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2009-06-09 Economy

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Posted by Omoter Speaking for Boskone7794 2009-06-09 09:25|| || Front Page|| [6 views ] Top

#1 The media is/are mostly interested in cheering Obama and the economy on, rather than informing themselves (and us) about the terrible predicament we're in. "Things are bad and getting worse" doesn't sell papers, I know.
Here's something else the media isn't mentioning (from Karl Denninger)
Remember we were told that the "PPIP" was absolutely necessary to get the "toxic assets" off the bank balance sheets - and without it, we would not be able to clear the banking system and restore our economy to balance.
Were still in the process of assessing whether a legacy [i.e., worthless toxic waste mortgages taken out by deadbeat borrowers] RMBS [Residential Mortgage Backed Security] program is feasible, and if it were feasible, whether it would be significant enough to make a major impact, Dudley said at a conference today in New York hosted by the Securities and Financial Markets Association and Pension Real Estate Association.

His comments add to signs that Treasury Secretary Timothy Geithners [TTT's] Public-Private Investment Program [PPIP] to boost debt prices and rid banks of devalued assets to expand lending is stalling, after helping to spark a rally in stocks and bonds. The Federal Deposit Insurance Corp. yesterday delayed a test sale of bad loans held by U.S. banks that had been billed as a tryout for its role.

--- Now the truth comes out.

--- Nobody will have anything to do with this bilge - that is, there are no bids and no offers.

Why not?

THESE [RMBS] ARE BONDS!

What happens when you tamper with bankruptcy priority in the bond market? [e.g. GM & Chrysler bankruptcy management by the Gov't]

Bond buyers [aka "suckas"] disappear. Especially when the bond lays under some asset class that has some sort of "political connection." [i.e., Obama's supporters]

Is there anything more politically connected than houses and homeownership? Probably not.

Let's face the facts:

Obama's Administration has destroyed the very program they claim is necessary to return the banking system [i.e, FUBAR] to health, and which was responsible for essentially the entire rally off the March lows - a TRIPLING in many cases for banks and a 40% move in the broad market.

What do you think might happen when the market figures out that the PPIP will NEVER happen, the system will not be cleared, and that as the spending continues and rates rise, what's left of the housing market (and the mortgage securities still sitting on the bank balance sheets!) continue to blow up?

Posted by Anguper Hupomosing9418 2009-06-09 14:26|| 2009-06-09 14:26|| Front Page Top

#2 If the "saved or created" formula looks brilliant, it's only because Mr. Obama and his team are not being called on their claims.

Who will call them on it? Not the State Run Media. Krauthammer nailed Barry's numbers using the term "fantasia."

Posted by Besoeker 2009-06-09 14:55|| 2009-06-09 14:55|| Front Page Top

#3 In these times, it's good to remember that while we can beguile ourselves and others with all sorts of dreams, reality always has the last word.

Posted by Richard of Oregon 2009-06-09 15:51|| 2009-06-09 15:51|| Front Page Top

#4 Compare wid PAKISTANI DEFENCE FORUM > OBAMA THE DAIJAL [Islamo-Muslim ANTICHRIST]???

ALso, FOX NEWS this AM > "OBAMA IS A FALSE PROPHET"???

Posted by JosephMendiola 2009-06-09 20:04|| 2009-06-09 20:04|| Front Page Top

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