elwind45

Beyond SIGTARP's $23.7 Trillion Headline

Yet another report which when made public is blasted. This situation reminds me of Nero. Nero was more concerned with fiddle being tuned, then the roof being on fire. The economy is being drained of capital. The banking system is crowding out private investment to survive. The choice going forward is save the Fed or save the economy. Can you see Ben telling Obama that he needs to drain liquidity just before mid-terms? I love how CNBC assumes that the Central bank still controls short rates. The Fed is stuck trying to lower long rates whilst its balance sheet smells like shit. The Central Bank has never been weaker, and will get bailed out. Could you see velocity if we really had green shoots? Pray for a Japanese-style recovery or we are DOOMED.

Six Situations to Monitor for the Remainder of 2008

McCain has not seen a war he wasnt for. A addition of funds or troops for as many wars as can be dreamed up. He signs anything that has limits to civil liberties, and admits to knowing nothing about the economy. His pick for V.P. any female other than his filthy rich wife. "JOHN HANCOCK" McCain, RIIIIIIIIGHT!

The Government's Moral Hazard with Fannie and Freddie

This action will lead to the need to add treasury obligations to drain liquidity. The true treasury will be hoarded. The mortgage paper will make its way to the treasury, and never be sold to reduce liquidity. This priced-in action has forced the fed to limit credit growth.(economy is being sufficated) This is limiting investment growth at a time when needed most. The treasury will have to suck clean the toxic waste in the system and hold it. When the fed needs to drain liquidity it buys treasuries(which will be hoarded) and will have to make its inventory available to buy back excess reserves. This type of money growth will be counter productive to investment and itself will be hoarded on bank balance sheets. The elimantion of interrest and principle from the MAC,s debt obligations is further going to restrict growth. The scarcity of money, and treasuries will continue the dollar rally and lead to higher interest rates on new offerings. This will restrict growth and further the downturn. A higher dollar will cripple exports. Higher interest rates(growth in treasury obligations) will force up rates. This story ends in massive unemployment, my friends. Gold is being naked shorted by couple banks and physical gold cant be found at this nights price.

Paulson Tops Gross, Greenspan and Ackman in the Mortgage Battle

The banks are going to raise capital to support the GSE's? The article gives ole HANK way to much credit! Why would any investor risk capital to help the GSE's, while housing prices are still falling? The FHA is being used to lengthen the ponzi scheme. Granted Paulson put the fear into the congress, by explaining the massive FHA liabilities! However giving FHA 300B and only giving the mac's 25B, shows that Paulson thinks there is value to be gained from the Mac's. Dubai gets Park place and boardwalk, Paulson gets a get out of jail free card and the taxpayer gets stuck in the community chest.

If This Comes True, You'll Be Glad You Own Gold & Silver

When did you ever see the treasury sec become a media bum? The amount of fear must rise in investors, " when this goldman reject hits the stage". Pall- mall paulson needs to visit some State fairs to spread his "hubris". When you see treasury more than the president something is major broke. Funny, when the S&L debacle hit it was only going to cost 2.5B. The final bill was about 150B. Today its 25B to save the GSE's. However the enterprises have 80B in the "bank" or so Paulson says! The bailouts are going to create new credit to save old debts. How is this a productive use of funds? Too much credit without equal production! The fed will have to start draining at the same time that taxes will have to be raised to finance federal balance sheet. A flat tax will be added as a new way to finance government.( old system will be left in place) The GSE's will beg borrow than be folded up. The investor class is on the treasury's radar screen to be bleed dry.....pity!