madasiwannabe's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/241286/comments http://seekingalpha.com/article/102251-did-the-sec-s-no-short-list-impact-stock-prices?source=feed#comment-295819 295819
Who is Cox kidding??? ]]> Sat, 01 Nov 2008 14:24:04 -0400
Who is Cox kidding??? ]]> http://seekingalpha.com/article/103261-is-the-government-s-fannie-freddie-conservatorship-failing?source=feed#comment-295808 295808
FIrst they say they have enough capital to continue to operate for 6 quarters, then they take them over and wipe out 36 Billion dollars worth of shareholder value. Then they bash them for becoming too big, and turn around and order them to become bigger... They say they are in financial trouble and tell the world their job is to protect their assets and return them to profitibility as possible, then they say they are going to use them to buy up troubled assets from the finanacials, which would destroy what's left of shareholder value. If they are in trouble why hasn't the treasury used any of the "Backstop" money?

They are suppose to release Q3's on the 17th, but once again, Lockhart commented several weeks ago they didn't have to report while in conservatorship. I think investors are scared to put any money into either Fannie or Freddie because of the obvious "new management" issues. Until these guys go away, I wouldn't go anywhere near either Fannie or Freddie. ]]> Sat, 01 Nov 2008 13:59:23 -0400
FIrst they say they have enough capital to continue to operate for 6 quarters, then they take them over and wipe out 36 Billion dollars worth of shareholder value. Then they bash them for becoming too big, and turn around and order them to become bigger... They say they are in financial trouble and tell the world their job is to protect their assets and return them to profitibility as possible, then they say they are going to use them to buy up troubled assets from the finanacials, which would destroy what's left of shareholder value. If they are in trouble why hasn't the treasury used any of the "Backstop" money?

They are suppose to release Q3's on the 17th, but once again, Lockhart commented several weeks ago they didn't have to report while in conservatorship. I think investors are scared to put any money into either Fannie or Freddie because of the obvious "new management" issues. Until these guys go away, I wouldn't go anywhere near either Fannie or Freddie. ]]> http://seekingalpha.com/article/102327-reits-insurers-supplant-banks-as-lenders?source=feed#comment-293031 293031
]]> Tue, 28 Oct 2008 21:33:55 -0400
]]> http://seekingalpha.com/article/102183-gm-aig-fannie-and-freddie-bailouts-in-common?source=feed#comment-291920 291920 There was a piece of pork in last years federal budget that allotted 50 Billion to the automotive manufacturers so they could do R&D on alternate fueled vehicles. Funny part is they have dozens of models already being sold around the world that are not currently available in the US.

The money was not suppose to be given till next year but the lobbiests convinced the government to give them the money early. By the way, it's not a loan... it's a grant funded by our tax dollars. ]]> Mon, 27 Oct 2008 18:54:47 -0400 There was a piece of pork in last years federal budget that allotted 50 Billion to the automotive manufacturers so they could do R&D on alternate fueled vehicles. Funny part is they have dozens of models already being sold around the world that are not currently available in the US.

The money was not suppose to be given till next year but the lobbiests convinced the government to give them the money early. By the way, it's not a loan... it's a grant funded by our tax dollars. ]]> http://seekingalpha.com/article/101680-pathetic-display-at-yesterday-s-financial-hearings?source=feed#comment-290197 290197
Congress doesn't want the truth to come out because of the number of people with their hand in the cookie jar. In 1999 then CEO of GS, Paulson convinced congress to pass a deregulation bill that caused the CDS market to explode. Paulson in 2005 convinced Cox to dismantle the CDS regulators Donaldson put in place. When the MBS/CDS market started to unwind and investment banks like GS started to implode, Paulson threw the GSE's under the bus. GS made a ton when LEH imploded, but stood to lose 20 Billion if AIG suffered the same fate. GS helped negotiate the loan for AIG to save their own skin.

