Financial Crisis

[Naam]

interesting visual aid

[Naam]

interesting visual aid

to put things into perspective... Bank of America's bad loan portfolio is USD 850 billion.

[flying]

to put things into perspective... Bank of America's bad loan portfolio is USD 850 billion.

Yes & look where that has taken us

[flying]

US Q1 home values see biggest drop since 2008 -Zillow

May 9 (Reuters) - U.S. home values fell in the first quarter at the fastest rate since late 2008, real estate data firm Zillow Inc said on Monday, suggesting that a bottom will not be seen until 2012 at the earliest.

Zillow said its home value index fell 3 percent in the first three months of the year from the previous quarter, and was down 8.2 percent year-over-year.

The number of homeowners under water -- or, those who owe more on the mortgage than their house is currently worth -- amounted to 28.4 percent of single-family homeowners, representing a peak since Zillow began calculating the data in 2009.

That was up from 27 percent in the fourth quarter of last year.

Foreclosures also rose, following the moratoriums that had been in place in late 2010. In March, one out of every 1,000 homes was in foreclosure.

Given all those factors, it is unlikely home values will reach a bottom this year, Zillow said, and the firm pushed its forecast out to 2012.

"Home value declines are currently equal to those we experienced during the darkest days of the housing recession. With accelerating declines during the first quarter, it is unreasonable to expect home values to return to stability by the end of 2011," Zillow chief economist Stan Humphries said in a statement.

Fannie Mae seeks $8.5 billion from taxpayers

(Reuters) - Mortgage finance giant Fannie Mae (FNMA.OB) on Friday said it would ask for an additional $8.5 billion from taxpayers as it continues to suffer losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider reported a net loss attributable to common shareholders of $8.7 billion, or $1.52 per diluted share, in the first quarter.

Including the latest request, the firm has taken about $100 billion from the U.S. government since it was seized in 2008, though it has also paid about $12.4 billion to taxpayers in interest.

Loans made in the past two years have been more profitable than loans made during the housing boom in preceding years.

"As we move forward, we are building a strong new book of business that now accounts for 45 percent of the company's overall single-family guaranty book of business," said Michael Williams, the firm's president and chief executive officer.

Sibling firm Freddie Mac (FMCC.OB) said on Wednesday it lost just under a billion dollars in the first three months of the year, though the second-largest provider of mortgage funds did not request any new money from the government.

The two firms together have asked for about $164 billion, though their net payments have been reduced to about $140 billion as a result of the interest payments, including the latest request.

Then-U.S. Treasury Secretary Henry Paulson took control of Freddie Mac and Fannie Mae at the height of the financial crisis in September 2008 as losses mounted from mortgages gone bad.

The plan to put them into conservatorship was meant to be temporary, although it is likely to be years before a long-term replacement structure takes shape.

The two firms and the Federal Housing Administration back close to nine of 10 new home loans after private mortgage funding dried up in the wake of the financial crisis.

Edited May 10, 2011 by flying

[dananderson]

One analyst, Tyler Durden, writes that while China is likely weary of recycling dollars, they may not have any viable alternative - at least for now, while its own currency, remains devalued (artificially or otherwise).

"But that will all change very soon," Durden writes. "Once the push for broad Chinese currency acceptance is in play ... the USD (U.S. dollar) will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that U.S. debt is no longer a viable investment opportunity."

anal-yst Dyler Turd is partly right, China has no viable alternative. the remainder consists of his usual economic rubbish, presented in a sensational way, as are most his forecasts and anal-yses.

I agree Naam. More sour grapes. After meetings a few months ago I remember one of the Chineese contingent saying words to the effect that the be the dollar may not remain the reseve currancy of the world. Then he flew back to Hong Kong where all there reserves are in dollars. Although the US does have some financial house cleaning to do,his comments were disengenous.

[Naam]

to put things into perspective... Bank of America's bad loan portfolio is USD 850 billion.

Yes & look where that has taken us

we should not complain Flying. the "crisis" increased the value of your and Mrs Naam's precious metals holdings and generated for me in 2009 incredible investment opportunities.

ah sez "kop khun mak krap!"... (in hindsight)

[flying]

to put things into perspective... Bank of America's bad loan portfolio is USD 850 billion.

Yes & look where that has taken us

we should not complain Flying. the "crisis" increased the value of your and Mrs Naam's precious metals holdings and generated for me in 2009 incredible investment opportunities.

ah sez "kop khun mak krap!"... (in hindsight)

Tis true but, we would not have had to run to the shelter of PM's if they had been a bit more........honest....ok I know that is not possible for TPTB

Edited May 10, 2011 by flying

[churchill]

Seems like a love hate relationship with Gold at it's center

When is Pimco going to start its gold fund ?

