Show-me Account Talk

Status
Not open for further replies.
Sort by newest Sort by date
Think about it this, Whitney talks about credit cards are being used to manage consumers cash flow problems.................................. Banks are shutting down those credit lines.................... Consumers will STOP spending because the tap will be shut off and they will be out of work. How's that for a rally maker. If homeowners think they will loose more value in their homes they will spend even less.:blink:

I'm shorting this rally. See how the last three days are keeping just below the 50 dma and the last two are inside days. That means no break out strength.

Also, look at all the big banks and financials on a chart. All up against the 50 dma too.
 
AIG Is Said to Pay $18.7 Billion to Goldman, SocGen for Swaps

By Hugh Son
Dec. 10 (Bloomberg) -- American International Group Inc., the insurer rescued by the U.S. government, made $18.7 billion in payments tied to credit-default swaps to banks including Goldman Sachs Group Inc. and Societe Generale SA, according to a person briefed on the situation.
The insurer sent the money to the banks in the three weeks after AIG’s Sept. 16 bailout, said the person, who declined to be named because the information is confidential. The banks bought the swaps from AIG as protection on mortgage securities that plunged in value.
“The AIG bailout wasn’t meant to help the American taxpayer,” said Janet Tavakoli, president of Chicago-based Tavakoli Structured Finance. “What this has ended up doing is helping the investment banks who had AIG as counterparty.”
The payments may protect the biggest U.S. and European banks from investment losses tied to the collapse of the subprime mortgage market. AIG’s expanded $152.5 billion government rescue included funds to buy the underlying assets of swaps so the contracts could be retired. The insurer has won agreements to terminate $53.5 billion of the swaps.
The largest recipients were Societe Generale, which got $4.83 billion, Goldman Sachs with $2.97 billion, Deutsche Bank AG with $2.92 billion, Calyon Securities with $1.89 billion and Merrill Lynch & Co. with $1.32 billion, the person said.
Nicholas Ashooh, an AIG spokesman, Michael Duvally of Goldman Sachs, Ted Meyer of Deutsche Bank and Danielle Robinson of Merrill Lynch declined to comment. Jolyon Barthorpe of Societe Generale and Bertrand Hugonet of Calyon didn’t return calls.
AIG’s payout was reported earlier today in the Wall Street Journal.
To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net
Last Updated: December 10, 2008 16:18 EST
Click to expand...

http://www.bloomberg.com/apps/news?pid=20601087&sid=awTKDqalyQVc&refer=home#
 
How do you like those apples? How about 10 investors buys CDS on a piece of property for $1 million. Cheaper for the gov. to buy the $1 million property than pay the 10 $1 million pay offs.

Your tax dollars at work and I do not think this is tarp money and AIG ain't no bank. Who's next?
 
You think this crap is over, hell no! Does Cerberus need a bail out? Hell no! They have a ton of cash but former Bush Treas. Sec. John Snow is the head of Cerberus. Dan Quayle is a lobbyist for them and the head of one of their OS units.

We are getting took again.

Back to AIG, once they pay everyone off do you think they will ever turn a profit or just be shuttered at a substantial loose to the taxpayers.
 
Dec. 10 (Bloomberg) -- American International Group Inc., the insurer rescued by the U.S. government, made $18.7 billion in payments tied to credit-default swaps to banks including Goldman Sachs Group Inc. and Societe Generale SA, according to a person briefed on the situation.
The insurer sent the money to the banks in the three weeks after AIG’s Sept. 16 bailout, said the person, who declined to be named because the information is confidential.
Click to expand...

I guess thats the answer to my question in this link...http://www.tsptalk.com/mb/showpost.php?p=190830&postcount=2216
 
Foreclosures dip - but hold the applause

November foreclosure filings dropped 7% from October, but that may be the calm before the storm.

