Chris Whalen was on Bloomberg TV just now with Mark Crumpton. He related in his new book, "Inflated" we have effectively turned our banks into operating REITs - correct; but no surprise. Forecloures' predictable AND inescapable, dimunition of property tax revenues and related state, county and local gummint budget woes. (Within the inevitable backdrop, indeed march of IT servicing and outsourcing, not only in the just released IBM current earnings but in the "forecast".) And this - MBS trusts which are generally required under NY law to hold both original notes and mortgages often forgot this little detail.
MOST IMPOTENT:
His response to Mr Crumpton's final question - "So what are (MBS) investors doing?"
Mr Whalen replied "...contacting their lawyers".
Since the Fed owns near "200 hundred stories tall" ~$2T of the stuff, acquired by way of removal, absent any 3rd party independent due diligence or valuation in the Fall of 2008 from certain banks predominantly from a certain Federal Reserve Bank district east of the Hudson; for reasons undisclosed.
When, this taxpayer asks, on behalf of all current and future US taxpayers and global creditors, will the Federal Reserve "Contact its lawyers?"
When will the Fed, bearing undeniable, ultimate fiduciary responsibility to all US citizens - CALL ITS LAWYERS TO:
1) RECOVER LOSSES DUE TO THIS IMPROPER Exchange of Cash for "Securities" aka INJECTION OF US TAXPAYER'S CASH INTO CERTAIN BANKS AND
2) When will the Obama Administration and/or Congress, conduct a real investigation, and reveal the truth and begin to investigate and remove Mr Bernanke and Mr Geithner?
Both have failed in series:
1) in the PAST - prior to the so called financial crisis;
2) in 2008 by allowing certain otherwise failed institutions to remain in business;
3) Since 2008, continuing to perpetuate half truths about the reasons for the so called financial crisis and actions related thereto.
We can and should forgive their mistakes or errors in judgment due only to incomplete information; but not known errors, certainly not when possessed of near perfect information - indeed, these two ARE and Mr Paulson, the "Men who knew too much..."
And the previous post October 3 and later on the issues surrounding the Fed's ownership of MBS trust securities STDs (securities transmitted diseases) with potentially toxic titles.
http://fiduciaryforensics.blogspot.com/2010/10/mortgage-gateat-fed-not-to-worry-only.html
http://fiduciaryforensics.blogspot.com/2010/10/why-am-i-not-surprised-so-what-will.html
http://fiduciaryforensics.blogspot.com/2010/10/foreclosures-real-genuine-titles-but.html
Ending the siesta on the US taxpayers dime - one easy to read blog at a time.
Not my first rodeo.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
McFid, BFD expert, since 2003. (BFD means breach of fiduciary duty)
McFid the combination of McConnell, whose family Irish crest heralds "Not for himself" and fiduciary.
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
Monday, October 18, 2010
Friday, October 8, 2010
To Ron Paul - no need to audit the Fed; it's near the Fed's last dance - Fed creates then drowns in its own ocean of (excess) liqudity...
Mike Holland is on Bloomberg TV talking about an "Ocean of liquidity".
And that all asset classes are rising due to this ocean of liquidity.
The Fed’s Bake Shop
It’s not if but WHEN speculation runs rampant and PERMANENTLY affects the currency AND global trade (among the remaining source and hope for real economic growth).
More and more and more Dollars do NOT boost real economic on the ground activity
More and more and more dollars SIMPLY boost prices (NOT value) of financial assets & commodities until…the Fed loses control.
Hence the need to audit the Fed will be a thing of the past - when the Fed is finally recognized - and ceases to be what it was originally intended to be.
And that all asset classes are rising due to this ocean of liquidity.
The Fed’s Bake Shop
It’s not if but WHEN speculation runs rampant and PERMANENTLY affects the currency AND global trade (among the remaining source and hope for real economic growth).
More and more and more Dollars do NOT boost real economic on the ground activity
More and more and more dollars SIMPLY boost prices (NOT value) of financial assets & commodities until…the Fed loses control.
Hence the need to audit the Fed will be a thing of the past - when the Fed is finally recognized - and ceases to be what it was originally intended to be.
Wednesday, October 6, 2010
The Big Lies* exposed...excuse me *the whole story has not been told
Important Note: * The word "lies, lied" are used for brevity when in some or all instances the phrase "did not tell part or the whole story" may apply.
