Howdy Vorts,
Ever get the feeling the govmnet may be stretching the truth about subprime
mortgage actual losses. Do the math of actual true losses to the banking and
lending industry on foreclosures. Using Detroit as an example,, figures
reported show 10,000 homes were in the loop last quarter for foreclosing..
figure the actual loss to the lender equates 150k per home.. that's 1.5 bil
loss. Multiply that figure across the nation and an estimate of under 300 bil
can be a reasonable combined loss to all lending agencies. The actual loss is
far below that estimate because of the asset value is tangible.
So far the Fed has pumped nearly one trillion into "saving" the economy, plus
lower the interest rates which adjust to some 2.3 trillion alone. All blamed
on the subprime mess.. it ain't true!
Where did the money go? The losses claimed by news reports DO NOT ADD UP.
Looking at Bear Stearns , we learn that money people were borrowing 90% of
stock value to buy stocks and securities. Some reports indicate the fast buck
guys were putting up 1 mil to finance a bil in stock purchases. making a
killing on the spread and repeating the process.. margin calls put the
speculators in real jeapardy and as the pyramid began to topple, people like
Bear Stearns wound up with some 500 billion in unrecovered loans outstanding
and stock prices plummeting when the Dow dropped from 14 to 12.
Anyway you figure there was some 5-25 trillion losses with a 2000 point Dow
spread.
This is where the losses are and not the subprime.. sumbuddys blowing smoke and
it's name is chairman budinski.
Turning the SEC over to the Fed is tantamount to the fox guarding the
henhouse.. or letting the Houston welfare office keep their own books.
Meanwhile back at the ranch, our employees are enrolled in a supposed "annuity
plan" developed by Fortis Benefit Guaranty Corp.. well.. err.. it seems this
was gerramandered into a sorta 401 k instead of a annuity insurance when
Fortis went to Holland and sold the pig to Hartford Insurance, and now to
Edward Jones.. and its keyed to the mutuals. A simple statement on actual worth
of a typical " annuity" with contributions of 2,000.00 per year ( the company
forks over the money) now looks like the us dollar vs the Euro.
And the solution offered by the US govment.. lets combine and put everything
under the Fed, a private business owned by 12 banks.. well used to be US banks
but..
The reason?? because the Fed has demonstrated thier ability to think above the
problem.. which to Texans mean throw enough money at the problem to create a
bigger problem and forget the first.
Richard
