Comments on: Staring into the Abyss: The Collapse of the Modern Day Banking System http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/ a radical newsletter in the struggle for peace and social justice Mon, 01 Dec 2008 21:08:06 +0000 http://wordpress.org/?v=2.6.1 By: Hasan Hussein http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11639 Hasan Hussein Wed, 26 Dec 2007 18:48:42 +0000 http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11639 I was reading on this subject yesterday the 25th and read that the "banks" have $89Billion in write downs "to go". So I divided "$225,000 into this --as this is about the current median home value-- and came up with 395,5?? mortagages. Huh? Is my calculator broken? Don't think so! If there are 2 million plus, 2 1/2 million and last week I read 3 million plus mortgages "in trouble"/default then the gov't and Wall Street ARE LYING ! ! The problem is horrendus. Remeber the old adage: "too big to fail"... and the one from the 1960s and 70s: "when you owe the bank $100,000 the bank onws you...when you owe the bank $1 million you own the bank"... Forget these "old wheelerdealer tales", we are now in an era of "TOO BIG TOO SAVE". Then we have "multi-family" complexes in "foreclosure" ---try a google alert on this one. Plus since these "investors" bought these properties "securitized" they don't have the deeds and in most cases can't find them. Then we have CDO2 --CDO squared-- which are packages of undeeded securities packages. I can't cry ---I'm out of tears. Then we have these municiples. I couldn't figure out why they were so overpriced last Summer. Turns out, hedge funds were/are buying them, putting them in bundles, and selling the tranches off paying 3% while the Hedgies collect the 4%-5+% and pay the tranches from that. Hedgies retain the 1%-2+% . Now that MBIA. AMBAC, FIGC and all are getting downgraded because many of these "munis" are defaulting. That's a cash-hit for the Hedgies. Now start factoring in PIK bonds --bonds issued to payoff older bonds-- because these companies aren't making any real money/profits... And factor in accounting tricks --some which allow a compnay the lower its P/E ratio by two full points... That's enough...my head is starting to hurt. Something I do remember from the S&L Crisis...people went to pay their mortgages and were told the bank would not accept any draws on their bank. People would have to open accounts at other banks and then pay their mortgages with money drawn on those accounts. In other words that bank's assets were not only frozen but their books were also FROZEN. I think alot of us are going to be "out-in-the-cold" this time around. Hasan Hussein I was reading on this subject yesterday the 25th and read that the “banks” have $89Billion in write downs “to go”. So I divided “$225,000 into this –as this is about the current median home value– and came up with 395,5?? mortagages.
Huh? Is my calculator broken?
Don’t think so!
If there are 2 million plus, 2 1/2 million and last week I read 3 million plus mortgages “in trouble”/default then the gov’t and Wall Street ARE LYING ! ! The problem is horrendus.
Remeber the old adage: “too big to fail”…
and the one from the 1960s and 70s: “when you owe the bank $100,000 the bank onws you…when you owe the bank $1 million you own the bank”…
Forget these “old wheelerdealer tales”, we are now in an era of “TOO BIG TOO SAVE”.
Then we have “multi-family” complexes in “foreclosure” —try a google alert on this one.
Plus since these “investors” bought these properties “securitized” they don’t have the deeds and in most cases can’t find them.
Then we have CDO2 –CDO squared– which are packages of undeeded securities packages.
I can’t cry —I’m out of tears.
Then we have these municiples. I couldn’t figure out why they were so overpriced last Summer. Turns out, hedge funds were/are buying them, putting them in bundles, and selling the tranches off paying 3% while the Hedgies collect the 4%-5+% and pay the tranches from that. Hedgies retain the 1%-2+% . Now that MBIA. AMBAC, FIGC and all are getting downgraded because many of these “munis” are defaulting. That’s a cash-hit for the Hedgies.
Now start factoring in PIK bonds –bonds issued to payoff older bonds– because these companies aren’t making any real money/profits…
And factor in accounting tricks –some which allow a compnay the lower its P/E ratio by two full points…
That’s enough…my head is starting to hurt.
Something I do remember from the S&L Crisis…people went to pay their mortgages and were told the bank would not accept any draws on their bank. People would have to open accounts at other banks and then pay their mortgages with money drawn on those accounts. In other words that bank’s assets were not only frozen but their books were also FROZEN.
I think alot of us are going to be “out-in-the-cold” this time around.
Hasan Hussein

