's the reason why there is no end to the looting.
Because the very people who are intelligent enough, and
well enough informed to really understand what's going
on in the world, are all wringing their hands about -
"there being nothing we can do." And instead of doing
something to put an end to the looting and the bailouts
once and for all, they wring their hands while rationalizing
their apathy, and then look for a way to make a profit,
usually by chasing a trade the bankers have already made.
What would America do if our enemies attacked us in an
act of war, and started carpet bombing our major cities,
making millions homeless, jobless, and dependent upon
the government to feed them, while crashing the US economy?
The minute those bombs dropped, 87% of the able-bodied
men & women of this country would be lined up outside
military recruitment centers.
And the globalists know that...
So instead of using bombs & bullets, they use debt & derivatives.
Just as devastating to Americans, as millions are now
homeless, jobless, and dependent upon the government
to feed them... but, the banker's collateral remains
undamaged.
America is the last truly free and democratic nation-state standing.
And while the Americans willingly surrendered their economic
sovereignty, their jobs, and their manufacturing base
under the guise of NAFTA, GATT, the WTO and globalism;
they won't so willingly give up their Constitutional
Republic, their freedom, and their democracy.
For that final political surrender to globalism, they
must first be economically and psychologically devastated.
With 200,000 Americans still losing their homes each and
every month, nearly 3 years after the housing bubble cracked,
with 39 million Americans, including 1 in 4 children being
on food stamps, and with a real unemployment rate of
near 20%... the economic devastation is ongoing. And along
with the never ending demoralization from propagandized
political rhetoric meant to divide America, and from a non-
stop war "of terror"... the demoralization also continues.
And that joint economic and psychological devastation
is designed to ultimately lead to a populace begging
government to come up with a solution, any solution...
which of course will be, a solution they have long
been working towards - the global government they already
have waiting in the wings.
Do something.
Pick one issue - study and research it.
Then print out a series of articles, highlight key points
with a yellow marker, add a page, maybe two, of your comments,
and send it to your Congressman and Senators, and follow it
up with a phone call. And another phone call. And another.
And get 10 friends, family members, or co-workers to attend
the next Tea Party gathering, or Town Hall meeting in your
area and raise these issues.
Print out a single page flyer with bullet points and web
article links, make 100-200 copies, and hand them out at
the event to passers by.
Or pay a couple of kids in your neighborhood to go pass them
out in your neighborhood, or multiple neighborhoods.
Have a local youth group that nees to raise funds?
Print up 500-1000 flyers and pay them to pass them out.
Make it a point to start up a conversation with 5 strangers
a day about what's going on in America. Carry business cards
with the contact information of your local Tea Party group,
or five websites they should visit.
Do something.
Wringing your hands over how it's futile, and how the
systematic takeover of this country by a hand in glove
socialist political movement funded by a fascist economic
movement of monopoly corporatists and bankers is inevitable,
is exactly what they hope you do.
The Greeks just took massive forced cuts to their wages,
benefits, and pension plans.
Don't think America is immune.
This administration is in the advanced stages in studying
the conversion of private 401Ks and IRAs to government
annuities.
They're talking about forcing insurance companies and
pension funds to prop up bad banks.
And they're instituting capital controls - always
a late stage warning signal.
The FDIC is broke.
America's private and public pension system is broke.
The Pension Benefit Guaranty Corporation/PBGC is broke.
Social Security and Medicare are broke.
Fannie & Freddie are broke.
The U.S. banking system is insolvent and broke, only
propped up by legalized Enron accounting practices.
The U.S. Treasury is broke.
And nothing has been fixed...
The banking system hasn't been fixed - they've just been bailed out.
The derivatives nightmare has not even been addressed.
Too big to fail has not been addressed.
Social Security has not been addressed.
And what's been the solution so far?
More debt, more taxes, more power given to the Fed,
and less freedom for the people.
A people under a constant attack of economic and psychological
demoralization from their own government.
Demoralization and divisiveness that's working like a charm.
SOTB
PS: re: Commercial Real Estate Reality:
Kool-Aid drinkers stop here. Do not continue to read...
CMBS Delinquencies Hit Fresh Record, Now At $51 Billion,
A 268% Increase From Prior Year
zerohedge.com
In March, the total amount of delinquent CMBS increased by
$3.2 billion to $51.5 billion, or 6.4% of the total notional
outstanding. "Overall, the delinquent unpaid balance is up
almost 268% from one-year ago (when only $13.89 billion of
delinquent unpaid balance was reported for March 2009), and
is now over 23 times the low point of $2.21 billion in March 2007.
The distressed 90+-day, Foreclosure and REO categories grew in
aggregate for the 27th straight month – up by $2.57 billion
(7%) from the previous month and $30.31 billion (352%) in the
past year (up from only $8.6 billion in February 2009)."
And this data excludes the now defaulted Peter Cooper village
which still remained current in March courtesy of its reserve.
This loan will effectively go into real default in April or
May at the latest, pushing the total delinquencies by at least
another $3 billion.
That's not the worst: RealPoint now sees the total delinquency
rate surpassing 12% under a more stressed scenario, or double
from here.
Don't worry, the inability of the administration to delay the
implosion of Commercial Real Estate is a victory of the bulls,
and is just an indication of the "decoupling" of the CRE
market fundamentals from the broader Alice in Lalaland
parameters that set the everyday stock market. |
