Based on Les H post i repeat two posts and make zero apology for my dark views and i join Faber in GUARANTEEING the U.S. is going to go bankrupt.
i will also add now the proposed Tax-Cuts for JQP are a cruel ruse by the Powers, they are giving a little candy to JQP as they are using JQP as collateral for all their massive corruption and greed and incompetence.
i will maintain a dark hard view on the final playout of this as this is a deep conviction.(it could take several years to play out)
Post one and then an attack on Sheila Bair.Sumner has indicated at least 50 billion will be going to buying up GARBAGE Toxic Waste.
We already know Paulson paid At Least 30% above fair value in his bailout in TARP-I
When the country goes bankrupt you can stone me then, as it is the general rule that people that make dark forecasts are then blamed that their negativive thinking caused the the Big Bad to happen that being utter superstitious rot of course.
Shorters of the Market in 1929 i read had to keep that a secret or face verbal and physical abuse.
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Utterly INSANE.( posted about 1/30/2009)
First, the Government drive is to re-capitalize banks, O.K., now how does this work for the Tax Payer which they, lying through their smiley faces says will save the tax payer money?
Let's see they can't buy worthless debt for nothnig and re-capitalize banks, so BRILIANT let's pay them for this worthless crap and tell public we will sell this worthless crap we bought at a profit at a later date---that's fits this National Socialism (fascism, iow)) prop the financial industry at the public expense, but scam the suckers it will be for their benefit.
As i say, any the compare this to the S&L purchase of bad real estate assets, are dizzy under their beanie.
These are not real assets, this is the toxic waste of this whole monstrous Ponzi Scheme.
And guess who ends up like a Madoff Client, after all this utter BS, the U.S. Taxpayer.
Now if the U.S. taxpayers new what was going on(but they don't) they would be building Guillotines now!
Vi can get "feel goody" that this is the solution, but fact is, when U.S. has to say to the taxpayer, give us your money, as we are going to go BANKRUPT as a nation.
Taxpayer says "What the F--k!"
Well Taxpayer we used you as the collateral to save the Bankers and Big Boys by telling you the world ends when the Banks and BigBoys go broke--and you, not understanding any of this, AGREED via the votes of the the congresspersons you elected to , in a true democratic way, represent YOU----so it is all legal--that's the beauty of Democracy.
Public, "Look you thieving MFs, you can't get BLOOD from a stone(us) but we can take you down."
And Government says,' So you think so!!!!
Ever hear of Martial Law you damned SERFS!'
Maybe in 3 years this is perhaps will be where we are.
This isn't some fantasy.
History has a way of EXPLODING, and that is a fact---o my, interesting times, i better buy a lot more popcorn, this movie is getting interesting, but i think it will be a long movie. H.G. Wells would love to be writing now, yes.Max
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posted 1/31/2009
FDIC chief Sheila C. Bair has been pushing for the establishment of a government bank to buy private banks' troubled assets.(Seems Sheila C.Bair, supposed heroine fo the people is the prime idiot pushng for the incredibly dangerous to the PUBLIC, the Bad Bank . i proliferated in the press article after article promoting how great The Bad Bank idea is. Alot of people that don't have a bloody clue wht they are talking about are jumping on this wagon because all they grasp is to jump on wagons is GOOD, understand what this is about--forget it!
i attempted to lash out with hard data to expose what rubbish this idea of the Bad Bank is, it is IDIOCY, but the no recommends means NOT one person concurs with this post even though it contains facts.
So i give it one more try.
O by the way if the i think the IDIOTS are going to pass the BadBank BS, i will definitely buy UYG, as the momos will go crazy on this "it's salvation for the banks, halleluah"(that it is a knife in the back of the Tax Payer, will be IRRELEVANT), UYG will run up. And i will play it.
i give the link of a post with , yikes, some facts!!!!
Though i confess it is relatively recent DATA, don't want that, does one?
The Bogus Swedish Analogy: Message 25368862
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A Multi-Pronged Bank Plan
Administration Finalizing Strategy, Probably Won't Toughen Pay Restrictions
By David Cho
Washington Post Staff Writer
Saturday, January 31, 2009; Page D01
The Obama administration has finished drafting the central elements of its plan to rescue the financial markets and is gathering feedback from regulators and Wall Street executives, sources familiar with the matter said yesterday.
