Posts Tagged ‘bankruptcy’

Bank of America edges closer to tipping point

Saturday, November 6th, 2010

Full story here from Bloomberg.

It was only last April that Bank of America Corp. was making fools out of the doomsayers who had called for its nationalization a year earlier. Taxpayers had gotten their bailout cash back. Investors who bought its shares at the bottom were making a killing. Government leaders lauded the company’s rescues, both of them, as a great success.

Now the bank may be on the verge of trouble again. Its stock has fallen 41 percent since April 15. Mortgage-bond investors are demanding untold billions of dollars in refunds. The foreclosure fiasco is metastasizing. A member of the Troubled Asset Relief Program’s oversight panel, AFL-CIO attorney Damon Silvers, openly worried at a hearing last week about the risk that Bank of America might need another bailout. (more…)

The Fed may go bankrupt

Friday, November 5th, 2010

Full story here from Jim Rickards. Of course, the Fed is already morally bankrupt and acting like a bunch of clown-ass gangstas. What will really be the pants-downer moment that makes all the sheeple realize what’s happening? Janis Joplin has the answer.

Disasters sometimes sneak up in small steps, each of which appears unthreatening at the time but which cumulatively spell collapse.  The Fed is leading the United States to ruin in ways that are claimed to be well intentioned and benign viewed in isolation but which take us finally into a locked room reminiscent of the Sartre play “No Exit.” (more…)

Another Nobel Economist Says We Have to Prosecute Fraud Or Else the Economy Won’t Recover

Thursday, November 4th, 2010

Full story here from ZeroHedge.

Washington’s Blog

As economists such as William Black and James Galbraith have repeatedly said, we cannot solve the economic crisis unless we throw the criminals who committed fraud in jail.

And Nobel prize winning economist George Akerlof has demonstrated that failure to punish white collar criminals – and instead bailing them out- creates incentives for more economic crimes and further destruction of the economy in the future. See this, this and this. (more…)

S&P estimates of Dodd-Frank TBTF now at $22 billion

Tuesday, November 2nd, 2010

Full story here from ZeroHedge. Billion? It should be TRILLION if we’re really going to be honest.

S&P has released its first official estimate of what it believes the cost of Donk will be on the Too Vampiric To Fail. In a nutshell, the range of various costs could be as high as $22 billion, due to a drop in debit fees, lower derivative income, FDIC DIF replenishment, prop trading, and new compliance expenses. Additionally S&P expects another $85 billion in additional required Tier 1 Capital (which is a joke compared to its Tangible Common cousin). (more…)

The Fed bought mortgage fraud

Monday, November 1st, 2010

Full story here.

In the wake of the financial meltdown of 2008, the Federal Reserve announced it would buy mortgage-backed securities, or MBS.  The January announcement by the Fed said it would buy MBS from failed mortgage giants Fannie Mae and Freddie Mac in the amount of $1.25 trillion.  At the time, the Fed said in a press release, “The goal of the program was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.” (Click here for the full Fed statement.)It did provide “support” to the mortgage market, but did it also buy fraud and cover the banks that sold it?  The evidence shows, at the very least, it bought massive amounts of fraud. (more…)

Ambac misses Nov1 debt payment, may head to BK

Monday, November 1st, 2010

Full story here from ZeroHedge.

From a just released 8-K:

On October 29, 2010, the Board of Directors of Ambac Financial Group, Inc. (the “Company”) decided not to make a regularly scheduled interest payment on the Company’s 7.50% Debentures due May 1, 2023 (the “2023 Notes”). The interest payment was scheduled to be made on November 1, 2010. If the interest is not paid within 30 days of the scheduled interest payment date, an event of default will occur under the indenture for the 2023 Notes. The occurrence of an event of default would permit the holders of the 2023 Notes to accelerate the maturity of the notes. As of June 30, 2010, the Company had total indebtedness of $1,622 million. The next scheduled payment of interest on the Company’s indebtedness is November 15, 2010. (more…)

Most sobering lecture on our future

Sunday, October 31st, 2010

Full story here.

The tipping point has arrived

Thursday, October 28th, 2010

Full story here from ZeroHedge.

The Tipping Point has Arrived

Our age is retrospective.  It builds the sepulchres of the fathers.  It writes biographies, histories, and criticism.  The foregoing generations beheld God and nature face to face; we, through their eyes.  Why should not we also enjoy an original relation to the universe?  Why should not we have the a poetry and philosophy of insight and not of tradition, and a religion by revelation to us, and not the history of theirs?  Embosomed for a season in nature, whose floods of life stream around and through us, and invite us, by the powers they supply, to action proportioned to nature, why should we grope among the dry bones of the past, or put the living generation into masquerade out of its faded wardrobe?  The sun shines today also.  There is more wool and flax in the fields.  There are new lands, new men, new thoughts.  Let us demand out own works and laws and worship.

- Ralph Waldo Emerson, Nature (more…)

Imminent big bank death spiral means gold will skyrocket

Thursday, October 28th, 2010

Full story here from Jim Willie.

The mortgage & foreclosure scandal runs so deep that ordinary observers can conclude the US financial foundation is laced with a cancer detectable by ordinary people. The metastasis is visible from the distribution of mortgage bonds into the commercial paper market, money market funds, the bank balance sheets, pension funds under management, foreign central banks, and countless financial funds across the globe. Some primary features of the cancerous tissue material are mortgage bond fraud, major securities violations, absent linkage to property title, income tax evasion, forged foreclosure documents, duplicate property linkage to single mortgage bonds, NINJA (no income, no job or assets) loans to unqualified buyers, and more. In fact, more is revealed it seems each passing week toward additional facie to high level and systemic fraud. The world is watching. The growing international reaction will be amplified demand for Gold, from recognition that the USDollar & USEconomy have RICO racketeering components extending to Wall Street banks and Fannie Mae mortgage repositories. (more…)

Gold and Silver Breakout and Consolidation, China’s Greek Dollar Swap Window to Dump Treasuries

Thursday, October 21st, 2010

Full story here from Jim Willie. Sorry for the lack of posts. Your gentle blogger was laid up in hospital for a while (man, those nurses really know how to party tho). But now I’m back on my backside, ready to flame the evil and the idiotic.

The Chinese are clever people. Their leaders play a good game of chess in the global scramble for commodity supply and financial dominance. Their patient strategy has tied the arms & legs of the USGovt, using their own debt securities as the binding rope. The accumulate almost reached a staggering $1000 billion, the ugly fruit of the Low-Cost Solution to invest in China from a decade ago. (more…)