For a couple of weeks Kunstler veered off into neo con land. Today Kunstler is talking about the banks. Peacenik doesn't know when speculating about something turn's into advocating something. But this article sounds incendiary. Or is it just a warning? Peacenik is glad Peacenik is not a banker.
By James Howard Kunstler
on October 19, 2009 7:23 AM
When sober-minded individuals begin to regard an enterprise within a nation as "an enemy of the people" you can bet that some serious blood is going to flow. This is now essentially the situation for the Goldman Sachs company, which last week announced third-quarter earnings of over $3 billion largely derived from converting zero percent loans from taxpayers into zero risk profits off of anything paying more than zero percent in interest, revenue, or dividends.
The "people" across this big country may not have a clue how any of this is done, and there may be much to fault them on from the care-and-feeding of their own bodies to the content of their dreams, but you can't argue with the fact that they are heavily armed to an extreme. And although it may be hard to measure with precision, one might venture to state that they are increasingly pissed off. How else explain popular entertainments like "Zombieland?"
Read on...
Showing posts with label banks. Show all posts
Showing posts with label banks. Show all posts
10/19/09
9/24/09
Flaherty set to extend mortgage backstop
Peacenik has been talking about the housing bubble in Guelph and Canada for a while and reading about it at www.greaterfool.ca. And Peacenik has been doubtful that Canada's banks are as strong as our leaders and the media have said they are. Now we find out that Flaherty is going to piss away billions more propping up the supposedly strong Canadian banks and the Canadian housing industry. Low downpayments, long amoritization periods, and peak prices for housing are the exact ingredients that led to the U.S. financial collapse.
Why have a financial crisis today if you can delay it till tomorrow.? Peacenik and Peacenik's fellow taxpayers will be only too happy to help out the current crop of house purchasers. Its not their fault they are getting sucked into buying at the peak. Its not their fault income to purchase price ratio is totally out of whack. Its not their fault the economy is a mirage. Yes Peacenik says bail out the banks and the homeowners. That's what taxes are for. Healthcare. Not so much. Education. What dat? Social justice. That's for wimps.
Tara Perkins
Globe and Mail Update Last updated on Thursday, Sep. 24, 2009 08:57AM EDT
Ottawa plans to extend the biggest emergency measure it created to help the banks weather the financial crisis, a sign that the government and the banking industry are not yet prepared to call an end to the economic upheaval.
Finance Minister Jim Flaherty has decided to keep in place the government's $125-billion program to buy mortgages from lenders, a program that had been slated to end next week.
The banking industry has been pressing the Finance Minister to extend the length of the program because they continue to benefit from it and because there is still the possibility that liquidity pressures could re-emerge.
Read on...
Why have a financial crisis today if you can delay it till tomorrow.? Peacenik and Peacenik's fellow taxpayers will be only too happy to help out the current crop of house purchasers. Its not their fault they are getting sucked into buying at the peak. Its not their fault income to purchase price ratio is totally out of whack. Its not their fault the economy is a mirage. Yes Peacenik says bail out the banks and the homeowners. That's what taxes are for. Healthcare. Not so much. Education. What dat? Social justice. That's for wimps.
Tara Perkins
Globe and Mail Update Last updated on Thursday, Sep. 24, 2009 08:57AM EDT
Ottawa plans to extend the biggest emergency measure it created to help the banks weather the financial crisis, a sign that the government and the banking industry are not yet prepared to call an end to the economic upheaval.
Finance Minister Jim Flaherty has decided to keep in place the government's $125-billion program to buy mortgages from lenders, a program that had been slated to end next week.
The banking industry has been pressing the Finance Minister to extend the length of the program because they continue to benefit from it and because there is still the possibility that liquidity pressures could re-emerge.
Read on...
4/21/09
Magic Bank Profits
“Although perfectly legal, this move is also perfectly delusional, because some day soon these assets will be written down to their fair value, and it won’t be pretty.”
-Steven Roth, professor of management at the Tuck School of Business at Dartmouth College, on Bank of America’s earnings fraud
We been discussing how many of the recent profits were not “real” — i.e., based on one time sleights of hands — losing a losing month, AIG flow throughs, bailout monies, etc.
