Comments on: Note To Banks: Be Careful Whom You Crawl Into Bed With, He Might Just Become Your Pimp http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/ Fri, 10 Feb 2012 12:34:39 +0000 hourly 1 By: Check These Out From David Horowitz’s www.newsrealblog.com - nampion.com http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-68698 Check These Out From David Horowitz’s www.newsrealblog.com - nampion.com Sun, 21 Mar 2010 05:31:25 +0000 http://newsrealblog.com/?p=13541#comment-68698 [...] 5) http://newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-jus... [...] [...] 5) http://newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-jus... [...]

]]> By: The Clock Is Ticking, Mr. President « NewsReal Blog http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21984 The Clock Is Ticking, Mr. President « NewsReal Blog Sat, 14 Nov 2009 23:02:04 +0000 http://newsrealblog.com/?p=13541#comment-21984 [...] of our age could come to a conclusion within three months—especially a president convinced that widespread overhauls of the private sector are too urgent to take the time to read the legislation in [...] [...] of our age could come to a conclusion within three months—especially a president convinced that widespread overhauls of the private sector are too urgent to take the time to read the legislation in [...]

]]> By: John Davidson http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21996 John Davidson Mon, 02 Nov 2009 20:59:37 +0000 http://newsrealblog.com/?p=13541#comment-21996 Barney Franck has no idea about politics or financial endeavors, but he does know how to procreate, I think. Barney Franck has no idea about politics or financial endeavors, but he does know how to procreate, I think.

]]> By: Mike Begunga http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21995 Mike Begunga Mon, 02 Nov 2009 18:58:09 +0000 http://newsrealblog.com/?p=13541#comment-21995 What differences the people in power make; why don’t Americans get it? Does anyone remember AT&T or Microsoft anti-trust suits? Forget monopoly, these companies are so large and have so much buying power that nobody without a Gates bankroll could ever consider playing ball… and it would be at a loss for a while mind you. Could you imagine opening a corner grocery market designed to compete with a Super Wal-Mart? Anyway my point… let them fail; someone will fill the hole left. If GM went down, I know someone with the moola would love to step up and acquire the truck division, Japan can’t get it right. I don’t know about you but my kids bust up anything I buy for them, now the things they save for and invest their own money on, those items are in pristine condition. Let someone invest their hard earned money to fix the problem, employ some people along the way, and maybe we won’t have to endure a Pontiac Aztec again. LET THEM FAIL… I know I’m dreaming. What differences the people in power make; why don’t Americans get it? Does anyone remember AT&T or Microsoft anti-trust suits? Forget monopoly, these companies are so large and have so much buying power that nobody without a Gates bankroll could ever consider playing ball… and it would be at a loss for a while mind you. Could you imagine opening a corner grocery market designed to compete with a Super Wal-Mart?

Anyway my point… let them fail; someone will fill the hole left. If GM went down, I know someone with the moola would love to step up and acquire the truck division, Japan can’t get it right. I don’t know about you but my kids bust up anything I buy for them, now the things they save for and invest their own money on, those items are in pristine condition. Let someone invest their hard earned money to fix the problem, employ some people along the way, and maybe we won’t have to endure a Pontiac Aztec again. LET THEM FAIL… I know I’m dreaming.

]]> By: John Nampion http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21994 John Nampion Mon, 02 Nov 2009 18:38:58 +0000 http://newsrealblog.com/?p=13541#comment-21994 Hey, Gunner, I did the same, but I still have a mortgage, purchased in 2007 before all the sub primes hit...of course I sold my house up north right around that time, and no one would buy it for over a year...if you want to learn how to sell low and buy high, I'm your guy. We all make dumb financial decisions, but we are all adult, too, and have the ability to learn from our mistakes. Even though my house is upside down now, it won't always be, and the last place I want to turn is the Gov't - I'll keep making the payments and hopefully it will be better down the road. By the way: One of the funniest moments in the Barney video is where he acts like the "sub-prime crusader" - he assures Andrea that he is going to make sure risky mortgages get mitigated, because he wants to protect our markets. Spoken by the biggest villian in the mortgage debacle - the one who more than any other forced the banks to loan to people with no jobs, no money, and no prospects. Lyin' just seems to come natural to him. John. Hey, Gunner, I did the same, but I still have a mortgage, purchased in 2007 before all the sub primes hit…of course I sold my house up north right around that time, and no one would buy it for over a year…if you want to learn how to sell low and buy high, I’m your guy.

We all make dumb financial decisions, but we are all adult, too, and have the ability to learn from our mistakes. Even though my house is upside down now, it won’t always be, and the last place I want to turn is the Gov’t – I’ll keep making the payments and hopefully it will be better down the road.