Frank blocked legislation to contain the GSE's while his boyfriend worked as an exec at FNM. Go do a search on descrimination lawsuits against the GSE's in 2003/2004 and the congressional hearings. Then look at adjustments to GSE capital requirements, market share growth and sub prime exposure levels YOY... How could they grow exponentially at the same time the accounting scandals hit? Ask Chris Dodd... At the same time Countrywide started making sweetheart deals to members of several committees. At the same time, Countrywide became the biggest sub prime broker and Fannie Mae's biggest customer.

Look at the GSE's books very close and compare those statistics to the rest of the market. Their losses were actually very conservative compaired to the market, default rates were very 1/10th of WM and WB, their forclosed property holdings are 1/20th of the national total, but their holdings are half of the market. The week before they took over the spreads were actually down from previous weeks and stock prices were moving up. If they were in terrible shape and ready to collapse, why hasn't Paulson used one nickle of the 200 Billion congress authorized yet?

A lot of people have a lot to answer for and we the American people deserve to hear the truth, not after the election.... NOW!!!!]]> Sat, 25 Oct 2008 09:34:20 -0400
Congress doesn't want the truth to come out because of the number of people with their hand in the cookie jar. In 1999 then CEO of GS, Paulson convinced congress to pass a deregulation bill that caused the CDS market to explode. Paulson in 2005 convinced Cox to dismantle the CDS regulators Donaldson put in place. When the MBS/CDS market started to unwind and investment banks like GS started to implode, Paulson threw the GSE's under the bus. GS made a ton when LEH imploded, but stood to lose 20 Billion if AIG suffered the same fate. GS helped negotiate the loan for AIG to save their own skin.

Frank blocked legislation to contain the GSE's while his boyfriend worked as an exec at FNM. Go do a search on descrimination lawsuits against the GSE's in 2003/2004 and the congressional hearings. Then look at adjustments to GSE capital requirements, market share growth and sub prime exposure levels YOY... How could they grow exponentially at the same time the accounting scandals hit? Ask Chris Dodd... At the same time Countrywide started making sweetheart deals to members of several committees. At the same time, Countrywide became the biggest sub prime broker and Fannie Mae's biggest customer.

Look at the GSE's books very close and compare those statistics to the rest of the market. Their losses were actually very conservative compaired to the market, default rates were very 1/10th of WM and WB, their forclosed property holdings are 1/20th of the national total, but their holdings are half of the market. The week before they took over the spreads were actually down from previous weeks and stock prices were moving up. If they were in terrible shape and ready to collapse, why hasn't Paulson used one nickle of the 200 Billion congress authorized yet?

A lot of people have a lot to answer for and we the American people deserve to hear the truth, not after the election.... NOW!!!!]]> http://seekingalpha.com/article/101370-proposed-homeowner-bailout-plans-are-loaded-with-problems?source=feed#comment-289253 289253
Another point, if the GSE's needed the money so bad, why haven't they used it? Probably because they didn't need it in the first place. Paulson doesn't want to help the homeowners, he want to help his friends on Wall St. He wants the GSE's to buy loans from the banks so that no one has to pay out for the swaps. Biggest winner: Goldman Sachs.

I won't even get into how AIG's bailout saved GS 20 Billion in Swap payouts and when LEH was allowed to fail, GS also made Billions. Funny how GS is always on the right side of Paulson's decisions.

Please go find and report the whole story on this. The public deserves to hear the truth. ]]> Thu, 23 Oct 2008 21:33:27 -0400
Another point, if the GSE's needed the money so bad, why haven't they used it? Probably because they didn't need it in the first place. Paulson doesn't want to help the homeowners, he want to help his friends on Wall St. He wants the GSE's to buy loans from the banks so that no one has to pay out for the swaps. Biggest winner: Goldman Sachs.

I won't even get into how AIG's bailout saved GS 20 Billion in Swap payouts and when LEH was allowed to fail, GS also made Billions. Funny how GS is always on the right side of Paulson's decisions.

