Bruce Krasting

Report from Europe for Friday, Sept. 4

There are a number of videos out there of angry people. In a way it is humor but it is not. There is nothing funny about it. There are many people out there that are as mad as this guy. They may not be doing Utube videos, but they are just as hot under the collar.

My guess is that something else is going to happen. Not sure what. My guess is that shortages of certain things is going to take us over the top. No sugar, no gas, no health care, no police, rising crime another recession. Something is going to give. We just have too many wobbly legs for us to miss the next bullet.

When 'that' happens we will have real anger and it just might spill over to the street.

The net result will be a wave of debt repudiation. It will become an avalanche of "no pays". Hang on, we are just starting the anger phase of this in America.

What's To Be Done About Citigroup?

Nice article.

The Feds did a very nice job of destroying the bond holders in the GM/Chrysler deals. The precedent has been set.

Citi was/is a regulated entity. GM was not. That is the difference. The thinking must be, "We were supposed to regulate the banks so we have a moral obligation to protect the bond holders."

If you cross over on this line of thinking and actually lean on the bond holders it becomes a slippery slope.

If you tank Citi's bond holders what the heck do you do with the
Agencies bond holders? That is a problem that can't be fixed.

Is Wells Fargo Looking to Purchase AIG-UGI?

Well, I still think the Wells/UGI deal would be a good thing......

bk

To What Degree Were AIG's Operating Insurance Subsidiaries Sound? (Part 1)

Can't wait for part II.

AIG Mystery Trades: Who Really Knew About Them?

I did not write about this first. This story was on line a month ago. It was one of the rumor stories feeding the run up in the bank stocks. That happens all the time.

However, when Barrons writes about it you can be pretty sure it happened.

I speculate because I do not have the dope on this. If it happened like Barons suggests it did, it would be the largest connected transactions in history. There is some evidence that it may have had a ripple effect on the stock market and the broad economy.

I would like to get the details. Who knows? They might have to do it again some time. You are not curious about this?

On the Kelly - Liddy thing. My proof-reader has the measles, my editor is on vacation. I erred. Based on the number of off the grid messages I got from the insulted 'Kelly' folks it would appear closer to a sin than an error. I apologize.

The suggestion that I should eat a rotten sandwich was most helpful. Made my day.
bk








On Apr 21 01:56 PM I weep for this country. wrote:

> nukldragr:
> "One wrong name does not a bad article make" - I am glad you think
> so, so the author, who doesn't even know who the CEO of AIG (while
> writing about AIG) and is speculating (admittedly) about something
> he has no facts to support has written a good article here in your
> opinion? Great. You are very trusting, not to bright, but very
> trusting!

AIG Mystery Trades: Who Really Knew About Them?

I never said Liddy did anything wrong. I did not suggest that Kelly did either. But I did make a mistake and confuse the names.


On Apr 21 01:52 PM I weep for this country. wrote:

> holmesnmanny:
> What do you contend Liddy has done wrong?

AIG Mystery Trades: Who Really Knew About Them?

ok,ok,ok,ok. I screwed up. Liddy is right. I am wrong. Sorry. I will eat cyanide now.

Mortgage Industry Organization's Members Responsible for Good Portion of Default Losses

gtarras
I do think MIS is part of the problem that we face today. And I am going to keep writing about it until these guys are out of business. 2008 was a disaster year for MI. You can have all the MI you want. I do not care, But I am not going to sit back and watch this industry arbitrage the tax payer any longer. No way AIG should be doing this. And there is no way that FNM and FRE should be involved either. Like you say let the 'private' market provide these loans. No FRE/FNM. We are paying a very high price for that.

No I am not short these stocks. You think I am nuts? What i am attacking is LTV loans greater than 80% that are owned by the government. That is not right.

I do think that highly leveraged loans are bad for neighborhoods. Ask just about anywhere in this country today and you will get a confirmation of that.
bk