Reinko

The Monolines Need $200 Billion? No Way

This Tom Brown character gets more funny at the minute, here is an old file of him dating back to September 2007, link:

seekingalpha.com/artic...

Ah ah, CountryWide while in those long lost months Alan Greenspan was still stating that the US housing market was only local and not country wide...

Here is a quote from the above linked article, quote:

I think Countrywide is carrying a much larger burden than it should because we are number one. I came from Ameriquest to Countrywide and I can tell you that it is night and day when it comes to ethics. We get weekly "ethics scenarios" that every employee must complete. We have posters all over the walls preaching ethics. We couldn't get a subprime loan that should be prime through underwriting if we tried. Every subprime loan is run through Fannie Mae's Desktop Underwriter system to determine whether or not it would qualify for an "EA" prime loan. And if it does, we are mandated to sell the 30-year fixed EA loan, even if the subprime 2/28 or interest-only loan provides a lower monthly payment.

I wish more journalists would do their homework instead of taking jabs and spinning things to sell more papers. Unquote.

Comment: In case you have invested in Tom Brown's hedge fund stuff it is advised to scale down a bit... The guy simply does not understand the macro economic details the USA is in.

The Monolines Need $200 Billion? No Way

Very nice to read; is just 15 billion needed or a staggering 200 billion US$? Well facts are facts and let me quote from the above article:

The monolines currently guarantee securities with a face value of $2.4 trillion. Of that, $1.5 trillion are municipals.

Comment: Give me some proof that in fact 1500 billion of these are municipals because now I can only believe you on so called 'face value'. So please a bit more rigor facts and not that weird emotional ranting that defines lots of Americans.

Well Tom Brown, I have a habbit of backing up what I say.

For example I say that total debt that the US economy has on herself is above 50 trillion (or above 50,000 billion and if you write it out it is just 50,000,000,000,000 US$).

Here is the backing up, link:

www.federalreserve.gov...

For example the above link says that the combined US financial sector picked up from Q2 to Q3 2007 the next amount of debt:

15435.3 - 14855.0 = 580.3 billion more debt in just one quarter.

So we can talk long or short if they need 15 billion now and may be 200 billion in the long run but my basic argument is:

Back your stuff up!