Man on street in Shanghai echo sentiments heard up and down say
Best way for China to spend its $1T plus US dollars – no?
Might as well get value for money – while it last right?
Back to reality:
Chris Whalen stated on Bloomberg a few days ago that "banks" are effectively morphing into operating REITs given the extra REAL ESTATE on the books.
When the Banks get swamped with PUT-back MBS who will they turn to? The lender of last resort, the Fed; effectively turning the FED into an operating REIT.
And so the FED may have no other choice but to once again (unbelievably) exchange more cash to certain banks and YET again take more toxic MBS onto its already bloated 200 hundred stories tall near ~$2T balance sheet; the enormous STD of Securtitization Transmitted Damages has emerged; it's only a matter of the next news cycles.
In the interim, France beats US to the pppppppp...not punch silly, protest, because they have told their citizens the truth - that being they will have to work 2 extra years to receive their PROMISED pensions.
Yesterday I issued a SPECIAL FiduciaryALERT entitled a new STD...any comments, questions, reactions or corrections appreciated.
A new STD; (Securitization transmitted damages), could make the Madoff fraud look ant-like. Potential losses may exceed hundreds of billions of dollars. Investments in Mortgage backed securities, Municipal bonds, and the value of every house may be in question. With property values under renewed pressure; every State, County and City budget could be at risk. If the above is true, then the US Dollar is at risk and worldwide currency panic could ensue due to the “just in time” worldwide financial settlement and trading mechanisms in place. As a result we seem to in the throes of the end of money, at least as we have come to know it. And for those seeking comfort in Gold and Silver be reminded that same is widely valued / priced in those same US dollars. Some US States may seek fiscal secession from Washington and issue their own currencies.
As Goldman goes so goes America so is this the direction others may want to consider?
Last year the Huffington Post reported some at sure footed Goldman applied for gun permits. Link here http://www.huffingtonpost.com/2009/12/01/goldman-sachs-staff-buyin_n_375106.html
A new enormous, indeed TITANIC risk area for all investors may arise from STDs™ (Securitization transmitted damages). McConnell has been calling for increased independent due diligence BEFORE investing since 2004 and specifically since July 2007. STDs arise when, for example, some mortgages were not properly assigned to trusts designed to hold certain legal documents. Investments, predominantly packaged by banks in a certain Federal Reserve district east of the Hudson, worth trillions of face value are potentially exposed. Investors believed negatively impacted include the Federal Reserve (ultimately the US taxpayer), NY Federal Reserve bank, large institutional investors like pension and 401k plans, charities, non profits, foundations and hedge funds, mutual funds, exchange traded funds ETFs and direct investors in any mortgage backed security (MBS) and/or Municipal Bond starting with Money market mutual funds; both taxable and tax-free.
State, county and local city government budgets may face unprecedented pressure due to declining house values which directly negatively impact property taxes. Property tax collections usually decline when a home goes into foreclosure. Remaining home values in the neighborhood then decline and those homeowners usually seek some relief from their property tax burden.
* Today - the tip of the Iceberg, MAJOR investors seek to put back bonds to Bank of America *
Bloomberg reports that the NY Fed, Pimco have asked Bank of America to take back $47 Billion of mortgage backed securities. Link here http://www.bloomberg.com/news/2010-10-19/pimco-new-york-fed-said-to-seek-bank-of-america-repurchase-of-mortgages.html heading the obvious line of others not far behind. Earlier no less than 50 States’ Attorneys General began an investigation into the Foreclosure processing industry. Link here http://www.washingtonpost.com/wp-dyn/content/article/2010/10/12/AR2010101205604.html?hpid=news-col-blog
Upchuckeconomics™ when put-back MBS becomes too much for certain banks to stomach.
Yesterday, Bloomberg TV aired an interview with a Texas cattle rancher who stated the undeniable, “if you eat then you’re involved in agriculture”; axiomatically when it comes to STDs Chris McConnell, AIFA® FiduciaryFORENSICS® expert says “if you live in a house or apartment then you’re involved in STDs.” It’s not a question of if but when the STD will affect you; whether you own your own home, rental property or rent or invest in these securities.
How did STDs come about?
When banks issued mortgages prior to the so called financial crisis they often assigned them to trusts which securitized them, hence Mortgage backed securities (MBS), These trusts then sold the MBS off to investors. But some bond trusts, investigations reveal, may not hold proper title; to the underlying collateral. Defective title virally permeates the MBS food chain; hence STD’s.
Expert Evaluation of Investors claims for Breach of Fiduciary Duty or Suitability.
There are two levels of suitability analysis that may affect claims evaluation, in addition to the fiduciary duty owed to investors. Investors and attorneys wishing to understand how to successfully evaluate claims related to MBS, RMBS, CMBS, CDOs, Synthetic CDOs, and CDS and fiduciary duty can contact Chris McConnell & Associates.
When it comes to Derivatives – Resources, Action steps you can take.
Assistance is available to help you better understand the “then & now” responsibilities, duties and securities industry compliance and supervisory requirements of a bank, trust company, brokerage firm, stock broker, branch manager, financial adviser, investment adviser, hedge fund, mutual fund or derivative security.
About Chris McConnell, AIFA® a/k/a McFid*, BFD Expert since 2003
Chris McConnell received a BA, Economics/Accounting option from Rutgers University in 1983, passed the CPA exam in New York in 1986, and received an MBA from Pepperdine University in 1990. He was certified as an AIFA® by the Center for Fiduciary Studies in 2003. He has over 27 years of combined experience as a recognized expert, including his considerable securities industry. Litigattion and arbirtration experience and formal fiduciary training. An expert who wrote the book on broker dealer compensation, accounting, margin, compliance and managed accounts and can help assist in learning all the ways a stock brokerage firm, broker may have caused losses or profited from assets in your account.
Since 2004, Mr McConnell issued annual, 1 page FiduciaryALERTS™ like July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” McFid the combination of McConnell, his Irish family crest herald “not for himself” and fiduciary. BFD stands for breach of fiduciary duty.
If you have concerns FiduciaryFORENSICS® an independent expert, fiduciary evaluation is available.
For more information, visit www.fiduciaryexpert.com.
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