Thursday, May 21, 2009
some of you may know what Moody's is, but its basically like equifax. You need to buy a car, the bank asks equifax what your credit score is. If a corporation wants to buy a company, the bank asks Moody's. Basically.
Now a goverment is a corporation, and England is about to get bitch slapped by Moody's. England is losing its AAA credit rating, and that will create a cascading effect, that Im not going to pretend to understand.
But it will affect the US.
Going to be interesting.
Tuesday, May 19, 2009
Thursday, May 7, 2009
as Zero Hedge, the best source of news online , puts it,
"One picture is worth a thousand propaganda machines"
Big day it is. Your going to hear all about the Stress Tests on the news tonight. How they have shown most banks to have enough money, and a few to be solid. How this is a signal that the end of the recession is around the corner.
Its all a fabrication. Dont trust me?
Watch this little worm speak, and really listen to what he says. Look for things like "end of uncertainty" followed by "status of some banks uncertain".
all kinds of BS like that. They know your not paying attention, they can say whatever they want!
You also have the Bond market auctions today.
Look for yourself
Lets say you need money, from a friend or a bank. save the whole subprime mess, your friend and or a bank will assess how well you will be able to pay it back.
so, "hey bud, can I borrow a 20?" Bud thinks it over, "sure." its only twenty bucks. Now fast forward years later, and you have borrowed 2 trillion dollars. 2 trillion dollars is a stack of 100 $ bills 140 miles tall by the way. You say hey bud, can I borrow 20, but instead of that nice house you used to live in, you live in a trailer. you pocketing that cash? no.
and if we cant sell a 30 year treasury, we will be lucky to live in trailers.
We need to borrow money. We dont make anything here. And thats why those jobs are never coming back.
Tuesday, May 5, 2009
The Stress Test results are going to be announced thursday, and its going to be bad. But everyone at first will act like its manageable
. Then the bottom is going to drop out.
Banks are already insolvent
Some of these Banks had record earning the first quarter right??? Now they just need billions more to be well capitalized so they dont fail?? How many forclosures are out there, that the banks havent put on the books yet? How many houses worth 150,000 are out there, that the bank is holding 500,000 on? Maybe 2 trillion worth?
How bad will it be? I dont know. 2800 is the guess, the guy I trust says. we will see.
The real problem aside from money, is you have been lied to. Lied to about everything. Dont watch CNBC, aside for funny things like that clip. Dont just read the headlines and editorials in the NYT's. Really dig into the info, the truth is hidden in plain sight.
What people dont understand is that our entire way of life is built on cheap credit from China. well,
China is done!
Then there is Dennigers take:
"Tuesday, May 5. 2009
Posted by Karl Denninger in Banking System at 09:53
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Stress Tests: What's That Light?
The continued refusal by our government to put these financial institutions where they belong - in front of a bankruptcy judge where priority is honored, the capital structure is crammed down and the assets sold off for whatever the market will bear - is leading us inexorably toward economic Depression. Both President Bush and now Obama are proceeding under the (false) hope that if they can hold things together for a little while the economy will turn and it will all be ok.
The "green shoot" people are all predicting positive GDP in the 3rd and 4th quarter. What they're not talking about is what the real number was for the 1st Quarter - there was a trade balance shift credit in there worth nearly 3%; take that back out and we weren't -6% annualized, we were -9%!"
Denniger has been right all along.