Headlines...

NEW -> Contingent Buyer Assistance Program
I wonder if that income # will represent a peak not seen for quite some time... But >160K is impressive in any case. It is easy to see how Sacramento became so fat and complacent.
 
[quote author="Astute Observer" date=1219804557]http://ocbiz.freedomblogging.com/2008/08/26/three-oc-cities-rank-near-top-in-us-income/



Irvine median household income 2007</blockquote>
i am surprised not to see cupertino and many other silicon valley cities.
 
<a href="http://news.yahoo.com/s/nm/20080827/ts_nm/fdic_treasury_dc">FDIC may borrow money from Treasury</a>



FDIC might have to borrow money from the Treasury Department to see it through an expected wave of bank failures...The borrowed money would be repaid once the assets of that failed bank are sold. <span style="color: red;">LMAO, good luck with that!</span>



<span style="color: red;">Gosh, I hope this reassures all the walking moral hazards around IHB that they'll be getting their FDIC checks one way or the other.</span>
 
Poor Eff.



Just to spread the word. The best banks have not been contributing one

cent to the FDIC fund. Not one cent.



Not that it would have enough money anyhow, but it might have enough

to save a few more banks.



As discussed on Calculated risk.
 
<a href="http://www.nytimes.com/2008/09/05/business/worldbusiness/05yuan.html?ex=1378353600&en=8ef47788427ebe7d&ei=5124&partner=permalink&exprod=permalink">China's Central Bank in Need of Capital</a>



<blockquote>China?s central bank is in a bind.



It has been on a buying binge in the United States over the last seven years, snapping up roughly $1 trillion worth of Treasury bonds and mortgage-backed debt issued by Fannie Mae and Freddie Mac.



<snip>



Still China finds itself hemmed in. <u><em><strong>If</strong></em></u> it were to curtail its purchases of dollar-denominated securities drastically, the dollar would likely fall and American interest rates could soar.</blockquote>


If?
 
Friday bank failure? Screw that...



<a href="http://calculatedrisk.blogspot.com/2008/09/wsj-fannie-freddie-to-be-put-in.html">Phony and Fraudy are rumored to be under goberment conservatorship</a>.



Hat tip to CR for posting all the articles.
 
CR's blogsters seem to think this is well nigh the end of the world.

I don't think it's that bad.



Since F & F are conceded to have less loxic stuff than other banks

and lenders, I think it shows how bad off everyone else is by comparison.



Lehman filed an overseas honcho.



WaMu fired their prez, ceo, head honcho, whatever he's called. Toll little,

way too late. Probable the rest of the board is trying to avoid getting

fired themselves or jail.
 
[quote author="lawyerliz" date=1220899215]CR's blogsters seem to think this is well nigh the end of the world.

I don't think it's that bad.



Since F & F are conceded to have less loxic stuff than other banks

and lenders, I think it shows how bad off everyone else is by comparison.



Lehman filed an overseas honcho.



WaMu fired their prez, ceo, head honcho, whatever he's called. Toll little,

way too late. Probable the rest of the board is trying to avoid getting

fired themselves or jail.</blockquote>


<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=ajsxbVS.W2lQ&refer=home">$1.47 trillion of Fannie and Freddie credit default swaps</a>
 
[quote author="awgee" date=1220905190][quote author="lawyerliz" date=1220899215]CR's blogsters seem to think this is well nigh the end of the world.

I don't think it's that bad.



Since F & F are conceded to have less loxic stuff than other banks

and lenders, I think it shows how bad off everyone else is by comparison.



Lehman filed an overseas honcho.



WaMu fired their prez, ceo, head honcho, whatever he's called. Toll little,

way too late. Probable the rest of the board is trying to avoid getting

fired themselves or jail.</blockquote>


<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=ajsxbVS.W2lQ&refer=home">$1.47 trillion of Fannie and Freddie credit default swaps</a></blockquote>


"Write downs are potentially an issue for holders of preferred equity, but the Treasury said financial institutions exposed to these securities will work with regulators to restore capital positions.'' "



In other words, the Treasury will bail out the losers...
 
[quote author="IrvineRenter" date=1220906318][quote author="awgee" date=1220905190][quote author="lawyerliz" date=1220899215]CR's blogsters seem to think this is well nigh the end of the world.

I don't think it's that bad.



Since F & F are conceded to have less loxic stuff than other banks

and lenders, I think it shows how bad off everyone else is by comparison.