By the way: One of the funniest moments in the Barney video is where he acts like the “sub-prime crusader” – he assures Andrea that he is going to make sure risky mortgages get mitigated, because he wants to protect our markets.

Spoken by the biggest villian in the mortgage debacle – the one who more than any other forced the banks to loan to people with no jobs, no money, and no prospects.

Lyin’ just seems to come natural to him.

John.

]]> By: "gunner" http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21993 "gunner" Mon, 02 Nov 2009 17:46:48 +0000 http://newsrealblog.com/?p=13541#comment-21993 mr. nampion, you've described exactly why, after two experiences with credit cards i cut mine up, paid up the accounts and now only use pre-paid, one use "gift cards" and now that my mortgage is paid off i am extremely reluctant to borrow money from banks, finding means to pay cash without borrowing. everything i own is mine. i've never even had a car loan, if its parked on my property i own it free and clear. no bank, no finance company, no bill collector and no repros. that means that i do not have some of the fancy toys some folks sweat to pay for on credit but i do not miss them. as above, whats mine is mine and nobody can take it from me for unpaid debt. mr. nampion,
you’ve described exactly why, after two experiences with credit cards i cut mine up, paid up the accounts and now only use pre-paid, one use “gift cards” and now that my mortgage is paid off i am extremely reluctant to borrow money from banks, finding means to pay cash without borrowing. everything i own is mine. i’ve never even had a car loan, if its parked on my property i own it free and clear. no bank, no finance company, no bill collector and no repros. that means that i do not have some of the fancy toys some folks sweat to pay for on credit but i do not miss them. as above, whats mine is mine and nobody can take it from me for unpaid debt.

]]> By: Cas Balicki http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21983 Cas Balicki Mon, 02 Nov 2009 17:39:07 +0000 http://newsrealblog.com/?p=13541#comment-21983 You're confusing government involvement and budgetary deficits with market transactions. If you want to argue that massive budgetary deficits are unsustainable, I would agree. But you are arguing that basic market transactions are the cause, and that is where I do not agree. The problem with the measurement of money supply, which you allude to, is precisely the difficulty of measuring that money supply. It is no longer M1. As for nations such as China, the reason they do not want more U.S. debt is because they see the massive inflation that is coming thanks to the U.S. government's social and spending ambitions. It appears the Chinese are not as socialist as the Obama administration when it comes to their reserve of dollars. As for whether debt is an annuity or not, it depends on whether you are the debtor of creditor. To the creditor debt is, indeed, an annuity that can and often is factored, which is an old word for cashing out at present value, or what the market might refer to as monitizing (which I take to mean the buying up of debt obligations by some entity). Now, the reason government monitization involves the issuance of bonds is because in order to monetize debt someone must be paid its present value equivalent. The problem with Fanny Mae and Freddie Mac was that in monitizing massive amounts of mortgage debt they simply paid too much for it. In brutal financial terms, they overpaid for the traunches they bought, because they were incompetent. To their peril, the markets and lenders came to rely on this incompetence and therefore saw no reason to curtail their profligate lending. When the financial institutions saw Fanny and Freddy shut down their buying they were in panic given that they knew the state of their own lending. Desperate banks started taking cover by means of the credit default swaps (CDS). When the mortgages turned bad there was an immediate and unmanageable call on the markets to make good on instruments such as CDSs, which—surprise, surprise--precipitated the financial crisis by putting the banks off-side of reserve requirements. When banks are thus caught out they not only freeze new lending, but begin to call in demand loans to get their balance sheets in order and as a result the economy implodes. The roots of this crisis, by the way, go back to the Community Reinvestment Act passed by the Carter administration. You’re confusing government involvement and budgetary deficits with market transactions. If you want to argue that massive budgetary deficits are unsustainable, I would agree. But you are arguing that basic market transactions are the cause, and that is where I do not agree.

The problem with the measurement of money supply, which you allude to, is precisely the difficulty of measuring that money supply. It is no longer M1. As for nations such as China, the reason they do not want more U.S. debt is because they see the massive inflation that is coming thanks to the U.S. government’s social and spending ambitions. It appears the Chinese are not as socialist as the Obama administration when it comes to their reserve of dollars.

As for whether debt is an annuity or not, it depends on whether you are the debtor of creditor. To the creditor debt is, indeed, an annuity that can and often is factored, which is an old word for cashing out at present value, or what the market might refer to as monitizing (which I take to mean the buying up of debt obligations by some entity).

Now, the reason government monitization involves the issuance of bonds is because in order to monetize debt someone must be paid its present value equivalent. The problem with Fanny Mae and Freddie Mac was that in monitizing massive amounts of mortgage debt they simply paid too much for it. In brutal financial terms, they overpaid for the traunches they bought, because they were incompetent. To their peril, the markets and lenders came to rely on this incompetence and therefore saw no reason to curtail their profligate lending.