While some details need to be hammered out, the strategy is likely to be laid out publicly in about a week, the sources said.
In finalizing the plan, officials have made a policy decision that could dismay lawmakers. The administration is likely to refrain from imposing tougher restrictions on executive compensation at most firms receiving government aid but instead retain looser requirements initially included in the Treasury's $700 billion rescue program, a source familiar with the deliberations said. Officials are concerned that harsh limits could discourage some firms from asking for aid.(edit: i guess all the damned punishment we get is just hearing Obama say "Shameful"--(gee thanks Obama, that really get matters squared, cripes!--yup, looks like the same old BS to me.Max)
The administration envisions a range of initiatives to jump-start the consumer credit markets, provide aid to struggling homeowners, and motivate banks to increase lending. The plan will also offer banks more capital and buffer them against losses on portfolios of "toxic" assets, backed by failing mortgages and other troubled loans.
Earlier this week, Treasury Secretary Timothy F. Geithner met with Federal Reserve Chairman Ben S. Bernanke, Federal Deposit Insurance Corp. Chairman Sheila C. Bair and Comptroller of the Currency John C. Dugan to discuss the plan, a source said. They met again yesterday. Administration officials have also begun to talk to Wall Street executives to receive input on how the government might relieve banks of troubled assets, the source added.
Several sources said Bair has been aggressively pushing for months for the government to use federal rescue funds to set up a government bank that would buy up the distressed assets.( edit:So it is indeed Sheila Baer, an annointed heroine for "The People" promoting this IDIOCY that will screw the people!.Max Such an institution would lessen the burden on her agency, which insures deposits at failing banks up to $250,000.
During the savings-and-loan crisis of the late 1980s and early 1990s, the federal government took a similar approach and established the Resolution Trust Corp. to wind down failing institutions. The effort cost taxpayers about $125 billion.( edit: this sentence reminds just how INCREDIBLY OUT OF IT, journalist are, we very likely are heading to hell due to this ever spreading DISEASE of the media venues getting dumb dumb dumb dumber by the month , i am waiting for Britney Spears to become the head correspondent on the economy for Fox News.Max)
But Geithner told lawmakers this month that to address the current crisis, a government "bad bank" would be "enormously complicated to get right," and he raised concerns about its cost
The scope of the toxic asset problem has reached $2 trillion, by the conservative estimates of banking analysts. The Treasury Department, however, has only about $320 billion left in the rescue program.
Geithner and other senior members of Obama's economic team are unlikely to pin their hopes on a single solution such as the Resolution Trust Corp. to solve the worsening crisis, sources said. Instead they prefer a more nuanced approach so they can apply specific fixes tailored to the host of problems facing the financial system.
Establishing a bad bank could be done in conjunction with offering banks federal guarantees that would absorb losses yet to be declared from the assets on their balance sheets, the sources said, speaking on condition of anonymity because the plan has not been announced yet. Treasury officials offered such guarantees during the multibillion-dollar rescues of Citigroup in November and Bank of America a few weeks ago.
Insuring losses is a safer bet than establishing a bad bank because the former requires the government to spend money only if assets continue to fall in value. But the proposal may be less effective in restarting the credit markets that buy and sell these assets, one of the sources said.
With either approach, the government may have to offer more capital to financial firms than has been provided so far. But the terms would be different than those required by the Bush administration, the source said. One idea under consideration is to offer money to financial firms in the form of bonds or preferred shares that convert into common stock over time. The aim would be to encourage banks to pay back the government more quickly before the conversion happens.
Treasury officials also have been considering for months whether to require institutions to match any federal aid with private capital. But they are concerned that banks may have a hard time raising money from private markets.
Obama's officials have said they will clearly lay out the conditions for any government investment. While relatively healthy firms are unlikely to face stiff restrictions on executive compensation, companies that need more dramatic government assistance would face more punitive terms, a source said.
Under the original rescue program approved by Congress in October, executives at financial firms for the first time faced federal limits on their multimillion-dollar pay packages. But those restrictions were unlikely to significantly reduce executive pay, analysts and banks said at the time.
The law largely focused on banning "golden parachute" payments to departing executives under certain circumstances. But most banks participating in the Treasury's capital purchase program were permitted to offer senior managers severance packages worth up to three times their average annual earnings. That amounts to a very large sum in most cases, the analysts said.>>
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