Much time, effort and hope has been poured into debate about "the economic recovery."
Growth by definition, zero based, needs to FIRST examine the baseline against which we expect "growth". If we finally agree that so-called "growth" during the hockey stick era 2004-2007 cash out refis. Cash out refi's were fed by securitizations of pools of mortgages, then derivatives, upon new classes of derivatives, fed by borrowed short term money leveraged 20, 30, 40 or 50 to $1 enabling the creation of ever more NEW derivatives then we can see clearly that debt-induced growth occurred NOT real economic growth. That will take YEARS to recover from. Why? Debt has a due date, both principal and interest need to be paid back. Because certain policy makers /actors placed self or narrow interests above the whole truth, some were lied to, some didn't know any better and perpetuated the lie and a certain coterie refused to let certain entities fail.
So yes economic RECOVERY but not growth - as many hope; that's not how it works, nor should it. To do so would be deny who and what caused the unsound growth.
Therein begins the BIG LIE*.
Lie #1 - the undisputed financial experts AT certain banks, over a period of years, did not tell the whole story to the Federal Reserve and US Treasury as to 1) their comprehensive safety and soundness and 2) the potential repercussions of future investment bank failures in the summer of 2008. These banks (commercial and/or investment) through, subject to proof, potential collusion, insured they would survive AFTER certain others were allowed to fail. Why?
Certain banks, in a Federal Reserve District east of the Hudson (supposedly supervised by Mr Geithner from 2003 to 2008), many of whom were primary dealers. Primary dealers are required to BID on new US Treasury debt. Certain banks may have gently "intimated" to the Fed that if the Fed and/or the US Treasury wanted to play hard ball (like get real marks or identities of counter parties) then the failure of just ONE more primary dealer (after the less popular Lehman and Bear Stearns) would cause disastrous consequences for existing US Debt and on the run issues; that of NO BID.
Lie #2 - The financial experts at the US Treasury lied* to other officials in the Bush White House.
Lie #3 - The Bush White House lied* to the public; as to the people, not systems, responsible and the dollar amount of the problem.
Lie #4 - The Obama Treasury officials - namely one BORN out of the scandal - continued the lie* to the White House and to the public.
Lie #5 - The Fed paid Taxpayers' Cash 100 cents on the dollar for so-called AAA rated paper. Why? And to whom? Near $2T of this paper sits on the Fed balance sheet today.
Lie #6 - The Federal Reserve hoped that artificial 0% interest would help certain banks REliquify their balance sheets back to life.
Lie #7 - Certain banks, upon receipt of US Treasury cash could NOT testify specifically what uses the money was put to - IN FRONT OF CONGRESS. Despite a few awarding $5B in CASH retention awards to their stock brokers in 2009. True.
Lie #8 - To this day - no one - not the Fed, US Treasury, the White House has revealed the names and amounts of indirect and direct support to certain banks, and other entities; especially the names of NON FDIC insured affiliates getting over $240B of loan guarantees by the FDIC.
Yes, your eyes did not deceive you - Non FDIC insured entities GOT and continue to GET FDIC backed loan guarantees. See line #3 in the table in this link http://www.fdic.gov/regulations/resources/TLGP/total_issuance08-10.html
Lie #9 - NO, I repeat NO amount of MONETARY stimulus - will generate sustainable economic growth. Why? Because everyone SEES it for what it is - temporary money, that will disappear faster than the half life of an atom.
Lie #10 - The White House leaders must tell the truth - from the beginning or they will rightly be replaced or rendered useless. ONLY then will taxpayers (and foreign creditors) know and understand who and what caused the current spate of problems. Then the financial experts (private and public) will be exposed for what they did. Fiscal, structural solutions are called for: Reasonable medium to long term tax incentives for 1) future real estate investments in existing properties, 2) tax incentives for any green improvements in existing real estate 3) future income from NEW self employment and 4) NEW training and education. And the most important 5) Get the FED out of the securities markets STD's will continue until they're gone. STDs are Securities transmitted diseases.
Lie #10 - continuing to expect the culprits at certain banks and Wall St entities to cause economic growth exposes the LIE - they generally and simply leach OFF growth - as any middleman, trader will do. It's totally legal but needs to be seen for what it is and what it is not.