Please go find and report the whole story on this. The public deserves to hear the truth. ]]> http://seekingalpha.com/article/100655-vultures-covet-infrastructure-in-financial-wreckage?source=feed#comment-287476 287476
If Fannie and Freddie were actually financially upside down, why hasn't Paulson used one nickle of the money authorized by congress in the Housing bill? Why would he order them to buy more mortgages? No one is asking any of these questions.

The bigger question is how can he get away with taking over solvent companies just to financially implode them? Conservitorship laws say they must preserve assets and return the companies to profitability. What has been done is called eminent domain, without any compensation that is. This is a violation of shareholders 5th amendment rights.

I hope congress starts figuring out they have been duped. They need to dig into what's happened and hold those responsible for this fraud accountable. If this is allowed to continue, we the taxpayers will end up doubling our national debt before it's over. ]]> Tue, 21 Oct 2008 20:38:40 -0400
If Fannie and Freddie were actually financially upside down, why hasn't Paulson used one nickle of the money authorized by congress in the Housing bill? Why would he order them to buy more mortgages? No one is asking any of these questions.

The bigger question is how can he get away with taking over solvent companies just to financially implode them? Conservitorship laws say they must preserve assets and return the companies to profitability. What has been done is called eminent domain, without any compensation that is. This is a violation of shareholders 5th amendment rights.

I hope congress starts figuring out they have been duped. They need to dig into what's happened and hold those responsible for this fraud accountable. If this is allowed to continue, we the taxpayers will end up doubling our national debt before it's over. ]]> http://seekingalpha.com/article/100688-are-big-banks-too-big-to-fail?source=feed#comment-286746 286746
We need more of these guys around to make sure things go hopelessly wrong next time. ]]> Mon, 20 Oct 2008 20:01:08 -0400
We need more of these guys around to make sure things go hopelessly wrong next time. ]]> http://seekingalpha.com/article/99622-can-the-banking-system-handle-huge-new-write-downs?source=feed#comment-281251 281251
What gets me is if we let them default, I lose anyways. The banks will auction off the properties at a huge discount and once again their sales become my comps. Where's the bill that offset my losses when the irresponsible borrowers and lenders get done destroying my future?]]> Mon, 13 Oct 2008 10:39:03 -0400
What gets me is if we let them default, I lose anyways. The banks will auction off the properties at a huge discount and once again their sales become my comps. Where's the bill that offset my losses when the irresponsible borrowers and lenders get done destroying my future?]]> http://seekingalpha.com/article/99621-it-s-all-about-guaranteeing-counter-party-risk-housing-tracker?source=feed#comment-281142 281142
Buying troubled assets is another treatment for a symptom. The banks got themselves in trouble, and should be allowed to get themselves out. Buying equity stakes in the companies is a much better solution for the markets as well as the taxpayers. It doens't relieve the banks from their responsibility, but it does give them the capital they need to work through the issues, and in the end, the taxpayers will be rewarded.

Since the government takeover had nothing to do with insolvency, and had everything to do with restoring market confidence at the expense of the GSE's, the terms of the intervention are completely out of line with today's market reality. Only question now is will the treasury level the playing field by cancelling the warrants and instead take equity stakes in the GSE's equivelent to the capital they have injected? ]]> Mon, 13 Oct 2008 08:51:59 -0400
Buying troubled assets is another treatment for a symptom. The banks got themselves in trouble, and should be allowed to get themselves out. Buying equity stakes in the companies is a much better solution for the markets as well as the taxpayers. It doens't relieve the banks from their responsibility, but it does give them the capital they need to work through the issues, and in the end, the taxpayers will be rewarded.

