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gruffydd

Omg - Update On Nightmare No Win Bail-out In Usa

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http://market-ticker.org/archives/1168-Age...-This!.html

But The Fed and Treasury programs to "stabilize" the GSEs mathematically will and must fail. Every dollar borrowed by Treasury to prop these institutions up is one that has to be paid back with interest, and thus the economic damage still remains and is in fact added to by the interest cost.

The longer we keep this fraud going between Treasury and The Fed the worst the impact on our economy will be when it unravels - and unravel it will.

It is inevitable.

Edited by gruffydd

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http://market-ticker.org/archives/1168-Age...-This!.html

But The Fed and Treasury programs to "stabilize" the GSEs mathematically will and must fail. Every dollar borrowed by Treasury to prop these institutions up is one that has to be paid back with interest, and thus the economic damage still remains and is in fact added to by the interest cost.

The longer we keep this fraud going between Treasury and The Fed the worst the impact on our economy will be when it unravels - and unravel it will.

It is inevitable.

All they will do is loot until full on collapse, then leave the country.

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Guest UK Debt Slave
All they will do is loot until full on collapse, then leave the country.

Yep. Exactly

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It won't and can't work because the inevitable contraction in the economy (and home prices) that must come is simply made worse by the interest expense that comes when the government (or anyone else) borrows and spends forward.

Losses are created when bad loans are made; there is nothing you can do about it after the fact other than choose who takes the loss.

There is no solution to this other than to cut these two organizations loose and let them blow up. Yes, the losses will be horrific. And? There is no other option! We cannot absorb the losses on this portfolio without creating the potential for destruction of the government's funding mechanisms which is exactly what The Fed is trying to shove down the throat of The Taxpayer without a vote of Congress and without telling you, the people of this country!

We cannot absorb the losses on this portfolio without creating the potential for destruction of the government's funding mechanism

Told you so.

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Am having trouble reconciling the stats on his Single-family portfoliio characteristic graph...

The share of total portfolio row indicates that Option ARM accounts for only 1%, and Alt-A 9%, a combined 10% of the totals.

Denningers break-down gives us a combined total for those products of 16.1% of the total from 2005 and 2006 alone....

What occurs?

Edit: It's there in the footnote, "numbers are not additive across columns"....

Edited by Bring forth the guillotine

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Guest Parry
Am having trouble reconciling the stats on his Single-family portfoliio characteristic graph...

The share of total portfolio row indicates that Option ARM accounts for only 1%, and Alt-A 9%, a combined 10% of the totals.

Denningers break-down gives us a combined total for those products of 16.1% of the total from 2005 and 2006 alone....

What occurs?

You need a hobby, dude.

I looked, saw loads of Dr. Bubb type sh1t and made a hasty retreat. Sorry.

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You need a hobby, dude.

I looked, saw loads of Dr. Bubb type sh1t and made a hasty retreat. Sorry.

Oh I'm forever studying figures on the internet, mostly wobbly bits mind you.

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Guest Parry
Oh I'm forever studying figures on the internet, mostly wobbly bits mind you.

Tee hee. Got caught by sister-in-law the other day. Then I checked her internet history after she'd been on it . . . dirty little b1tch!

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But The Fed and Treasury programs to "stabilize" the GSEs mathematically will and must fail. Every dollar borrowed by Treasury to prop these institutions up is one that has to be paid back with interest, and thus the economic damage still remains and is in fact added to by the interest cost.

The longer we keep this fraud going between Treasury and The Fed the worst the impact on our economy will be when it unravels - and unravel it will.

It is inevitable.

Not really. Yes, every dollar must be repaid, but you don't say anything about how much every dollar is worth!

The Fed are making a tacit promise to generate a sustained period of higher inflation. This is the only way out of the problem. I do not doubt that we are in a deflationary environment now (my brother works for the Uni of California where an across-the-board 8% pay cut is about to be delivered). However, a sustained period of above-average inflation remains the only solution, and will be engineered by hook or by crook.

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Not really. Yes, every dollar must be repaid, but you don't say anything about how much every dollar is worth!

The Fed are making a tacit promise to generate a sustained period of higher inflation. This is the only way out of the problem. I do not doubt that we are in a deflationary environment now (my brother works for the Uni of California where an across-the-board 8% pay cut is about to be delivered). However, a sustained period of above-average inflation remains the only solution, and will be engineered by hook or by crook.

The only way this can happen is to take public ownership of all the banks and offer 100% mortgages again. In fact due to the numbers slipping into negative equity in the US (and here), you'd have to offer 120 or 130% mortgages.

So what happens if the governments funding mechanisms are destroyed? Does this mean no one buys their bonds etc anymore? Does that mean public finances completely freeze...no one gets paid, no bills get paid, all projects stop etc?

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