Lehman filed an overseas honcho.



WaMu fired their prez, ceo, head honcho, whatever he's called. Toll little,

way too late. Probable the rest of the board is trying to avoid getting

fired themselves or jail.</blockquote>


<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=ajsxbVS.W2lQ&refer=home">$1.47 trillion of Fannie and Freddie credit default swaps</a></blockquote>


"Write downs are potentially an issue for holders of preferred equity, but the Treasury said financial institutions exposed to these securities will work with regulators to restore capital positions.'' "



In other words, the Treasury will bail out the losers...</blockquote>


I am fairly sure that the Treasury Dept. was referring to holders of "equity" positions in that statement. The CDSes are written against debt, (bond), positions and are derivatives of those bond positions. Has the TD said anything about restoring capital for bond derivative holders? And if so, does that mean they will be capitalizing, (giving money to), to F&F bond derivative holders throughout the world? I wonder how the American taxpayer will feel about that?
 
FT.com interview with Martin Wolf on the Fannie & Freddie bailout



http://www.ft.com/cms/84d2eba2-2a26-11dc-9208-000b5df10621.html?_i_referralObject=848041645&fromSearch=n
 
<a href="http://www.rgemonitor.com/blog/roubini/">http://www.rgemonitor.com/blog/roubini/</a>



<strong><u>Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America)</u></strong>



The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.





Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (?leveraged buy-out?) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).





So now Comrades Bush, Paulson and Bernanke (as originally nicknamed by Willem Buiter) have now turned the USA into the USSRA (the United Socialist State Republic of America). Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion.





This biggest bailout and nationalization in human history comes from the most fanatically and ideologically zealot free-market laissez-faire administration in US history. These are the folks who for years spewed the rhetoric of free markets and cutting down government intervention in economic affairs. But they were so fanatically ideological about free markets that they did not realize that financial and other markets without proper rules, supervision and regulation are like a jungle where greed ? untempered by fear of loss or of punishment ? leads to credit bubbles and asset bubbles and manias and eventual bust and panics.





The ideologue ?regulators? who literally held a chain saw at a public event to smash ?unnecessary regulations? are now communists nationalizing private firms and socializing their losses: the bailout of the Bear Stearns creditors, the bailout of Fannie and Freddie, the use of the Fed balance sheet (hundreds of billions of safe US Treasuries swapped for junk toxic illiquid private securities), the use of the other GSEs (the Federal Home Loan Bank system) to provide hundreds of billions of dollars of ?liquidity? to distressed, illiquid and insolvent mortgage lenders, the use of the SEC to manipulate the stock market (restrictions on short sales), the use of the US Treasury to manipulate the mortgage market (Treasury will now for the first time outright buy agency MBS to manipulate and prop up this market), the creation of a whole host of new bailout facilities (TAF, TSLF, PDCF) to prop and rescue banks and, for the first time since the Great Depression,to bail out non-bank financial institutions, and a whole range of other executive and legislative actions (including the recent bill to provide a public guarantee to mortgage for banks willing to reduce their face value).





This is the biggest and most socialist government intervention in economic affairs since the formation of the Soviet Union and Communist China. So foreign investors are now welcome to the USSRA (the United Socialist State Republic of America) where they can earn fat spreads relative to Treasuries on agency debt and never face any credit risks (not even the subordinated debt holders who made a fortune yesterday as those claims were also made whole).





Like scores of evangelists and hypocrites and moralists who spew and praise family values and pretend to be holier than thou and are then regularly caught cheating or cross dressing or found to be perverts these Bush hypocrites who spewed for years the glory of unfettered wild west laissez faire jungle capitalism (and never believed in any sensible and appropriate regulation and supervision of financial markets) allowed the biggest debt bubble ever to fester without any control, have caused the biggest financial crisis since the Great Depression and are now forced to perform the biggest government intervention and nationalizations in the recent history of humanity, all for the benefit of the rich and the well connected. So Comrades Bush and Paulson and Bernanke will rightly pass to the history books as a troika of Bolsheviks who turned the USA into the USSRA. Fanatic zealots of any religion are always pests that cause havoc and destruction with their inflexible fanaticism; but they usually don?t run the biggest economy in the world. But these laissez faire voodoo-economics zealots in charge of the USA have now caused the biggest financial crisis since the Great Depression and the nastiest economic crisis in decades. So let them be shamed in public for their hypocrisy and zealotry that has caused so much financial and economic damage.
 
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