Since the government takeover had nothing to do with insolvency, and had everything to do with restoring market confidence at the expense of the GSE's, the terms of the intervention are completely out of line with today's market reality. Only question now is will the treasury level the playing field by cancelling the warrants and instead take equity stakes in the GSE's equivelent to the capital they have injected? ]]> http://seekingalpha.com/article/99575-paulson-in-a-state-of-panic?source=feed#comment-280589 280589
We all know the takeover had nothing to do with the solvency of the GSE's. If it did, why haven't they used any of the 200 Billion to stabilize the GSE's. Paulson knew all along that at some point he would use the GSE's to buy up toxic assets to clean the books of his buddies. I find it interesting that every time Goldman Sachs or Morgan Stanley stocks take a dive, Paulson comes up with another plan. Time to get the FBI and supreme court involved to stop this madness. ]]> Sun, 12 Oct 2008 12:52:48 -0400
We all know the takeover had nothing to do with the solvency of the GSE's. If it did, why haven't they used any of the 200 Billion to stabilize the GSE's. Paulson knew all along that at some point he would use the GSE's to buy up toxic assets to clean the books of his buddies. I find it interesting that every time Goldman Sachs or Morgan Stanley stocks take a dive, Paulson comes up with another plan. Time to get the FBI and supreme court involved to stop this madness. ]]> http://seekingalpha.com/article/98406-so-the-perpetrators-are-now-our-saviors?source=feed#comment-273117 273117
Need to look into Countrywide's "Friends of Anthony" program. Think you will find that Fannie Mae's biggest sub prime / alt-A customer was Countrywide. Most of these loans were rejected by the GSE's till 2004. A lot of banks took advantage of the reduced requirements too, but regulators have a responsibility to make sure they can't.

The news media is wrong. Today's drop wasn't lack of confidence. If it was, it would have been down all day in spite of the news. Today was a classic pump and dump. The hedgies took advantage of the big gains and positive news to catch everyone leaning and dump their stocks for a profit. It happened across the board so it was a coordinated attack. A lot of people lost a lot of money today when it should have been a big up day for all.

Hopefully the SEC is looking into this. ]]> Fri, 03 Oct 2008 19:16:41 -0400
Need to look into Countrywide's "Friends of Anthony" program. Think you will find that Fannie Mae's biggest sub prime / alt-A customer was Countrywide. Most of these loans were rejected by the GSE's till 2004. A lot of banks took advantage of the reduced requirements too, but regulators have a responsibility to make sure they can't.

The news media is wrong. Today's drop wasn't lack of confidence. If it was, it would have been down all day in spite of the news. Today was a classic pump and dump. The hedgies took advantage of the big gains and positive news to catch everyone leaning and dump their stocks for a profit. It happened across the board so it was a coordinated attack. A lot of people lost a lot of money today when it should have been a big up day for all.

Hopefully the SEC is looking into this. ]]> http://seekingalpha.com/article/98224-what-happened-to-the-fed-s-1-816-trillion-lifeline?source=feed#comment-272094 272094
It wasn't a secret that both of these guys were bloated with loan portfolio's in the two hardest hit areas, Florida and California. Once WM fell, it was only a matter of time before WB followed. ]]> Thu, 02 Oct 2008 17:18:59 -0400
It wasn't a secret that both of these guys were bloated with loan portfolio's in the two hardest hit areas, Florida and California. Once WM fell, it was only a matter of time before WB followed. ]]> http://seekingalpha.com/article/98270-how-much-are-fannie-and-freddie-to-blame?source=feed#comment-272077 272077
To get the dogs off, Congress had OFEHO mandated that both Fannie and Freddie lower the bar. They did and now look where they are at.

In 2004 the CEO of Freddie ignored the Chief Risk Officer when he came forward with concerns. On an interview his explination was "I understood the risk, but I work for many masters". Yes the GSE's took on too much risk, but not for greed or to keep up with the Jones's.

Look up speeches by Bush and Greenspan in 2004. They were preaching owning a piece of the American dream was as a right and urged banks to come up with ways to make loans available to all Americans. They did.

Time for the media to talk with OFEHO and Congress to get the real story.
]]> Thu, 02 Oct 2008 17:06:05 -0400
To get the dogs off, Congress had OFEHO mandated that both Fannie and Freddie lower the bar. They did and now look where they are at.

