Home > General Topics > Wall St. News > Goverment considering creation of entity to hold bad debt

Goverment considering creation of entity to hold bad debt

  1. Give me your tired, your poor,

    Your huddled bankers yearning to breathe free,

    The wretched refuse of your ballance sheets.

    Send these, the worthless, bad debts to me,

    I enslave the citizen under your golden door!"
     
  2. This is absolutely sickening, and incredibly bullish.
     
  3. RTC failed in Japan, as banks did not want to take a loss on their books.

    PRICE to be set will be difficult.... from banks to RTC.

    USA are free markets cheats !
     
  4. "bad bank" didnt help lehman bros either.

    It burnt a lot of shorters tonight though.
     
  5. I went I am waiting for the top and then I am going to hammer. Will find the bottom on Gold and buy back in.

    How can this be good news? There is, I think 550 TRILLION in Credit Derivitives. HOw much of that is bad paper? ALOT.

    If the bad debt goes into a repository held by the Government, when the paper defaults, who fits the bill? The taxpayers? If so, this will cause the US Dollar to slide like never before.

    Market is so pathetic, the only participants the hedge funds and institutional banks are going to have is pro traders that recognize smart money order flow. No fresh money from you local Main Street will come in, because they are starting to figure out that the entire market is nothing more than giant autotrade progrms running Algo's on Hedge Fund/Institutional Bank Desks.

    Nothing is based upon honesty, integrity and fundamentals. This is starting to look like the boy who cired Wolf and will cause further deterioration of the markets in the public eye.

    Market will go back down to 10,500 IMO.
     
  6. you do not think the banks would love to get rid of this stuff at 30 cents on the dollar so they can move on..


    Japanese gov made money on the RTC


     
  7. Great! What ever happened to the RTC anyway after '95?

    Those that forget the lessons of history...
     
  8. ..."How can this be good news? There is, I think 550 TRILLION in Credit Derivitives. HOw much of that is bad paper? ALOT."...

    Slow down its only about $240 Trillion mortgage back securities, not that bad...ooops USA stock market is 21 trillion....HELP !!!
     
  9. Now look at them yo-yos thats the way you do it
    You set up a debt fund like the RTC
    That aint workin thats the way you do it
    Money for nothin and chicks for free
    Now that aint workin thats the way you do it
    Lemme tell ya them guys aint dumb
    Maybe get a ding on your stock price
    Maybe get a ding on your bond

    We gotta install microwave ovens
    Custom kitchen deliveries
    We gotta move these refrigerators
    We gotta move these colour tvs

    See the little faggot with the books full of losses
    Yeah buddy thats his own loss
    That little faggot got his own jet airplane
    That little faggot hes a millionaire

    We gotta install microwave ovesns
    Custom kitchens deliveries
    We gotta move these refrigerators
    We gotta move these colour tvs

    I shoulda learned to make big gambles
    I shoulda learned to schooze con-gress
    Look at cnbc mama, she got it stickin in the camera
    Man we could have some fun
    And hes up there, whats that? bullish noises?
    Bangin on the index like a chimpanzee
    That aint workin thats the way you do it
    Get your money for nothin get your chicks for free

    We gotta install microwave ovens
    Custom kitchen deliveries
    We gotta move these refrigerators
    We gotta move these colour tvs, lord

    Now that aint workin thats the way you do it
    You set up a debt fund like the RTC
    That aint workin thats the way you do it
    Money for nothin and your chicks for free
    Money for nothin and chicks for free
     
  10. From what I've read, the 1990s RTC found it very difficult to price and settle all the bad debt from the Savings & Loans.

    My guess is the infinitely more complex and exotic debt instruments from the last few years will drive the new RTC crazy.

    If history is a guide, I guess the original RTC "worked." Then again, it set the stage for the Greenspan put and belief that the Feds will always bail markets out.

    I'm not surprised by the initial (bullish) reaction, but it's very hard to say what this means in the longer-term.
     