By Les Christie, CNNMoney.com
December 11, 2008: 4:49 AM ET
NEW YORK (CNNMoney.com) -- Foreclosure filings dropped 7% from October to November, according a report released Thursday. But don't break out the bubbly. The tide of foreclosures may be ebbing now, but the flood isn't over yet according to analysts.
"There are several indications that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months," James Saccacio, RealtyTrac's CEO, said in a statement.
November foreclosure filings fell to 259,085, or one for every 488 households in the nation, according to the latest report from RealtyTrac, the online marketer of foreclosure properties. That was down from October, but up 28% from November of 2007.
A total of 78,179 families lost their homes during the month, down 8% from October when 84,868 homes were repossessed by lenders. A total of 1,014,618 homes have been lost to foreclosure since the housing crisis hit back in August, 2007.
November's decline in foreclosure filings is deceiving, according to Rick Sharga, RealtyTrac's vice president of marketing, because much of it is attributable to temporary foreclosure prevention efforts.
"The reduction is because Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) both announced moratoriums on foreclosures, while major lenders also put the brakes on foreclosure proceedings," said Sharga. "State moratoriums are also delaying the onset of foreclosures. But all that will only delay, not avoid them."
Sharga expects to see another good report in December, but a significant spike in foreclosure filings come January.
Negative indicators
The economic climate is rapidly deteriorating and job losses are soaring - factors that are sure to exacerbate the housing crisis. And various forward-looking indicators show more trouble ahead.
For instance, the number of homeowners who fell behind on their mortgages hit a record 6.99% in the third quarter, up from 5.59% a year ago, according to the Mortgage Bankers Association.
Last week, Credit Suisse issued a report forecasting 8.1 million foreclosures by the end of 2012, accounting for 16% of all U.S. mortgages.
Meanwhile, evidence is mounting that current foreclosure-prevention efforts are falling well short of the mark.
A Dec. 8 report from the U.S. Office of Thrift Supervision stated that more than half of the borrowers who had their mortgages modified in the first half of 2008 are already delinquent again. Many of these delinquencies will turn into foreclosures in the coming months.
"A lot of those modifications are simply pushing back principal payments," said San Khater, senior economist for First American CoreLogic, a financial data and analytics company. "They're not reducing the level of debt. Many homeowners are in such bad shape that only much more drastic or radical modifications will help them."
To be viable, Khater added, most modifications will require lenders to make a significant principal reduction. And for the most part, that's not happening.

http://money.cnn.com/2008/12/11/real_estate/foreclosures_sink/?postversion=2008121104
 
http://www.reuters.com/article/topNews/idUSTRE4BA1OG20081211

Recession to worsen, deflation a risk: report

Thu Dec 11, 2008 4:25am EST

By Jim Christie
SAN FRANCISCO (Reuters) - The "nasty" U.S. recession will tighten its grip next year as unemployment rises and weak home and stock prices imperil consumers, finance firms and debt-laden businesses, a UCLA Anderson Forecast report released on Thursday said.

Additionally, a sustained retreat in prices for goods and services is a very real possibility that would further drag on the economy, according to the forecasting unit's report.

"Where only last quarter we were worried about inflation, we are now worried about its very rare opposite: deflation," the report said. Falling prices would cut demand and discourage employers from hiring.

"The record collapse in oil prices has brought with it welcome relief to motorists throughout the country and an effective tax cut of $440 billion in the form of a lower oil import bill," the closely-watched report said. "Nevertheless the swift fall in oil prices is now lowering the absolute level of consumer prices and bringing with it likely declines in nominal GDP over the next three quarters."

Where the forecasting unit in summer had projected a "subprime" outlook for the U.S. economy through the end of next year with growth at just above 1 percent, it now sees the economy facing a winter of discontent.

"The news from the economy is bad," the report said. "The recession that we had previously hoped to avoid is now with us in full gale force."
 
Show-me said:
Foreclosures dip - but hold the applause
November foreclosure filings dropped 7% from October, but that may be the calm before the storm.
Click to expand...
Show-me,
On this subject, the following article may be of interest...

Wednesday, December 10, by Phil Keating:
Some of Miami's homeless have found themselves a novel way to get a decent roof over their heads — inside vacant, foreclosed homes. And although it's against the law, the city has yet to act.
Marie Nadine Pierre and her four children moved into a four-bedroom house three weeks ago, which is actually owned by Lehman brothers. The previous owners defaulted on their mortgage. For months, the property has sat empty. Even at the drastically reduced price of $160,000 from the $460,000 for which it sold, no one’s bought it. For the Pierre’s, the house is a clean and spacious home for them, a world away from conditions at the local shelter. "This has a walk-in closet and it has a bathroom," said Pierre. "It's like a blessing. Its like all the holidays come together at once."