PIMCO raises bet against U.S. government debt

http://www.reuters.com/article/2011/05/09/us-investing-pimco-fund-idUSTRE7486LU20110509

[midas]

Here's someone who gets it.

Timo Soini. Leader of the true Finn party.....telling it like it is.

http://online.wsj.co...n_LEFTTopBucket

"To understand the real nature and purpose of the bailouts, we first have to understand who really benefits from them. Let's follow the money."

How refreshing.

Regards.

It's a good article but I couldn't get your link to work. Here's another:

http://www.elitetrader.com/vb/showthread.php?threadid=220266

WOW it never occured to me to compare both versions Then you would see that WSJ had the cheek to actually DELETE significant parts of the original letter from Timo Soini !

Here is an article covering this blatant censorship

One of the most contentious lines they deleted was a clear statement that Ireland was intentionally screwed and that it was Tim Geithner who "forced" the Irish to not haircut bondholders

http://market-ticker.org/akcs-www?post=185817

Edited May 11, 2011 by midas

[Naam]

One of the most contentious lines they deleted was a clear statement that Ireland was intentionally screwed and that it was Tim Geithner who "forced" the Irish to not haircut bondholders

bondholders holding Anglo Irish subordinated bonds and who did not accept a shitty restructuring were screwed 99.99% out of their money!

[Naam]

Allied Irish = the same fraudulent bàstards like Anglo Irish!

Bloomberg, May 11, 2011

Allied Irish Banks Plc (ALBK) offered to buy back about $3.7 billion of subordinated debt at a discount of as much as 90 percent as the government seeks to share the costs of bailing out its banks.

The Dublin-based lender said bondholders who refuse to take up the offer may be paid just 1 cent for every $1,000 of debt held, according to a statement today. Ireland’s Finance Minister Michael Noonan said the terms of the so-called liquidity management exercise are “the minimum acceptable.”

http://www.bloomberg.com/news/2011-05-11/allied-irish-seeks-up-to-90-discount-in-buyback-of-3-7-billion-of-bonds.html

"Geithner "forced" the Irish to not haircut bondholders" = my àrse!

market-ticker = my àrse!

Edited May 11, 2011 by Naam

[churchill]

Rather than everyone talking about crooked bankers what about crooked politicians in the EU - being paid fortunes by taxpayers and taking backhanders from business - How do you get rid of them - they are elected along with their pensions , expenses , etc ..

They have now created their own pyramid so that it is difficult to get rid of the top without large job losses further down - But what are all these people doing and at how much cost -

The whole system needs rethinking ...

They will never give up their rights whilst telling the tax payers ,their employers, that they have to cut back , take smaller pensions .....and then more taxes to pay for more debates - entertainment , travel, hotels ......Bananas !

Being selective in who they go after - libya OK , what about syria , north korea where people are being killed jailed ..

Selling arms is OK to dictators but we must protect our farmers from unfair low wages in Africa ....

Sack the EU -Get rid of the unworking Euro now before a dream becomes a nightmare ////

[Naam]

The whole system needs rethinking ...

why should you and me be bothered Churchill? i assume that you (like me) don't pay for crooked EU-politicians nor do we pay a single penny for bailing out the cheating countries and fraudulent banks.

[lannarebirth]

One of the most contentious lines they deleted was a clear statement that Ireland was intentionally screwed and that it was Tim Geithner who "forced" the Irish to not haircut bondholders

bondholders holding Anglo Irish subordinated bonds and who did not accept a shitty restructuring were screwed 99.99% out of their money!

If Geithner's lips are moving he is most likely lying. God knows what organization he may have swore an oath to before taking his job.

[teletiger]

If Geithner's lips are moving he is most likely lying. God knows what organization he may have swore an oath to before taking his job.

Quite a clever little play on words there Lanna. God, or someone doing God's work?

Good man there 'yerself. As they say in (the wholly Euro/imf banker owned)Ireland. Goldman is in there with a large slab too, surely.

Regards.

[BlackJack]

overnight i read an interesting insight into the whole engineered mess to undermine the EURO

Seems the dollar still may become the safe haven to keep international trading going and that the Euro will swallow dive into the bottomless pit -it is only because Europe is becoming more and more fragmented whereas the USA is at least united by the crooks on Wall street and Capitol Hill

So based on whats already happened over the past few years

1. the Australian currency will be an outstanding performer -based on its commodity exports

2. precious metals will continue their cafe have status - based on people freaking out

3. Taxsin dynasty will continue on - based on hot air

4. free ice cream for all school children - plus an i-pad 1 based on i-pad 6 release

[flying]

The People vs. Goldman Sachs A Senate committee has laid out the evidence. Now the Justice Department should bring criminal charges

They weren't murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it.