Lie #11 - holding up the "stock market" as the barometer for economic growth completely misrepresents reality, although an overwhelming amount of attention is devoted to "TV and media coverage" of DAILY trading. This represents ONE thing - it shows investors' relative appetite for financial PAPER speculation; NOT real on-the-ground economic growth.
Much time, effort and hope has been poured into debate about "the economic recovery."
Growth by definition, zero based, needs to FIRST examine the baseline against which we expect "growth". If we finally agree that so-called "growth" during the hockey stick era 2004-2007 cash out refis. Cash out refi's were fed by securitizations of pools of mortgages, then derivatives, upon new classes of derivatives, fed by borrowed short term money leveraged 20, 30, 40 or 50 to $1 enabling the creation of ever more NEW derivatives then we can see clearly that debt-induced growth occurred NOT real economic growth. That will take YEARS to recover from. Why? Debt has a due date, both principal and interest need to be paid back. Because certain policy makers /actors placed self or narrow interests above the whole truth, some were lied to, some didn't know any better and perpetuated the lie and a certain coterie refused to let certain entities fail.
So yes economic RECOVERY but not growth - as many hope; that's not how it works, nor should it. To do so would be deny who and what caused the unsound growth.
Therein begins the BIG LIE*.
Lie #1 - the undisputed financial experts AT certain banks, over a period of years, did not tell the whole story to the Federal Reserve and US Treasury as to 1) their comprehensive safety and soundness and 2) the potential repercussions of future investment bank failures in the summer of 2008. These banks (commercial and/or investment) through, subject to proof, potential collusion, insured they would survive AFTER certain others were allowed to fail. Why?
Certain banks, in a Federal Reserve District east of the Hudson (supposedly supervised by Mr Geithner from 2003 to 2008), many of whom were primary dealers. Primary dealers are required to BID on new US Treasury debt. Certain banks may have gently "intimated" to the Fed that if the Fed and/or the US Treasury wanted to play hard ball (like get real marks or identities of counter parties) then the failure of just ONE more primary dealer (after the less popular Lehman and Bear Stearns) would cause disastrous consequences for existing US Debt and on the run issues; that of NO BID.
Lie #2 - The financial experts at the US Treasury lied* to other officials in the Bush White House.
Lie #3 - The Bush White House lied* to the public; as to the people, not systems, responsible and the dollar amount of the problem.
Lie #4 - The Obama Treasury officials - namely one BORN out of the scandal - continued the lie* to the White House and to the public.
Lie #5 - The Fed paid Taxpayers' Cash 100 cents on the dollar for so-called AAA rated paper. Why? And to whom? Near $2T of this paper sits on the Fed balance sheet today.
Lie #6 - The Federal Reserve hoped that artificial 0% interest would help certain banks REliquify their balance sheets back to life.
Lie #7 - Certain banks, upon receipt of US Treasury cash could NOT testify specifically what uses the money was put to - IN FRONT OF CONGRESS. Despite a few awarding $5B in CASH retention awards to their stock brokers in 2009. True.
Lie #8 - To this day - no one - not the Fed, US Treasury, the White House has revealed the names and amounts of indirect and direct support to certain banks, and other entities; especially the names of NON FDIC insured affiliates getting over $240B of loan guarantees by the FDIC.
Yes, your eyes did not deceive you - Non FDIC insured entities GOT and continue to GET FDIC backed loan guarantees. See line #3 in the table in this link http://www.fdic.gov/regulations/resources/TLGP/total_issuance08-10.html
Lie #9 - NO, I repeat NO amount of MONETARY stimulus - will generate sustainable economic growth. Why? Because everyone SEES it for what it is - temporary money, that will disappear faster than the half life of an atom.
Lie #10 - The White House leaders must tell the truth - from the beginning or they will rightly be replaced or rendered useless. ONLY then will taxpayers (and foreign creditors) know and understand who and what caused the current spate of problems. Then the financial experts (private and public) will be exposed for what they did. Fiscal, structural solutions are called for: Reasonable medium to long term tax incentives for 1) future real estate investments in existing properties, 2) tax incentives for any green improvements in existing real estate 3) future income from NEW self employment and 4) NEW training and education. And the most important 5) Get the FED out of the securities markets STD's will continue until they're gone. STDs are Securities transmitted diseases.