Thus, it is gratifying to see on the front page of the NYT Business section, Andrew Ross Sorkin’s article with the provocative but accurate title, Bank Profits Appear Out of Thin Air.
Read on...
Lately Peacenik hasn't mentioned the "black hole" that has been sucking the world's delusional wealth away. Obama's and CNBC's PR campaign had a lot of people thinking the worst was over. The DOW had it's best rally since 1938. But. But the black hole has not gone away. The PR is failing. Yesterday the DOW lost almost 300 points. The public is no longer believing in the banks' mysterious profits. Today the Globe reports that banks are bracing for huge credit card losses. Today we learn again that pension plans are woefully underfunded. States, provinces, countries, cities, towns, companies, and people are all broke. Can a world-wide run on banks happen in 2009? Do you have enough cash to last a couple of weeks? Peacenik's black hole sensor is tingling.
-Steven Roth, professor of management at the Tuck School of Business at Dartmouth College, on Bank of America’s earnings fraud
We been discussing how many of the recent profits were not “real” — i.e., based on one time sleights of hands — losing a losing month, AIG flow throughs, bailout monies, etc.
Thus, it is gratifying to see on the front page of the NYT Business section, Andrew Ross Sorkin’s article with the provocative but accurate title, Bank Profits Appear Out of Thin Air.
Read on...
Lately Peacenik hasn't mentioned the "black hole" that has been sucking the world's delusional wealth away. Obama's and CNBC's PR campaign had a lot of people thinking the worst was over. The DOW had it's best rally since 1938. But. But the black hole has not gone away. The PR is failing. Yesterday the DOW lost almost 300 points. The public is no longer believing in the banks' mysterious profits. Today the Globe reports that banks are bracing for huge credit card losses. Today we learn again that pension plans are woefully underfunded. States, provinces, countries, cities, towns, companies, and people are all broke. Can a world-wide run on banks happen in 2009? Do you have enough cash to last a couple of weeks? Peacenik's black hole sensor is tingling.
2/10/09
Insanity Prevails
The New York Times is reporting Geithner Said to Have Prevailed on the Bailout.
The Obama administration’s new plan to bail out the nation’s banks was fashioned after a spirited internal debate that pitted the Treasury secretary, Timothy F. Geithner, against some of the president’s top political hands.
In the end, Mr. Geithner largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides, including David Axelrod, a senior adviser to the president, according to administration and Congressional officials.
On Monday evening, new details emerged after lawmakers were briefed on the plan.
Read on...
Everyone knows Peacenik has already been mezmerized by foolishly looking in the black hole of debt. Trillions and trillions of dollars of debt. Debt that can never be repaid. There isn't enough money in the world to pay this debt. Peacenik thinks a better bank bailout plan would be to guarantee the deposits in these banks. Thus helping regular people. Guarantee the pension investments in these banks. Thus helping regular people. And let the risk takers, who gambled in the belief that the government (regular people) would bail them out, get wiped out. Then put the management of these companies in jail and confiscate their property and bank accounts, on shore and off shore. Shut the banks down. Promote tellers and janitors to positions of management and start over. They could not do a worse job. And regulate the financial industry so that it is not a casino but rather a place to deposit your paycheck and to borrow to buy something at a reasonable rate of interest. That's what Peacenik would do.
The Obama administration’s new plan to bail out the nation’s banks was fashioned after a spirited internal debate that pitted the Treasury secretary, Timothy F. Geithner, against some of the president’s top political hands.
In the end, Mr. Geithner largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides, including David Axelrod, a senior adviser to the president, according to administration and Congressional officials.
On Monday evening, new details emerged after lawmakers were briefed on the plan.
Read on...
Everyone knows Peacenik has already been mezmerized by foolishly looking in the black hole of debt. Trillions and trillions of dollars of debt. Debt that can never be repaid. There isn't enough money in the world to pay this debt. Peacenik thinks a better bank bailout plan would be to guarantee the deposits in these banks. Thus helping regular people. Guarantee the pension investments in these banks. Thus helping regular people. And let the risk takers, who gambled in the belief that the government (regular people) would bail them out, get wiped out. Then put the management of these companies in jail and confiscate their property and bank accounts, on shore and off shore. Shut the banks down. Promote tellers and janitors to positions of management and start over. They could not do a worse job. And regulate the financial industry so that it is not a casino but rather a place to deposit your paycheck and to borrow to buy something at a reasonable rate of interest. That's what Peacenik would do.
