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Dec 6th, 2017
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Joined: Jun 2007
Posts: 4,245 Likes: 33
old hand
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old hand
Joined: Jun 2007
Posts: 4,245 Likes: 33 |
Just pretend the worthless instruments have value. They are not worthless. But they may be worth less than the gummint is willing to pay for them. That is a big concern, and a reasonable one IMO.
Get your facts first, then you can distort them as you please.
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Joined: Jun 2004
Posts: 21,134
Administrator Bionic Scribe
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Administrator Bionic Scribe
Joined: Jun 2004
Posts: 21,134 |
Ken, this is a much broader issue than what the government would pay in a bailout. Essentially if this rule change goes into effect, there wouldn't even need to be a bailout. The bank assets would appear to be sufficient for capitalization purposes and the problem just disappears.
simple, neat and under the radar
Life is a banquet -- and most poor suckers are starving to death -- Auntie Mame
You are born naked and everything else is drag - RuPaul
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Joined: Jun 2007
Posts: 4,245 Likes: 33
old hand
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old hand
Joined: Jun 2007
Posts: 4,245 Likes: 33 |
Damn, I didn’t realize the problem was so simple to fix. That’s great. No worries…now I’ll go buy that Hummer I’ve had my eye on, and that 7,000 sq. ft. house on top of the hill.
Get your facts first, then you can distort them as you please.
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Joined: Aug 2004
Posts: 17,177 Likes: 254
It's the Despair Quotient! Carpal Tunnel
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It's the Despair Quotient! Carpal Tunnel
Joined: Aug 2004
Posts: 17,177 Likes: 254 |
Mortgage Back Securities right now cannot be priced due to a lack of market for them. LOL, they can't be priced because they're s***! If I look at a crumbling clapboard four room hovel on Broad Street in Mansfield, with 50 amp two wire knob and tube electric service and corroded plumbing and the realtor tells me this joint is appraised at 102 thousand dollars it doesn't take a genius to know that somewhere somebody is holding a chunk of the mortgage backed securities on this POS, knowing they have s***. I know it's s***, they know it's s*** and the banks know it's s***. Because it IS s***. There will NEVER be a market for this run down four room pit because there is no way it will ever fetch a hundred grand. Price it at what it's worth, maybe twenty for the land and the bank would have a fit! So it is EXACTLY like my art pieces, maybe more so.
"The Best of the Leon Russell Festivals" DVD
deepfreezefilms.com
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Joined: Aug 2004
Posts: 17,177 Likes: 254
It's the Despair Quotient! Carpal Tunnel
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It's the Despair Quotient! Carpal Tunnel
Joined: Aug 2004
Posts: 17,177 Likes: 254 |
Simply put, the Fed has decided it is time to destroy the dollar.
Watch as they "recalibrate" your bank accounts and leave you with ten cents on the dollar and sneak away with the other ninety percent to give to the banksters.
One morning you will wake up, and instead of $22,789.00 you will see $2,278.90.
Think it can't happen? It's happening all over the world right now!
"The Best of the Leon Russell Festivals" DVD
deepfreezefilms.com
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Joined: Sep 2005
Posts: 12,581
Pooh-Bah
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Pooh-Bah
Joined: Sep 2005
Posts: 12,581 |
One morning you will wake up, and instead of $22,789.00 you will see $2,278.90. Cool! It has been a long time since I had that much in my account!!!!:-) Yours in anticipation, Issodhos
"When all has been said that can be said, and all has been done that can be done, there will be poetry";-) -- Issodhos
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Joined: May 2006
Posts: 950
journeyman
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journeyman
Joined: May 2006
Posts: 950 |
Simply put, the Fed has decided it is time to destroy the dollar.
Watch as they "recalibrate" your bank accounts and leave you with ten cents on the dollar and sneak away with the other ninety percent to give to the banksters.
One morning you will wake up, and instead of $22,789.00 you will see $2,278.90.
Think it can't happen? It's happening all over the world right now! The recalibration however, will be in the opposite direction, hyperinflation will force them to issue larger and larger denominations of the currency, of course, while it may look like a great deal of money each dollar will buy a fraction of a cent instead of purchasing 5 cents like each of those dollars purchases now. So, a dollar bill will turn into a hundred dollar bill, a 5 dollar bill will turn into a 500 dollar bill, and so on and so forth. Even at that your $22,789.00 may buy you a roll of toilet tissue.
"The liberties of a people never were, nor ever will be, secure, when the transactions of their rulers may be concealed from them."~Patrick Henry
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Joined: Aug 2008
Posts: 10,853
veteran
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OP
veteran
Joined: Aug 2008
Posts: 10,853 |
Next: The Mother Of All Bank Runs?The next step of this panic could be the mother of all bank runs, i.e. a run on the trillion dollar-plus of the cross-border short-term interbank liabilities of the U.S. banking and financial system, as foreign banks start to worry about the safety of their liquid exposures to U.S. financial institutions. A silent cross-border bank run has already started, as foreign banks are worried about the solvency of U.S. banks and are starting to reduce their exposure. And if this run accelerates--as it may now--a total meltdown of the U.S. financial system could occur.
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Joined: Aug 2008
Posts: 10,853
veteran
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OP
veteran
Joined: Aug 2008
Posts: 10,853 |
Well, the bailout certainly steadied the economy! Markets were tumbling all over the world today, and there were economic crises innumerable.
The Dow today reached a low point of 9525. It closed just under ten thousand.
We live in interesting times.
_____________
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Joined: Aug 2008
Posts: 10,853
veteran
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OP
veteran
Joined: Aug 2008
Posts: 10,853 |
The Asia Times Online often tells more of the truth than the mainstream media here in the USA. It is worth taking a gander at, once in a while. Here is a snippet from one article: The Wall Street bustAt this point, there is clearly insufficient credit expansion to support inflated asset markets....
We are today witnessing the acute stage of bursting credit bubble dynamics. It's an absolute debacle, and there's little our well-intentioned policymakers can do about it other than try to slow the collapse.
[SNIP]
The "Freidmanites" thought they understood the (post-crash) policy mistakes that led to the Great Depression. They believed the Roaring Twenties was the golden age of capitalism. The great bust could have been avoided with a simple ($5 billion or so) banking system recapitalization. As we are witnessing today, the issue is not some manageable amount of new "capital" to replenish banking system losses. Instead, the predicament is the massive and unmanageable amount of new credit necessary to, on the one hand, sustain a mal-adjusted bubble economy and, on the other, the trillions more required to accommodate a gigantic speculative de-leveraging. I have a very difficult time seeing a way out of this terrible mess. I disagree with the "well-intentioned policymakers" bit, but you know those Asians: courteous to a fault. _________
Last edited by numan; 10/07/08 04:21 PM.
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