D. McHattie

Goldman Sachs' Latest Initiative: Business Plan or Charitable Donation?

There is a 4th reason why Goldman has done this:

They want to avoid public pressure on elected representatives to reduce their parasitic position within the American economy.

There is NO WAY that Goldman adds the billions worth of real, tangible value to the economy that they take out.

Goldman Sachs is a hidden tax on the US economy.

On U.S. Housing and Debased Lending Standards

Good point, ED. None of the quantitative easing, MBS purchasing or homebuyer rebate programs will have had any success by spring - all will be extended.

The Fed, Congress and White House are insane and thus will keep doing what they're doing and getting what they're getting.

I see the end game as a collapse or near collapse of the USD (and other currencies, perhaps) relative to real things (precious metals, oil, agriculture, NOT real estate).

U.S. Economy: The Punch Bowl Stays Till the Party Gets Out of Hand

Fred, the problem is that the punch bowl is only available to those on Wall Street. Those on Main Street are indeed dying of thirst.

This is why we're only seeing inflation in the things that Wall streeters buy but not in consumer prices.

Yes, this will continue, because our Federal Reserve doesn't know how to do anything else.

A Short Lesson in Finance and Banking for Paul La Monica

Well said, Adam. Blankfein's 'apology' is but one among a slew of public relations stunts we'll see in the coming weeks.

Another stunt is their new $500M fund they set up to lend to small businesses, educational institutions and community development groups - it sounds like a lot but it's a drop in the bucket for Goldman.

The $500M was borrowed from the government interest-free and will be loaned out to the above groups at interest - how is that a charitable act?

Is the American public really that stupid. Sure, Paul LaMonica is, but I hope the rest of us are not.

Toll Brothers (TOL) says the FHA has created a potential "train wreck" by insuring home purchases made with down-payments as small as 3.5%. FHA loans accounted for about 8% of the mortgages Toll closed last quarter. While the FHA's insurance reserve ratio has fallen to an all-time low, a senior government official denied that the FHA is the next subprime mortgage crisis.

Consider that first-time buyers also get $8k back.

So any house or condo costing less than $228k can be bought at a net of less than $0.

Given the recency of the subprime disaster you would think they would have learned something. Evidently they have not.

Gold Closing In on 20% Above 200-Day Moving Average

Gold is not at an 'all-time high' when adjusted for inflation. That's not an 'argument', that's a fact.

And you are living proof that it is not the case that 'nobody thinks it can go down'.

Gold could go down from here but a bubble it is not.


On Nov 18 04:04 PM woollyB wrote:

> Gold looks like tech in 1999 and real estate in 2005. Nobody thinks
> it can go down. If you think gold can only go up from here, its all-time
> high, you should explain why "this time is different." And if the
> explanation has to do with inflation, the Fed, etc., well, there
> are always compelling arguments at the top. That's why it's a top.

Bernanke: There Are No Bubbles

If Bernanke is so certain that there are not bubbles now, nor the seeds of bubbles, then he is likely never to see any. Not until after the fact.

The lesson to be gleaned from this is that Bernanke will keep his helicopters flying for some time to come (over Wall St. and not Main St., mind you).

The debate continues over whether Goldman Sachs (GS) benefited from the [[AIG]] bailout: Goldman's claim that it was hedged against losses if AIG collapsed is rebutted by the TARP inspector general's report, which says it was "far from certain" that underlying CDOs could be liquidated, and that it would be difficult for Goldman to collect on credit protection in the event of AIG's failure.

This is the problem when you engage in moral hazard.

The very people who begged for your help, as soon as they are back on their feet, will deny ever having spoken to you.

Like a junkie who swears he will quit after just one more hit.

If they didn't need the government's help, then let them prove it by giving back the $14B they received through the AIG bailout.

The House Financial Services Committee will take up audit-the-Fed measures tomorrow, with a clash in the works - as an aggressive bill backed by Ron Paul and Alan Grayson is countered by Mel Watt's narrowly pitched amendment, which in part would bar examining interest-rate decisions, and looks to Yves Smith like a torpedo.

Mel Watt is the Benedict Arnold of the new millenium.

If this latest crisis has proven anything it is that our Federal Reserve cannot be trusted.

Only the Ron Paul bill has enough teeth to make a meaninful difference.

Three lunchtime reads: 1) The other side of the dollar 2) ‘Cash for Caulkers’: the details 3) Debate transcript: Are Obama's economic policies working? (.pdf)

Cash for Caulkers. Right, because Cash for Clunkers was such a successful program. It only cost $23k per additional sale - what a bargain!

I'm sure this new program will be just as successful. One of the components incentivizes the replacement of old appliances. I call this 'Cash for Cuisinarts'. That'll really stimulate our economy since we do so much manufacturing in this country. Oh yeah, we do practically no manufacturing of kitchen appliances whatsoever.

And it's ripe for fraud with little way of verifying that these 'caulking' projects actually took place or that the money was spent on improving energy efficiency rather than just installing granite countertops.

This program is so stupid that I just know that our elected representatives will love it. As will our moronic electorate.

“We participated in things that were clearly wrong and have reason to regret. We apologize.” - Goldman Sachs (GS) CEO Lloyd Blankfein, saying the bank is sorry for its role in the financial crisis.

Talk is cheap, c*&#-face.

Special Inspector: AIG Counterparty Volunteered to Take Haircut, Geithner Refused

Time to clean house.

Get rid of Summers and Geithner and hire someone who is actually competent, open-minded and hasn't been corrupted by a lifetime on Wall Street.

Tax Loss Carry-Backs: Economic Puzzler of the Day

How much is enough?

Just how much of our tax dollars will be enough to satisfy these parasites?

Home builders are already beneficiaries of massive direct and indirect subsidies - how do we justify this?

Is there really nothing else we could do with out tax dollars? Childhood leukemia research, anyone?

Barring a second 'conventional' stimulus, which probably isn't in the cards for a deficit phobic Washington, Paul Krugman opts for a cheaper alternative: A $300B jobs program.

Washington is 'deficit phobic'? LOL!

U.S. Job Losses Demystified

I won't believe Obama is making forward progress until he gets rid of Larry Summers. The guy is poison.