1/22/09
January 21 2009: There is no time
Ilargi: Yesterday's post, The Shortest President, got me a lot of flack. And that is not a surprise, nor is it unwelcome. By all means, let's talk. Part of it may have been that we have a lot of new visitors these days, who don't yet know what we do or why we choose to do it the way we do. I suggest you all read a bunch of the primers you can find in the right hand side column. And then there are many people who feel that Obama's party was a good reason to focus on something else than economic trouble, if even just for one day. I hope you understand that I don't see that as my role, and that I also think the problems are too large and too imminent to act for even one day as if they don't exist. Plus, I think that the day when everyone focused on Obama is a very good time to explain the issues I have with his approach of the economy. Finally, I have the nagging feeling that many people still don't fully grasp the depth of the downfall, both so far and ahead of us.
I didn't say Obama would be the president with the shortest term in history, only that if he doesn't act now, there's a risk he might be. And by that I don't mean to bring up the risk of physical aggression against him, I abhor it and don't think he deserves that at all. I’m talking political crisis. The fact remains, though, that he is now responsible, and that his choices and appointments for his finance team are highly dubious, and that's putting it very mildly. Tim Geithner today in his conformation hearing had nothing to say about toxic debt than that it is "very hard to value". And from what I can tell, no-one pushed him to clarify his, or Obama's position. And that is just plain dangerous territory.
Yesterday there was a small inaugural rally in the markets. The pundits on CNBC were loving it. Obama has restored confidence in the markets. Peacenik just checked the Dow and TSX. Both are down almost 200 points. The banks sold trillions of dollars worth of worthless assests. They reaped millions of dollars in profit. And it was all an illusion. A fraud. A Ponzi Scheme. The game is almost up. Illargi thinks there is no way out. Peacenik hopes Illargi is wrong, for once.
1/21/09
Gordon Brown brings Britain to the edge of bankruptcy
Iain Martin says the Prime Minister hasn't 'saved the world' and now faces disgrace in the history books
By Iain MartinLast Updated: 8:41AM GMT 21 Jan 2009
They don't know what they're doing, do they? With every step taken by the Government as it tries frantically to prop up the British banking system, this central truth becomes ever more obvious.
Yesterday marked a new low for all involved, even by the standards of this crisis. Britons woke to news of the enormity of the fresh horrors in store. Despite all the sophistry and outdated boom-era terminology from experts, I think a far greater number of people than is imagined grasp at root what is happening here.
The country stands on the precipice. We are at risk of utter humiliation, of London becoming a Reykjavik on Thames and Britain going under. Thanks to the arrogance, hubristic strutting and serial incompetence of the Government and a group of bankers, the possibility of national bankruptcy is not unrealistic.
Peacenik has to ask again. Are Canadian banks really immune to the problems that are facing all the banks in England, Europe and the U.S? It is kind of hard to believe. As George Bush famously said, "This sucker is going down". If England become Iceland, what happens? And Peacenik's bird flu google alert is ringing off the wall. H1N1 is co-circulating with H5N1 in China right now. Before you head down to get your cash out of the bank you may want to re-read Peaceniks post about bird flu.
Ready To Do It Right Yet?
The banks, that is.
XLF (the financial sector spyder) yesterday, down 16.5%. That's impressive, but what's even more impressive is the loss in some of the components, to wit:
BAC, down 28.9%
Citigroup, down 20%
Goldman Sachs, down 18.9%
JP Morgan, down 20.7%
Morgan Stanley, down 15.9%
State Street, down 59% (!)
Wells Fargo, down 23.8%
Those are one day losses folks. In one day anywhere from twenty percent to more than half of these firms was wiped out. If you hold their stock, I hope you're prepared for what you see when you look online at your account.
Why did this happen?
Read on...