In 2004 the CEO of Freddie ignored the Chief Risk Officer when he came forward with concerns. On an interview his explination was "I understood the risk, but I work for many masters". Yes the GSE's took on too much risk, but not for greed or to keep up with the Jones's.

Look up speeches by Bush and Greenspan in 2004. They were preaching owning a piece of the American dream was as a right and urged banks to come up with ways to make loans available to all Americans. They did.

Time for the media to talk with OFEHO and Congress to get the real story.
]]> http://seekingalpha.com/article/98105-wachovia-golden-west-transaction-a-disaster-without-peer?source=feed#comment-271034 271034 Wed, 01 Oct 2008 21:02:09 -0400 http://seekingalpha.com/article/97717-did-the-fdic-sabotage-wamu-s-management-and-erode-investor-confidence?source=feed#comment-267868 267868
JPM knew what WM was worth and took advantage of the situation to take anything of value for free. They knew there was a plan in the works that would give them the opportunity to offload the mortgages they told the FDIC they would have to write down. As soon as congress signs, JPM can move a big chunk of the 30 Billion from the loss column to the profit.

Shareholders in the mean time get wiped out and debt holders get nothing. The 30 Billion would have allowed most that lost to walk away with their dignity. This is criminal and even the most casual observer knows it. ]]> Sun, 28 Sep 2008 18:46:35 -0400
JPM knew what WM was worth and took advantage of the situation to take anything of value for free. They knew there was a plan in the works that would give them the opportunity to offload the mortgages they told the FDIC they would have to write down. As soon as congress signs, JPM can move a big chunk of the 30 Billion from the loss column to the profit.

Shareholders in the mean time get wiped out and debt holders get nothing. The 30 Billion would have allowed most that lost to walk away with their dignity. This is criminal and even the most casual observer knows it. ]]> http://seekingalpha.com/article/97602-time-not-for-a-bailout-but-for-nationalization?source=feed#comment-267133 267133
Nationalization worked great for the GSE's. A lot of shareholders lost their money, but not one nickle will go towards fixing Fannie or Freddies financial woes. It all just changed hands from longs to shorts. Net result is the taxpayers will now have to pay back the money the shorts pocketed and then figure out how to pay for the losses.

WM worked out great too. JPM got 310 Billion in assets for free. FDIC got 2 Billion for their trouble and the shareholders transferred their money to the shorts. Net result is 8 billion worth of debts will not be paid back, and JPM will sell the 30 Billion they just wrote down for 50 cents on the dollar and make 15 Billion for their trouble.

Doing nothing, means all of the US assets will change hands and we the American people will end up with nothing. Sounds like everything from here is a little too little and a little too late. Thanks Hank and Ben for your bringing your experience to DC. Without you we would have never been able to find our way over the cliff so quickly. ]]> Sat, 27 Sep 2008 22:06:54 -0400
Nationalization worked great for the GSE's. A lot of shareholders lost their money, but not one nickle will go towards fixing Fannie or Freddies financial woes. It all just changed hands from longs to shorts. Net result is the taxpayers will now have to pay back the money the shorts pocketed and then figure out how to pay for the losses.

WM worked out great too. JPM got 310 Billion in assets for free. FDIC got 2 Billion for their trouble and the shareholders transferred their money to the shorts. Net result is 8 billion worth of debts will not be paid back, and JPM will sell the 30 Billion they just wrote down for 50 cents on the dollar and make 15 Billion for their trouble.

