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FDIC Watch: Agency's Insurance Commitments 34% Higher than Reported

The San Francisco Chronicle had an article on Sunday about the lack of prosecutions and an assertion that this credit crisis is not real. The writer said that it's a deep recession from too much debt and too much debt-financed consumption but that the idea that it's because consumers and businesses can't borrow more is a lie devised by the banks to justify handing them a lot of money that they aren't going to lend to consumers and businesses anyway.

Check it out: www.sfgate.com/cgi-bin...

Fannie and Freddie: We All Support You!

You need to be punished because you bought stock in a company that made risky bets and lost. That's how the stock market works. There isn't supposed to be a way that shareholders in stocks can get their losses paid back from the US Treasury by taxpayers who are taxed by force.

The US government from the time of the Clinton administration has confirmed that it doesn't have enough money to feed poor children, house the homeless, provide emergency medical services to the indigent. The reasons for this were ideological. Capitalism is good for people. If you feed poor children, they won't have an incentive to work hard and make their own money. We are an ownership society and if you give the poor a hand out, you create a "culture of poverty."

So, you can imagine that these same people who are handing now enough money to JP Morgan Chase, to investment banks, stock brokerages, commercial banks, Fannie and Freddie and so many other investors that the same amount of money would be more than enough to take all of the poor people in the United States and not just give them something to eat, but enough to buy them all homes and cars and LCD TVs and put them in the middle class. We're talking about trillions before this is over. So the idea of taking that money and giving it to you because you are a "little guy" who is losing money on a stock you bought is dangerous. It's the sort of thing that sparks revolutions. And I would remind you, Sir, that if revolutions were foreseeable, those in power would generally have not made the last several major decision that they made leading up to the revolutions. The public is probably stupider now than at any time since the middle ages, so this sort of theft is viewed as safe because the incredible moral turpitude, the theft, the outrage -- the public can't experience that if they are too stupid to understand that it is occurring.

In short, if single unwed mothers living in poverty can't have a hand out, then you two shouldn't ought to get one. Under social and moral principles embedded in western and eastern civilizations for thousands of years, it is unpalatable to take from the poor and give to the rich. And even if you are a "little guy" I'm going to imagine you are typing out your post from a soup kitchen or shelter, right?

Fannie and Freddie Shareholders Run for the Exit

"Forget about what you hear fundamentally on these companies" -- this is a typical for tech analysts. You can never forget about fundamentals. Both the market and the fundamentals drive the price, not just the charts, there are real people trading this company.

Although the sentiment is bad, whatever tommorow's news could negate your chart and triple it -- why, because of fundamentals. :)