Lie #10 - continuing to expect the culprits at certain banks and Wall St entities to cause economic growth exposes the LIE - they generally and simply leach OFF growth - as any middleman, trader will do. It's totally legal but needs to be seen for what it is and what it is not.
Lie #11 - holding up the "stock market" as the barometer for economic growth completely misrepresents reality, although an overwhelming amount of attention is devoted to "TV and media coverage" of DAILY trading. This represents ONE thing - it shows investors' relative appetite for financial PAPER speculation; NOT real on-the-ground economic growth.
Foreclosures - Real, Genuine Titles - but Investigation first over allegations of False Documents
These quotes are here today AFTER several lawmakers have requested invetigations into the "foreclosure process".
Update Ohio Attorney General Richard Cordray stated on Bloomberg, that the DOJ is investigating and criminal indictments may take place way IF certain parties KNOWINGLY submitted false documents to the courts.
At most, said Rick Sharga, chief economist of the foreclosure-tracking firm RealtyTrac, the snafus will probably delay foreclosures for the next 60 to 90 days. Servicers will review the documents in question and implement internal procedures to comply with regulators.
"Once that's done, we'll probably see an escalation of foreclosure activity," he said.
If the reviews turn up major mistakes, or if a court orders review of tens of thousands of other records on prior foreclosures, "things could get very messy very quickly," Sharga said.
Especially if the banks have sold these foreclosed houses.
"If the bank or its subsidiary obtained title by virtue of a final judgment improperly obtained, then the sheriff sold the property based on that same improper judgment," Garrabrant said. A sheriff's deed can be challenged in court, as can the final judgment authorizing a sheriff's sale and the resulting bank deed.
It's equally possible, RadarLogic's Feder said, that delaying foreclosures will only push the economic reckoning for some homeowners farther into the future.
Read more: http://www.philly.com/inquirer/business/20101006_Probe_into__blind_stamping__of_documents_prompts_halt_in_foreclosures.html?nlid=3266889#ixzz11bo5aFyI Watch sports videos you won't find anywhere else
AND AS BEFORE - we ask - what are the implications for holders of MBS and related derivatives like the Fed (courtesy of US taxpayer cash exchanged for so called AAA rated MBS, et al paper)? As well as ratings of same. What if the ratings agencies DECIDE to lower ratings?
What then? Can the Fed put them back to the banks? Is the Fed obligated to put them back?
What impact would such put back have upon certain banks? Are we coming full circle? BACK to the CAUSE of the so - called financial crisis? Namely certain banks' failure to understand and evaluate the BASIC underlying credit-worthiness of collateral as posted here in July 2007 http://www.fiduciaryexpert.com/page3.html
Excerpt here -Capital, currency and commodities are globally connected. Settlement of trades is nearly immediate, disruption could unsettle all markets. Cash infusions by the operators or sponsors, market rescues, liquidity by Federal Reserve Bank through discount rate cuts, extended rollover provisions, open market operations band aid liquidity only; Fed action does not cure the credit (creditworthiness) and or valuation issues of these "securities".
And again we ask - what will Global creditors of the USD think and more importantly DO?
Now AND in the FUTURE?
And we pay for this? LET ME COUNT THE WAYS.
Not once but now twice for current taxpayers.
Future generations will effectively pay 7 ways for the-from-the-start-ill-advised-certain-bank-MBS -leveraged-speculative-prop-trading-margin-call-bailout. The additional 5 ways are result of 1) higher future relative interest rates, 2) lower growth, 3) lower employment 4) HIGHER taxes that will be necessary to satisfy domestic and foreign creditors demands 5) lower currency value. The above does NOT count the higher taxes, lower growth at the state, county and city / local level. In combination ALL pointing to a LOWER not higher standard of living compared to the rest of the world. But NOT for the recipients of the Fed's bailout - oh no they're special.
Rather more like home-grown FINANCIAL TERRORISTS.