Peacenik half expected, along with everyone else, a brief inauguration rally in the markets. Instead the markets are one step closer to Armageddon. Looks like Obama isn't going to have a honeymoon period to think about solutions. His next step is crucial. On a slightly brighter note Obama ordered a pause in the military tribunals and a review of Bush's latest regulations. But the markets. Peacenik is nervous. Are you?
XLF (the financial sector spyder) yesterday, down 16.5%. That's impressive, but what's even more impressive is the loss in some of the components, to wit:
BAC, down 28.9%
Citigroup, down 20%
Goldman Sachs, down 18.9%
JP Morgan, down 20.7%
Morgan Stanley, down 15.9%
State Street, down 59% (!)
Wells Fargo, down 23.8%
Those are one day losses folks. In one day anywhere from twenty percent to more than half of these firms was wiped out. If you hold their stock, I hope you're prepared for what you see when you look online at your account.
Why did this happen?
Read on...
Peacenik half expected, along with everyone else, a brief inauguration rally in the markets. Instead the markets are one step closer to Armageddon. Looks like Obama isn't going to have a honeymoon period to think about solutions. His next step is crucial. On a slightly brighter note Obama ordered a pause in the military tribunals and a review of Bush's latest regulations. But the markets. Peacenik is nervous. Are you?
12/18/08
Debt Rattle, December 17 2008: Your lives at zero percent
Ilargi: As you may have gathered by now, I read a lot. A whole lot. Today is no exception, as you can see from the amount of material below. I like to see what everyone is saying, especially when opinions differ a lot. Still, I knew beforehand what I thought, and what I would write about. I’ve known this one since I first started writing about finance a few years ago.
The credit - or financial- crisis we are drowning in today was caused by one thing: bankers and other financial institutions treated their deposits and other solid assets as items that could be put on casino tables as collateral for bets. Anything they could claim ownership of was laid out right there in front of the dealer, and the dealer accepted it. This was possible because regulators, and governments in general, loosened definitions of ownership (is that really yours, sir? ), and allowed their fat fingered bankers to bet 10-20-100 more than they actually showed the dealer, who in turn assumed the government would be good for it.
This part of the casino has now been closed; the tables are empty, the chips are missing, and Mr. Luciano is out looking for kneecaps.
Read on...
Ilargi's post follows Peacenik's rant about the banks yesterday. The banks gambled away the world's wealth and now the bankrupt system is beyond salvation. Chrsyler just announced it is shutting down all its operations for a month. Does anyone really believe that Chrysler is going to re-open. Just for old time's sake Peacenik will visit a few car dealerships and take some pictures. Peacenik is documenting history, ancient history. Motorola just announced it is freezing salaries and pensions. The dominos begin to fall. The consumer society is dead. Peacenik's sad advice is to save your cash and buy food and water only. And beer. Peacenik got Peacenik's first Google Alert about groceries this morning. Stay tuned, the early warning system is operational.
The credit - or financial- crisis we are drowning in today was caused by one thing: bankers and other financial institutions treated their deposits and other solid assets as items that could be put on casino tables as collateral for bets. Anything they could claim ownership of was laid out right there in front of the dealer, and the dealer accepted it. This was possible because regulators, and governments in general, loosened definitions of ownership (is that really yours, sir? ), and allowed their fat fingered bankers to bet 10-20-100 more than they actually showed the dealer, who in turn assumed the government would be good for it.
This part of the casino has now been closed; the tables are empty, the chips are missing, and Mr. Luciano is out looking for kneecaps.
Read on...
Ilargi's post follows Peacenik's rant about the banks yesterday. The banks gambled away the world's wealth and now the bankrupt system is beyond salvation. Chrsyler just announced it is shutting down all its operations for a month. Does anyone really believe that Chrysler is going to re-open. Just for old time's sake Peacenik will visit a few car dealerships and take some pictures. Peacenik is documenting history, ancient history. Motorola just announced it is freezing salaries and pensions. The dominos begin to fall. The consumer society is dead. Peacenik's sad advice is to save your cash and buy food and water only. And beer. Peacenik got Peacenik's first Google Alert about groceries this morning. Stay tuned, the early warning system is operational.
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