  11. I sold every listed security I own [save for IBKR]. I won't be party to this incredible fucking scam. I refuse to trade any US market. Heading to Malta.

    Long 100% in EURUSD from 1.4292, unleveraged. Buy gold on this dip and don't sell it.
     
  12. well, at least things can get back to business as usual

    now that they've put their losses on the backs of the taxpayer, they can get back to outsourcing his job
     
  13. Speechless.... cannot speak..
     
  14. "I sold every listed security I own [save for IBKR]. I won't be party to this incredible fucking scam. I refuse to trade any US market. Heading to Malta.

    Long 100% in EURUSD from 1.4292, unleveraged. Buy gold on this dip and don't sell it."

    I am with you Atticus. Same line of thought. I had to act quick to get on the right side during that fake rally. I played it nicely I might add. However I didnt' "enjoy" the money per se as if the move was based upon something of proper valuation and fundamentals and not Paulson(or some one), making a call to GS(and others) to hit the buy button. Alot of folks sold into this fake "strength". I was out any long postion in index options before the bell. I am only long Gold and Silver miners and the ETF's GLD and SLV. Tomorrow it gets real ugly becuase nothing that the FED and/of the Gov. does is credible or beleivable. The move monday by the FEd to accept poor quality assets for lending at the discount window and this news today spells the potential total collaspe of the US Dollar.

    If you want your cash in a account based upon buillion, the Perth Mint is an excellent choice. While FIAT currencies lose value, you money gains, check it out, it's the best escape hatch.:)
     
  15. Thanks for the advice. So hot I need to hit something. Bumped the EURUSD long to 5x leverage from 1.4301 average. Looking to buy Gold tonight.
     
  16. I started hitting the GLS options last Friday when I found the bottom on spot Gold at around 5 O'Clock in the morning(CST) at around 754. Bought the GLD Sep 85 and 86 calls and then went beserk! 100% and then 100% and then 3600% wednesday). Sold at the fake rally and looking to buy up the Otc calls tomorrow! Miners are all oversold, GG, SLW are the best, several other good ones. The call options on SLW spiked in the last hour and the PPS held it's own. Great co.(pure silver play) and will go up from here.

    I am out to enjoy the day and the impending dollar collaspe. Go ahead FED and print more money. When folk's buying power goes to next to nothng and a mob is in the streets, do not say I didn't warn ya. They should have just let the DOW go to 9K a year ago and all these banks to collaspe. Just throwing more bad money at bad money and making the situation worse.

    Hey guys, take a breath and enjoy the day. Sell rally tops and short the market to oblivion. Cheers!
     
  17. 160 million households in the United states
    average home price is about 200k

    multiply that together and you get 32 trillion dollars worth of homes.

    40% of all homes have no mortgage so that means 19.2 trillion dollars of mortgages.

    SO its not that much of bad paper. Assuming 10% and its 1.9 trillion of bad paper and since homes have only gone down 50% in value, that means out of 1.9 trillion, 950 billion can be recovered.

    Oh wait... i didnt factor in the average home price in 2006, but assuming it was 400k (i know it wasnt but im just doubling todays avg home price) Then that would mean about 3.8 trillion of bad paper of which 1.9 trillion can be recovered. So its bad, but its not 100s of trillions of dollars like you think. If it was that means every american(man woman and child would be responible for 1.8 million of that debt.
     
  18. Well, I just did some math on the debt owed America by other nations. With interest (some of the debt is generations old), it comes to about half a quadrillion dollars, the same amount as above. Yes, I know the US forgave lots of debt, but serious economic pressures demand serious solutions. We did it to the Indians, so what the hell. I would only charge interest on debts through the dates they were forgiven, but would still adjust to current values.

    A quadrillion dollars is a million billion dollars.

    Transfer our debt to the nations who never paid us back, mostly for WWII and similar aid. Such a figure is quantifiable. England et al owe us a pile of dough, while Iraq owes the most. I would exclude Israel, for reasons obvious to knowledgeable people.