ALL THE RESULT OF THE OH SO FINELY TUNED "JUST IN TIME" FINANCIAL ENGINEERING - OH EXCUSE ME FINANCIAL INNOVATION. The result of massively leveraged spread trades between long term asset vs short term borrowings in the 2(a)7 money markets . INVENTED AND PROMOTED BY? YOUR FRIENDLY NEIGHBORHOOD WALL ST BANKERS & TRADERS. Watched over by your friends at the NY Fed and the Fed Reserve Board. CAUSED MORE DAMAGE TO THE ECONOMY THAN 9/11 BUT ONLY AFTER CASH BONUS PAYDAYS. Caused what looks to be a multi-generational long damage to trust.
NOW they (BB & TG) are claiming and getting credit for "healing and rescuing" the economy!
Come on gimme a break.
Ending the siesta on the Taxpayer's dime - one easy to read blog at a time.
Not my first rodeo.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
McFid, since 2003, BFD expert. (BFD means breach of fiduciary duty)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
Update Ohio Attorney General Richard Cordray stated on Bloomberg, that the DOJ is investigating and criminal indictments may take place way IF certain parties KNOWINGLY submitted false documents to the courts.
At most, said Rick Sharga, chief economist of the foreclosure-tracking firm RealtyTrac, the snafus will probably delay foreclosures for the next 60 to 90 days. Servicers will review the documents in question and implement internal procedures to comply with regulators.
"Once that's done, we'll probably see an escalation of foreclosure activity," he said.
If the reviews turn up major mistakes, or if a court orders review of tens of thousands of other records on prior foreclosures, "things could get very messy very quickly," Sharga said.
Especially if the banks have sold these foreclosed houses.
"If the bank or its subsidiary obtained title by virtue of a final judgment improperly obtained, then the sheriff sold the property based on that same improper judgment," Garrabrant said. A sheriff's deed can be challenged in court, as can the final judgment authorizing a sheriff's sale and the resulting bank deed.
It's equally possible, RadarLogic's Feder said, that delaying foreclosures will only push the economic reckoning for some homeowners farther into the future.
Read more: http://www.philly.com/inquirer/business/20101006_Probe_into__blind_stamping__of_documents_prompts_halt_in_foreclosures.html?nlid=3266889#ixzz11bo5aFyI Watch sports videos you won't find anywhere else
AND AS BEFORE - we ask - what are the implications for holders of MBS and related derivatives like the Fed (courtesy of US taxpayer cash exchanged for so called AAA rated MBS, et al paper)? As well as ratings of same. What if the ratings agencies DECIDE to lower ratings?
What then? Can the Fed put them back to the banks? Is the Fed obligated to put them back?
What impact would such put back have upon certain banks? Are we coming full circle? BACK to the CAUSE of the so - called financial crisis? Namely certain banks' failure to understand and evaluate the BASIC underlying credit-worthiness of collateral as posted here in July 2007 http://www.fiduciaryexpert.com/page3.html
Excerpt here -Capital, currency and commodities are globally connected. Settlement of trades is nearly immediate, disruption could unsettle all markets. Cash infusions by the operators or sponsors, market rescues, liquidity by Federal Reserve Bank through discount rate cuts, extended rollover provisions, open market operations band aid liquidity only; Fed action does not cure the credit (creditworthiness) and or valuation issues of these "securities".
And again we ask - what will Global creditors of the USD think and more importantly DO?
Now AND in the FUTURE?
And we pay for this? LET ME COUNT THE WAYS.
Not once but now twice for current taxpayers.
Future generations will effectively pay 7 ways for the-from-the-start-ill-advised-certain-bank-MBS -leveraged-speculative-prop-trading-margin-call-bailout. The additional 5 ways are result of 1) higher future relative interest rates, 2) lower growth, 3) lower employment 4) HIGHER taxes that will be necessary to satisfy domestic and foreign creditors demands 5) lower currency value. The above does NOT count the higher taxes, lower growth at the state, county and city / local level. In combination ALL pointing to a LOWER not higher standard of living compared to the rest of the world. But NOT for the recipients of the Fed's bailout - oh no they're special.
Rather more like home-grown FINANCIAL TERRORISTS.
