Lonely here.
On the Lincoln quote, it's interesting what he says about the Corp's growing out of the Civil War. If I'm not mistaken, the CV for the first use of modern income tax. The next time it popped up was in 1913 with the 16th amendment and the Fed Reserve's birth.
Dear Public,
Thank you for your comments. We will give them all of the consideration that they are due.
Sincerely,
Goldman Debt Insurance Corporation (formerly "FDIC")
- Nemo
My comment didn't get printed.
"You're doing a heckava job Timmy"
From the comments:
I represent a small group of investors ($10,000,000 to $20,000,000) who has an interest in the
Legacy Loans Program and acquisition of a portion of the First National Bank of Arizona (now
FDIC) 1.4 billion "toxic loan" portfolio. I understand that a 40% interest in that particular portfolio
was recently sold by KBW of New York to two different investors, one being the Sorenson group
out of Sandy, Utah. Who would you recommend that I contact with respect to purchasing a
portion of the portfolio?
Thank you for your assistance.
John White
Western Horizons Inc.
----
If you have to ask, you aren't part of the "club."
This one is good: http://www.fdic.gov/llp/comments/llp68.pdf
This program is absurd for the following reasons
1) normally the FDIC wipes out equity and bond holders BEFORE COMMITTING ANY
TAXPAYER MONEY- THIS HAS WORKED FOR 75 YEARS
2) bank management maintains upside instead of being replaced due to failure
3) the banks can sell themselves the assets and this is just another way of insuring the
worst assets so the govt will take the risk while the bank will not have to suffer and can
continue to make money on good loans
4) the public is very close to losing confidence in the govt. with each new plan written by the
banks for the banks, it becomes harder to believe the govt is not run by the banks
5) new credit creation is the goal and it is much cheaper for the govt to provide direct
assistance for new credit creation and let the banks that made bad decisions fail and
auction off the assets as what worked with the RTC
6) the banking sector is over 30% of the economy with the long run average of 20%. This
plan does not help to bring the banking sector down, but instead expends tremendous
resources to keep the banks at unsustainable levels.
7) People are not stupid. The banks will cherry pick which assets to sell. Negative selection
hurts the taxpayer
The role of the FDIC is to protect the depositor NOT THE BANK AND ITS EQUITY AND
BONDHOLDERS- _
9) You cannot keep asset prices above what incomes can support – the pricing should be
based on an income model, not a leverage model that allows prices to be artificially high
due to the optionality of the investor not having the downside.
Russell Abrams
President, titan capital
NY NY
212 750-5700
the money power of the country will endeavor to prolong
its reign by working upon the prejudices of the people until all wealth
is aggregated in a few hands and the Republic is destroyed.
Interesting to hear the words "Money Power". Lincoln, right, so it has to be taken in the context of "Slave Power".
He was laying the rhetorical groundwork for the next campaign.
You enterprising rhetoriciticans out in the resistance zerg might want to go read up on "Slave Power".
So far the most astute comment I've seen is [paraphrased]:
The auction should be conducted with no reserve or at the very least explicit reserves.
Economic hostage crisis
http://www.salon.com/comics/tomo/2009/03/31/tomo/index.html
Favorite Q&A:
4. Is there any reason that investors' identities should not be made publicly available?
Investor identities should be confidential.
"I love the smell of transparency in a recession."
.
If you have to ask, you aren't part of the "club."
LOL - they kind of guy who found out about the party on Friday night Saturday morning... suckah!
Aww... that's probably just Krugman trolling the FDIC.
=)
So far the most astute comment I've seen is [paraphrased]:
The auction should be conducted with no reserve or at the very least explicit reserves.
Dawg reads it so we don't have to - bravo!
I wish the auctions were on prime time network tv - like some half backed reality show... oh wait.
none of the comments seem to applaud the plan. you have people that are dissapointed with the plan... or people who would like to make money from it
We have a bank failure ... Cape Fear Bank.
Oh, Counselor....Come out, come out, where ever you are...
We have a bank failure ... Cape Fear Bank.
So what kind of pizza do they order on Good Friday?
Dryfly,
Sign of the times; Snap-On Tool Boxes Every Draw FULL - $3700
Selling the seed corn so soon?
dryfly (member) wrote on Fri, 04/10/2009 - 2:24pm.
Dawg reads it so we don't have to - bravo!
My thanks and some advice: "Trust but verify."
"So what kind of pizza do they order on Good Friday?"
Anchovy.
The PPIP is second to the fattening up of FNM & FRE on the loans refinanced out of the banks' DOA loan files. Who is responsible for consolidating all the various government gifts to financial institutions, reporting a total and then identifying beneficiaries by name and dollar amount. The GSE infusions are backstopping loans from other institutions' books refinanced to GSEs so they could pat IN FULL & go bad on the taxpayers backs.
This whole debacle is a massive stealth looting of the treasury.
dryfly (member) wrote on Fri, 04/10/2009 - 2:28pm.
We have a bank failure ... Cape Fear Bank.
So what kind of pizza do they order on Good Friday?
I should think that would be obvious. Fishes and loaves pizza that magically expands to meet the need.
bearly,
Let's also remember that this whole debacle is a massive overt effort to avoid GDII.