    This is how America will declare bankruptcy protection from its creditors and recover. Any other hard ideas? Criticism is welcome, but criticism without a better idea is just idle talk. Acceptance of such a debt load to citizens would be like taking a monkey on your back of paying child support for a dozen kids, all of your life, for every man, woman, boy and girl ever to be born in America. All courtesy of your inflationary friends at the Federal Reserve corporation and your globalist buddies in the white house from 1970-present. Have a nice day.
     
  19. IMO if implemented properly, this marks the start of the turn in fundamentals. The economy will still seem crap, but right there the authorities have stopped pissing into the wind with pointless half-measures, and are now actually doing something structural and significant, working more in unison.

    I don't know if it's the end of the bear market, but it's at least the beginning of the end.
     
  20. Agree that the golds are oversold here. I tried to get into GG...saw the pros lining up, missed it. Gold right now is at resistance, with the seasonals, and the usd still going down.

    Expect $900 at least in gold. I think to-days rally had alot of shorts covering with all the volume. Still, an unhealthy market.
     
  21. Aren't Ponzi schemes illegal?

    Surely are Government officials would not break any of the laws they are empowered to enforce...

    They surely would not interfere or manipulate the free market...

    They surely would not engage in any type of RICO activity...

    /mild sarcasm/


    Think I might just buy and hold a few thousand shares of AIG so I have the right to sue the government derivatively for loss of shareholder vaule... conflicts of interest... breach of fiduciary duty etc...

    Any action the government takes that is not in the best interest of the shareholders of AIG becomes a claim. The Lawyers are lurking in he shadows of this one.... thats a fact.
     
  22. Well, the ponzi scheme finds the biggest sucker. US tax payers.

    This is sickening.
     
  23. Disagree only about the choice: I take YEN over EURO, because savings and savings rate better there than there (trite basics folks will begin to appreciate more and more), and because while Nippon has a humongous public debt, it'll begin to shrink next to the Debt Godzilla growing here.
     
  24. Way too much government sanctioned cheating and tipping of market players by policy makers for me to put any serious money on the line in the BS of A.

    How come other governments worldwide are not finding it necessary to cheat in every way possible with the exception of UK Pakistan and Russia.
     
  25. http://www.infowars.com/?p=4619
     
  26. With the likes of <b>Atticus</b> getting frustrated we may be nearing a bottom :D . Yes I am still here and yes I have managed ~200% compounded annual the last 6 months and have yet to really take off. So yes, up 10k down 10k on 45k account with index futures - soon to triple and then do it again. Back and forth is part of the game and lessens frustration if you know what you are doing!

    "Isn't this fun (getting jerked around by the Fed-banks) to "prevent a global banking system failure"?
    They are preventing companies from taking important steps to right themselves. We would have seen a massive amount of deleveraging a lot sooner.
    We will see if the buying shall follow through.
    A lot of people are looking to sell into the strength rather than expecting the rally to go much higher as the U.S. housing market crisis isn't resolved yet.
    The U.S. government and corporations involved are trying to stop the domino effect to ensure that nobody else falls over, in reference to the recent merger-and-acquisition activity in the U.S. financial sector. We didn't seem to learn the lessons from Enron, but surely we must learn from this one."

    The U.S. economy is resilient. It's overcome tough times before. It will again (many hope).

    paysense


    :(
     
  27. I just wish the Yen had a + interest rate diff. For a long-term play, being on the right side of the carry pays off.

    I'm not at all bullish on the Eurozone, but they seem to be having a good old-fashioned recession while we're still in the midst of a deep credit crisis. I'll take the former any day. I realize our credit/banking problems may spill into Europe, but so far rumors of European banks hiding massive U.S. losses haven't materialized. The U.S. will remain the focal point of the crisis.

     
  28. I covered EURUSD down to 1:1 leverage at 1.4478. + 177 pips.
     
  29. +380 pips on the remainder.