Pierre was able to get into the home with the help of Take Back The Land, an anti-poverty organization that matches government-owned and foreclosed homes with the homeless.
"We think that vacant properties, when there are people living outside, is not good use of land," said Max Rameau, co-founder of Take Back The Land.
Florida, especially the Miami area, has been one of the states hit hardest in the U.S. property downturn, largely due to over-building and speculation.

Although the activity is illegal, it has yet to be enforced by authorities. A spokeswoman for the city of Miami told FOX News that it's aware of the situation, but no arrests have been made, adding that authorities only react to squatters if someone complains.

"Unless the owner of the property calls to complain, we have no way of knowing someone is squatting there," said Miami City spokeswoman Kelly Penton.
And, for now, the neighbors — those legitimately living there — aren’t saying a word.
Proponents of the organization say it vets the "squatters" and helps hold the value of the neighborhood because the homes are no longer abandoned or turned into drug dens. In addition, the group informs the neighbors of what exactly is going on. [more]
http://www.foxnews.com/story/0,2933,465146,00.html :blink:
 
Hey Show-me, what do you think of these guys:

8 really, really scary predictions
Dow 4,000. Food shortages. A bubble in Treasury notes. Fortune spoke to eight of the market's sharpest thinkers and what they had to say about the future is frightening.
Nouriel Roubini
Known as Dr. Doom, the NYU economics professor saw the mortgage-related meltdown coming.

We are in the middle of a very severe recession that's going to continue through all of 2009 - the worst U.S. recession in the past 50 years.It's the bursting of a huge leveraged-up credit bubble. There's no going back, and there is no bottom to it. It was excessive in everything from subprime to prime, from credit cards to student loans, from corporate bonds to muni bonds. You name it. And it's all reversing right now in a very, very massive way. At this point it's not just a U.S. recession. All of the advanced economies are at the beginning of a hard landing. And emerging markets, beginning with China, are in a severe slowdown. So we're having a global recession and it's becoming worse.

Things are going to be awful for everyday people. U.S. GDP growth is going to be negative through the end of 2009. And the recovery in 2010 and 2011, if there is one, is going to be so weak - with a growth rate of 1% to 1.5% - that it's going to feel like a recession. I see the unemployment rate peaking at around 9% by 2010. The value of homes has already fallen 25%. In my view, home prices are going to fall by another 15% before bottoming out in 2010.

For the next 12 months I would stay away from risky assets. I would stay away from the stock market. I would stay away from commodities. I would stay away from credit, both high-yield and high-grade. I would stay in cash or cashlike instruments such as short-term or longer-term government bonds. It's better to stay in things with low returns rather than to lose 50% of your wealth. You should preserve capital. It'll be hard and challenging enough. I wish I could be more cheerful, but I was right a year ago, and I think I'll be right this year too.

By Beth Kowitt, Jon Birger and Brian O'Keefe

For the other 7 predictions:
http://money.cnn.com/galleries/2008/fortune/0812/gallery.market_gurus.fortune/index.html
 
This will effect the market also, huge black hole.

http://www.marketwatch.com/news/sto...3DBD-688D-47D4-B7F8-D257A018405F}&dist=msr_14


Madoff arrested in alleged Ponzi scheme Ex-Nasdaq chairman, investor charged with securities fraud, FBI says

By Alistair Barr & Ronald D. Orol, MarketWatch
Last update: 8:48 p.m. EST Dec. 11, 2008
comments.png
Comments: 467

SAN FRANCISCO (MarketWatch) -- Bernard Madoff, former Nasdaq Stock Market chairman and founder of Bernard L. Madoff Investment Securities LLC, was arrested and charged with securities fraud Thursday in what federal prosecutors called a Ponzi scheme that could involve losses of more than $50 billion.
Click to expand...
 
Status
Not open for further replies.

Similar threads

V
Valleymd blog (the international question)
Replies
2
Views
199
tsptalk
tsptalk
tsptalk
January 2025 AutoTracker Winners!
Replies
1
Views
300
rangerray
rangerray
TommyIV
  • Article Article
TSP Talk Weekly Wrap Up
Replies
0
Views
32
TommyIV
TommyIV
tsptalk
December 2024 AutoTracker Winners!
Replies
2
Views
390
Skooby
S
TommyIV
July Contest In Progress
Replies
5
Views
2K
TommyIV
TommyIV
Back
Top