Internet Anthropologist Think Tank

Congress not listening

I got an email from my congressman, about how the Bail out isn't really a bail out.

The voulme of email to congress thru its form system has been so great it brought down the server.

UPDATE:

Server brought down by putting the bill on line:

Read it here:

http://www.house.gov/

"This webpage is not available.

The webpage at http://www.house.gov/ might be temporarily down or it may have moved permanently to a new web address."

The public are tired of banking industry's criminal activity and the power lobbyist weld on Congress.

Usuary interest rates while congress turns it head. Multiple million dollar Golden parachutes for failed, criminal CEOs. Sub-prime fraud and letting these real estate bonds into money markets, Where are the regulators?

This is a wake up call for congress.

and they SNOOZE.

Congress complains the public doesn't understand,

Its congress that doesn't understand.

There is a huge problem, and its on the HILL.

Dow -777

g

I warned THEM ABOUT SUB-PRIME LEAKING INTO MONEY MARKEts ON 1/22/2008 02:14:00 PM...Gerald

"3) Derivatives based on Money Market rates: crashing?"

( Personal note: I'm tired of McCain and Obamma, they tattle on each other like 8th graders, ( in the debates. ))

Labels: bank, Congress, Congress not listening, Market liquidity, money market, Real estate, Subprime lending, United States Congress

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bail out reception

House rejects bail out plan 205 to 228

Did it work?
By Gerald: Internet Anthropologist Think Tank
Sept 29, 08

Boy congress was tough on all the CEO's that were involved in the Criminal Banking activities that almost lead to a disaster.

"Companies that participate in auctions, or other market-making mechanisms, and sell more than $300 million in troubled financial instruments to the government, will be barred from making any new employment contract with a senior executive that provides a golden parachute in the event of “involuntary termination, bankruptcy filing, insolvency or receivership.”"

They have to just keep all those old golden parachutes, but no new ones.

Such is the power of the banking lobby over congress.

The big Q is will this work?

I'm not sure it addresses the fundamental problem of liquidity.

Some of this "yellow paper" the "Real estate bonds", got into money market funds.

Which are suposed to be liquid, the "Real estate bonds" are not liquid die to defaults.

Will the RE bonds become liquid now?

If the Government guarantees them, that should put the Money market valuations back to

a dollar a share, ie liquid again.

How do you feel buying money market funds backed by the Gov?

Are there any more surprises lurking?

Lets see how the markets feel.

Market Update

09:40 am : Stocks tumble at the open. Selling interest is driven by concerns related to the government's financial rescue plan, news that another bank was forced to sell itself to avoid collapse, and the bailout of several European financial firms.

The Con... more »

Labels: bank, Bankruptcy, Golden parachute, Market liquidity, money market

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Warning needed

Photo by Gerald, cr 2008

HAD TOLD US..
By Gerald Internet Anthropologist Think Tank
Sept. 26,08

If only someone had warned us about the sub-prime problem and how it could lead to
money market crash?

The the Feds could have been prepared.................1/22/2008 02:14:00 PM

If someone had warned us we would NOT have to be in a crisis mode in congress right now.

Gerald
Series 7 & 13

I Just saw a video about how the Banks were FORCED to write bad loans.
http://www.youtube.com/watch?v=H5tZc8oH--o
Video is in error in reference to the Bank Corps.

It completely discounts the power of the Banking Lobby in congress.

This law did not get passed without the bank Lobby's approval. Big cash up front and pass risk on to uncle sam ( Freddie Mac ) or the public in the form of ( real estate ) bonds.

The real estate bonds are backed by homes, which are illiquid.
And translated into bonds which are liquid.

If the bonds go into default ( they quit making payments ) Then the RE bonds are backed by illiquid real estate, no income, but an asset none the less.

The fraud and big losses will occur where the buildings or homes are frauds, not worth the loan.

So the money/value is there real estate. But when the market went down
an liquid asset turned Illiquid,
Causing a run on credit.

And cascading into the other liquid assets like money market funds.

Long term these real estate bonds
are solid.
Short term they are illiquid.

This threatens to locks up the liquid market, freeze it.
Potentially Causing a run on cash.
And a crash of the financial markets world wide.

These BAD assets are sound financially
just illiquid right now.

The question becomes how many of these
real estate bonds are backed by junk real estate, how greedy were the banks?

I fear it is VERY HIGH. And in a bailout high risk for the US Taxpayer.

If the banks were honest and didn't send trash real estate bonds out to the public then these are fire sale prices.

But I don't trust the Bank Corps,
40% intrest rate credit cards,
re writting the bankruptcy laws to allow pursuit into the old folks homes
for payments.

Naaa their crooks

Gerald
If only someone had warned us about the sub-prime problem and how it could lead to
money market crash?

The the Feds could have been prepared.................1/22/2008 02:14:00 PM

If someone had warned us we would NOT have to be in a crisis mode in congress right now.

.