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2011-05-06 -Short Attention Span Theater-

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Posted by Bobby 2011-05-06 10:15|| || Front Page|| [5 views ] Top

#1 Tarp has been trying to unwind 750 trillion $ worth of these stupid bets. No way can it be accomplished. All that will happen is transfer of the debt from the private Fed to the public Treasury. It's time to pay the citizens in Treasury notes and let the Fed and its Reserve Notes take a dive.

Posted by Water Modem 2011-05-06 11:01|| 2011-05-06 11:01|| Front Page Top

#2 If I might suggest a slight change:

At first Heidi is hesitant to run Tabs for unemployed alcoholics. It's a bad risks and just plain unsound business.

But someone named B. O. sued her for discrimination against unemployed alcoholics. Advocacy groups protested outside her business and home and even her daughter Lucy's elementry school. Finally the government wrote a law requiring her to run tabs for unemployed alcoholics or face severe fines and even jail time.

Posted by CrazyFool 2011-05-06 13:40|| 2011-05-06 13:40|| Front Page Top

#3 If I might suggest a slight change:

More than a slight change, CF's little detail is the crux of the mortgage mess. Without government meddling, no one would have ever made these loans. The fact that they jumbled good and bad loans together means no one has any idea of what they are actually worth and trading came to a halt.

Posted by SteveS 2011-05-06 14:35|| 2011-05-06 14:35|| Front Page Top

#4 Bobby I really enjoyed your post and Rantburg comments.

Posted by Dale 2011-05-06 17:00|| 2011-05-06 17:00|| Front Page Top

#5 These are all just SYMPTOMS of the real cause.

TOO MUCH CREDIT.

The reason there's too much credit is simple. BASEL 2 removed proper reserve requirements, so lending was unconstrained. Governments loved the extra income form taxation this created, until it all blew up.

It's inevitable that it will blow up as the volume of credit pushes down the yield to below the real risk. After this, systematic default is inevitable.

Posted by Bright Pebbles 2011-05-06 18:58|| 2011-05-06 18:58|| Front Page Top

#6 Since Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and Heidi's 11 employees lose their jobs.

This illustrates how most people don't realize how bad the situation is.

It should read,

It takes 2 years to foreclose on Heidi's bar and during that time, the regulars get to drink for free and the bank is forced to cover the tab.

Posted by phil_b 2011-05-06 19:07|| 2011-05-06 19:07|| Front Page Top

00:03 JosephMendiola
23:47 crosspatch
23:39 JosephMendiola
23:30 JosephMendiola
23:29 Water Modem
23:10 USN,Ret.
23:07 USN,Ret.
23:05 Silentbrick - Lost Drill Bit Division - Halliburton
23:04 USN,Ret.
22:47 Dale
22:24 Martini
22:17 Martini
22:06 Besoeker
22:00 Besoeker
21:53 Besoeker
21:43 Besoeker
21:37 Frank G
21:14 Rhodesiafever
20:41 JosephMendiola
20:40 Halliburton - Mysterious Conspiracy Division
20:35 Matt
20:31 JosephMendiola1
20:15 SteveS
19:53 Rambler in Virginia