John Ryskamp

Why Wells Fargo Is a Great Buy

What's basically going to happen is that banks are going to be "crowded out," and the current level of support they have will vanish. All the powerful players have their money, anyway, so the banking system will turn into the postal banking system.

The really huge items on the agenda are faltering muni bonds (which will require an RFC-style rejiggering and this will REALLY destroy confidence), and commercial real estate.

These are the last pillars of the on the ground economy, because suburbia is still employed so there is no political will to increase the income of the 60% lowest income earners, or to increase income to those on unemployment or public assistance.

You really have economic apartheid going on here, with suburbia banking on the underclass rolling over and dying, or physical isolation+policing to keep down civil unrest.

However, an unemployment camp on the Washington Mall would really move things to the right, politically.

Why Wells Fargo Is a Great Buy

Oh and by the way, "Dr." Roberts, you clown, you dog, this is why the supply chain is collapsing:

The Commercial Paper (CP) market is essentially a private debt market used by corporations as a cheaper means of funding typical recurring operations than drawing on a line of bank credit.

Commercial paper, as financial instrument, is by no means a recent innovation and, in fact, you can read about how the CP market was affected by the many historic financial shocks experienced by the U.S. (read Panic on Wall Street: A History of America’s Financial Disasters).

Although the Federal Reserve was able to artificially bring CP rates down significantly since the shocking 615 basis point spread blowout (A2/P2 spread) of late 2008, they have apparently not been successful in preventing an overall contraction in the CP market.

The Federal Reserve calculates and publishes the total amount of CP outstanding every week and as of the latest published period, commercial paper outstanding is contracting at nearly the fastest rate on record, registering a whopping 17.81% decline year-over-year.


On Nov 05 01:44 PM Dr. Roberts wrote:

> Mr. Ryskamp.......do us all a favor here.....post your drivel over
> on Yahoo with the rest of the know nothings.

Why Wells Fargo Is a Great Buy

No thanks. I'd rather continue commenting here, making fun of clowns like you with my superior knowledge. I said Wells was becoming a social welfare agency. If you read the story below, you will see why I said it. This policy will spread to every bank.

I said that $2.4 trillion bailout was coming in February 2010 because the above policy will also be applied to commercial real estate (with some other goodies thrown in).

The American is basically dead--we're running on embalming fluid. There is still some music being played and so some people are playing musical chairs.

But there are no chairs.

Did you see the wonderful "productivity" figure? Actually, capacity in the U.S. is declining, it is not "sitting idle." The supply chain is collapsing.

You will see it in agriculture: this sector is about to implode.

And now for our little slap in the face of "Dr." Roberts:


WASHINGTON – Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.

The government-controlled company, through its new "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.

The program will "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.

But the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed-in-lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.

While neither option is particularly attractive for the homeowner, a deed-in-lieu does less harm to the borrower's credit record.

The rental program is designed to help homeowners who don't qualify for a loan modification under the Obama administration's plan, but still want to remain in their homes. Fannie Mae is not planning to market the homes for sale during the one-year rental period.

Fannie Mae has hired an outside company, which officials declined to identify, to manage the properties.

To qualify, homeowners have to live in the home as their primary residence and prove that they can afford the market rent, which would be determined by the management company. The rent can't be more than 31 percent of their pretax income.

Fannie Mae's sibling company, Freddie Mac, launched a similar effort in March. That policy, however, requires the foreclosure to be complete and only allows month-to-month leases. A Freddie Mac spokesman declined to say how many borrowers have participated.


On Nov 05 01:44 PM Dr. Roberts wrote:

> Mr. Ryskamp.......do us all a favor here.....post your drivel over
> on Yahoo with the rest of the know nothings.

Why Wells Fargo Is a Great Buy

Knowing someone in Wells real estate, as I do, I can tell you that Wells is a Ponzi scheme, now basically run by the Federal Government. They are turning it into a social welfare agency (as with all the banks).

There will be about a $2.4 trillion bailout bill in February 2010. Economic activity is declining drastically.