Spin, Steinway or AIG?
The latest "happy daze" spin passed on by a Naybob of Realty with the subject line...AMAZING! EVEN IN CRISIS THERE IS GOOD...
containing some "cheerful" news through a recent television interview conducted on Monday, September 15...
between the ever truthful Fox News Network and CMPS Chairman Gibran Nicholas...
of course, spun into your home by the realtors Pravda, Rismedia...
Wall Street Crisis, Surprise! Good News For Consumers
"Benefits" include:
1. Greater Negotiating Power on Underwater Mortgages.
2. Profit on Sale of Financial Assets Acquired through Government Takeovers.
3. Low Mortgage Rates.
Particulary disturbing quote: "The Fed stands to make over 11% interest (LIBOR + 8.5) on the $85 billion line of credit they extended to AIG yesterday.
Also, through the 79.9% equity stake the government now has in AIG...
taxpayers stand to make a profit when the government sells AIG’s assets in the coming months in order to repay the loan."
Furthermore, and demonstrating a complete lack of real world knowledge...
Nicholas: “Even if you have an adjustable rate tied to the LIBOR or Prime index,
these rates should also remain low well into 2009 because they closely track the Fed Funds rate that is controlled by the Federal Reserve."
The Nattering One muses... I guess Mr. Nicolas missed the part where the government will only profit if
AIG DOES NOT GO OUT OF BUSINESS AND CAN REPAY THE LOAN. Remember, NO ONE wanted to make them the bridge loan, doesn't that tell you something?
Further, we assume that Mr. Nicolas must have been out to a realtors pep talk luncheon...
when an event occured that demonstrates the Feds total lack of control over market rates...
LIBOR and the TED SPREAD BALLONED 3 to 4% over the current Fed funds rate, causing interbank lending to completely seize...
Newsflash for Mr. Nicolas and anyone stupid enough to believe this pap...
40% of ALL prime ARMS are tied to LIBOR. Meaning, should this heightened level of risk premiums persist, higher interest rate resets will be on hand.
Further, the Treasury is selling more bonds to finance the Feds activities, more bonds, lower bond prices, higher yields, higher interest rates...
In conclusion, if the TED spread (which is an alternative measure of intra bank trust) says that banks don't trust each other and won't lend to each other...
What makes you think, they will trust and lend to you?
Amazing, indeed. Another FOX fluff piece putting a cheerleaders spin on what will be a complete disaster...
In regards to the above captioned and to be found filed under, and I could not have said it better... from a close friend of mine...
an experienced professional with over 25 years of service in an important environmental and technical field...
Bert is 55 and now unemployed for six months... unceremoniously shown the door...
because some greedy litlle prick MBA thought he could get more bang for his buck from a cheaper, younger, inexperienced source...
In the course of my current search for employment...
I have turned down numerous unsolicited offers to interview for positions in the financial services and insurance industries.
Despite my personal refusals to become involved in those industries...
Uncle Sam has now forced me into financial participation in both of those sectors by using my tax dollars to bail out firms that should have rightfully been allowed to fail regardless of the perceived consequences.
In the last presidential election, I asked three questions that remain relevant today:
Where is Osama Bin Laden?
Where are the weapons of mass destruction that were given as a primary reason for our invasion of Iraq? and;
Where are our jobs?
I expect to be asking those questions again four years from now.
Bert watching for that Piano.....
Truly Amazing, indeed. Keep your eyes peeled to the sky, it could be a name brand... Steinway or AIG?
containing some "cheerful" news through a recent television interview conducted on Monday, September 15...
between the ever truthful Fox News Network and CMPS Chairman Gibran Nicholas...
of course, spun into your home by the realtors Pravda, Rismedia...
Wall Street Crisis, Surprise! Good News For Consumers
"Benefits" include:
1. Greater Negotiating Power on Underwater Mortgages.
2. Profit on Sale of Financial Assets Acquired through Government Takeovers.
3. Low Mortgage Rates.
Particulary disturbing quote: "The Fed stands to make over 11% interest (LIBOR + 8.5) on the $85 billion line of credit they extended to AIG yesterday.
Also, through the 79.9% equity stake the government now has in AIG...
taxpayers stand to make a profit when the government sells AIG’s assets in the coming months in order to repay the loan."
Furthermore, and demonstrating a complete lack of real world knowledge...
Nicholas: “Even if you have an adjustable rate tied to the LIBOR or Prime index,
these rates should also remain low well into 2009 because they closely track the Fed Funds rate that is controlled by the Federal Reserve."
The Nattering One muses... I guess Mr. Nicolas missed the part where the government will only profit if
AIG DOES NOT GO OUT OF BUSINESS AND CAN REPAY THE LOAN. Remember, NO ONE wanted to make them the bridge loan, doesn't that tell you something?
Further, we assume that Mr. Nicolas must have been out to a realtors pep talk luncheon...
when an event occured that demonstrates the Feds total lack of control over market rates...
LIBOR and the TED SPREAD BALLONED 3 to 4% over the current Fed funds rate, causing interbank lending to completely seize...
Newsflash for Mr. Nicolas and anyone stupid enough to believe this pap...
40% of ALL prime ARMS are tied to LIBOR. Meaning, should this heightened level of risk premiums persist, higher interest rate resets will be on hand.
Further, the Treasury is selling more bonds to finance the Feds activities, more bonds, lower bond prices, higher yields, higher interest rates...
In conclusion, if the TED spread (which is an alternative measure of intra bank trust) says that banks don't trust each other and won't lend to each other...
What makes you think, they will trust and lend to you?
Amazing, indeed. Another FOX fluff piece putting a cheerleaders spin on what will be a complete disaster...
In regards to the above captioned and to be found filed under, and I could not have said it better... from a close friend of mine...
an experienced professional with over 25 years of service in an important environmental and technical field...
Bert is 55 and now unemployed for six months... unceremoniously shown the door...
because some greedy litlle prick MBA thought he could get more bang for his buck from a cheaper, younger, inexperienced source...
In the course of my current search for employment...
I have turned down numerous unsolicited offers to interview for positions in the financial services and insurance industries.
Despite my personal refusals to become involved in those industries...
Uncle Sam has now forced me into financial participation in both of those sectors by using my tax dollars to bail out firms that should have rightfully been allowed to fail regardless of the perceived consequences.
In the last presidential election, I asked three questions that remain relevant today:
Where is Osama Bin Laden?
Where are the weapons of mass destruction that were given as a primary reason for our invasion of Iraq? and;
Where are our jobs?
I expect to be asking those questions again four years from now.
Bert watching for that Piano.....
Truly Amazing, indeed. Keep your eyes peeled to the sky, it could be a name brand... Steinway or AIG?
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