“Collateralized Debt Obligation”

So, we’re talking any kind of debt except credit-card?

You have no idea how much that pisses me off.

The $700 billion would have best been spent boosting the capital of the local and regional banks.

- They were not at the apex of the fraud
- They know traditional lending
- They are closer to the people and Main Street
- At 10:1 leverage of the capital infusion, $5 trillion would have been immediately available for lending

So when the IDIOTS expouse that they “HAD TO DO SOMETHING” ….well it did not have to be the WRONG THING, did it?

As is stands we have ever-escalating bailouts over this year, are only 1/3 of the way through and $1.8 trillion has been burned so far, you have the states needing another $75 billion, FDIC needs $2 trillion, and pensions will need $4 trillion after the market crashes.

The bailouts have opened a bottomless pit and put the FRAUDSTERS in charge.

By George, the goldbugs will end up being right.

You make more sense every day. People who claim to be free market people think continuing the same fraud is a solution. It just makes people trust the markets even less.

They need to start letting a bunch of poorly run companies file for bankruptcy so a decent company can pick up their assets in a fire sale and make a profit.

Think about it this way. If people want to help the homeowners, which is the best way to do that. Having a third party buy the debt from the first parties bad debt at 20 cents on the dollar, where they can then negotiate with the deadbeat for a new principle and still make a profit, or having the government agree to buy these bad debts at somewhere above real market values so the people who caused the problems can retain as much of their assets as possible so they can turn around and do the very same thing?

Liquidity will return when these companies are liquidated. If it means a bunch of Wall Street puncks lose their shirts and a bunch of traditional banks make a big profit, so b it. It is the way it should be anyway.

The value is what the highest bid is.

Some new homes in Florida that were priced at $225,000 are now selling for $65,000. Under mark to fiction they would remain $220,000. Under mark to market they are $65,000.

The buyer is taking huge risks even at $65,000 because tax freezes don’t apply (even on long-held properties it has been discovered that the Freeze cuts both ways, so when prices drop taxes remain frozen on the freeze date.), taxes are concentrated on rooftops , and insurance costs are exploding. Carrying costs exclusive of interest can run $15,000 to $20,000.

This is a very real example.

Most folks don’t like the fall in RE, but going back to lying about values won’t work, just as the governments use of 1% inflation rate when figuring GDP to avoid a recession hasn’t paid for $1 higher gas prices and rates that even the liars admit are over 5%.

Lying is not a way out of this.

Deception meets reality at the courthouse steps and at the gas pump.

Begging for more lies, zero interest rates, and deception is like a drunk taking the “hair of the dog that bit him” cure.

According to Mark to Market – $0

Is there anyway to know what a foreclosed property with 2 year old construction that is on the courthouse steps is worth that was initially a distress purchase in the last 12 months?

Prime property, prime location, purchased in distress sale and probably ALT-A.

10 per 100?
20 per 100?…..85 per 100?

Thanks, and please do.

I think it could be a good grassroots effort all across the country. I was going to stay up all night and make one for every member of congress who voted for it.

The original is a gif big enough to print an 18×24 sign. I think the yellow really stands out against all the red white and blue eye ones that all look identical.

Worse are the fact that they will wind up bailing out CDS – Credit Default Swaps.

Donk needs to get out from that evil place while there is still time.

We are SOL and when the masses see it……let’s just say Wall Street experience is not something I would want on my resume.

I really liked the sign…..i have a couple of prominent places….shoot I might put two BIG ONES up

You are right, of course, but only to a point.

The local banks did originate and sell mortgages, the use the proceeds for even more lending, with much of the excess invested in the GSE’s. This is why the later had to be bailed out…..every local bank I evaluated had $100′s of millions in government and AGENCY debt.

HOWEVER, the locals had nothing to do with creating CDO’s , CLO’s , auction rated securities, and the lunacy of CDO’s SQUARED.

Locals pretty much stayed within the range of leverage in the 10 to 20 range. Wall Street took leverage up to 60:1 and the hedges THE NEXT SHOE TO DROP took leverage to 100:1.

The pols HAD the opportunity to cordon off bank deposits at a cost of $500 billion or so, but because they ARE PUPPETS OF WALL STREET, just made the fatal error of attempting to buy DERIVATIVE LEVEL DEBT.

Bank deposits were bailable.

Derivative Level Debt is too big to bail, but we are about to burn $5 TRILLION up to prove it.

Chris…if you feel the need to flog yourself for your “indolent self-absorbed lifestyle”, go ahead.

No Shep, they’ll instead deficit spend the money so the pain will be felt generations down the line when they are long out of office.

At least Obama/Biden have the decency to say we should pay for our indolent self absorbed lifestyles ourselves and not burden our kids.

Which makes them marginally better than the GOP.

I’m gonna invest in Rum, Racetrack, and Wool Futures…that’s how I’m gonna get wealthy now.

And…of course, start shorting bank stocks…

A trillion here, a trillion there…really now, it’s all paper profits and paper losses.

If all those people/entities had sought to DUMP their profits that day, the market would have sold off faster and deeper than it did.

And the bailout is going to cost $5 TRILLION, not $700 billion.

Bush is really good with numbers like that ….Medicare D was supposed to be $300 billion, now $8 trillion….Iraq war supposed to cost $50 billion, now $1 TRILLION PLUS…both along the way to TRIPLING THE DEBT.

Saxby Chambliss has been with him all the way.

$TRILLION

Think about it.

You can COUNT on it.

Obama and Martin will.