ALL THE RESULT OF THE OH SO FINELY TUNED "JUST IN TIME" FINANCIAL ENGINEERING - OH EXCUSE ME FINANCIAL INNOVATION. The result of massively leveraged spread trades between long term asset vs short term borrowings in the 2(a)7 money markets . INVENTED AND PROMOTED BY? YOUR FRIENDLY NEIGHBORHOOD WALL ST BANKERS & TRADERS. Watched over by your friends at the NY Fed and the Fed Reserve Board. CAUSED MORE DAMAGE TO THE ECONOMY THAN 9/11 BUT ONLY AFTER CASH BONUS PAYDAYS. Caused what looks to be a multi-generational long damage to trust.
NOW they (BB & TG) are claiming and getting credit for "healing and rescuing" the economy!
Come on gimme a break.
Ending the siesta on the Taxpayer's dime - one easy to read blog at a time.
Not my first rodeo.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
McFid, since 2003, BFD expert. (BFD means breach of fiduciary duty)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
Monday, October 4, 2010
Why am I not surprised (so what will Moodys' Mr Zandi do if...)
Why am I not surprised, if Mr Zandi would be surprised if there's any thing more than a few weeks delay or a couple two three month "paperwork" delay. "I guess we're gonna have to wait and find out how courts interpret challenges to mortgage foreclosure process." paraphrased.
What about seriously commenting on how it may affect YOUR job (Moodys' unique protected, enshrined FUNCTION in the financial system)
HOW ABOUT MOODYS should be looking at HOW the ratings on certain MBS and related derivatives, counter parties thereto and HOLDERS (including the Fed) will be affected IF certain challenges hold up?
Then what?
Maybe a certain triple AAA rated, risk free, benchmark paper will be like Jethro Tull's "Living in the past"; indeed a relic of the past. Given certain unnecessary arrogance, hubris but intentional lack of transparency - it's as it should be.
Mr Zandi appeared on Bloomberg TV with Eric Schatzker earlier today Link here http://www.bloomberg.com/video/63458972/
Ending the siesta on the taxpayers' dime one easy to read blog at a time.
NOT MY FIRST RODEO.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™.
It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
Chris aka McFid, since 2003, BFD expert.
(BFD means breach of fiduciary duty)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
What about seriously commenting on how it may affect YOUR job (Moodys' unique protected, enshrined FUNCTION in the financial system)
HOW ABOUT MOODYS should be looking at HOW the ratings on certain MBS and related derivatives, counter parties thereto and HOLDERS (including the Fed) will be affected IF certain challenges hold up?
Then what?
Maybe a certain triple AAA rated, risk free, benchmark paper will be like Jethro Tull's "Living in the past"; indeed a relic of the past. Given certain unnecessary arrogance, hubris but intentional lack of transparency - it's as it should be.
Mr Zandi appeared on Bloomberg TV with Eric Schatzker earlier today Link here http://www.bloomberg.com/video/63458972/
Ending the siesta on the taxpayers' dime one easy to read blog at a time.
NOT MY FIRST RODEO.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™.
It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
Chris aka McFid, since 2003, BFD expert.
(BFD means breach of fiduciary duty)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
Sunday, October 3, 2010
A Serious Problem: Banks’ Florida foreclosure tremors may be felt as far away as China, travels through the Fed Balance Sheet
The Fed (holders of near $2T of RMBS and CMBS) MUST BE saying you know what if the post at naked capitalism today is anywhere near true. LINK http://www.nakedcapitalism.com/2010/10/4closurefraud-posts-docx-mortgage-document-fabrication-price-sheet.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29
Update October 11, Housing Wire Paul Jackson writes about the decades long rot on the vine in attorneys' race to earn work and remain a preferred vendor to Banks http://www.housingwire.com/2010/10/11/foreclosure-mess-exposes-the-rot-from-within
Update October 5, House Speaker Pelosi and members of the California Democratic Congressional delegation have formally requested the DOJ, the Federal Reserve and the OCC to look into among other things FORECLOSURE IRREGULARITIES http://media.washingtonpost.com/wp-srv/business/documents/california-letter.pdf?hpid=topnews
When China figures OUT that the FED does not have clear title to collateral of underlying mortgages in the trusts which are supposed to own and hold these instruments; the effect may be it seems DIS-electric; in other words UN - plugged.
Shortfalls in establishing chain of title dating to origination have surfaced, it appears for ALL major parties. Oh, it's just the mere trifling question of the TRUST which owns the notes to underlying collateral (title to real property) MAY BE DEFECTIVE, and that makes the Fed's holdings, not more valuable but the opposite, worth less than promised, less than expected, and so what effect will we see in the MBS and related derivatives markets manana?