]]> By: Josh Eban http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11539 Josh Eban Mon, 24 Dec 2007 20:05:56 +0000 http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11539 Why quote all the statist, corporatist, Keynesian frauds? All you need is to look to the prescient advice of the guy who's been right about the economy and monetary policy all these years: <a href="http://www.ronpaullibrary.com" rel="nofollow">Ron Paul</a>. Phase out the Fed and the IRS and cut back the trillion-dollar empire. Stop allowing special interests to divvy up our pie. Allow competing currencies backed by gold and silver. Allow the people to keep their money and inject it into the economy as THEY see fit. Allow young people to opt out of federal welfare programs. Then, we can begin to see some REAL stability and growth without all these unconstitutional tweaks and band-aids (which are only good for keeping the corporatists profiting regardless of how the middle and lower classes suffers). Don't believe for a second that establishment hacks like Krugman and his pals in the Fed and the corporate media are friends of liberty, economic or otherwise. Why quote all the statist, corporatist, Keynesian frauds? All you need is to look to the prescient advice of the guy who’s been right about the economy and monetary policy all these years: Ron Paul. Phase out the Fed and the IRS and cut back the trillion-dollar empire. Stop allowing special interests to divvy up our pie. Allow competing currencies backed by gold and silver. Allow the people to keep their money and inject it into the economy as THEY see fit. Allow young people to opt out of federal welfare programs. Then, we can begin to see some REAL stability and growth without all these unconstitutional tweaks and band-aids (which are only good for keeping the corporatists profiting regardless of how the middle and lower classes suffers). Don’t believe for a second that establishment hacks like Krugman and his pals in the Fed and the corporate media are friends of liberty, economic or otherwise.

]]> By: Donald Hawkins http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11228 Donald Hawkins Wed, 19 Dec 2007 17:33:41 +0000 http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11228 Albert Einstein quotes “The most powerful force in the universe is compound interest” “We can't solve problems by using the same kind of thinking we used when we created them.” “The only thing that interferes with my learning is my education.” Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to know and understand.” “It's not that I'm so smart , it's just that I stay with problems longer .” “Whoever undertakes to set himself up as a judge of Truth and Knowledge is shipwrecked by the laughter of the gods.” “Science without religion is lame, religion without science is blind.” Albert Einstein quotes

“The most powerful force in the universe is compound interest”
“We can’t solve problems by using the same kind of thinking we used when we created them.”
“The only thing that interferes with my learning is my education.”
Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to know and understand.”
“It’s not that I’m so smart , it’s just that I stay with problems longer .”
“Whoever undertakes to set himself up as a judge of Truth and Knowledge is shipwrecked by the laughter of the gods.”
“Science without religion is lame, religion without science is blind.”

]]> By: Mike http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11220 Mike Wed, 19 Dec 2007 16:06:13 +0000 http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11220 Do you need to refinance? Do you need to refinance?

]]> By: gerald spezio http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11212 gerald spezio Wed, 19 Dec 2007 13:32:34 +0000 http://www.dissidentvoice.org/2007/12/staring-into-the-abyss-the-collapse-of-the-modern-day-banking-system/#comment-11212 I have read everything that Mike has published on the net during the last year. General theory: All of the magical card-tricks performed with so-called creative financial instruments have been done by a priestly caste of the most well-educated pillars of our society. If you thought that wide eyed new-agers were prone to magical thinking, just take a good look at what trained financial religion has produced. Greenspan's justifications are mystifications; and truly obscene. Obvious financial legerdemain coupled with preposterous murdering pre-emptive wars for - fill in the blank - are basically the same thing! Mystifying the population is the major tool of control from above. Don't get completely bogged down with micro-analysis. I have read everything that Mike has published on the net during the last year.

General theory:

All of the magical card-tricks performed with so-called creative financial instruments have been done by a priestly caste of the most well-educated pillars of our society.

If you thought that wide eyed new-agers were prone to magical thinking, just take a good look at what trained financial religion has produced.

Greenspan’s justifications are mystifications; and truly obscene.

Obvious financial legerdemain coupled with preposterous murdering pre-emptive wars for - fill in the blank - are basically the same thing!

Mystifying the population is the major tool of control from above.

Don’t get completely bogged down with micro-analysis.

]]>