When the financial institutions saw Fanny and Freddy shut down their buying they were in panic given that they knew the state of their own lending. Desperate banks started taking cover by means of the credit default swaps (CDS). When the mortgages turned bad there was an immediate and unmanageable call on the markets to make good on instruments such as CDSs, which—surprise, surprise–precipitated the financial crisis by putting the banks off-side of reserve requirements. When banks are thus caught out they not only freeze new lending, but begin to call in demand loans to get their balance sheets in order and as a result the economy implodes. The roots of this crisis, by the way, go back to the Community Reinvestment Act passed by the Carter administration.

]]> By: howiem http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21992 howiem Mon, 02 Nov 2009 16:30:34 +0000 http://newsrealblog.com/?p=13541#comment-21992 Joseph White, I understand what you are saying, are you sure that you really want more and more government regulation? After all a market is merely a price setting mechanism. A free market is not arbitrary, i.e., I have a product to sell. If I cannot sell it at the price I want, I can lower the price. If I sell it at the new price, that becomes the right price, since both buyer and seller agree to that price. However, when the government gets involved and starts regulating, it changes the market conditions indefinitely. When a law is made today, that law must be obeyed tomorrow. But if the market conditions change tomorrow (and they are in a constant state of change), that regulation might and often does, become restrictive, so that a product I sold yesterday at the "right" price cannot be sold at that price. My costs will have gone up because of the regulation, and because the costs of potential buyers have gone up, either the buyer has to be willing to pay the higher price, or I will be out of business, unless I can cut my costs, like laying off employees, buying less from my suppliers (thus putting them at a higher risk). We could get away from monetizing debt by having a standard, like we once had the gold standard. Then governments could not spend thin-air money. Unfortunately that takes responsible government officials who understand that the money they are spending is not theirs. We haven't seen many of these lately from either side of the aisle. I don't agree on rules forbidding speculation, because we make every personal decision as well as business decisions based on speculation. Even if one calls it legalized gambling, which it is, risk is all about the unknown future, and we all speculate constantly. None of us can be 100% certain what is going to happen in the future, even an instant from the time a decision is made. Governments have shown time and again that they are incapable of correctly predicting the future. We would all like to feel secure that we are making a forecast of our lives and business that cannot go wrong, but that is unrealistic. There are too many factors affecting everything we do. Economic forecasting models use thousands of variable factors to make their predictions. The key word here is 'variable'. Yet the economic forecasts are only sometimes reliable in the short term, and only provided there are no major events that upset the forecasts. There are always ongoing events that affect each of us in different ways, sometimes unnoticeable, sometimes hitting us between the eyes, and hard. I think a sumup is that every law is a restriction, some are necessary for the preservation of peace and security, but aside from those, the individual should be left free to pursue his own destiny. Joseph White, I understand what you are saying, are you sure that you really want more and more government regulation? After all a market is merely a price setting mechanism. A free market is not arbitrary, i.e., I have a product to sell. If I cannot sell it at the price I want, I can lower the price. If I sell it at the new price, that becomes the right price, since both buyer and seller agree to that price. However, when the government gets involved and starts regulating, it changes the market conditions indefinitely. When a law is made today, that law must be obeyed tomorrow. But if the market conditions change tomorrow (and they are in a constant state of change), that regulation might and often does, become restrictive, so that a product I sold yesterday at the “right” price cannot be sold at that price. My costs will have gone up because of the regulation, and because the costs of potential buyers have gone up, either the buyer has to be willing to pay the higher price, or I will be out of business, unless I can cut my costs, like laying off employees, buying less from my suppliers (thus putting them at a higher risk). We could get away from monetizing debt by having a standard, like we once had the gold standard. Then governments could not spend thin-air money. Unfortunately that takes responsible government officials who understand that the money they are spending is not theirs. We haven’t seen many of these lately from either side of the aisle. I don’t agree on rules forbidding speculation, because we make every personal decision as well as business decisions based on speculation. Even if one calls it legalized gambling, which it is, risk is all about the unknown future, and we all speculate constantly. None of us can be 100% certain what is going to happen in the future, even an instant from the time a decision is made. Governments have shown time and again that they are incapable of correctly predicting the future. We would all like to feel secure that we are making a forecast of our lives and business that cannot go wrong, but that is unrealistic. There are too many factors affecting everything we do. Economic forecasting models use thousands of variable factors to make their predictions. The key word here is ‘variable’. Yet the economic forecasts are only sometimes reliable in the short term, and only provided there are no major events that upset the forecasts. There are always ongoing events that affect each of us in different ways, sometimes unnoticeable, sometimes hitting us between the eyes, and hard. I think a sumup is that every law is a restriction, some are necessary for the preservation of peace and security, but aside from those, the individual should be left free to pursue his own destiny.