BECAUSE AS THIS WRITER POINTED OUT IN FALL 2008, WHAT DUE DILIGENCE WAS PERFORMED BY THE FED B-E-F-O-R-E PAYING 100 CENTS OF US TAXPAYER C-A-S-H TO CERTAIN BANKS IN EXCHANGE FOR so - called A-A-A PAPER?
2nd Request; my apologies but remind me again why the Fed had to purchase the AAA rated paper from certain banks in the first place.
At 100 cents on the dollar?
Oh, silly me - the Fed NEVER explained WHY it had to take certain paper off the hands of certain banks.
Guessing that BB, being a few years south of retirement age, may have his eye NOT on the Fed's balance sheet but a juicy vice-chairmanship, head of strategy or the like at one of the supervisees. Bet he'll prefer payment NOT in China's Yuan whose near Trillion US dollars foreign currency reserves may wind up slightly less precious - so BB may prefer payment in wheat; at least you can eat it.
Link here October 9, 2008 Is a prudent fiduciary result at all possible? http://fiduciaryforensics.blogspot.com/2008/10/is-prudent-fiduciary-result-at-all.html
Link here September 28 , 2008 Where do I sign? Now that I'm a fiduciary to the US taxpayer.
http://fiduciaryforensics.blogspot.com/2008/09/where-do-i-sign-now-that-im-fiduciary.html
Link here to the very first blog post September 21, 2008 US Treasury Bailout for MBS? NO! http://fiduciaryforensics.blogspot.com/2008/09/us-treasury-bailout-for-mbs-no.html
What the Fed gonna do now? BB and TG better start learning how to say "Uh, aw shucks, good golly, geepers me - well we may have made a mistake, but don't worry it's only money" in MANDARIN presto.
Come on - give me a break. Ending the siesta on the Taxpayers' dime - one easy to read blog at a time.
NOT MY FIRST RODEO.
Since 2004, my office has issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
Chris aka McFid, since 2003 BFD expert.
Call McFid, the Fiduciary Expert. (BFD means breach of fiduciary duty.)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
Update October 11, Housing Wire Paul Jackson writes about the decades long rot on the vine in attorneys' race to earn work and remain a preferred vendor to Banks http://www.housingwire.com/2010/10/11/foreclosure-mess-exposes-the-rot-from-within
Update October 5, House Speaker Pelosi and members of the California Democratic Congressional delegation have formally requested the DOJ, the Federal Reserve and the OCC to look into among other things FORECLOSURE IRREGULARITIES http://media.washingtonpost.com/wp-srv/business/documents/california-letter.pdf?hpid=topnews
When China figures OUT that the FED does not have clear title to collateral of underlying mortgages in the trusts which are supposed to own and hold these instruments; the effect may be it seems DIS-electric; in other words UN - plugged.
Shortfalls in establishing chain of title dating to origination have surfaced, it appears for ALL major parties. Oh, it's just the mere trifling question of the TRUST which owns the notes to underlying collateral (title to real property) MAY BE DEFECTIVE, and that makes the Fed's holdings, not more valuable but the opposite, worth less than promised, less than expected, and so what effect will we see in the MBS and related derivatives markets manana?
BECAUSE AS THIS WRITER POINTED OUT IN FALL 2008, WHAT DUE DILIGENCE WAS PERFORMED BY THE FED B-E-F-O-R-E PAYING 100 CENTS OF US TAXPAYER C-A-S-H TO CERTAIN BANKS IN EXCHANGE FOR so - called A-A-A PAPER?
2nd Request; my apologies but remind me again why the Fed had to purchase the AAA rated paper from certain banks in the first place.
At 100 cents on the dollar?
Oh, silly me - the Fed NEVER explained WHY it had to take certain paper off the hands of certain banks.
Guessing that BB, being a few years south of retirement age, may have his eye NOT on the Fed's balance sheet but a juicy vice-chairmanship, head of strategy or the like at one of the supervisees. Bet he'll prefer payment NOT in China's Yuan whose near Trillion US dollars foreign currency reserves may wind up slightly less precious - so BB may prefer payment in wheat; at least you can eat it.
