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Thread: weekend commentary - Dudley DoRight, Little Nell & Snidely Whiplash !!!

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    Default weekend commentary - Dudley DoRight, Little Nell & Snidely Whiplash !!!

    my 'friend' Elaine has a way of putting things in perspective ...

    (snip)" The headline here isn't in the regular news, only in one NY paper. If true, some people should be arrested. As usual. Time to talk about bank reserves and the differences between the Chinese system and the 'reformed' US system. China again, raised the reserve banks must hold. The US doesn't believe in holding reserves or using this to control out of control speculators. Instead, we use this goofy system which the Fed likens to driving a car with a solid wall for a windshield. Isn't that great? World inflation is rising and the US is encouraging speculators, not savers. Good grief in hell. I wish I could give us good news.


    From Bloomberg:

    Citigroup Inc. and JPMorgan Chase & Co. are leading a group of banks that are in talks with the U.S. Treasury about a plan to revive the asset-backed commercial paper market.

    Discussions over the past two weeks addressed structured investment vehicles, units set up by banks to finance purchases of assets including subprime mortgage debt, said a government official and a banker with knowledge of the deliberations. Under one plan being considered by the banks, lenders would establish a fund of as much as $100 billion to buy assets from the SIVs, said two people familiar with the negotiations who declined to be identified because the talks are continuing.


    Those scaly SIVs slithered into a hole and won't come out. This infuriates the very rich, tax haven pirates and even the hell hounds bay and woof with despair and fury that they can't use their SIVs to get even richer, making money out of thin air. The Treasury, run by Goldman Sachs, the biggest speculator firm in the US, is desperate to revive these reptilian critters. These 'asset-backed' papers are cute talk for 'a mountain of debt piled onto properties and businesses so speculators could make a fortune in fees and gambling operations based on these things.'


    Since I am not a speculator and can't play one on TV, I can criticize this goofy get-rich-quick scheming. $100 billion bail out. Cute. This 'fund' which is a duex ex-Goldman Sachs machina, will fix the 'problem' of rich speculators unable to move their mountain of debt. It will move it...to the government banks who always rescue Goldman Sachs. Goldman Sachs and the pirates are like Little Nell: they put on this cute wig of blonde curls, they then tie themselves onto the train tracks and then, covering their curling, long mustaches, they pitch their voice to the falsetto and start wailing, 'There will be BLOOD in the streets! My friends will be losing their JOBS!' Until Bernanke and his buddies in the Treasury join hands and ride, Dudley Dorightwingers to the rescue.


    If rescuing the false Little Nell from the Economic Reality Train means throwing unions and workers as well as all retirees and people on fixed income and savers onto the tracks to stop the Reality Train, they cheerfully do this.


    But the Snidley Whiplashes of the speculator world then laugh demonically and rush off to distant pirate coves that charge no taxes and yell, 'Suckasssss!'


    From Bloomberg:

    ``If the firms get together to improve the quality, that's a good development,'' said Mark Amberson, who runs the $5 billion Russell Money Fund for the Russell Investment Group in Tacoma, Washington. ``It would be a positive credit event if you wind up with a better vehicle.''


    Unable to create a capitalist system anymore, the speculators are always creating 'vehicles'. These various pirate ships and fast cars then either sail off to tax havens run by Elizabeth II or they drive wildly and then crash in various communities, running over children without health insurance and little old ladies trying to hobble across the street to the local Savings & Loan to deposit their SS checks."(snip)

    from

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    Default Re: weekend commentary - Dudley DoRight, Little Nell & Snidely Whiplash !!!

    Quote Originally Posted by Melonie View Post
    ...'reptilian critters'...
    Does this refer to some of those running for the office or U.S. President, as well as a number currently serving in the U.S. Congress?

    So, okay, David Ickes is perhaps the weirdest of all the "conspiracy theorists,"

    http://www.bibliotecapleyades.net/su...s/reptiles.htm

    Sorry, but I couldn't resist due to the "reptilian critters" comment in the quote provided. And Ickes is no doubt laughing all the way to his bank(figuratively speaking, as I would guess most conspiracy theorists prefer precious metals, etc.) But there are American conspiracy theorists who do exactly the same thing.
    Last edited by PhaedrusZ; 10-13-2007 at 07:01 PM. Reason: typos

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    Default Re: weekend commentary - Dudley DoRight, Little Nell & Snidely Whiplash !!!

    ^^^ the 'reptilian critters' referred to are the Structured Investment Vehicles



    (snip)"NEW YORK/WASHINGTON (Reuters) - Major banks including Citigroup Inc are looking at setting up a roughly $80 billion fund to buy ailing mortgage securities and other assets, in a bid to prevent the credit crunch from further hurting the global economy, sources familiar with the matter said.