Full Article At Link Above

[SoloFlyer]

Interesting read. Look forward to Jon Stewarts take.

[Naam]

Now this is going to hurtAmid near-daily reports that the U.S. dollar continues to slide in value comes a report that China, the largest holder of U.S. debt, is considering dumping two-thirds of its dollar reserves, which currently stand at about $3.04 trillion.

YAAWWWNNNN... yada yada yakety yak now for several years. but here's the beef:

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

China UST february 2010........$ 877.5 billion

China UST february 2011........$1,154.1 billion

difference $ 277,000,000,000.- (Treasuries only, cash not considered)

moreover, the total reserves, valued at ~3 trillion, comprise besides US-Dollar also other currencies, gold and special drawing rights. the actual USD share is estimated at $ 2 trillion.

'nuff said about journàsslists who write for obscure "news sites" and possess a wealth of "no idea".

[BlackJack]

Now this is going to hurtAmid near-daily reports that the U.S. dollar continues to slide in value comes a report that China, the largest holder of U.S. debt, is considering dumping two-thirds of its dollar reserves, which currently stand at about $3.04 trillion.

YAAWWWNNNN... yada yada yakety yak now for several years. but here's the beef:

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

China UST february 2010........$ 877.5 billion

China UST february 2011........$1,154.1 billion

difference $ 277,000,000,000.- (Treasuries only, cash not considered)

moreover, the total reserves, valued at ~3 trillion, comprise besides US-Dollar also other currencies, gold and special drawing rights. the actual USD share is estimated at $ 2 trillion.

'nuff said about journàsslists who write for obscure "news sites" and possess a wealth of "no idea".

we wait we see

[churchill]

Strong growth figures helping the Euro Area -

So Germany & France could offer deferred low interest rate loans to Greece , Ireland and Portugal with tight conditions and controls on how those countries are managed - Perhaps these counties need to be pushed to the edge - So that they agree the tough medicine needed

It would then give those countries a chance to invest to create growth in the short term for the benefit of the whole Union ?

Edited May 13, 2011 by churchill

[Naam]

we wait we see

i am still waiting to see EURUSD 1.15 some "worldwide renowned" currency forecasters predicted

[ronz28]

Deleted.

Edited May 15, 2011 by ronz28

[12DrinkMore]

Strong growth figures helping the Euro Area -

So Germany & France could offer deferred low interest rate loans to Greece , Ireland and Portugal with tight conditions and controls on how those countries are managed - Perhaps these counties need to be pushed to the edge - So that they agree the tough medicine needed

It would then give those countries a chance to invest to create growth in the short term for the benefit of the whole Union ?

Apropos Greece

http://www.vanityfai...ng-bonds-201010

Total basket case with no hope in the foreseeable future, they should never have been in the Euro and should be kicked out now. But never forget who is really being bailed out.

And my my, oh dear, what on earth could the man at the top of the IMF been thinking? I guess his main brain was totally occupied with Greece and his dick took over control.

http://www.bloomberg.com/news/2011-05-15/imf-s-strauss-kahn-held-for-questioning-in-new-york-assault.html

Dominique Strauss-Kahn, head of the International Monetary Fund and a potential candidate for the French presidency, was charged with attempted rape and a criminal sex act on a New York hotel maid, police said.

But no problem

The IMF “remains fully functioning and operational” following Strauss-Kahn’s arrest, the Washington-based organization said in a statement on its website today

Well, thank god for that. Obviously the man is totally redundant and should be sacked.

Edited May 16, 2011 by 12DrinkMore

[Naam]

1. Total basket case with no hope in the foreseeable future,

2. they should never have been in the Euro

3. and should be kicked out now.

1. a restructuring without haircut on nominal debt (to save the involved banks), extended maturities and perhaps lower nominal coupons could do the trick (in theory).

2. correct

3. there is no legal way to kick Greece out. the only possibility is that Greece decides on her own to leave the €UR-zone.

[cloudhopper]

3. there is no legal way to kick Greece out. the only possibility is that Greece decides on her own to leave the €UR-zone.

But can they even do that, legally?

good op ed - http://www.handelsblatt.com/politik/international/there-is-a-life-after-death/4169472.html

[RedFxTrade]

Allied Irish = the same fraudulent bàstards like Anglo Irish!

Bloomberg, May 11, 2011

Allied Irish Banks Plc (ALBK) offered to buy back about $3.7 billion of subordinated debt at a discount of as much as 90 percent as the government seeks to share the costs of bailing out its banks.

The Dublin-based lender said bondholders who refuse to take up the offer may be paid just 1 cent for every $1,000 of debt held, according to a statement today. Ireland’s Finance Minister Michael Noonan said the terms of the so-called liquidity management exercise are “the minimum acceptable.”

http://www.bloomberg...n-of-bonds.html

"Geithner "forced" the Irish to not haircut bondholders" = my àrse!

market-ticker = my àrse!