Link here October 9, 2008 Is a prudent fiduciary result at all possible? http://fiduciaryforensics.blogspot.com/2008/10/is-prudent-fiduciary-result-at-all.html
Link here September 28 , 2008 Where do I sign? Now that I'm a fiduciary to the US taxpayer.
http://fiduciaryforensics.blogspot.com/2008/09/where-do-i-sign-now-that-im-fiduciary.html
Link here to the very first blog post September 21, 2008 US Treasury Bailout for MBS? NO! http://fiduciaryforensics.blogspot.com/2008/09/us-treasury-bailout-for-mbs-no.html
What the Fed gonna do now? BB and TG better start learning how to say "Uh, aw shucks, good golly, geepers me - well we may have made a mistake, but don't worry it's only money" in MANDARIN presto.
Come on - give me a break. Ending the siesta on the Taxpayers' dime - one easy to read blog at a time.
NOT MY FIRST RODEO.
Since 2004, my office has issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
Chris aka McFid, since 2003 BFD expert.
Call McFid, the Fiduciary Expert. (BFD means breach of fiduciary duty.)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
Saturday, October 2, 2010
So far...Fed's rouge on (for) the Financial sector & securities holds off creditors acts...but unlike other assets DEBT HAS A DUE DATE
Bloomberg ran a story featuring pro's and con's and other views of the expected Fed QE2 $500B of asset purchases. Link here http://www.bloomberg.com/news/2010-10-02/fed-debates-easing-tools-as-dudley-says-further-steps-warranted.html
The last sentence of the last paragraph was best - "Investors are buying into the strategy,” said Kos, who noted that prospects for further quantitative easing have depreciated the dollar without a rise in Treasury yields that foreign investors typically demand to compensate for currency risk. “You worry that at some point they don’t. A loss of credibility in central banking is really difficult to recover from.”
As Bell Labs engineers learned long ago how to separate the "Signal" from the "Noise" hence SDT Signal Detection Theory; as discussed on Charlie Rose recently.
When the Fed has to reveal - as it should - the parties and amounts of support extended to banks in a certain Federal Reserve district east of the Hudson - THEN - the you know what will hit the fan; also as it should.
I and many others were born at night but not last night. Think the creditors / owners of US Treasuries are NOT watching and waiting? Think they are NOT already long PAST the reality that the US is addicted to, reliant upon imports; think they are NOT reducing reliance upon US? Think they are not quickly selling higher value added products and THEN services?
Think there is any question; they know where they're going?
China, foremost among all others has like its many other endeavors, lifted the first page out of GE's playbook; either be #1 or #2 in the market or get out. China WILL be #1 or #2 in ANY market it chooses to pursue; they have all the advantages. They have "capitalism" on there side too; how's that? If the US engages in protectionism, China can rightly claim hypocrisy.
The Fed's NOISE is getting in the way, officially DIS-INTERMEDIATION, of NATURAL economic forces is a ruse, more like rouge on (for) the "financial sector" which the Chinese and many others KNOW; it's only a matter of time before they act as any rational actor; find substitutes.
SAID MORE CLEARLY - ONLY WHEN THE FED STOPS DISCONNECTING THE ECONOMY (INNOVATION, JOB TRAINING, JOBS = OPPORTUNITY) FROM THE FINANCIAL SECTOR (FED WELFARE RECIPIENTS) AND CERTAIN SECURITIES; MARKETS WILL RETURN - UNTIL THEN HEADING and STAYING SOUTH FOR THE WINTER.
It is undeniable, when the Fed acquired you know what of nearly $2T of "securities" directly from certain financial institutions on and off balance sheets entities the Fed simply transferred the credit and valuation problem onto its own balance sheet. The reality of the problem did NOT go away.
And when, not if, the Fed, encounters the same problem, the inability to roll over debt, the same problem which CAUSED the September 2008 "panic" the Fed will hopefully have learned the ultimate lesson, and be forced to let financial markets function as they should - find liquidating values.
Come on - give me a break. Ending the siesta on the Taxpayers' dime - one easy to read blog at a time.
NOT MY FIRST RODEO.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish – its about recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
Chris aka McFid* * Since 2003, when you need to know exactly what a BFD looks like. Call McFid, the Fiduciary Expert. (BFD means breach of fiduciary duty.)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
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