    Representatives from the U.S. Treasury have organized conversations among top global banks, sources said, as financial institutions grow increasingly concerned that a certain type of investment fund linked to banks may have to dump billions of dollars of repackaged loans onto financial markets.

    A fire-sale of assets could lift borrowing costs globally, trigger big losses from investors and force banks to further write down some holdings on their balance sheets. Such sales could trigger huge losses for banks, and in the worst-case scenario tip the U.S. or Europe into recession.

    The fund is the latest response to a global credit hangover after at least three years of easy credit that fueled massive mortgage lending in the United States and spurred record levels of leveraged buyouts.

    "Banks made unwise business decisions, and now they're scrambling to save themselves," said Steve Persky, chief executive at Dalton Investments in Los Angeles, which has $1.2 billion under management.

    Citigroup, JPMorgan Chase & Co. and Bank of America Corp. are involved in the discussions, according to people familiar with the situation. The three banks declined to comment.

    The U.S. Treasury is involved in the discussions, but taxpayer money is not expected to be used.

    The Financial Services Authority, the U.K. market regulator, has suggested U.K. banks consider participating in the fund, the Wall Street Journal reported on Saturday, citing a person familiar with the situation.

    A spokesman for the FSA declined to comment on Sunday. Swiss financial services regulator EBK also declined comment.

    Spokesmen for British bank HSBC and Swiss bank UBS had no comment when asked about their involvement.

    Details concerning the fund the banks are setting up, including its size, are still being hammered out and may change as other banks and investors become involved, sources said.

    The fund that is being contemplated would bail out funds known as "structured investment vehicles," or SIVs.

    SIVs bought assets like mortgage securities from banks, and financed their purchases using short-term debt known as commercial paper. They make money by earning more from their investments than they have to pay to fund them.

    But if SIVs cannot sell commercial paper, they must sell their assets, and many of the assets do not trade often and would be hard to sell."(snip)


    in other words, the banks and hedge funds desparately need to avoid a situation where the actual market value (or lack thereof) of their subprime mortgage backed junk investments must be determined / admitted, thus avoiding the necessity of booking huge losses and taking huge hits to the bottom line. This new 'fund' is specifically designed to allow these subprime mortgage backed junk investments to be 'sold' at fairy tale price levels, which will provide the banks with the cash they need (and can no longer get by selling commercial paper that nobody is willing to buy) without having to officially acknowledge that these subprime mortgage backed junk investments are essentially worthless.

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    Default Re: weekend commentary - Dudley DoRight, Little Nell & Snidely Whiplash !!!

    and here's some bottom line commentary from an investor bbs ...

    (snip)"I have been pondering this since the news broke last night (conveniently AFTER the markets closed, on a Friday, I might add), and have read at least three different mainstream media articles on it as well as several hundred comments on blogs about it.

    A couple of thoughts come to mind:

    1. This is nothing more than "LTCM II, The Sequel". However, the dollar amount is between fifteen and twenty times larger than LTCM's $4 billion bailout.

    2. Citi is going to report financials on Monday. What a coincidence that they will probably also announce this bailout plan.

    3. A "Super SIV"? Excuse me, but why do we need a "super" SIV when WE SHOULDN'T HAVE ANY SIVs IN THE FIRST PLACE?!!! Why in the world the regulators not only let the banks (and virtually every corporation and financial institution) create "off-balance sheet" conduits, then stuff them with assets and liabilities violates every tenet of prudent accounting ever devised by mankind.

    4. Major-league "cockroach" theory here. If they are admitting to this amount, the REAL amount is probably the $2 trillion about which I have been screeching.

    5. Once again, my "Convulsions Theory", postulated years ago is being played out. Debt destruction met by ever greater waves of liquidity injections, bailouts and government regulation.

    6. This is also consistent with the "Age of Infinite Fiat" theory as well. A little injection here, a little loan of fiatscos there, and pretty soon you are are tens of trillions of electronic digits.

    7. As mentioned below in my reply to the Bill Moyers video, this Ponzi scam is worldwide and condoned and promoted by the biggest bunch of criminals of all: The Bank for International Settlements.

    8. We're scroomed. Hyperinflation coming to a grocery store near you. Forget it deflationists (if there ARE any left in the world). This is another example of what lengths and depths The Powers That Be will go to in order to keep the system going, and going, and going. Yeah, it may collapse one day. But with worldwide co-ordination, that day can probably be postponed longer than you can wait it out"(snip)

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    Default Re: weekend commentary - Dudley DoRight, Little Nell & Snidely Whiplash !!!

    Quote Originally Posted by Melonie View Post
    ^^^ the 'reptilian critters' referred to are the Structured Investment Vehicles...
    Oh, I knew what you were referring to, but I like to read my one book by Ickes (think it was a "gag" gift from one friend, but it's been too long to remember anymore) when I need a good laugh. SIVs, however, are not a laughing matter!

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