Doing nothing, means all of the US assets will change hands and we the American people will end up with nothing. Sounds like everything from here is a little too little and a little too late. Thanks Hank and Ben for your bringing your experience to DC. Without you we would have never been able to find our way over the cliff so quickly. ]]> http://seekingalpha.com/article/97428-negative-return-on-investment-on-paulsons-moral-hazard?source=feed#comment-267091 267091
The takeover also took, by my estimates, 36 Billion in shareholder/investor value out of the GSE's in a single day. We now know where 10 Billion of it went. Now the taxpayers will have to put it back before we can even start paying the rest of the tab. If we can use the S&L bailout as a benchmark, this will cost the taxpayers many Trillions before it's over. ]]> Sat, 27 Sep 2008 19:14:30 -0400
The takeover also took, by my estimates, 36 Billion in shareholder/investor value out of the GSE's in a single day. We now know where 10 Billion of it went. Now the taxpayers will have to put it back before we can even start paying the rest of the tab. If we can use the S&L bailout as a benchmark, this will cost the taxpayers many Trillions before it's over. ]]> http://seekingalpha.com/article/97476-fannie-and-freddie-finally-a-light-at-the-end-of-the-tunnel?source=feed#comment-267084 267084
The takeover of the GSE's will go down as the biggest mistake in the Treasuries history. Not only is it costing the taxpayers, but it cost the shareholders 36 Billion in value, wiped out corporate and mutual fund investors, and destroyed the worlds confidence in the US banking system.

The government stake in the GSE's is pure profit for the taxpayers at the shareholders expense. This is what we call "socializing profits and privitizing losses". Kind of like what Joseph Stalin did, but this time there was no blood shed, only dollars. The whole mess is shameful]]> Sat, 27 Sep 2008 18:52:46 -0400
The takeover of the GSE's will go down as the biggest mistake in the Treasuries history. Not only is it costing the taxpayers, but it cost the shareholders 36 Billion in value, wiped out corporate and mutual fund investors, and destroyed the worlds confidence in the US banking system.

The government stake in the GSE's is pure profit for the taxpayers at the shareholders expense. This is what we call "socializing profits and privitizing losses". Kind of like what Joseph Stalin did, but this time there was no blood shed, only dollars. The whole mess is shameful]]> http://seekingalpha.com/article/97446-another-day-without-precedent?source=feed#comment-265639 265639
Next we will see a collapse of the dollar and 20% interest rates. A bailout will downgrade the US to junk status (if not on paper, in the worlds mind). No action will collapse banks and run the US debt through the roof, which will downgrade the US to junk status. Check Mate Hank and Ben. ]]> Fri, 26 Sep 2008 07:03:25 -0400
Next we will see a collapse of the dollar and 20% interest rates. A bailout will downgrade the US to junk status (if not on paper, in the worlds mind). No action will collapse banks and run the US debt through the roof, which will downgrade the US to junk status. Check Mate Hank and Ben. ]]> http://seekingalpha.com/article/97495-on-wamu-s-birthday-jpmorgan-takes-the-cake?source=feed#comment-265618 265618
Wonder when Hank Paulson is going to start getting paid for working for these guys? He's proven to be a real money maker. ]]> Fri, 26 Sep 2008 06:09:24 -0400
Wonder when Hank Paulson is going to start getting paid for working for these guys? He's proven to be a real money maker. ]]> http://seekingalpha.com/article/97332-fbi-investigates-victims-of-the-financial-fallout?source=feed#comment-264518 264518
The common thread is Greenspan. He created the mess through policy and then gets a job as a consultant with both Pershing and PIMCO. PIMCO sponsors CNBC programming and for their investment, they get all the airtime they want. Sounds like the perfect place for the FBI to start looking.

PIMCO is drooling right now because they know the bailout will adversly effect the government's ability to attract additional investors (someone has to buy the bonds to pay for the plan). That means even more money. Seen this coming from miles away. ]]> Thu, 25 Sep 2008 07:49:53 -0400
The common thread is Greenspan. He created the mess through policy and then gets a job as a consultant with both Pershing and PIMCO. PIMCO sponsors CNBC programming and for their investment, they get all the airtime they want. Sounds like the perfect place for the FBI to start looking.