]]> By: Joseph White http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21991 Joseph White Mon, 02 Nov 2009 16:03:45 +0000 http://newsrealblog.com/?p=13541#comment-21991 Oh, and I forgot...Government debt, (at last count 1tril a year and rising.) is also being monetized and sold as bonds. Oh, and I forgot…Government debt, (at last count 1tril a year and rising.) is also being monetized and sold as bonds.

]]> By: Joseph White http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21990 Joseph White Mon, 02 Nov 2009 16:02:58 +0000 http://newsrealblog.com/?p=13541#comment-21990 Monitizing debt: Taking debt (IE unpayed credit card debt, unpaid home loans, etc.) and converting it into bonds that are sold to China, Japan, etc. This isn't about creating new money based on goods and services, it's taking debt and trying to sell it to create new funds. If Monitizing debt is such a win-win scenario, then why is China and Japan refusing to buy anymore of this bogus money? What is the dollar being replaced by other currencies as a reserve currency? It's because monitized debt and our dollar are becoming worthless. I have done my research and it's even been stated by the Fed and Treasury, as to what monitized debt is. Monitized debt is not, selling an anticipated cashflow for its equivalent present value. That's called an annuity, or even better, a share of stock. Debt is money owed, and most debt will never be collected. Credit card companies charge off billions of dollars for people who won't pay their bills. Mortgage companies write off billions of dollars for people who couldn't have paid their mortgage even if they wanted to. That debt was wrapped in bogus bonds and sold to China and Japan, and other countries, and if it was ever called in, there would be no way to pay it all. Monitizing debt: Taking debt (IE unpayed credit card debt, unpaid home loans, etc.) and converting it into bonds that are sold to China, Japan, etc.

This isn’t about creating new money based on goods and services, it’s taking debt and trying to sell it to create new funds.

If Monitizing debt is such a win-win scenario, then why is China and Japan refusing to buy anymore of this bogus money? What is the dollar being replaced by other currencies as a reserve currency?

It’s because monitized debt and our dollar are becoming worthless.

I have done my research and it’s even been stated by the Fed and Treasury, as to what monitized debt is.

Monitized debt is not, selling an anticipated cashflow for its equivalent present value. That’s called an annuity, or even better, a share of stock.

Debt is money owed, and most debt will never be collected. Credit card companies charge off billions of dollars for people who won’t pay their bills. Mortgage companies write off billions of dollars for people who couldn’t have paid their mortgage even if they wanted to. That debt was wrapped in bogus bonds and sold to China and Japan, and other countries, and if it was ever called in, there would be no way to pay it all.

]]> By: Cas Balicki http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21989 Cas Balicki Mon, 02 Nov 2009 15:48:41 +0000 http://newsrealblog.com/?p=13541#comment-21989 Monitorizing debt, which I take to mean selling an anticipated cashflow for its equivalent present value, and futures trading are the life blood of a financial market. It appears that you, Joseph White, do not understand why these types of transactions are necessary nor how important they are to finance. Had you done some research into these types of transactions you would not have written the above. Monitorizing debt, which I take to mean selling an anticipated cashflow for its equivalent present value, and futures trading are the life blood of a financial market. It appears that you, Joseph White, do not understand why these types of transactions are necessary nor how important they are to finance. Had you done some research into these types of transactions you would not have written the above.

]]> By: Joseph White http://www.newsrealblog.com/2009/11/01/note-to-banks-be-careful-who-you-crawl-into-bed-with-he-might-just-become-your-pimp/#comment-21988 Joseph White Mon, 02 Nov 2009 15:35:22 +0000 http://newsrealblog.com/?p=13541#comment-21988 I agree with howiem, and I'd go one step further. If DC really wanted to put an end to financial problems, they'd pass a law that makes it illegal to speculate on the futures, and make it illegal to monitize debt, or even make it illegal to fractionalize debt. All these weird accounting schemes make my teeth itch. If the government really cared, they stop giving the Federal Reserve carte blanche and would turn the money creation back over to the congress and the printing back to the treasury. I agree with howiem, and I’d go one step further. If DC really wanted to put an end to financial problems, they’d pass a law that makes it illegal to speculate on the futures, and make it illegal to monitize debt, or even make it illegal to fractionalize debt.
All these weird accounting schemes make my teeth itch. If the government really cared, they stop giving the Federal Reserve carte blanche and would turn the money creation back over to the congress and the printing back to the treasury.

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