.............................
Base hits win ballgames.
If you don't take your profits, someone else will.
Anchovy?
From the comments (sluggo)
http://www.fdic.gov/llp/comments/llp05.pdf
My suggestion: Put Bernie Madoff in charge and let him sort it all out!
We have been told for months that big bonuses are needed to retain the "talented" people who created the very complex derivatives that turned into a black hole once Lehman blew up. These people are the only ones, we are told, who understand how to "unwind" (and keep making) these complicated Structured Investment Vehicles.
This goes right to the top, of course, with the control of all these trillions of dollars in backdoor, front-door and sideways bailouts/guarantees gifts/loans – whatever – completely in the control of a coterie of Goldman Sachs' finest. They use their savvy and keen insight into the depths of financial matters to shovel money into AIG so it passes through to Goldman Sachs! Not just any garden variety financiers could think of so many good tricks for getting money (and leverage and other forcemultipliers) into the pockets that matter
So what I would like to suggest is that they quit fooling around and put Bernie Madoff in charge of the whole shebang. Turn the FED-Treasury over to Bernie. He knows what to do. The stated goal of this whole exercise is equivalent to keeping a Ponzi scheme running through another round, delaying the collapse by taking in one more gluttonous feeding.
Mass looting of the treasury. Indeed. No go over to
http://electricpolitics.com/
and listen to George Kenney interview Sibel Edmunds.
[Let's also remember that this whole debacle is a massive overt effort to avoid GDII]
That's bullshit. It's hardly going to avoid anything. This will extend the pain indefinitely and pay lenders off before the transfer of debt to the taxpayer crushes the dollar and sends taxation to the moon. Might avoid a brief GDII at the expense of sovereign default. Doesn't sound like a good trade-off to me.
Sign of the times; Snap-On Tool Boxes Every Draw FULL - $3700
Selling the seed corn so soon?
Wow - of course maybe they 'found' them...
A lot of the various commentary on these programs has focused on the justice of the system involved, while very little has focused on whether or not they will actually work. First, there is no justice involved in any of the bailout programs. We are propping up the very system that got us into the mess. Having said that, there's not too much we can do to stop it. It's obvious that these solutions stretch across party lines.
I think a more interesting question is whether these systems will work in their achieving their stated goals. Will they be effective in re-capitalizing banks? Is the government significantly exposed in offering the financing?
I suspect that at least the government is protected in part by good timing. Losses will start to slow, and there will be an equity cushion built into these deals. Keep in mind that it won't be the case that both a) the rich will get richer and b) the government will get socked on these deals.
It will have to be one or the other.
John Reeder
http://realpropertyalpha.com
Gotta love how the redacted text shows up fine with a simple copy and paste. I thought the gubmint learned their lesson with that already!
----
"The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails." -- William Arthur Ward
Sign of the times; Snap-On Tool Boxes Every Draw FULL - $3700
Wow - of course maybe they 'found' them...
Maybe they are short sales?
Lots of these boxes are bought on credit from the Snap-On truck.
I don't know if the boxes have serial numbers or if these are recourse loans?
I think a more interesting question is whether these systems will work in their achieving their stated goals.
The implied goal of this program is to preserve the bankers. It's stated with a wink and a nod at all those fancy expense account luncheons on K Street. Do you think any of these clowns could pass a lie detector test about what they say in public?
Keep in mind that it won't be the case that both a) the rich will get richer and b) the government will get socked on these deals.
It will have to be one or the other.
Of course you're right. The rich will get richer and the poor suffering taxpayer will once again bend over and prevent the government from taking any losses. Thank God the government never gets hurt.
@kidbuck
I think that your comment is a perfect example of the kind of emotion that emerges when people feel like they've been disenfranchised. I think it will be interesting to watch all of this play out for the following reason: The "politicians" are not making good political moves. They keep f-ing it up every time out, in terms of providing solutions that will get widespread consensus behind them.
John Reeder
http://realpropertyalpha.com
Someone had thir thinking cap on.
No participating bank should be allowed to bid on any portfolio. By providing nonrecourse
leverage, the FDIC takes on all the downside risk with only nominal sharing of
potential upside. If banks are permitted to bid on their own portfolios, or work with
competitor banks to bid on each others' portfolios, they could effectively shift all risk of
loss onto the FDIC which maintaining upside potential for themselves.
"We may congratulate ourselves that this cruel war is nearing its end.
It has cost a vast amount of treasure and blood. . . .
It has indeed been a trying hour for the Republic; but
I see in the near future a crisis approaching that unnerves me and causes
me to tremble for the safety of my country. As a result of the war,
corporations have been enthroned and an era of corruption in high places
will follow, and the money power of the country will endeavor to prolong
its reign by working upon the prejudices of the people until all wealth
is aggregated in a few hands and the Republic is destroyed.
I feel at this moment more anxiety for the safety
of my country than ever before, even in the midst of war.
God grant that my suspicions may prove groundless."
The passage appears in a letter from Lincoln to (Col.) William F. Elkins, Nov. 21, 1864.
Alright, I'll leave off beating the dead horse.