PIMCO is drooling right now because they know the bailout will adversly effect the government's ability to attract additional investors (someone has to buy the bonds to pay for the plan). That means even more money. Seen this coming from miles away. ]]> http://seekingalpha.com/article/97332-fbi-investigates-victims-of-the-financial-fallout?source=feed#comment-264512 264512
I'm sure the originators wrote BS contracts so they could get their commissions, but the banks are not totally victims either. They never took the time to look at the loans or provide any oversight to the LLC trusts that sprang up to get into the cash stream. Many of these guys are now gone and we the taxpayers are getting stiffed with the bill.
]]> Thu, 25 Sep 2008 07:36:18 -0400
I'm sure the originators wrote BS contracts so they could get their commissions, but the banks are not totally victims either. They never took the time to look at the loans or provide any oversight to the LLC trusts that sprang up to get into the cash stream. Many of these guys are now gone and we the taxpayers are getting stiffed with the bill.
]]> http://seekingalpha.com/article/97302-economic-data-something-positive-for-a-change?source=feed#comment-264500 264500
Even if this is the bottom, it's going to take a while to get nervous investors to put their money back in the pot, and it's going to take even longer for that investment to have any effect on Main St. We are looking at another year minimum before Joe six pack can start smiling again. ]]> Thu, 25 Sep 2008 07:07:44 -0400
Even if this is the bottom, it's going to take a while to get nervous investors to put their money back in the pot, and it's going to take even longer for that investment to have any effect on Main St. We are looking at another year minimum before Joe six pack can start smiling again. ]]> http://seekingalpha.com/article/97290-again-it-wasn-t-fannie-and-freddie?source=feed#comment-264485 264485
Don't forget your history. In the 1980's, the S&L's were in trouble because of mortgage exposure. Sounds very familiar. Remember Silverado's Neal Bush and McCain's involvement in the Keating 5? Also don't forget the original sin that plotted our course to today's crisis, the bailout initiated by President Bush Sr.

With encouragement from Fed Sec Greenspan and the Bush administration, banks went on a lending spree to get the economy rolling after 9/11. The money was so good, no one wanted to stop it from going out of control. If something goes wrong, Uncle Sam will bail us out just like he did with the S&L's.

Why doesn't anyone talk about why Greenspan resigned 2 years into a 5 year appointment, started his own consulting company and has contracts with two of the most vocal companies; PIMCO and Pershing Square. The same two companies that made a total of 10 Billion the day the government took control of the GSE's. ]]> Thu, 25 Sep 2008 06:38:04 -0400
Don't forget your history. In the 1980's, the S&L's were in trouble because of mortgage exposure. Sounds very familiar. Remember Silverado's Neal Bush and McCain's involvement in the Keating 5? Also don't forget the original sin that plotted our course to today's crisis, the bailout initiated by President Bush Sr.

With encouragement from Fed Sec Greenspan and the Bush administration, banks went on a lending spree to get the economy rolling after 9/11. The money was so good, no one wanted to stop it from going out of control. If something goes wrong, Uncle Sam will bail us out just like he did with the S&L's.

Why doesn't anyone talk about why Greenspan resigned 2 years into a 5 year appointment, started his own consulting company and has contracts with two of the most vocal companies; PIMCO and Pershing Square. The same two companies that made a total of 10 Billion the day the government took control of the GSE's. ]]> http://seekingalpha.com/article/97206-too-big-to-fail-or-too-metastatized?source=feed#comment-264197 264197
GM came up with creative incentive and financing programs over the years to get people behind the wheel. These same programs destroyed resale value, further chasing away the market. Now it has come to the point where they can't sell a vehicle without slashing the price. Not a liquidity issues; it's a stupidity issue.

The market is not crule, it's darwinian. If you fail to evolve or forget why your in business, prepare to become extinct. ]]> Wed, 24 Sep 2008 20:28:48 -0400
GM came up with creative incentive and financing programs over the years to get people behind the wheel. These same programs destroyed resale value, further chasing away the market. Now it has come to the point where they can't sell a vehicle without slashing the price. Not a liquidity issues; it's a stupidity issue.

