Archive for the ‘Subprime Mess’ Category

This Should Get Interesting Fast

Monday, November 22nd, 2010

It seems the political wing of the IRA isn’t happy about the EU/IMF non-bailout bailout that will enslave the Irish (and their kids, grandkids and great-grandkids). The Mayor can’t possibly see how this will end badly.

Oh right, and what is this about Sinn Fein protesters trying to enter government buildings? The IRA are still unarmed, right?



Green Shoots & Leaves

Saturday, December 12th, 2009


Business Insider – The 10 Countries Most Likely To Default

Bloomberg – A record 37.2 million people, or about one out of every eight Americans, received food stamps in September, as the recession drove a surging jobless rate, according to a government report. 

Rolling Stone- Obama’s big sellout (when the Rolling Stone starts to catch on, oh my…)

Politico - In a bold but risky year-end strategy, Democratsare preparing to raise the federal debt ceiling by as much as $1.8 trillion before New Year’s rather than have to face the issue again prior to the 2010 elections (done deal, I’m a day late on this one – but it’s worth reading to see the hypocrisy).

Global Economic Analysis – Stimulus Checkup – 100 ridiculous projects funded by the American Recovery Act

Politico – Perhaps the greatest measure of Obama’s declining support is that just 50% of voters now say they prefer having him as President to George W. Bush, with 44% saying they’d rather have his predecessor (haha).

Money And Markets – When you think about the government’s exploding debt burden, you probably don’t focus on interest payments. But those payments will likely total $4.8 trillion over the next 10 years, amounting to more than half the government’s $9 trillion in debt. Interest rates are near zero now, thanks to the Federal Reserve’s massive monetary stimulus. But at some point the Fed will have to reverse that easing.

Whiskey and Gunpowder – The world is not yet ready to give up its addiction to paper currency. Actually, the world may be getting a snoot-full of it, but governments are not. You see, paper currency has an unbelievably strong attraction for governments. Do you know what it is? Do you wanna know?

My Budget 360 – It is hard to justify the 1,100 mark for the S&P 500.  The 676 low of March, as disastrous as it may have felt, actually reflected a more accurate measure of earnings potential of the 500 S&P companies.  The S&P 500 is a good index because it measures 500 companies with a current collective market cap of $9.6 trillion.  The S&P 500 over a century of data has seen price to earnings ratios of between 5 and 10 after severe contractions.  It is safe to say that what we are experiencing is a strong contraction.

Money And MarketsGovernments the world over have spent the past year bailing out, backstopping, insuring, and stimulating their financial sectors and economies. Trillions of dollars, euros, yen, and pounds have been thrown around like Halloween candy. Officials have assured us there’s little risk to that strategy. But we have warned consistently that the opposite is true. Our stance: If you borrow and spend too much, all you’re going to do is transform a Wall Street debt crisis into a Washington debt crisis.

Green Shoots & Leaves

Monday, November 23rd, 2009


Support for Health Care Reform falls to new low. But that does NOT make a difference to Obama and crew, they’re going to shove that crap down your throat whether you want it or not.

Financial and Economic Situation Could Get Ugly Fast. Could get ugly fast? Where ya been, buddy?

What has the government done to the dollar? Hmmmm, pooch screwed it I would think.

Escaping Taliban May Widen War as Pakistan Pays Cost. Sure, Pakistan pays the cost if you neglect to add the tens of billions it gets from the US.

State tax revenues hard-hit by recession. But, but but, what about the green shoots?

This will take you a while to get through, but it is well worth it. Grab a coffee and some sedatives, you’re going to need it – The Critical Unraveling of US Society

If you read one article today, make it this one. If there is one person out there that is responsible for this financial disaster, it has to be George Soros - A man-made financial disaster

China Questions Cost of US Healthcare Reform. Damn it all, even the chicoms see what that idiot obama can’t/doesn’t/won’t see.

GM wants gov’ts to help pay $4.9 bn restructuring. Too big to fail, but man are they ever giving it a good shot.

More fixed-rate home loans going into foreclosure. Subprime was the tip of the iceberg, small potatoes compared with what’s coming down the tube.

Stimulus – Creating Non-Existing Jobs For People That Don’t Exist

Tuesday, November 17th, 2009


One of the state-controled media outlets let a doozy slip, as ABC reported that slush fund  stimulus money has been used to create jobs in places that don’t actually exist:

Here’s a stimulus success story: In Arizona’s 15th congressional district, 30 jobs have been saved or created with just $761,420 in federal stimulus spending. At least that’s what the Web site set up by the Obama administration to track the $787 billion stimulus says.

There’s one problem, though: There is no 15th congressional district in Arizona; the state has only eight districts.

And that’s just the start of it, of course:

For example, says $34 million in stimulus money has been spent in Arizona’s 86th congressional district in a project for the Navajo Housing authority, which is actually located in the 1st congressional district.

In Oklahoma, lists more than $19 million in spending — and 15 jobs created — in yet more congressional districts that don’t exist.

In Iowa, it shows $10.6 million spent  and 39 jobs created — in nonexistent districts.