Naam, this is only Junior bond holders who are taking a small haircut, in the bigger scheme of things. Not much mention of Senior Bond holders, aka, Banks taking any haircuts. The opposition from Trichet and Geithner and the rest of the establishment is direct towards senior bond holders taking haircuts. A couple of smallish hedgefunds will take a hit. Not any such banks who hold accounts with the FED, The ECB and the BoE, surprisingly enough. Its the tax payers who is being forced to take losses on senior debts.

[RedFxTrade]

3. there is no legal way to kick Greece out. the only possibility is that Greece decides on her own to leave the €UR-zone.

But can they even do that, legally?

good op ed - http://www.handelsbl...th/4169472.html

In the end I don't think it will matter about the legal outcomes. The market will force it, or things will get so bad that there will no be choice but to leave/default.

The risks I see are...

1. Spain and Italy look anything but stable. Shrinking tax base in Spain, and Spanish banks sitting on unrecognised losses. Italy is the elephant in the room. Huge debts. If these guys get into trouble it will not be reflected favourably in Greek debt.

2. Civil Unrest. In order to implement the austerity I believe we will get more and more civil unrest which will lead to political discord. There already is political discord. The True Finns will oppose anymore bailouts. I think there will be more political opposition to the Euro in the coming months and years.

3. Simply; You can not solve a debt problem with more debt. Greece could not pay its exisiting debt, so how will it pay back an extra debt burden. The market does not believe it and neither do I. Over 20% for 2 year money!!

4.A slowdown in the global economy is coming, Gilts, German Bunds, and T-Bonds yields have been falling, Qe is ending for the time being. A slowdown will hurt the core Euro countries, such as Germany and France. In the face of a slowdown, and possible recession in these countries the appetite to support EU peripheries will dwindle even more. I think we could be in recession by next year, first/second quarter, although it will not be confirmed until after that. In fact the UK is as good as in a recession and to the man on the street, it feels more like a recession now that November 2008.

Something will happen which will blow wide open, and it will not be pretty.

[Wrong Turn]

Now this is going to hurtAmid near-daily reports that the U.S. dollar continues to slide in value comes a report that China, the largest holder of U.S. debt, is considering dumping two-thirds of its dollar reserves, which currently stand at about $3.04 trillion.

YAAWWWNNNN... yada yada yakety yak now for several years. but here's the beef:

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

China UST february 2010........$ 877.5 billion

China UST february 2011........$1,154.1 billion

difference $ 277,000,000,000.- (Treasuries only, cash not considered)

moreover, the total reserves, valued at ~3 trillion, comprise besides US-Dollar also other currencies, gold and special drawing rights. the actual USD share is estimated at $ 2 trillion.

'nuff said about journàsslists who write for obscure "news sites" and possess a wealth of "no idea".

Thanks for the info & link, Churchill.

I just want to clarify to see if I'm correct:

The Federal Reserve hold MOST US treasury bonds correct?

So, China or Japan is number #2 and #3?

And the Fed is the number #1 holder/buyer of US Treasury Bonds?

[Naam]

Allied Irish = the same fraudulent bàstards like Anglo Irish!

Bloomberg, May 11, 2011

Allied Irish Banks Plc (ALBK) offered to buy back about $3.7 billion of subordinated debt at a discount of as much as 90 percent as the government seeks to share the costs of bailing out its banks.

The Dublin-based lender said bondholders who refuse to take up the offer may be paid just 1 cent for every $1,000 of debt held, according to a statement today. Ireland’s Finance Minister Michael Noonan said the terms of the so-called liquidity management exercise are “the minimum acceptable.”

http://www.bloomberg...n-of-bonds.html

"Geithner "forced" the Irish to not haircut bondholders" = my àrse!

market-ticker = my àrse!

Naam, this is only Junior bond holders who are taking a small haircut, in the bigger scheme of things. Not much mention of Senior Bond holders, aka, Banks taking any haircuts. The opposition from Trichet and Geithner and the rest of the establishment is direct towards senior bond holders taking haircuts. A couple of smallish hedgefunds will take a hit. Not any such banks who hold accounts with the FED, The ECB and the BoE, surprisingly enough. Its the tax payers who is being forced to take losses on senior debts.

-i mentioned "subordinated"

-if 90% is a "small" haircut what would you consider a "big" one?

Allied Irish Banks Plc (ALBK) offered to buy back about $3.7 billion of subordinated debt at a discount of as much as 90 percent

-there's no need for Geithner or Trichet to protect the seniors. their standing is crystal clear except in the case of bankruptcy.