The market is not crule, it's darwinian. If you fail to evolve or forget why your in business, prepare to become extinct. ]]> http://seekingalpha.com/article/96988-how-did-we-get-to-this-point?source=feed#comment-263022 263022
Something is not right with this whole mess. A government takeover when the stock was going up and the interest spreads coming down? The takeover infused 1 Billion in each company but shareholder value dropped by 36 Billion? Seems way too convenient to point a finger at a company that has a government gag on.]]> Tue, 23 Sep 2008 20:53:51 -0400
Something is not right with this whole mess. A government takeover when the stock was going up and the interest spreads coming down? The takeover infused 1 Billion in each company but shareholder value dropped by 36 Billion? Seems way too convenient to point a finger at a company that has a government gag on.]]> http://seekingalpha.com/article/97006-paulson-bernanke-700-billion-at-hold-to-maturity-pricing?source=feed#comment-262994 262994
Also not factoring in the Fannie, Freddie, FHA mortgage dump that's going to happen in conjuction with the buyouts. FHA has been refinanciing trash loans at a fevorish pace. New rules.... No minimum FICO, 3% down, OK if your behind on your current loan. All they are doing is cleaning up the banks books while kicking the forclosures down the road a few months.

Hank and Ben made it pretty clear, they want to pay near full face value for what they buy with no stipulations on the banks. There's no money to be made on this deal. ]]> Tue, 23 Sep 2008 20:02:51 -0400
Also not factoring in the Fannie, Freddie, FHA mortgage dump that's going to happen in conjuction with the buyouts. FHA has been refinanciing trash loans at a fevorish pace. New rules.... No minimum FICO, 3% down, OK if your behind on your current loan. All they are doing is cleaning up the banks books while kicking the forclosures down the road a few months.

Hank and Ben made it pretty clear, they want to pay near full face value for what they buy with no stipulations on the banks. There's no money to be made on this deal. ]]> http://seekingalpha.com/article/96798-don-t-blame-fannie-and-freddie?source=feed#comment-262248 262248 Tue, 23 Sep 2008 07:57:35 -0400 http://seekingalpha.com/article/96874-the-greatest-short-sale-in-history?source=feed#comment-262238 262238
The takeover of the GSE's will also cost the taxpayers Trillions as we move forward. The two lost 36 Billion in shareholder value alone for Hanks efforts. That's 11 Billion more than he told congress it would cost to fix them and they haven't even started.

Letting LEH fail and backstopping AIG really did a number on market confidence. Putting an 80% warrant on AIG's shareholders as well as payday loan rates on the short term loan also did nothing to calm investors.

Now Hank and Ben are proposing the ultimate plan, mortgages and credit swaps at a reverse auction garage sale. Guess which part of the portfolio will be offered up by the banks? What they can't buy they will stuff into Fannie, Freddie and FHA for full face value, just so they can clear the books of their banking buddies before they return to Wall St in February.

To add insult to injury, they want absolute power to do whatever they want without possibility of intervention or question from the American people. Something like Ceasar, Napoleon and Hitler did. This is what should be referred to as Moral Hazard and without question considered constitutionally illegal. ]]> Tue, 23 Sep 2008 07:36:42 -0400
The takeover of the GSE's will also cost the taxpayers Trillions as we move forward. The two lost 36 Billion in shareholder value alone for Hanks efforts. That's 11 Billion more than he told congress it would cost to fix them and they haven't even started.

Letting LEH fail and backstopping AIG really did a number on market confidence. Putting an 80% warrant on AIG's shareholders as well as payday loan rates on the short term loan also did nothing to calm investors.

Now Hank and Ben are proposing the ultimate plan, mortgages and credit swaps at a reverse auction garage sale. Guess which part of the portfolio will be offered up by the banks? What they can't buy they will stuff into Fannie, Freddie and FHA for full face value, just so they can clear the books of their banking buddies before they return to Wall St in February.

To add insult to injury, they want absolute power to do whatever they want without possibility of intervention or question from the American people. Something like Ceasar, Napoleon and Hitler did. This is what should be referred to as Moral Hazard and without question considered constitutionally illegal. ]]>