In Connecticut’s 42nd district (which also does not exist), the Web site claims 25 jobs created with zero stimulus dollars.

The list of spending and job creation in fictional congressional districts extends to U.S. territories as well.

$68.3 million spent and 72.2 million spent in the 1st congressional district of the U.S. Virgin Islands.

$8.4 million spent and 40.3 jobs created in the 99th congressional district of the U.S. Virgin Islands.

$1.5 million spent and .3 jobs created in the 69th district and $35 million for 142 jobs in the 99th district of the Northern Mariana Islands.

$47.7 million spent and 291 jobs created in Puerto Rico’s 99th congressional district.

The stimulus is working so well that it is actually creating districts that didn’t exist before. Just as Obama created extra states when he was running for president, his stimulus is actually creating new land.

The stimulus is constructed entirely out of victory and a healthy dose of black magic. For billions and billions of dollars, the stimulus creates non-existant jobs, for non-existant businesses, for people that are not sure where they live.


The Obama administration defended it’s non-job jobs, claiming that the people who are reporting the non-job jobs are telling the truth, they are just geographically impared:

“Some recipients clearly don’t know what congressional district they live in, so they appear to be just throwing in any number. We expected all along that recipients would make mistakes on their congressional districts, on jobs numbers, on award amounts, and so on. Human beings make mistakes,” Pound said.

Indeed. And “In Connecticut’s 42nd district (which also does not exist), the Web site claims 25 jobs created with zero stimulus dollars”, those jobs were created out of Obama’s Hope ‘N Change© campaign. He hoped ‘em up, and they plum appeared. Like the mighty Kreskin, he is.

If the recovery website just had a drop-down menu which listed each district for each state, we probably wouldn’t be talking about this right now. But I’m pretty sure you can’t get a drop-down menu for $18 million nowadays, drop-down menus are pretty high-tech.

Now consider that only 14% of the stimulus has been spent so far. And this is what you have. Imagine next summer – a few months before the November election – when another $500 billion gets spent in Democrat districts. If you think this is a boondoggle so far, you aint seen nuttin’ yet.

Stimulus — The Basics

Tuesday, September 8th, 2009

Q. What is an economic stimulus payment?
A. It is money the federal government will send to taxpayers.
Q. Where will the government get this money?
A. From taxpayers.
Q. So the government is giving me back my own money?
A. Only a smidgen.
Q. What is the purpose of this payment?
A. The plan is for you to use the money to purchase a high-definition TV set, thus stimulating the economy.
Q. But isn’t that stimulating the economy of China?
A. Shut up.

Now, some helpful advice on how best to help the U.S. economy by spending your stimulus check wisely:
If you spend the stimulus money at Wal-Mart, your money will go to China.
If you spend it on gasoline, your money will go to the Arabs.
If you purchase a computer, it will go to India.
If you purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala.
If you buy a car, it will go to Japan or Korea.
If you purchase useless stuff, it will go to Taiwan.
If you pay off your credit cards off or buy stock, it will go to management bonuses and be hidden offshore.

Instead, keep the money in America by:
1. spending it at yard sales;
2. going to ball games;
3. spending it on prostitutes;
4. buying beer; or
5. getting tattoos.
These are the only American businesses still operating in the U.S.

Conclusion: Go to a ball game with a tattooed prostitute you met at a yard sale and drink beer all day

Thanks to Dead Dog

The Mayor’s Stimulis Package

Thursday, February 12th, 2009


We start 2009 in the midst of a crisis unlike any we have seen in our lifetime—a crisis that has only deepened over the last few weeks. Nearly 48 jobs have now been lost, and on Friday we are likely to learn that we lost more jobs last year than at any time since 2003, the year of the locust infestation. Manufacturing has hit an eight year low. Many businesses cannot borrow or make payroll. Many families cannot pay their bills or their mortgage. Many workers are watching their life savings disappear. And many, many Mitchievillian’s are both anxious and uncertain of what the future will hold.


*Community-Based Organizations* Take Rating Firms To Court

Tuesday, December 2nd, 2008

An association of *community-based organizations* has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country:

The firms “knew or should have known” that subprime loans disproportionately were marketed to minority consumers — a process known as “reverse redlining” — and that those borrowers would ultimately default and go into foreclosure at high rates, according to the coalition’s complaint.

Because the loans themselves often came with terms that increased borrowers’ probability of default — upfront teaser rates followed by unaffordable reset payment adjustments, no required documentation of applicants’ incomes or assets, plus hefty prepayment penalties — African Americans with subprime mortgages are projected to lose $71 billion to $92 billion through foreclosures, while Latinos are projected to lose $75 billion to $98 billion, according to one study cited in the complaint.

“Had subprime loans been distributed equitably,” the complaint estimates, “losses for whites would be 44.5% higher and losses for people of color would be about 24% lower.”

I suppose we wouldn’t be in this financial mess if blacks and Hispanics weren’t forced at gunpoint to sign onto loans that they neither read or understood. If only there was some way that these disadvantaged minorities could have just said no to taking out loans far greater than their ability to pay them back. If only the poor people has any ability to reason.